TOO BIG TO FAIL, OR, DOES ANYBODY
31 March, 2009
© Pirate Joe
In the mid 1980's, Ronald Reagan, the patron saint
of laissez-faire and de-regulation said, in reference to large
corporations, “there’s nothing wrong with being big”. Indeed. As many
insist AIG is just too big to fail, I keep wondering how in the world
is it in our collective interests to let any corporation ever get “too
aig, er, big
to fail”? If “too big to fail” means this degree of economic calamity
if it screws up,
then I don’t
think any corporation should be allowed to get that big,
or, to express it another way, too big to fail = too
big to exist.
We stand here at the AIG Bonus Crisis Crossroads.
Although it is distracting us from other important tasks that need to
be addressed in a timely manner, we face some ponderous
questions. Should we tax it back, as I have advocated on this
site, or, should we just let it go: an unintended bit of collateral
damage that, percentage-wise, amounts to just a small part of the total
payment. Those who advocate the latter say that taxing it back would
could usher in a whole new era of abuse of the tax laws. A point well taken.
Those who advocate the former say that while the percentage is small,
it still amounts to very large payments on an individual scale, and
that it’s totally outrageous to reward the very people
who put us into this mess.
Another point very
The blame can be evenly appropriated. Democrats and
goofed on this one, and while we need to do something about it, we also
need to ensure that it never happens again. For the record, about 35%
of the AIG bonuses have been voluntarily paid back at this point in
I would humbly suggest that perhaps we abandon this
trickle-down approach to solving our economic woes. As “socialist” as
Obama is branded, I can’t seem to recall him proposing that we put
money into the hands of common folks, ( as I have suggested a number
ways to do) in fact, I cannot remember anyone in government
acknowledging the simple truism that, if you put money into
the hands of the common folks, they’ll spend it, and THAT is what will revive the
economy. Oh, pardonez-moi,
I forgot about the “make work pay” tax cut. While AIG execs get
millions apiece, we get $15. a week. Have you given serious thought to
how you’re going to manage all that wealth? Better call your investment
No one, not the “socialist” Obama, Tim Geither,
Nancy Pelosi, or that gasbag (who thinks he can solve all problems),
Rush Limbaugh has demonstrated any real awareness of just how
desperately we need to create and keep jobs here, and that (that) means
limits on globalization. In fact, the “socialist” Obama just a
few days ago reiterated his commitment to free
the global economy. Translation: if your job is in
India, it’s safe.
In evaluating whether a company should be
bailed-out, we primarily need to ascertain its impact on the common
folks. GM has over 300,000 jobs at stake, as opposed to AIG at 116,000
(how many of those 116,000 are in the USA?). Just by that alone, I
would rate GM’s importance to common folks much higher than AIG’s. Do
you want to stimulate the economy? Let AIG fail, then nationalise it.
Eventually the profitable sections could be sold, (or operated) while
the “toxic” assets should be allowed to crash and burn, forgiving all those
mortgages in the process.
Now the Obama administration is saying we need to
bail out more troubled financial institutions in order to get credit
flowing again. Bull
excrement. Who is our tax money protecting here? Us? Hell no. It is
protecting those who hold “toxic” assets, and frankly, Scarlet, who
gives a damn about them?
Let me say something, nay, scream
something: DON’T EXPECT THE GOVERNMENT TO SAVE YOUR JOBS! DO IT
YOURSELF! GET OUT IN THE STREETS AND OFF OF YOUR ASSES. DEMONSTRATE!
JUST SAY NO TO GLOBALIZATION! Washington will always be inclined to
favour the AIG’s over you; its up to you (and I) to let them know that
if they don’t act in our favour, they’ll be out of a job in November.
Here’s something I’ve said before, and I’ll say it
again: Hey, you-all in Washington! Let the government set up shop in
those empty bank buildings, and use our tax money to make low (or no) interest
loans. Create jobs for us and let the corporate behemoths who
engendered this mess get acquainted with the dodo bird.