- AIG failed primarily because of the derivatives trading. This is not unique to AIG, it hit the entire industry.
- AIG has taken $165+ billion (BILLION) in taxpayer money to the point that the taxpayers now own 80% of AIG.
- Now that we’re in for 80%, do we want it to fail? NO!
- The derivatives traders in the section responsible for all the losses are being villified (rightly or wrongly), and have no desire to stick around AIG, and in fact AIG would want them to go under normal circumstances because of the hardship they caused.
- Having said that, they are the only ones who really know how to undo what they did.
- So I ask again, now that we own 80% of AIG, do we want it to fail? NO!
- Rather than let these guys leave, AIG is paying them a retention “bonus” (read: FEE) to stay on until their book is clean and they’ve gotten rid of their mess.
- I would much rather spend $165M on these people to clean up the mess than lose $165B in taxpayer money because they let the only people who could clean up the mess leave.

Hell, most could use the “bonus” to pay for security with all the threats they are getting from it. If anything, the public outcry will force their backs up at the wrong time and they’ll not only say the bonus isn’t worth sticking around for, and say screw you and leave anyway. THEN what is AIG going to do with $1.6T in derivatives on the books they have no idea how to unload?

We’re beyond the point of should AIG fail since we’re invested to the hilt in this company now. People need to take a reality check.

If you want to talk about contracts and enforcing contract law then you need to enforce penalties for fraud in contracts. Like liar loans, misrepresenting the ability to pay when doing a credit default swap, etc. Funny those contracts were broken no problem, why the change of heart now?

PUNISH THE GUILTY!

-Mike

You need to study up on “mortgage cram down”. Breaking of contracts is exactly what Obama and the nut jobs in congress are going to do. The free market as we know it is toast!

we can have a silent revolution by pulling all of our cash out of the banks and watching them fail from insolvency. we can also sell all of our shares in the stock market and watch it fail. transfer all of your funds in your 401K out of the market and into the safest investment. the fed would be forced to throw in the towel, they would all be insolvent and would not be able to do anything about it. have you seen the Cramer playbacks where he admits manipulating the markets, he should be going to jail along with the rest of them.

someone is probably going to go postal on Wall street, watch all the rats jump ship when it begins.

Steve

There is already a revolution going on. It is called Government takeover of free enterprise. In a free market the AIG’s of the world would have had to answer to the market for their mis-management. Their managers would not be getting their bonuses – they would be out of their jobs. Then along comes the soothing hand of Government to “help”.

Do not blame AIG, blame BO and his socialist pigs. Sure, stiff business at every opportunity. Limit executive’s pay. Let Government tell companies what they can make, what they can charge, who they have to hire, who they cannot fire, re-write contracts, etc. That will kill the productive forces that made this country so great. All that will be left are the tax cheats, freeloaders, Kings & Queens of Government and subsidized everything. All for the common good.

Then you will have something real to revolt about. Then you can rally the masses to try to save our country from tyranny, not some stinking bonuses!

And #2 would be correct by the way…