AMERICAN INTERNATIONAL GROUP

What is up with AIG? Is this a case of:

• Arrogant executives of AIG


• Government's mishandling of TARP (Troubled Asset Relief Program)


• or a case of Tail Wagging the DOG

If you listened to the media you would believe that this is strictly a case of another corporation gone wild with executive compensation, taking advantage of its employees, the government and the tax payer. But if you look at the facts a little deeper than the "Obama Media" it might paint a different picture.

SOME IMPORTANT FACTS:

- The first thing we need to know is that President Bush worked very closely with Timothy Geithner, the current Treasury Secretary, to design the first bailout plan for AIG. (That is why it would have been so difficult to not approve Geithner's appointment after he spent so much time and effort prior to the nomination even after it came out he was a tax cheat.)

- Next, we all need to know that this very issue was discussed before the stimulus package was ever passed in February. Yes, the one the President said would not contain any earmark but contained over 9,000. There was actually a provision put in the stimulus package guaranteeing these very bonuses that everyone is all up in arms over. These bonuses came as no surprise.

- The next fact we need to know is what I'll call "follow the money", normally a fail proof system of finding the reason for every governmental transaction. President Obama was the largest recipient of campaign contributions from AIG followed by Senator Christopher Dodd. Third place was far behind.

CONCLUSION:

The President ran a very successful presidential campaign with a theme of Change. One of the main things he was planning to change is corporate creed. Corporations have taken advantage of the American worker and very few have become rich on the backs of the many. A classic case of class warfare. Make the masses mad at the evil corporations and the greedy rich and the President can accomplish much of his liberal agenda in the name of "justice."

Although the President is still very popular, the popularity is fading and the American public is starting to get a little concerned about the massive amount of money the government plans to spend when the government is already in debt an astronomical amount. So let's create another distraction or scandal to re-energize the American people's hostility towards big business like bonuses for executives of a company that needed tax payer dollars to survive. This now gives the President license to go even further with his liberal policies of spreading the wealth. First he uses Rush Limbaugh to distract the attention of the American people, now he uses AIG.

The problem is, Christopher Dodd put a provision in the stimulus bill protecting these bonuses and he claims it was at the urging of someone in the executive branch. So both Congress and the President knew about these bonuses and wanted to protect their campaign contributors. In addition, many of these were not performance bonuses and were legally due the employees, not just executives, by contract.

While everyone is up in arms over AIG, some of the other financial institutions receiving bailout money have paid bonuses without any uproar. So why AIG? The answer is, it makes political sense. The news of the bonuses came at a time when the President needed the country a little more distracted. The news of the bonuses came at a time when the government just gave them more money so the President had to act outraged when the government could have easily prevented these bonuses. The news of these bonuses came at a time when the Democrats needed the American people just a little more mad at corporate America so they can pass new "Cap and Trade", health care reform and education reform all on the backs of these big bad corporations. This only hides the fact that the American consumer will ultimately pay these additional taxes through increased prices on the goods produced by these big bad corporations.

Clinton used Serbia attacks to get the attention away from Monica Lewinsky and his Presidential wiener. Bush used the 9/11 attacks to promote an attack on Iraq. Obama is using the AIG bonuses to pass his radical liberal agenda. I may sound like a conspiracy freak but just look at the facts. It is either the Federal Government has acted totally incompetent or irresponsible and totally botched the whole TARP or the President has made a pretty good show of outrage over a situation he had the knowledge and the ability to avert but chose not. Either way, we have some problems.

HERE IS WHAT SCARES ME THE MOST OF THIS SITUATION. Congress moved to pass a bill to tax these particular legal bonuses at 90% and the President says he wants to limit executive compensation to $500,000 for companies receiving aid. First, Congress feels they have the power to use laws to punish companies or individuals who do not act as they feel they should. Even if it was legal! Second, the President's move will drive top executive out of the country. Who do you want to fix the mess of these companies? Some of the top financial minds? These people come at a price. Foreign companies have already begun head hunting top executives here in the U.S. One day the President says he does not want to govern out of anger and the next he says we should all be angry and then he uses America's anger to make some extremely radical moves.

Hear the other side. Read a letter from an AIG executive.

http://www.nytimes.com/2009/03/25/opinion/25desantis.html?ref=opinion