Leaders of the White House economic team and the Senate's top Republican bellowed about bonuses at a bailed-out insurance giant and pledged to prevent such payments in the future.From one Sunday talk show to the next, they tore into the contracts that American International Group asserted had to be honored, to the tune of about $165 million and payable to executives by Sunday, even as the company has benefited from more than $170 billion in a federal rescue. Image Credit: KOMO News
Circular Logic Defines Obama’s Turn At President
Here we are only about 57 days into the 44th Presidency of the United States and what we find doesn’t match up with what was promised.
Barack Obama ran on an overriding theme of ushering a new era of responsibility, yet all this administration can do is put forward and hire people, Timothy Geithner, to oversee our economy and its pursuit of increased taxes, that cheat on their responsibility to actually pay taxes.
Case in point:
The Obama administration blames this economy and the Government solutions put in place to correct its downturn on the previous executive administration of George W. Bush, yet this administration fights to keep most of the same people, policies, and level of oversight in place from the previous administration.
This administration decided to give a third round of additional TARP fund billions of dollars to its largest troubled financial institution, AIG, without pre-condition (again) while upping the Government’s ownership (80%) in the company … then becomes outraged (only after the disclosure of the bonus plan) when the company honors its employment contracts with many of its top executives by issuing $165 million dollars in bonuses – averaging $500,000 to each.
Obama economic chief Larry Summers: AIG bonuses 'outrageous' but government can't stop them. Image Credit: Associated Press via KDRV-TV
This excerpted and edited from NationlJournal.com –
Hotline After Dark -- Resident Evil?
March 17, 2009 8:50 AM
"World News" led with AIG bonuses. "Evening News" led with AIG bonuses and featured a taped interview with special inspector gen. for Iraq Stuart Bowen Jr. "Nightly News" led with AIG bonuses.
Last night's TV coverage was dominated by Pres. Obama's announcement that he asked Treas. Sec. Tim Geithner to use all legal tools to block the AIG exec bonuses. Among the reaction:
Weekly Standard's Ham: "There's nothing that brings people in Washington together from both sides of the aisle faster than the need to get on the right side of a populist backlash" ("O'Reilly Factor," FNC, 3/16).
Rep. Scott Garrett (R-NJ): "None of this should have surprised any of us. ... And it was actually out there also for Secretary Geithner to understand coming into this, as well. ... So it's only now that it's making headlines that the president is coming back and basically second-guessing his own treasury secretary on this. Why Secretary Geithner didn't raise this when he first understood it is beyond me" ("NewsHour," PBS, 3/16).
Sen. Bob Menendez (D-NJ), asked if he's satisfied with the responses from the WH: "I'm not satisfied. ... They have to renegotiate their contracts. There is no reason why when the federal government is poised to do another $30 billion that, in fact, we can't insist that those contracts get renegotiated, and renegotiated in such a way in which those bonuses simply don't take place." ("1600," MSNBC, 3/16).
FNC's Hume: "... it is a big problem for the president. He has already added substantially to the bailout money previously provided to AIG and to others and will almost certainly need to add more, much more to address the continuing credit crisis. ("Special Report," 3/16).
Rep. Darrell Issa (R-CA): "The boneheads are the people in the previous administration and this administration who gave out over $170 billion of our money and did not, in fact, do what anyone else giving money does, which is ensure that the money is not a conduit for simply paying out bonuses" ("Hardball," MSNBC, 3/16).
Syndicated columnist Charles Krauthammer: "This is not so much an economic issue as a psychological and a political issue. Economically, if you add up all the bonuses, it's less than 1/10 of one percent of the bailout to AIG alone, so it's lunch money. Psychologically, it's important because there's outrage in the country, and ... unless there's an appeasement in the anger in the population who are going to have to support the next bailout, which is going to be a trillion dollars, the money won't be made available, Congress will deny it. So that's why you get the president heaping opprobrium on these miscreants who made the bad deals and now are getting the bonuses."
More Krauthammer: "I'm all in favor of keeping this heaping opprobrium. I would deny them the bonuses if possible. I would be for an exemplary hanging or two. Have it in Times Square, invite Madame Defarge. You borrow a guillotine from the French and we could have a party. If that's what it takes to maintain popular support, let's do it. But it's not going to change anything economically" ("Special Report," FNC, 3/16).
CNN's Dobbs: "I'm calling for Liddy to be fired. I'm calling for the Board of AIG to be fired here tonight, and looking forward ... we can't afford in this country any longer to tolerate corporate leaders who don't understand the basic values of this country ... ("Lou Dobbs Tonight," 3/16).
Why is anyone surprised? Barack Obama never was an executive in charge of anything throughout his entire career.
He became educated, earned a law degree, edited a law review publication, worked as a foot soldier for ACORN (an organization that is funded, in part, by the federal government to support socialism projects to people who look for handouts as opposed to a hand up on which one can become self-sustaining), became friends with a group of radical educators and priests, taught constitutional law at a college, ran for and secured a state senate office in Illinois, then waged an uncontested campaign to become a Senator from the state of Illinois to the federal government, where he served 144 days before he declared and ran for President of the country full time until he became elected.
And now, as President, with the help of a Democrat political party lead congress and three Republican political party Senators, he has been successful at committing each and every household to an additional $18,500+ in spending debt. He has defined his presidency by throwing taxpayer money at continuing, and historically, self-correcting economic problems while re-labeling our effort to stop islamofascism created violence that continues to kill thousands of innocent citizens … from an act of ongoing war to a police action.
The economy has lost over 40% of its value since he was voted into office (over 15% in these last two months), South Korea and Iran threaten to launch rockets and make nuclear bombs, Russia is moving to control the flow of oil out of their region of the world while President Barack Obama reverses the opening up of off-shore drilling activity in our own country, Riots are breaking out in Pakistan, and Barack Obama pledges $900,000,000 (nine-hundred million dollars) of United States taxpayer money to rebuild infrastructure in Hamas (a recognized islamofascism ideology based terrorist organization) controlled Gaza.
All of this chaos and we have only witnessed this President’s first two months in the office of executive leadership.
Circular logic … dizzying, isn’t it?