Monday, March 16, 2009

AIG bonuses...

These are outrageous, and are also the Obama administration's fault.

The Obama people (Summers, Romer) are saying they are doing "everything possible" to stop the bonuses, but asset stripping, which is what it is, is precisely why you do not separate ownership from control. This is precisely the argument why the government should not merely write large checks and hope everything works out well without taking an ownership stake or getting any sort of control. Listening to the Obama economists, it's clear that's what they've done with AIG. They've written bunches of large, blank checks that let corporate American walk all over them.

That's outrageous.

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