Everybody's upset with AIG and the fact that they are giving bonuses to their people following the company's public bailout by our government. Here's what's really happening:
The politicians who OKed the bailout are mad as hell because AIG is embarassing them. That's right! Politicians look stupid for not anticipating this. Meanwhile, the bonuses are part of business-as-usual at AIG. It's a cost of doing business. These payments (bonuses) were agreed upon long before the bailout was considered.
The question we should be asking ourselves is "Why should the public bail out a private corporation?" Because they are too big to fail? Couldn't we take the bailout money and apply it to unemployment benefits. Then, honest, hard working, efficient companies can do the business that AIG had been doing.
Same thing with GM - do whatever you must to trim the fat. We really should observe and not interfere with the natural law of free enterprise. If a business makes serious mistakes, they should pay the consequences...even if it means going out of business. The picture is Edward Liddy, CEO at AIG. Remember, business rots from the top (CEO)down. Eddie will be writing a book.
