Posts tagged economics
Everyone is putting up their 2 cents about the AIGFP bonuses. So here is my little 2 cents — 1 cent, really, since I don’t have time to pontificate:
- It is pretty bad because these CDOs and credit default swaps are going to destroy the world economy and AIG was the primary peddler of these little toys. There is also a huge scam going on right now with the secondary recipients that makes me cringe.
- However, these were contractually given their bonuses.
- It is explicitly unconstitutional in the United States for Congress or any legislative body to levy an punitive tax to a specific group.
- They should have their bonuses.
- But nothing says the names and size of reward cannot be published on the front page of the Washington Post.
- I agree with Planet Money — the Administration has bigger issues. They should not even give lip service to any issue less than, say, $10 billion right now. $100 million is a tiny drop in an enormous river. Let it go, let the talking heads have outrage, move on.
This is a brilliant post from yet another happily sarcastic economist:
Follow with joy how AFM turned into Wyeth because drug margins are so much better than pots and pans margins. How TARP money went to financing this merger, how Pfizer will lay off thousands of people — funded by TARP! — to maintain its dividend.
It’s a laugh a minute.
I am attempting to figure out, and failing, what the Senate Republicans got out of blocking the $14B bailout for the Big 3 from coming to the Senate floor.
It was okay to hand over $700 billion to financial institutions and AIG with no strings attached so, say, completely worthless institutions that should die and die horribly like the insanely crappy Capital One can go acquire a very nice bank like Chevy Chase at the taxpayers expense. It is okay that AIG sends executives on junkets and gives out “retention bonuses” (who exactly would ever hire an AIG executive?) with taxpayer money. They’re Republican Senate Donors!
But no, it is the evil unions who would not suddenly, without any negotiations, give up huge chunks of benefits and pay for the workers so no bridge loan. I would like Senate Republicans to be forced to give up pay and benefits with no negotiations.
And of course, the US Treasury is handing the money out of TARP because they have to. The alternative is GM goes under the first week in January and unemployment spikes to 10% and entire Midwestern states are wiped off the map.
I am so full of froth I have no idea where to start.