AIG bonus flap

What the fuck are we talking about here? $165 million? A flap over a mere $165 million in cash is bringing our executive and legislative branches of government to a halt while the people of the USofA are losing their jobs, homes and hope. What a shame that this AIG triviality has become issue one. A crying shame.

As I understand it the series of events goes something like this:
Last year the Bush Treasury Department and Federal Reserve, with the very active participation of Tim Geithner acted to prop up AIG with TARP money requested by Bush and approved by Congress. There were virtually no strings attached to this cash by Congress, the Fed or the Treasury at that time. The billions 'bailout' cash was paid out in exchange for a large stake in the company but with no specific directives on how that cash must be spent/invested. AIG management (which was left almost entirely in place) decided to pay themselves some hefty bonuses.

After the inauguration the Obama Administration and the Congress considered putting some restrictions on bonuses in the 'stimulus' bill, later dubbed the American Recovery Act (or something like that). This act is separate from the TARP legislation signed by Bush. Geithner (together with Senate leaders) agreed to take the restrictions out for expediency and because it would likely be challenged in court as an illegal override of TARP.

Now that the press echo chamber has made these bonuses the dramatic storyline of this week, the Congress and the Administration stopped nearly all other action to express indignation and pass some likely illegal legislation to tax the bonuses and recoup the few million dollars.

Enough already! This money is peanuts. The money is gone. Say goodbye to it and move on, please. Secretary Geithener and President Obama ought to be focusing on reforming, re-regulating and re-capitalizing our crumbling financial system. Republicans are shameless but they should be ashamed of themselves for making an mountain of this molehill. The press and the American public shouldn't be expected to know better, because....well....they are sheep.

TalkingpointBuzzwordKeyword Free Association

spending pork
stimulus sex pork
internet Al Gore 'internets'
regulation socialism
opposition partisan obstructionist
hope Obama
taxes bad
taxcuts alwaysgood
Reagan God
Clinton sex lie blow bubble
GeorgeW conservative notconservative
history rewrite
deficit theirfault
government us them

Galbraith vs the Administration

James K Galbraith's testimony from last week
Professor Galbraith spoke last week about the chances of success of the policies of the current Administration. I tend to agree with Galbraith, as I think he is the rightful carrier of the genius that came from his father. In this testimony (which should be read for context) he says that the 'stimulus' is too small, the bank plan will not work, and the home loan rescue plan will work. He's so cool, but this does put Galbraith in the position of disagreeing with my new boyfriend Tim Geithner. I must rationalize this because I admire these two guys.

Geithner's plan is not ideal but it appears to be politically possible. Galbraith's ideas are rational and sound, but politically unattractive. Galbraith advocates an FDR-style federal takeover of troubled banks and the bad assets they hold. That's a great idea that will not happen any time soon because the American public is not yet ready to consider such a radical idea. Hell, the conservative thinkers (and the public who follow them) think the current plan is somewhat Marxist already. Maybe things need to get worse before a sensible plan like Galbraith's has any chance of receiving due consideration.

Meanwhile, Geither has to deal with the political realities as well as economic ones. That's a very harsh couple of realities to work within. I wish Tim the hottie all the balls and wood he will need to do his good works.

Geithner the hottie

I watched a bit of Tim Geithner's testimony yesterday. I had to stop when they got to the portion where Republicans speak at him without the benefit of a response from the Secretary. Damn, he's hot! So very smart. The man is impressive in this setting, and some of the Republicans filled the room with their disdain for his "articulate testimony". They were showing their jealousy for the power held by the new Administration and their disrespect for someone with brains and the ability to express himself. What a shame.

It is a shame because Tim Geithner is on very solid ground with his understanding of macroeconomics policy and financial markets. It is a shame because we are pretty fucked, and Republicans threw their philosphies at the pragmatist before them rather than engage him in real discussion. I hope they are simply posturing for the cameras and will endeavor to speak and listen when the cameras are off. It seems that listening and considering the ideas of the new Administration is a tough pill for them to swallow.