AIG: A Straw Man with an Agenda

strawmanThis vitriolic anger that the country is feeling toward AIG seems to me to have been planned out well in advance with the stimulus being the final piece.  Think about it – the administration as well as members of congress knew about the bonuses for months, and yet now they are outraged? This smells like a well planned attack to me, but let’s look at some details.

According the AP,  “Sen. Olympia Snowe, R-Maine, and Ron Wyden, D-Ore., won passage of a provision earlier this year that they said would have prevented the type of payments now at the center of a storm.”  This was put in the stimulus package with regard for TARP recipients and then was removed.  Then Chris Dodd reportedly put in a similar amendment blocking bonuses, but later having to modify it so that bonuses previous to February were allowed to happen. First he lied about the changes, then he blamed the administration for threatening to throw out the amendment had he not compromised.   Wyden told the AP, “The president goes out and says this is not acceptable and then some backroom deal gets cut to let these things get paid out anyway.”  So how exactly is it that the President and members of congress are seething about this?

And let’s not forget, thanks to Andrew Malcolm (and Hot Air for pointing this out), that the members of congress, well into this bad economic climate, awarded themselves $4,700 in raises which costs the tax payer an extra $2.5 million this year. And Fannie & Freddie are planning out big retention bonuses into the millions of dollars for their top executives as well.  If the current outrage is sincere, then the new administration should be calling them out in 5…4…3…2…

The truth is, that if hypocrisy were water, Washington would be drowning.

What have we been hearing well before day 1 of the new administration? Wall street bonuses are out of control.  In fact, Barney Frank wants to cap all salaries of  U.S.  top exectuvies, regardless of whether they are using TARP money.  And if you take a look at “A New Era of Responsibility: Renewing America’s Promise”, the new administration’s book on the Federal Budget, then you’ll find this nice graph sitting on page 11 entitled “Top One Percent of Earners Have Been Increasing Their Share.” This graph represents a moral argument on increasing the share of taxes the wealthy pay.  In fact, it seems that the administration blames the wealthy on the suffering of the less fortunate, leaving the path of responsibility and going down the well-trodden path of government being not only the answer to poverty but the conscience of America.

So with all of this in mind, now consider Edward Liddy.  He was called out of retirement in September by Washington to take the helm of AIG and steer it on a course that would prevent it’s collapse.  He was called a great American because he was now not only working for AIG, but working for the betterment of the country – all for a $1 salary.  The problems of AIG aren’t his fault, and the retention/bonus contracts that were signed before him had to be honored, despite how aggregious the amounts.  And to witness the disrespect and hostility coming out of Washington at his hearing yesterday, well, I would certainly call that shameful.

But this whole debacle is centered around the bonuses and Edward Liddy has gone from an American hero to the enemy of the state.  But I believe it was intentional.   Obama has certainly proven that he will do anything to push his agenda.  Remember the State of the Union?  He used false arguments to push his agenda of Education, Energy, and Government Health Care.  And I believe he is doing the same now with these bonuses.  He knew about the bonuses, made provision for them, and now screams in distress over them to get both Congress and the American people on the side of demonizing the Wealthy so he can continue to blame them and take more of their money in the form of much higher taxes, growing government to an unsustainable size.  His agenda is socialism, and he will do whatever it takes to get there.




Comment Policy: Please read our comment policy before making a comment. In short, please be respectful of others and do not engage in personal attacks. Otherwise we will revoke your comment privileges.