Insomnia Log

This is what keeps me awake at night???

Who needs sleep? (well you’re never gonna get it)
Who needs sleep? (tell me what’s that for)
Who needs sleep? (be happy with what you’re getting,
There’s a guy who’s been awake since the second world war)

-- words and music by Steven Page & Ed Robertson

Location: Boulder, Colorado, United States

Everything you need to know about me can be found in my posts

Wednesday, March 18, 2009

AIG on their Faces

So, whose fault is it that AIG is using their bailout money to pay huge (by most people's standards) bonuses to the very people who made the bad decisions that brought them to where they needed the bailouts?

Well, clearly there is plenty of fault for Bush and the 110th Congress, as well as Obama and the 111th Congress. They tell us that these bonuses were required by contract and had to be paid.

But didn't the big automakers just get some bailout money, and wasn't one of the conditions that they had to renegotiate union contracts? Clearly it can be done.

Also, retention bonuses are paid to keep good employees on board. What's the worst that would have happened? These great employees would have left?

But I think a huge part of the blame falls to all of us, who seem to require quick action from our government in preference to correct action. We've seen it many times, and rarely do the legislators involved ever get called to task for responding to this primal fear.

It seems to me that the best time to enact protections against the things that contributed to the current economic crisis is when writing "emergency" legislation. Wouldn't it make sense to tie any stimulus or bailout money to regulations and protections against financial abuses, rather than spending the money and then going back later and trying to pass the new regulations when memories have dimmed?

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