Monday, March 16, 2009

Nationalize AIG

By Creature

I hate to say it, but I think Josh Mashall is right here:

Like you, I've been watching this AIG bonus story unfold over the weekend. And though I did not see it at first, I think it may prove to be a turning point, both for AIG and the government.

I don't believe the bonuses themselves are the heart of the matter, nor the fact that they're going to the very executives who caused AIG's implosion or even the galling reality that, since all money is fungible, they're being paid with taxpayer dollars. What's really driving this forward -- and what makes it such a dangerous moment for the White House -- is the jarring image of the administration's impotence.

It's not that the Obama administration is any more or less impotent than Bush's was or McCain's would've been, it's the mere fact that this now is happening under his watch. Besides the outrage over the bonuses generally, the optics are horrible . However, there is a way out for the administration. Nationalize AIG. Nationalize them now and, as I said in my earlier post, destroy the Financial Products division (the group responsible for this mess). The political and popular will would certainly be behind such a move. If AIG is really too big to fail, then the administration has no choice. It's either a takeover or they live with the AIG monkey on their back throwing shit and pissing on their grand plans for the next four years.

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  • It's really better to use the word "receivership." Nationalization implies a desire for the government to run the company for a long term, whereas receivership is standard in bankruptcy proceedings, and is meant as a temporary measure which allows the company to be cleaned up and then either returned to private hands, or the assets sold and the business ended as a going concern.

    By Anonymous Anonymous, at 11:43 AM  

  • Receivership AIG. Now!

    By Blogger creature, at 12:29 PM  

  • Thank you Mr. President for trying your best to block the bonuses of AIG employee. I think it's okay to pay their bonuses when the company is up and after they pay back the bailout that's fair for the taxpayer. If they still pursue their bonuses we think they must fired from the job. No company will give bonuses if they are loosing money even they have contract right. Again thank you very much Mr. President ( B. Obama )

    By Anonymous Anonymous, at 2:58 PM  

  • Absolutely, but nationalize all the way. We've proven that only the government can truly guarantee insurance. Any entity that can single handedly take down our financial system as we know it should be run entirely by the federal government. Period. Only when such an entity is run by the people and for the people will true security be sustained.

    By Blogger elcapitan, at 11:03 PM  

  • Nationalize? Interesting idea. In my opinion that would be much better solution than the 90% tax, which is ridiculous. They are not taxing some huge bonuses - most of them so called bonuses are in fact withhold salary, which is paid in March the following year, so that it's harder for the receiver to leave the company (they lose the bonus if they leave before March). In fact, it shouldn't even be called a bonus.
    Take care,

    By Anonymous Anonymous, at 3:52 AM  

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