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alstry (35.74)

AIG gets BIG bonuses???

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March 15, 2009 – Comments (18)

Unemloyment above 10% in a number of States(probably closer to 20% if we applied U6 numbers)

New housing sales down 75% over the last few years

Auto Sales down 50%...

Port Traffic down by about a third in the last year

Federal Income Tax receipts down by two thirds in February

The definiation of a Depression is a 10% decline in GDP from peak to trough........

Looking at the above numbers....if we are not in a Depression right now......how long do you think it will take for the GDP numbers to reflect the actual state of the economy????

Not only that, workers are being forced to take paycuts and concessions all across America.

(MarketWatch) -- Staffers at the San Francisco Chronicle voted by a 10-to-1 margin to ratify moves - including what the union expects will be at least 150 job losses -- that would avoid the prospect that parent Hearst Corp. would sell or close the newspaper, the California Media Workers Guild said in a Saturday statement on its Website.

Unless of course you work for a TARP receiving business....

(MarketWatch) -- American International Group is set to pay $450 million of bonuses to employees of the unit that was largely responsible for the New York insurer's collapse last fall, The Wall Street Journal reported.

An irony isn't it???  Those that are responsible for reporting on the criisis are getting fired.......those that are largely responsible for the crisis are getting large bonuses.

18 Comments – Post Your Own

#1) On March 15, 2009 at 10:35 AM, beyondanonda (26.31) wrote:

"An irony isn't it???  Those that are responsible for reporting on the criisis are getting fired.......those that are largely responsible for the crisis are getting large bonuses."

or are now in charge of protecting us, while those who we paid to watch out for us get a free pass.

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#2) On March 15, 2009 at 10:39 AM, alstry (35.74) wrote:

March 15 (Bloomberg) -- American International Group Inc., the insurer saved from collapse by a $170 billion taxpayer bailout, was ordered by the U.S. Treasury to scale back its $1 billion plan to give retention pay and bonuses.

AIG agreed to reduce some retention payments in 2009 by 30 percent and tie bonuses to the company’s recovery, according to a person briefed on the matter and a letter from AIG Chief Executive Officer Edward Liddy. The New York-based insurer still plans to distribute about $165 million on March 15 because of legally binding contracts, said the person, who declined to be identified because the talks weren’t public.

“I do not like these arrangements and find it distasteful and difficult to recommend to you that we must proceed with them,” Liddy wrote to Treasury Secretary Timothy Geithner in a March 14 letter, which said the contracts predated his arrival. “With the benefit of hindsight, I would have designed these differently and at significantly lower levels.”

ARE YOU KIDDING ME?????????????????

JUST BANKRUPT AIG AND KILL ALL THE BONUSES!!!!  It ain't that hard.

Why should taxpayers funding a specific business give HUGE bonuses to a select few working in that company?????  It is not like they earned it.

The joke is much of the money we are giving to AIG is going directly to other banks supporting HUGE bonuses to those workers as well.

Isn't this sort of like the inverse of Robin Hood???  Tax the poor and give it to the rich?????

This is not capitalism my friends...this is more like theft.

Not only should no bonues be given...we should be clawing back bonuses for the past eight years and using those hundreds of billions to bailout the companies they helped destroy.

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#3) On March 15, 2009 at 11:19 AM, 119862913 wrote:

Alstry says, "This is not capitalism my friends...this is more like theft." I'm beginning to think it is also extortion. Excuse me if I'm a little dyslexic when it comes to names. Sometimes I mix up Obama and Abomba. It's just me though.

 

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#4) On March 15, 2009 at 11:30 AM, OneLegged (< 20) wrote:

Bailoutmania needs to end.  I urge everyone to voice their concerns in the strongest possible voice to their "representives" in Congress.   Government of the rich, by the rich and for the rich.   

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#5) On March 15, 2009 at 11:32 AM, OneLegged (< 20) wrote:

Bailoutmania needs to end.  I urge everyone to voice their concerns in the strongest possible voice to their "representives" in Congress.   Government of the rich, by the rich and for the rich.   

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#6) On March 15, 2009 at 11:33 AM, OneLegged (< 20) wrote:

Bailoutmania needs to end.  I urge everyone to voice their concerns in the strongest possible voice to their "representives" in Congress.   Government of the rich, by the rich and for the rich.   

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#7) On March 15, 2009 at 12:11 PM, djkumquat (48.95) wrote:

all upper level "management" of the turkeys that accept government $$$ should be fired as part of the bailout plan. no exceptions. since it doesn't appear that that will be happening, any elected officials that voted for the bailout should get voted out of office. also, no exceptions.

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#8) On March 15, 2009 at 12:13 PM, rofgile (99.32) wrote:

This is an outrage.  The claim is that legally, these bonus are written in contracts that cannot be broken.  Seriously?  If you HAVE to give the bonus - is that a bonus or is that a salary?

I'm sure there is some legal defense for what they are doing, but can't congress step in there and break the contracts?  It seems like congress can step in during union strikes, etc, why couldn't they step in on these bonuses?

I do think that AIG should die - bankrupt the company and split it up into smaller companies.  That basically should be the method for all the companies getting bailouts - if the US govt. gives you money, you have to split up into smaller pieces.  Then some of those pieces can go rotten and die, some can survive.  And none of the pieces should be too big to fail.  

 This too-big-to-fail is extortion, and the govt. should fight back.

 -Rof 

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#9) On March 15, 2009 at 1:26 PM, jszoke01 (24.18) wrote:

Stop posting your Anti-American rhetoric, Alstry.  Don't you know that we're the BEST country in the world, and everyone else NEEDS us?

You're scaring people.

Didn't you see the top post today that said everything is starting to turn around now?

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#10) On March 15, 2009 at 1:46 PM, oldfashionedway (35.89) wrote:

Discover Financial Services says "Show me the Money"!   They are now a bank holding company and will receive 1.2 B in TARP money. 

 And on it goes...

Next, please!

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#11) On March 15, 2009 at 2:57 PM, shffl (< 20) wrote:

jszoke01, alstry is not being anti-american. if you had his post you know hes holding cash. we may be the best and everyone needs us, but is that at the cost of bullying the people within the nation?

"Didn't you see the top post today that said everything is starting to turn around now?"

did you also see the unemployment rate increasing? did you also see many stores shutting down? how about the many foreclosures that keep popping up? anyone can say that its going to turn around, but wheres the fundamental?

during the great depression, there were MANY rallies such as this one. until the underlying issue that causes this recession is solved, there is no turning around... 

on the other hand, why isn't anyone standing up to do something about all these ridiculous bonuses?? i remember watching the youtube clip of manzullo nailing the guy about giving out aig bonuses, but that's just one person! when are americans going to stand up and fight against this corruption? the nation used be to strong because its citizens fight for what is right. i guess all these good times we had during the past bull market put people into a state of being where they are just too lazy about doing anything since they are used to the comfortable lifestyle they have had..

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#12) On March 15, 2009 at 3:11 PM, RookieQB (29.01) wrote:

jszoke01 said:

Stop posting your Anti-American rhetoric, Alstry.  Don't you know that we're the BEST country in the world, and everyone else NEEDS us?

You're scaring people.

Didn't you see the top post today that said everything is starting to turn around now?

I'll have to disagree with his post being "Anti-American." You must come from the Sarah Palin camp lol.

If you believe AIG is turning around let me refer you to their earnings which so happened to be the largest corporate loss in history. People are already scared, they don't need Alstry for that. The only good news I've seen is retail sales are up for two months and a few companies won't need to practically extort money from us this month for their failure. But along with this "good" news we have an increase in job losses and home foreclosures. How long do you think retail sales will stay up when people don't have jobs?

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#13) On March 15, 2009 at 3:16 PM, RookieQB (29.01) wrote:

oldfashionedway said:

Discover Financial Services says "Show me the Money"!   They are now a bank holding company and will receive 1.2 B in TARP money. 

 And on it goes...

Next, please!

Yep, and when did Discover become a "too big to fail" company? 

 

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#14) On March 15, 2009 at 3:23 PM, jszoke01 (24.18) wrote:

shffl

I was being 100% sarcastic with the response above.  After re-reading the post, though, I can see that my strategy completely backfired.  I'll chalk that up to my poor writing.

For the record, I'm on your side.

To respond to your last paragraph, the reason that we aren't seeing enough of our representatives stand up is the simple fact that they are looking out for their NEAR TERM best interests.  Their business has two main objectives:

1. Get Re-elected

2. Retain party loyalty (kinda goes with #1, actually)

Imagine what would happen if this bail out business were to stop?  Massive unemployment, systemic bankruptcies, etc. etc. etc.  No one wants to take the heat for that, Dem or Rep.

This goes back to the philosophy that if everything is secure for the near term, or at least less bad, they can live to fight another day.  And then, when it all implodes, no one has to take the blame because they all agreed that the bailouts were necessary (even though it didn't work out - I'm sure they'll blame the free markets for that in some shape or form).

By the way, it shouldn't even be an issue that these guys at AIG get the bonuses.  That place should have been out of business months ago.  Even further, I believe that massive clawbacks are in order for back bonuses and pay. 

Sometimes I wish we had a government more like China.  It's pretty harsh to say this, but would these guys have done what they did if they lived under the regime where you could DIE if you made "mistakes" like this?

Ok, obviously I don't want that kind of Government.  I just get angry sometimes and say what should stay in my head.

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#15) On March 15, 2009 at 5:43 PM, bostoncelitcs (43.68) wrote:

Not for nothing....by the mutual fund I had my retirement savings in one of their major holding was AIG..............I've seen my retirement savings drop by almost 50%!!!

Former AIG Head Hank Greenberg should be sitting in the same cell with Bernie Madoff!!!

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#16) On March 16, 2009 at 12:17 AM, flybyfool (50.88) wrote:

Let's remind Mr. Tim Geithner and Mr. Liddy how the S & L executives were handled.  When the RTC took over, severance agreements were disallowed. Executives who worked for two S&L's which were taken over could not have another exec position in the industry and furthermore, they were allowed to be examined for wrongdoing for five years...later changed to ten years. See if that doesn't put starch in their collars and ice in their throats. Very few execs tried to sue for their due.
Taking the side of the executives for a minute, it is impossible
to know everything that is going on. BUT most execs stay mute, they won't ask questions...The "gold wall of silence".

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#17) On March 16, 2009 at 3:32 AM, SuperPicks (29.04) wrote:

The true headline should have been:
German and French banks got $36 billion from AIG Bailout - story BURIED

The AIG bonus story was spammed to undermine the reporting of AIG payouts going mainly to FOREIGN institutions!

Click the link above. 

What are your thoughts Alstry?

Anyone?

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#18) On March 16, 2009 at 8:17 AM, alstry (35.74) wrote:

SuperPicks...

Do you think its a coincidence that most of Obama's cabinet picks have ties to Wall Street......................

 

Why do you think Alstry is agnostic when it comes to politics?

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