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Wednesday, June 10, 2009

AIG should not have been bailed out.

AIG has received over $170 billion in public money.. AKA the "bailout", TARP and also loans from the FED..

They are getting some grief for paying bonuses.. BIG DUH!
The 170m payed as 'retention' bonuses' are defended as a contractual obligation.
'Retention bonuses', REALLY, you think that it is an acceptable business model to reward those in charge of this tremendous collapse .. REALLY?
Some people at AIG did their job and may have deserved bonuses but the overall picture is so bad that you have to ask why should managers or the CEO deserve anything except a pink slip?

In 2008 AIG/Valic became AIG Retirement and now AIG has rebranded itself yet again as AIU since receiving bail out funds and begins to divest itself to pay its debts to the US Government.

AIG (or AIU) needs a new image and they have a list of PR firms hired to polish this turd and one stand out firm is Burson-Marstellar.
Rachel Maddow reported them as the "PR firm from Hell".. "When evil needs a PR firm"...
The client list is a who's who of dictators, environmental assassins and such.

At first they (BushCo) picked Henry Paulson (the prick) to orchestrate dispersal of TARP funds part 1 , a portion of which went to AIG who then paid 37b to Goldman Sachs, among others ...
And then came Geithner to direct part 2.
Both of these shills at one time worked for Goldman Sachs.

Can you say Conflict of Interest?.. Yeah, knew you could..

You might ask why would Congress agree to pour billions into AIG rather than let them fail?
"Too big to fail" is the lamest excuse to bailout a horribly mismanaged system of banks and insurance but AIG insures the Congress pension trust, so we know who's interests are being protected here.

After receiving the second installment in bailout funds the AIG execs blow $400k on a week long retreat to a luxury resort and spa in California... Feed the greed..

Apparently they haven't received enough money since clients of VALIC "Thrift Plan" received a letter the end of MAY stating that the "quarterly participant fee" has been increased from $9 to $20 per quarter.

So there was an insured investment plan that pretty much morphed into unregulated gambling, they lost, the economy and markets tanked, our 401s, 403s and such went into the toilet, they were bailed out with taxpayer money and then they raised their fees because of "decreased revenue received from the fund companies in the plan caused by the recent decline in financial markets".

Pigs get fat and hogs get slaughtered..
Any thoughts?


more on AIG...

Matt Taibbi shines a bright light on Goldman Sachs and they look guilty as hell..

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Comments:
the problem I see with any of the bail outs is that it appears to be throwing good money after bad. Companies fail, it is a fact of life. If you are cooking and you leave the oven unattended, things will burn. You dont put more cookie dough on top of the burnt offerings. You throw them out and start over. Wall street was left unattended, they burned and every last one of them should have lost their jobs. I lost my job of 10 years as a direct result of the mis-management and greed. No-one bailed me out. I went out and found a new job and started over.
 
I liked the cooking metaphor and yes Wall Street was left "unattended", so who is to blame?
Wall Street for it's all consuming greed or the lack of representation in Washington that left Wall Street "unattended"?

Matt Taibbi wrote a good article that shines a bright light on Goldman Sachs. And they appear to be the most heinous of all the culprits.
http://trueslant.com/matttaibbi/2009/06/18/the-greatest-non-apology-of-all-time/

Thanks for taking time to comment.
 
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