Everyone is upset about the AIG bonuses. We have over $1,500,000,000 invested there and we are the biggest of their shareholders. Of course, we are upset about millions in bonuses but not overly upset about the $1.5 billion semi-gifted to them?
The bigger question is: Were the bonuses due under contract? If so, shouldn't those contracts be honored?
The government will aim to break those contracts. That's the way they are operating these days. Breaking contracts, weakening the honor of contracts.
Outrageous? No. The courts will be given the power soon to break the mortgage contracts that exist that the government deems unfair.
Unfair. What is fair? Isn't entering into a binding contract fair? Is it fair to the lender? The lender entered into the contract taking the risk. Is it unfair to the lender to break the contract? Is my mortgage or yours unfair? Where does the line form?
Where is the honor in broken contracts?
Where is the outrage over the billions given to bail out AIG? The sensible thing (hind sight is better) would have been to let them enter bankruptcy which would have sorted out these bonus contracts and the monster would have been broken apart and pieces sold.
'til later
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