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  • Bailouts, Not Bonuses, are the Problem

    After over a year of the Bush-Obama Bailout Parade, there were some encouraging statements coming from the Senate last week.

    Sen. Jim Inhofe (R-OK):

    Should we be mad at the executives who are involved in this and who ran a once-great company into the ground? Yes. But that’s not where the blame game ends. That’s not where the buck stops. I know that I will upset some of my colleagues when I remind them, and the American people, that much of the blame should be directed right here, to the members of this body, the U.S. Senate, to the other side of the Capitol in the U.S. House for voting for the original $700 billion bailout.

    Sen. Jeff Sessions (R-AL):

    The more we proceed with policies whereby the government owns 80% of the stock of a private insurance company — having poured $170 billion of our wealth into it — the more we are inevitably compelled to direct how the company operates, to the point of deciding who their executives should be, what the company’s salary scale should be, or what aircraft it can or cannot have or where or what kind of corporate retreat they may have, and whether or not it can pay bonuses.

    The Heritage Foundation previewed some of these problems in a paper last year titled “Time to End the TARP Bailout Program” and argued that it is a bad idea to allow the Secretary of the Treasury Tim Geithner from “using TARP funds in ways not intended by Congress.” Conservatives in Congress should use the debate over AIG bonuses to abolish the bailouts to protect American capitalism.

    Posted in Economics [slideshow_deploy]

    12 Responses to Bailouts, Not Bonuses, are the Problem

    1. ra,ohio says:

      This situation is deplorable.

      The bonus's of the AIG employees being advertised right now is a ruse to divert the attention of the American People away from the salaries and bonuses that the employees of Freddie and Fannie are getting.

      We need a special prosecutor to tear thru this hierarchy that exists between the congress and Fannie/Freddie.

      Barney Frank and Chris Dodd would soon be toast, and Fannie/Freddie would be exposed for what they are, basically a money-laundering institution for the cronies in congress.

      These institutions are still receiving money from the tax-payers, and are still bleeding money.

      I don't think it will ever happen, there are too many bodies buried there, and too many connections to congress.

      The way they're trying to fix the economy is like trying to remove the water from a boat by shooting a hole in it.

    2. LON DALTON CIRCLEV says:

      GOVERNMENT SHOULD NOT BE BAILING OUT ANYONE. YES THERE WILL BE COMPANY'S GOING OUT OF BUSINESS WHICH WILL BE PAINFUL BUT NOT AS PAINFUL AS THE RESULTS OF THE CONGRESS BECOMING THE CEO'S OF MOST PRIVATE ENTERPRISES. THE FEDERALLY ELECTED OFFICIALS ARE AN EMBARRASSMENT TO THE CITIZENS OF THIS COUNTRY. AND WHATS WORSE, THEY DON'T EVEN REALIZE IT. IF I WERE AN EMPLOYEE OF AIG I WOULD TAKE MY BONUS (UNDER CONTRACT) AND IF IT WAS TAKEN FROM ME I WOULD SUE THE GOVERNMENT AND I WOULD BE QUITE SURE I WOULD WIN IN COURT. THIS IS THE MESS YOU GET INTO WHEN YOU ELECT MEN AND WOMEN WHO KNOW VERY LITTLE ABOUT FREE ENTERPRISE AND CAPITALISM IN THE GREATEST COUNTRY IN THE WORLD'S HISTORY. THEY BELEIVE THEY CAN MANIPULATE THE POLICY"S THAT THIS COUNTRY WAS FOUNDED ON. I THINK WE SHOULD TRUST THE FREE ENTERPRISE SYSTEM AND NOT UNSURE, UNKEPT, I'M IN IT FOR ME, LOST GOVERNMENT OFFICIALS.

    3. Franklin's Lock says:

      The attention these bonuses are just a way for the Dems to distract the MSM and the people from the real problem. First, the bailout were mismanaged and wasted. Second, they did not work. Lastly, that the whole fiasco is their fault. So, they are pulling some populist class warfare to try to distract us. Well…I hope it did not work. The problem is still that these bailouts were a bad idea and are not working.

      http://franklinslocke.blogspot.com/

    4. Mike, Delaware says:

      Don't you see what is going on. Obama will not save the economy until the "playing field is level" Everything he is doing is to create dependance on the his government. Americans yawned at 8 billion in earmarks then they screamed bloody murder at 168 million in bonuses. Why? Because they told you to. Wake up America and start thinking on your own. Here is a good starting point if you have children: research H.R. 1388, you'll be amazed at what's been happening since you took your eye off the ball.

    5. Spiritof76, New Hamp says:

      People, please wake up. The Fed. Reserve is monetizing the debt. Dollar is sinking to worthless status. China and other creditors are reluctant to buy US debt. We have exiled energy exploration and production. We have outsourced manufacturing mostly due to government's punishing regulations and taxation, government interference in labor-management dynamics and the flight of capital crowded out by the US debt. Every day there is a trillion dollar proposal, either bailout or welfare payment coming from the Obama Politburo. US does not have money for any of it. Payment of the huge debt can only be through worthless currency. Inflation rates will skyrocket shortly and to stop its explosion into hyperinflation territory, the interest rate will skyrocket. The economy will contract severely with double digit unemployment just like the ones we had during the Great Depression!

      So, Please tell me what difference does it make if the Washington criminals pass laws restricting executive compensation at all. We are losing sight of how our country is being forced into a "banana" republic. Capitalism is injured mortally.

    6. Barb -mn says:

      It has to stop. The President and his administration have been, are in and will continue to be in violation of the constitution. If it is nobody's job to do something about it then it is up to the people.

      We demand to see names, addresses and AMOUNTS RECEIVED by the government officials that accepted contributions from known struggling establishments such as AIG, FANNIE AND FREDDIE, ACORN etc. And we demand explanation as to why it is lawful these government officials accepted much amount of money furthering the companies' struggles to survive and highly unethical for any person to accept contributions from a tax paid program (fannie, freddie, acorn, etc). should not be allowed. That's preferentially endorsing with our money.

    7. mike baker Dallas Ce says:

      I've heard too many Democrats get away with blaming everything on other entities. Now they're getting away with blaming the recent budget bill, that they didn't finish last year, on the former president. I think the AIG bonus issue was over-played but some good is sifting out of it. Barney Frank is embarassing his allies, Dodd is done, Obama is getting exposed and Congress is becoming a pariah. Never let a bad example go to waste.

    8. Lynn B. DeSpain says:

      Two cures; Rid ourselves of NAFTA and Rid ourwevlse of the Clintonesque idea that '"even the poor should be able to own a home."

      That would bring back jobs, (don't care about the effect on other Countries, they have never come to our aid), and we would no longer have Presidential Edicts demanding that lending institutions who wish to keep their FDIC rting accept high risk loans and un proven wages.

      HOZRO

    9. David A. White/ Alab says:

      The bonus money needs to stop, this is just legal theif. In the last twenty years, CEO pay has jumped from 25 times to 250 times employee pay. The US government agencies have gotten in on legal theft, they give the regular employee pennies while the top management collects thousands. No one needs or is worth millions of dollars a year for management in a company, sometimes badly, and being accountable to no one. The bonus money is only a status symbol.

    10. Jerome Zacny says:

      One keeps hearing about Mr. Obama's brillance. On the surface, I don't see it. His not reading trillion dollar legislative commitments before signing them into law and his telling a public TV audience that he was shocked to find provisions in a bill that he just signed really removes a lot of the luster from that "brilliance".

      His bank rescue plan calling for a "public and private" investment in buying up toxic assets. Why would private sector investors want to participate in buying such impaired assets, knowing that if somehow they eventually made a profit, some in Congress would attempt to flay them alive, feigning outrage at any profits those investers might make?

      A question arises, based on a premise that perhaps puts all this in to perspective. What if the real objective is to put forth a banking rescue plan that is designed to fail from the start? Why? If the banking rescue plan fails Mr. Obama would be free to say, "We tried, now the only alternative left to us is to nationalize the banking system in the U.S.". At that time he, and his fellow socialists in Congress, would be in the position to deliver on at least one campaign promise — the redistribution of wealth in this country.

      One could describe such a gambit as brilliant, or

      diabolical, depending on one's point of view.

    11. Terry-Wichita,KS says:

      I just love how our media will cover a story of a bus load of ACORN protesters jealous that their government gimme's just can't allow for them to own a nice home in the burroughs,and that it actually involves hard work to get there! However the media cannot seem to cover Tea Party's of 3-4000 people across the country tired of seeing the country sink into the murky sewage of socialism. Are we becoming a bannana republic? Just curious!

    12. Marshall Hill MI. says:

      Ask the Presidents Staff why they were allowed to get Bonuses and still join his Staff?

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