Health Care

[Araxen]

Our President kicks ass.

[Dr. Funkenstein]

Originally Posted by Heavens_Myst

If the government is going to breach contract law to get these contractually obligated compensation monies back, they might as well just go at the root of the problem which is Credit Default Swaps that AIG holds and invalidate them if the counterparty that holds it doesn't have an interest in the asset the CDS backs.

The payout amounts are a pittance compared to CDS holdings and the moral hazard of the government arbitrarily breaking contracts is effectively gone already given the ridiculous contempt for the rule of law being shown by the president and both parties in Congress.

Bingo.

[Heavens_Myst]

Originally Posted by Arative

I don't believe that the Government is talking about breaking the contracts. Obama has repeatedly stated that he wants to do everything within the law to recover those bonuses from the derivative traders.

What Congress is talking about, and what will probably be introduced in session tomorrow is a a bill with a special tax, specifically targeting the employees of AIG who received a bonus as much as 90%. But I don't know if they will specifically target the derivative traders or all 100,000 employees of AIG who may or may not have gotten a bonus.

Its funny though that Chris Dodd put specific language into the stimulus bill that allows any bonus at companies receiving government money prior to Feb 11th, 2009.

Using constitutional arcanery as an end run around contractual obligations is a much better alternative. Ultimately, it will just come down to the arbitrary decision of a majority of nine robed deities which is no more satisfying than the arbitrary decisions of Congress or the president. AIG had lots of billions of dollars dumped onto their driveway and were asked to spend it in a way that solidified their position as best as possible. If they thought that compensating employees in order to keep them around for the future was a proper use of part of those funds then who are Congress or the president, neither of which put any conditions on that money, to say otherwise?

This is exactly why government does not belong in business and is another massive overreach of federal power in the name of emergency. Focusing the power of the purse down to the level of specific individuals for political purposes hopefully will be ruled unconstitutional. It is a transitional step to a tyranny of the majority with absolutely no recourse for the minority if allowed.

[Designz]

Getting paid too much causes a lost sense of urgency!

It's like if you got 100% on a midterm, why would you study for the final with a sense of urgency?

Take those bonuses away!

[Designz]

Originally Posted by Heavens_Myst

This is exactly why government does not belong in business and is another massive overreach of federal power in the name of emergency. Focusing the power of the purse down to the level of specific individuals for political purposes hopefully will be ruled unconstitutional. It is a transitional step to a tyranny of the majority with absolutely no recourse for the minority if allowed.

Well, the cat is already out of the bag. The government already bailed out the industry, so now it's regulation regulation. Otherwise, what was the point of intervention in the first place?

It's a gamble at this point. Since we're already down, we might as well put in money and effort to win it back.

[Dr. Funkenstein]

Originally Posted by Designz

Well, the cat is already out of the bag. The government already bailed out the industry, so now it's regulation regulation. Otherwise, what was the point of intervention in the first place?

It's a gamble at this point. Since we're already down, we might as well put in money and effort to win it back.

Right. We're already going 20 MPH over the speed limit, might as well shoot for 100. Good thinking as you wrap your car around a tree.

[Soriak]

Obama is going to be on Leno on Thursday. He'll be the first sitting President to go on a late night talk show. How awesome is that?

Only way to top it is if he'd go on Bill Maher's show and sit on the panel.

[chaos]

I like Bill Maher's show because of the people he gets on there, but honestly, Maher himself is kind of a douche. I would prefer the President stay away from shit like that. I think Obama going on Leno is pretty cool, but ultimately not going to be anything other than a publicity thing. It isn't like he's going to be outlining policy. He'll go on there, talk about the economy and recovery, talk about his kids, insert humorous anecdote, and he's out.

[Alamando]

Originally Posted by Heavens_Myst

AIG had lots of billions of dollars dumped onto their driveway and were asked to spend it in a way that solidified their position as best as possible. If they thought that compensating employees in order to keep them around for the future was a proper use of part of those funds then who are Congress or the president, neither of which put any conditions on that money, to say otherwise?

If you give a child a fork to eat dinner and he throws it at you, do you just shrug and let it slide? You did not place any guidelines on how the fork should be used, after all.

But then AIG had a history of throwing its fork around like a good little retard, so I really wonder why someone kept handing them new utensils without trying to teach them anything.

What the fuck ever.

[Araxen]

FiveThirtyEight: Politics Done Right: The New Terri Schiavo?

In the House, Reps. Steve Israel (N.Y.) and Tim Ryan (Ohio) introduced the "Bailout Bonus Tax Bracket Act" to create a 100 percent tax on bonuses over $100,000 that are distributed to employees of financial firms receiving federal bailout funds. Currently, the IRS withholds 25 percent from bonuses less than $1 million and 35 percent for bonuses more than $1 million dollars. The Israel-Ryan proposal would apply to all bonuses to government-supported firms such as AIG that have been given since Jan. 1.

[Dumar]

Originally Posted by Araxen

FiveThirtyEight: Politics Done Right: The New Terri Schiavo?

finally, at least some justice.

[I'm Rich Bitch]

Originally Posted by Araxen

FiveThirtyEight: Politics Done Right: The New Terri Schiavo?

Should be 110% because if the company is receiving government funds it means they are part of the financial collapse that they made a fortune from.

Every worker at a bailed out company should go on the government pay scale and the lowest level including the CEO. If they don't like it they can leave. A bailed out financial services company should have the same rights as a federal prisoner. Pay them in cigarettes.

[Arative]

Originally Posted by Araxen

FiveThirtyEight: Politics Done Right: The New Terri Schiavo?

I wonder if this tax law will supercede the amendment in the stimulus bill that says all contractual bonuses at companies receiving government money are fine as long as that contract was signed be 2/11/09. I assume it must since it is levying a tax on the bonuses.

Would be interesting to see if anyone that received a bonus will sue to block the law and how many people leave AIG from their other business units. Or will the bonuses just be broken up so a person gets $99,999, 5 different times throughout the year or what ever.

I mean given that this law is written in such haste, there is sure to be loopholes like that in it.

[Dr. Funkenstein]

Our current government officials have no subtlety whatsoever. The entire country is pissed at this "bonus" thing. While many argue what can and can't be done about it, the only people who aren't pissed are the people that actually got money. You'd think political individuals would know how to leverage that public outrage to get the money back without having to write a bill that will collect it by force.

[AladainAF]

Originally Posted by I'm Rich Bitch

Every worker at a bailed out company should go on the government pay scale and the lowest level including the CEO. If they don't like it they can leave. A bailed out financial services company should have the same rights as a federal prisoner. Pay them in cigarettes.

Then when all of the workers quit because you're treating them as federal prisoners, then what good was the bailout afterall?