The Obama administration’s ‘tough stance’ on AIG bonus payments makes great food for tabloid headlines and popular outrage. Paying $165 million in employee bonuses or any amount for a company that is in the middle of a multi-trillion dollar fraud that is bringing the world economy down with it is ‘outrageous.’ And the media reporting that elected politicians are finally acting in taxpayer interests not only makes great stories at a time when the media themselves are struggling to survive, it also seems information worthwhile to consume – until we look a bit more closely.
The problem is that the tax bailout haemmorrhage will go on because the Obama Administration like its predecessor refuses to take consequent action with AIG, despite the fact today the US Government owns at least 80% of AIG stock, bought for $180 billion of, yes, taxpayer dollars. To demand AIG ‘pay back the government’ is absurd as the government is in effect demanding it pay itself back with its own money. The latest claim that the Treasury will subtract the $165 million bonus money from the next $30 billion tranche it will give AIG says it all.