Thursday, March 26, 2009

Some thoughts about AIG ... or Pay NO attention to that man behind the curtain.

What really made things even clearer - in my opinion - as the wheels are rapidly coming off this wagon...
Look, We - gave, bailed, loaned the the money ... WE the prying public - and we ARE, we intrude into the lives and operations of people and businesses that a year ago we didn't care and knew NOTHING about - from Bernie Matoff, (what he did was beyond doubt terrible - but was ANYONE HERE biked by him personally?, or Anna Nicole Smith, Paris Hilton, Jessica Simpson's figure, or Chris Brown and Rihanna's relationship. The last I check, I wasn't on their Christmas card list - then again, neither are they on mine.
In many respects we are as bad as this inept Federal Government (Congress and the administration) that we, with good reason, object to.
From the Washington Post ...
"A tidal wave of public outrage over bonus payments swamped American International Group yesterday. Hired guards stood watch outside the suburban Connecticut offices of AIG Financial Products, the division whose exotic derivatives brought the insurance giant to the brink of collapse last year."
and this;
""It's a mob effect," one senior executive said. "It's putting people's lives in danger."
Hopefully, we are all beginning to see the intent of the moral platitudes spewing from Washington ... Over at the 912 Project website under the The AIG Story Continues to develop;
here are a few of the comments ... and there are MANY...
as Texas Yankee put it;
"....because it stirs up the populace into a frenzy, which leaves them ripe for his "Rules for Radicals" tactics. "
or Angrydave;
"...This is all to enrage the angry mob and gain more power in the polls of public opinion to move forward a fascist/socialist/communist agenda. Its all the same."
"When people in government start to suggest death for people in private business, how is this different then what Stalin or Hitler did?"
You know, one is often admonished for failing to learn the lessons taught to us by history ... I would suggest that the main reason we have trouble do so is that we fixate on the event and especially the characters on the stage, rather than recognizing and understanding the patterns that cause an even to occur. I would suggest that the patterns are becoming more and more obvious.
There is talk that banks aren’t loaning money - banks ARE loaning money ... But it is much more difficult .. in part because the era of loose loans is over and in large part, many banks are very reluctant to loan money because thanks to the financial geniuses in DC - THEY DON"T KNOW THE RULES, because they are changing all the time. "Around the websites is the “outrage” (Being led, by the President and the - you can supply the adjective - members of congress) over AIGs overseas banks monies received in the “bailout package” - like Deutschebank, Barclay's and Societe Generale!"
Well, actually isn’t quite true ... a good article to read is “AIG details bailout money use after anger over bonuses”
These pay outs were to help meet securities lending obligations and in collateral for banks to meet obligations related to credit default swaps. By the way - Credit default swaps protect investors from defaults on bonds backed in many cases by subprime mortgages. Gee, interesting how it comes back to the Halls Of Congress once again!!
But we exist in a world with both a global financial and global economy - so to think of Deutschebank, Barclay's and Societe Generale (for example) as if they were financial institutions on some other planet is to not realize that money from these and other foreign institutions as as ingrained in the debt of your community – perhaps even you personally (credit cards - mortages, etc) as much as the BB&T, TCF, or a multitude of local and regional banks (most ALL by the way in sound financial shape) as OUR banks are ingrained in the “credit lives” of those living in other countries.
In addition the term "retention bonus" is usually applied to an amount paid to keep the person around until their job is eliminated - sort of like a severance pay ... but you are required to stay and work for it.
SO, angry ... YES be that way.. but direct that anger to the proper culprits ... ones who created the futile bed - loans for people who not only couldn't afford the loan payback OR fraudulently obtained the loan ... and most importantly - in my view - Those who VIOLATED THE CONSTITUTION by issuing bailouts in the first place!!!!
I would add .. think about it ... they (government) raises the stink and we, even those of us here that abhor rapid move toward socialism and CONTROL of our lives, are acting like lemmings ... and following along in step.
One of the keys to the socialist movement is to create, define, and solidify a class distinction - create an environment of class warfare, if you will. It might be said .. we are being USED by the forces we most object too.
I would just suggest that we use caution.
Remember the scene from the Wizard of OZ

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