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Ya-ta Boy · Joined: 16 Jan 2003 Location: Established in 1994

I don't usually have a lot of use for Chuck Grassley, one of the senators from the great but unfortunately non-sovereign state of Iowa, but I had to chuckle when he said that. (It's somewhere on the net, but the clip I saw didn't have an address to copy.)

Stephen Colbert does a thing with a real live pitchfork here: http://www.comedycentral.com/colbertreport/full-episodes/index.jhtml?episodeId=221834

(First segment)

It seems the Dems and the GOPers are in a neck and neck race to see who can be more populist than the next guy. This could be highly entertaining. Here's one of my favorite blogs on the issue:

In New Terror Video, AIG Demands Huge Ransom from U.S.
http://www.huffingtonpost.com/andy-borowitz/in-new-terror-video-aig-d_b_175094.html

ontheway insists that these AIG guys are the ones who should be left in full control of the economy. Shocked

The term 'robber baron' was not just concocted out of thin air. I'm firmly convinced that things would be better now if we'd had about 90 minutes of peasants dismembering living bodies and a few Wall Street fat cats strung up to the nearest lamp post last September.

Adam Smith was right when he said an economy run on the principle of self-interest was the most dynamic, but he also said that greed needs to be controlled by outside forces. Unfortunately, we had the misfortune to have a Hollywood star (3rd class) fast-talk the majority into believing that the regulators were the problem.

This is a more practical solution to the problem:
How to Stop AIG's Bonuses

"Remember that this is a firm that is 79.9% owned by the United States government. It is therefore quite possible to abort this outrage by decisive exercise of public authority. Within existing law, there is more than one way to do it, but a direct solution is readily at hand: Firstly, the US trustees in charge of the firm must immediately instruct the corporate treasurer to make no payments of any bonuses. They also need to order him to issue stop payment orders on any checks that fly out the door at the last minute, as with Merrill Lynch. Then the trustees need to split off the derivatives unit from the rest of the firm and separately incorporate it. This step leaves AIG's other businesses free to operate as usual. If the recipients of the bonuses refuse to waive them, then the derivatives unit should at once be thrown into bankruptcy, terminating all obligations to pay them. Right now, press reports suggest that the firm's top management waited until the last minute to inform the government of what was happening. AIG CEO Edward Liddy, accordingly, should be asked to resign at once, for the sake of public confidence and to send a clear signal that gaming the system is unacceptable. It is also past time for an investigation of the validity of AIG's past accounting and securities disclosures and its executive compensation program by the Office of Thrift Supervision, the Securities and Exchange Commission, and the FBI."

http://www.huffingtonpost.com/william-black-tom-ferguson-rob-johnson-walker-todd/how-to-stop-aigs-bonuses_b_175351.html

Populism is not an entirely bad thing. After all it offered this in 1892: "the abolition of national banks, a graduated income tax, direct election of Senators, civil service reform, a working day of eight hours and Government control of all railroads, telegraphs, and telephones." [Wiki] A mixed bag, to be sure, but some good ideas in there. Hmmmmm....what might the populist public come up with this time around? No one who has ever, ever, ever appeared in a Hollywood movie can run for president...

ManintheMiddle · Joined: 20 Oct 2008

Works for me, the lousy bastards.

But in all serious, let these top execs at AIG make their case before a Congressional hearing in full public view. Let's see if they have any balls.

Ya-ta Boy · Joined: 16 Jan 2003 Location: Established in 1994

A congressional committee is all well and good, but for some of these people, as Jim Cramer said last week, should be hauled before a judge. I'd prefer the judge's name be Lynch, but be that as it may.

ontheway · Posted: Tue Mar 17, 2009 7:56 am Post subject:

Adam Smith and I would have let AIG go bankrupt.

We would have abolished the FED and put the country on a 100% gold standard.

The depression would be over.

The AIG execs would be looking for work.

Yata, the problems you lament were, once again, created by the socialism that you love.

mises · Joined: 05 Nov 2007 Location: retired

Forget about the bonuses. Send in the SEC and FBI with teams of career-climbing professionals and comb the books.

This would do more for market stability and recovery than TARP et al.

Gopher · Joined: 04 Jun 2005

Extremist demagogues.

The govt should recover all moneys forthwith from AIG. Use this as an example to all others. The govt should then require "no bonuses/absolutely zero bonuses" to any and all who request and accept taxpayer-funded bailouts henceforward.

He is supposed to be "no drama Obama." This is what he should do then. Enough with the Congressional investigations, the hanging judges, the suicides, and other hyperboles. The end.

Are we looking for good govt or good posturing and grandstanding?

mises · Joined: 05 Nov 2007 Location: retired

AIG is a gigantic ponzi fraud. The entire financial end of the company is a slight of hand, an accounting trick.

Further, the taxpayer money is gone Gopher. It was paid out to the counter parties on the OTC derivatives contracts. AIG doesn't have more than a small fraction of that money left. Only 43.5% of this money is even left in the United States, and much of that is likely now on an off balance sheet in some sunny island.

mises · Joined: 05 Nov 2007 Location: retired

mises · Joined: 05 Nov 2007 Location: retired

And who are on the other end of those contracts?

JongnoGuru · Joined: 25 May 2004 Location: peeing on your doorstep

The fun starts on Slide 17.

http://www.aig.com/aigweb/internet/en/files/AIG%20Systemic%20Risk2_tcm385-152209.pdf

ontheway · Posted: Tue Mar 17, 2009 11:46 am Post subject:

bucheon bum · Joined: 16 Jan 2003

NY AG Andrew Cuomo gets into the mix. More bonus info comes out.

Ya-ta Boy · Joined: 16 Jan 2003 Location: Established in 1994

Ya-ta Boy · Joined: 16 Jan 2003 Location: Established in 1994

Yep, just as I thought. Grassley is up for re-election in '10. That goes a long way in explaining two days in a row of headline grabbing quips:

http://www.huffingtonpost.com/2009/03/17/chuck-grassley-aig-suckin_n_176012.html

"On Monday, Sen. Chuck Grassley (R-Iowa) got in some trouble for saying that AIG executives should resign or "commit suicide." On Tuesday he clarified, claiming that he "obviously" didn't mean the suicide part literally.

Now Grassley's made another eyebrow-raising comment about the insurance group, but this one might be more popular. At a press event today, told reporters that it's "irresponsible for corporations to give bonuses" when they're "sucking the tit of the taxpayer." Watch:

Gopher · Joined: 04 Jun 2005