Mar 18 2009
Keeping our eye on the ball, which IS NOT the AIG bonuses
You know, my problem, and that of a lot of friends and family members, with the bonuses to the wankers at AIG, had zilcho to do with the dollar amounts they were going to be getting… it was a matter of principle.
We remember principles, right? Things people used to feel like were worth fighting for? That undergirded some people’s lives and behavior? And even, I am told at one time, business and GOVERNMENT’s behavior?
Apparently while I was not paying attention (along with a lot of people) (and to which Tipsy Dazy might have been alluding in their recent comments here…) It wasn’t the AIG bonuses that I should have been bugged about, it’s apparently this little scheme–already apparently a DONE DEAL– that is going to allow, apparently, the guys that got us into this global mess (investors such as hedge funds, etc etc. and blah blah blah) to put up between 6 cents and 15 cents of their own capital to borrow between 85 and 94 cents on the dollar, from, well, the American people.
We’re talking about hedge funds, and the so called “shadow banking system.” They had until yesterday to get their application in for this money. IT’S TWO TRILLION DOLLARS in this fund, folks. This program is called the “Term Asset-Backed Securities Loan Facility” (”TALF”). Is this REALLY the only option? Apparently so. It’s supposedly a “done deal.” See note/edit below, however, with links to more information.
It seems to me the American people, not to mention future generations, have just bought themselves a bunch of banks and hedge funds, and so on. (but guess what, the way it stands, there will be no true ownership by “the people,” it will remain in the hands of the oligarchs, but I digress…) Maybe one of you brilliant people out there can explain to me why this is even a sort of good idea, but
Google it, see for yourself, or just go to the Bloomberg Financial link here. Not that we can believe much of what is shoved at us through the traditional media outlets anyway these days…
Oh and for more on those “unavoidable” AIG bonuses, go here. apparently the people who will be getting these bonuses will no longer have a job after, and the writer I’ve linked to seems to think that it’s all fine and dandy that AIG is doing that… but hey, how bout that six-seven figure “cushion” these guys are getting? Wow.
It is said that, commendably, some of the people have given back 100% of the bonuses at AIG and they all have been asked to give back 50% by the company. Well, geez. That makes me feel better. (not really.)
Depending on who you believe, (as in the Wall Street Journal or the blog TPM-or maybe nobody–) it’s not a hundred and sixty million in bonuses going JUST TO THE AIG guys… it’s either $450 million or 1.2 trillion, again, just in bonuses, if I’m reading my source materials correctly.
But TWO TRILLION MORE going to be dumped down that same black hole in addition to all that has gone before it… next Thursday. This TALF thing, the mind boggles….
NOTE/EDIT: Apparently some “cooler heads” (one hopes, not the guys who will be getting rich off this deal (or more rich) feel that this TALF thing is going to put some much needed liquidity back in the system… and furthermore that we better hope it works. For more linkies on the subject, see:
Other articles on TALF
Fed Reserve FAQ on TALF
http://newyorkfed.org/…
and/or this remarkably seemingly level headed DailyKos diary.
Then come back and tell me YOUR take. I really want to know. My poor brain hurts.
I wish someone could explain why this makes even a miniscule bit of sense. These players have already said they’re NOT GOING TO START LENDING AGAIN.
Anyway, go read the information for yourself, (particularly about TALF.) Then tell me what you think….
