Bonehead Bonuses at AIG
The receiving of bonuses for failure at AIG sets the standard for political tone-deafness. The executives there, as well as in the Whitehouse, missed the meme. The people are mad as hell--on both sides of the aisle. Sure the politicians across the spectrum are posturing hypocrites, many of whom took money from AIG, but the public rage is real.
Conservatives are furious that they were rushed into these bailouts. "Pass this now" said Poulson "or the Market will tank by 30%." They did and it tanked 50%. "Pass this stimulus now or unemployment will go to 8%," urged Geithner. They did, and it went to 10%. We rightly question if anyone knows what we're doing. Meanwhile liberals wonder why it is impossible to force financial executives to renegotiate contracts but quickly demand give-backs of auto workers and other union people? Employees who shower before work are treated as a protected class, as against those who shower after their shift. They get the shaft.
But there is good news here. AIG for all its sins and stupidity, its tone-deafness and incompetence, has done something that Obama only promised, but they delivered. AIG has brought us together in anger and disappointment. It's almost worth the price we're paying. Almost.
With all the grand standing over AIG and the bonuses we must not forget the originators of this problem. It falls squarely on the Democrats for blocking any oversight that was put to a vote, and in particular to Senator Dodd who put this into the stimulus package.