AIG Outrage
Out of context: Reply #77
- Started
- Last post
- 100 Responses
- TheBlueOne0
skelly_b makes a point..and while the point is grating, there is a grain of truth to it. The problem is that, other than the ethical quandry of rewarding failure, the bonus issue is now a political problem. It is a political problem for the current administration, as well as for all the banks involved that are hoping to receive future government handouts.If the public just starts seeing money go out to people that fucked things up, the political will to continue to rescue institutions (if it needs to be done) will be gone *poof*.
There ARE no easy answers here...hold on, let me copy and paste what I sent to my friend earlier today:
It's a clusterfuck of a situation..I understand and am sympathetic with the "torches and pitchforks" crowd, but understand that the situation really is far more complex than simply "let the banks fail" or "nationalize them!"..the first option is populist but ensures short-term global financial ruin. The second option will be a political mindfield with the opposition party using all sorts of rhetoric to undermine it's success, and even it's "success" is questionable; it would in essence "politicize" many financial questions (the AIG bonuses is a precursor example) that would make any rational plan nearly untenable.
I think Obama is trying to thread the difference, but it's really not working...