Tuesday, March 17, 2009

Bailout Fakeout

Don't let the indignation that President Obama has recently expressed about the enormous bonuses that AIG doled out to executives using bailout funds get you all riled up. It is just another example that illustrates that His Highness Barama and his Court of Fools do not have a clue about the forces that drive our economy and now (thankfully) others from the Democrat leadership are beginning to see the light.
AIG ought to have known better to distribute bonuses of such a magnitude as they have, but the bailout funds were provided to them (and other financial institutions that were deemed to be in jeopardy of collapse) with little or no strings attached. Now, the Barama administration is learning damage control on a scale they may never have imagined necessary considering the president's presumed popularity.
The poorly considered bonuses are not the only problem regarding AIG and their allotment of bailout funds. AIG used much more of those funds to fulfill their contractual obligations to other banks and financial institutions. Recognizing that the U.S. Government now has a majority ownership stake in AIG, the administration is now in the position of trying to determine how much, if any, of the bailout funds they may hope to recoup in the future. Considering what has happened to this point, I do not have much faith that any appreciable amounts will be repaid soon (if ever).

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