I'm moving - I am so sick and tired of watching these freakin elected officials who are so beyond clueless, and so freakin' responsible, but yet deflect their place in things trying to cover up by blaming everyone else.
This AIG thing is just another ridiculous granstanding opportunity for these clowns.
They hide behind ignorant anger, when the TRUTH is that THEY, in many cases, are the ones who created the situation in the first place!
Let's run the FACTS.
AIG was on the verge of bankruptcy, where in my opinion it should have gone, and the government made the decision to basically save them, and prop them up and cover all their obligations. They have since and with that given AIG 100s of Billions. The pitch was that taxpayers would eventually make money on the bailout. We've since learned that the liklihood of that is about 5000 to 1. Regardless, we've given them a ton of money and will probably need to give a lot more in the future.
So the hubub, in case you are living under a rock is that AIG gave out a couple 100 MIL in bonus PROMISES to a bunch of employees so that they would not leave when everything broke down, or right before that.
Now let me tell you, this is obviously just my opinion, but our country was founded on PRINCIPALS. It wasn't founded on day to day change the rules, it was built to last a long time.
OK, so how does this relate to AIG? Well, lets say YOU worked for AIG and all this stuff happens and you're like "hey, I'm outta here, dude!" And me, being in charge of AIG, I say - ok, go - leave, you suck anyway, you helped create this crazy stuff! That's fine, but what if many do the same thing?
Now, let's look at the other side of this. We, the taxpayers, have "invested" if you want to call it that, 100s of Billions in AIG. If people start leaving in droves, who is going to run the company? Now, hey, I don't know what the deal is as far as if they had to pay the bonuses for real, or they were just taking advantage of the free money that the GOVERNMENT threw at them!
It shouldn't matter. The bottom line is, there are contracts signed. If in order to get ME, or YOU to stay you had to give us a bonus, and we signed contracts, why in the world would I or should I give it back, which is what one senator said absurdly?
Is it my fault that the company is screwed and I have to worry about my two kids, so I have to look for another job unless you give me a contract?
I think its disgusting that we are now rushing to blame everyone and anyone, except those really at fault. Those people are the ones making the rulebook up, which is the biggest problem we have.
Now, again, I don't have all the details, if something underhanded was done, then ok, fine, then it should be reversed.
But, it remains factual that the government is the one who did this, no one else. Let's be real, they are all running around like chickens without a head because they are scared, and this is just another way to deflect where the real fault lies. And, that's with THEM, all of them. And if I got the bonus legitimately, there's no shot I would "give it back" and I would want to move to another country if they started to break contracts whenever they wanted. Are we now to move about the country as though it were a police state that can break contracts as they see fit?
OK, enough of this rubbish, market surprised me and rallied hard and strong once it came out that there was Talf news tomorrow, which is why I think we rallied, fyi. News rules this market, so I'm always listening, and thats what I heard.
NEWS RULES! Tomorrow we'll see, but usally a move like this sets up another nice trading day. And, you have to lean long off todays close fo sure!
CME I was wrong about it so far!
Michael "Waxie" Parness
And, in the grand scheme of theme regardless, this is a drop in the bucket.