Americans are outraged – downright angry! How dare AIG pay its executives millions of dollars in bonuses, after begging for money – taxpayers’ dollars- to save their firm!

The White House has done a brilliant job in BAITING the media outlets with this outrage. This anti-AIG sentiment has dominated the news for almost two weeks. Granted, we have all been stunned by the audacity of AIG’s executives; however, that was NOT the bad news.

No, no…The truly bad news- THE SWITCH – comes this week, while Americans are already so focused and angered, that money-in-trapthey will most likely miss the bait-and-switch of the Obama Administration.

Over the weekend, we have learned that the Administration plans even more spending, to the tune of $2 Trillion – a much more significant amount than the $168 million in AIG bonuses. The surprise expenditure includes an estimated $1 Trillion plan to overhaul the financial system, and the creation of a new government entity with a budget of – yes, you guessed it -$1 Trillion more!   All of this comes in the wake of the release of the largest budget in history – $ 3.6 Trillion – proposed by the Obama White House (an increase of$700 billion from the FY2008 budget proposal).

treasuryThe Associated Press reports that Obama’s financial system overhaul will give the government “new resolution authority to take over troubled institutions that would pose a threat to the entire financial system if they failed.” Under this new plan, the Treasury Secretary would have unprecedented powers, including oversight and regulation of compensation for executives at all banks and investment firms. Opponents fear that this could well extend to other companies, both public and private.

Additionally, Americans will be saddled with, yet another government entity, the Public-Private Investment Program (PPIP), whose mission is to purchase toxic assets from banks. PPIP will be allocated a whopping $1 Trillion for such purchases. While the White House hopes to attract partnerships from private investors by offering low cost loans for toxic asset purchases, economists predict that investors will be leery of such offerings as well as the strings that are sure to be attached.

Leery…I’d say! WAKE UP AMERICANS! It is past time that we should all be concerned for the future of our country. The actions of the Obama Administration and our feckless Congress are quickly placing our nation in peril. Meanwhile, We the People sit back and do nothing!

It is difficult to miss the intention of Obama and the liberal Democrats on Capitol Hill. Their goal of a socialist americansocialist-flaggovernment has become blatantly clear with this latest $2 Trillion plan. They are systematically seizing control of America’s financial markets with words of implied protection for the public interest. They are enslaving us and future generations with a debt that grows larger with every bright idea from the liberal left.

Never before in the history of these United States have we seen such blatant disregard of free enterprise, which is the basis of our economy. Never before have we seen such accumulation of power and authority granted to so few individuals. We need change, but this is not the kind of change America needs. This is socialism!

And that is…Why It Matters.

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Comments
  1. Wade's Co-worker says:

    The most disgusting thing about the AIG case is how populism influenced Washington. I sit and I hear that politicians are “stunned” about the acts of AIG? What critical morass elected these shenanigans? Yes I know who did and it was the same people who felt government is this infinitely fertile mother that can feed us all. The sad truth of the American economy isn’t simple, and yet I would only pray individuals such as Obama, Bernanke, Geithner and countless other Washington name brands have sufficient education to understand bankers do not place concepts of heartfelt idealism first without some level of profit. Oh yes they did know and in their rush to impress us with their new demagogue status as saviors to the American dream, they gave Wall Street what Wall Street wants, profit. In the end Obama and his Senate found a higher moral calling (populism) and erected the court of fools. It was this court of fools the American Dream of capitalism got put on trial. Obama is clearly of the Keynesian type when it comes to government spending. He will passionately spend because it has been theorized spending beyond your capacity is a sustainable action and good government.

  2. Mike Rowan says:

    You know…..I have a contract with AIG, and from speaking with their executives, these bonuses were the only form of compensation for these employees. Also, it was in their contracts 2 years ago before all of this mess started.

  3. Mike, very good point! You are correct that Wall Street firms utilize the concept of “year-end bonuses” to complete the compensation package for employees. I, too, worked on Wall Street for a short time, and my contract stated a “base” salary with a guaranteed dollar amount of “bonus” at the year’s end which together was my total compensation package. Beyond that, we stood to receive the actual “bonus” (which would be any amount over the guarantee) as extra compensation for a good year/job well done, etc.

    Looking back on the fallout from incorrect verbiage (i.e. “bonuses”), it would have been much better for AIG and any other WS firm to explain this concept better rather than to sit quietly. Americans perceived the “bonus” as income over-and-above the executives’ regular salary, and thus, were outraged at excesses received for a “job NOT well done.”

    Adding insult to injury, the impact of losses to the lower and middle level employees were extreme in comparison to their superiors – who were expected to share the burden of losses that they (the superiors) had, in fact, caused. As a veteran PR consultant, my gut instinct tells me that a rational explanation was not forthcoming due to “ATTORNEYS’ ORDERS”, which are often contradictory to an effective public relations effort.

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