Posted by
Mike on Wednesday, March 18, 2009 8:02:14 PM
http://westernperspective.blogspot.com/
Our government obviously does not comprehend how capitalism works.
By
encouraging sub-prime lending to get more housing for their minority
constituents, the Congress led by Barney Frank and Chris Dodd brought
about the housing bubble leading to the financial crisis and drop in
securities values. In deregulating Wall Street, what did they expect the
brokers were going to do, not make more money in a competitive market?
Selling derivatives was an easy if unethical way to make money.
So
what should be done with AIG? As a cousin of mine in the DC area
has suggested, let them keep the bonuses but in AIG stock rather than in
cash. And if I might add, at the market value of the company stock at
the time the contract bonuses were negotiated over a year ago.