Monday, March 16, 2009

AIG Continues The Saga

Some have said that AIG is too big to fail. But maybe the truth is it's too big to survive! The latest flap about bonuses required by contract is a clue.
This also indicates that President Obama is on the right track. Solving only one problem at a time is useless if the system itself is not sustainable.
It's like trying to put out a wild fire with a garden hose. You will get burned!
Then again maybe AIG is just not getting the right help. Since they are citing contractual obligations, maybe Congress should take a different approach.
Instead of throwing money into this fire, let's cut it off.  Not only does Congress have the power of license over AIG,
they also write the laws. So why not subtract the bonuses paid from the bailout given? And if the other parties object to this ruling then they can be barred from the industry.
They can also be fined and imprisoned. Under these terms I am sure a reasonable agreement can be reached.
Union workers had to make a compromise with GM so it has been done before!

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