AIG Bonuses Highlight Divide

The mere fact that these AIG bonuses were allowed to go through highlights the divide between those that are entitled and those of us who feel we need to work for a living while nothing is guaranteed. But, AIG who received over 170 billion dollars in bailout money thought it was fine (or maybe more likely didn't care what we thought) to give out millions in bonuses, though they screwed the American people. And politicians ok'd this. They had the chance to stop the bonuses with provisions in TARP money or the stimulus package and they chose not to do so. Maybe they thought it was unnecessary, but I doubt it.

While at the same time bailout money for the auto makers required these companies to shut down plants, lay-off workers and re-negotiate contracts with the auto workers who god forbid were not living in poverty. This highlights just how far the American worker has fallen and how far we have gone to allow financiers to control, leverage and destroy our economy while we sit with a cup in our hands for unemployment, foodstamps, increases in TANF assistance, student loan bailouts, etc. Even the Obama administration (who I like) have tried to shift this argument, maybe to push for true regulation (a good thing) or to relieve themselves of their own responsibility in this fiasco.

Today in France, in solidarity for one another a nation wide strike is occurring (can you imagine). Unions are opposing President Sarkozy's economic policies. 2 million are unemployed (we have over 5.5 million at least) and more lay-offs are expected. Schools are closed and public transport is being disrupted, with demonstrations organized in about 200 towns.

From the Guardian: Union members marched towards Nation in Paris behind a banner that read: "United against the crisis, defend employment, spending power and public services."
Police said there were about 85,000 people at the rally, according to the AFP news agency.
"They have a profound sense of social injustice, and that, I think, is something that neither the government nor the employers have understood," said Jean-Claude Mailly, head of the large Force Ouvriere union.

Recent polls show over 75% of the French support the strikers. Now, let me tell you I was there during a strike in France and it ain't easy. But, what is heartening, truly heartening is the unions, workers and regular people have a seat at the table of negotiations. We have none. That has to change. Here is pushing for EFCA fast. Of course, we have to beg for a vote on it and now Obama is chickening out. When will things change? When we get off our asses and demand it.

Corporations Over People

How does the Federal Government choose to bail out a company? Is there a criteria? Would you not expect one from say - the !%$!$# Federal Government? By providing a massive loan to American International Group on Tuesday, just two days after refusing to use public funds to save Lehman Brothers from bankruptcy, the central bank also invited tough questions on how exactly it determined whether a company was too big to fail.

Between the $29 billion the Fed pledged to swing the Bear Stearns sale to JPMorgan in March, $100 billion apiece to rescue mortgage finance firms Fannie Mae and Freddie Mac, up to $300 billion for the Federal Housing Authority, Tuesday's $85 billion loan to insurer AIG and various other rescue deals and loans, taxpayers are potentially on the hook for more than $900 billion.

After saying no to Lehman brothers, The Feds said yes to AIG because of concerns that its collapse would harm thousands of companies around the world and cause chaos in the $62 trillion market for credit default swaps, where it is a big player. To be sure, the Fed attached quite a few strings to its AIG funding deal. The loan carries a high interest rate, the government can veto any dividends, and AIG is expected to sell assets over the next two years to repay its debt. Senior management will be replaced.

Does it not make you wonder what the criteria is however? Many friends have aptly criticized, that our student loans are killing us please bail us out; or my mortgage is through the roof please bail me out. Why AIG, why not Lehman brothers, why Bear Stearns and most importantly why not the average consumer who suffers personal financial ruin? Why? Why? Why? These companies pillage the consumer, make money off our money and then when they screw up we bail them out. There is something seriously wrong with the system (read what the Federal Reserve is it will scare you), but of course like everything else going on in America the government steps aside and allows corporations to control everything. That is what should end in America more than anything else, the control of corporations over our government. A new campaign slogan - people over corporations.