They can't undo the AIG contracts without bankruptcy. The problem with saying "don't use this money for x" is that money is money. AIG is still making money from operations, despite losing lots on these CDS contracts. They could simply say the bonus money was paid from operating revenues and the bailout money went to cover the CDS contracts. In a very real sense, that is exactly what is happening, as we see that money go from AIG to BofA, etc.
I also don't think there is any need to scream bloody murder at this point. We just need to decide whether we want to continue to fund these pigs or pull the string and let the whole thing unravel. On Sat, Mar 21, 2009 at 5:37 PM, Justin Scott <[email protected]>wrote: > > > > Time to flush them down the drain. > > > > The problem is that AIG is so entrenched in the > > financial system that if you flush them, or allow > > them to be flushed, the fallout from everything > > else that goes down with them would leave us worse > > off than we are now (or so we've been told). > > I'll also add that I think Congress should have put in some provision > requiring that the funds only be used to cover immediate business needs. > Sure, they had contracts with some employees for those bonuses, and they > could be sued if they weren't paid, but let them deal with that and pay > them > out of actual profits when they are stable again. Seems like they robbed > Peter (government and taxpayers) to pay Paul (bonus contracts), and now > they're wondering why Peter is screaming bloody murder at them and trying > to > get that money back. > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:292485 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
