My Not-so-Progressive Take on the Bonus Scandal

by: RobW

Thu Mar 19, 2009 at 19:31:33 PM EDT

First, the GOP guys voting against the tax on bonuses are foolish.  The bonuses are also foolish.

Second, I don't know why anyone is surprised by this scandal.  Honestly.  It's Congress's job to investigate what they're giving money to, but we already knew they gave that responsibility entirely to the Treasury.  We knew the Treasury was more concerned with keeping AIG afloat than getting a good deal.  Sometimes "quick and decisive action" is required, but it's not going to be pretty.  We've known since we were kids that "haste makes waste", so let's not pretend we're shocked when we rush into things and get burned a little bit.

Third, the loophole protecting these bonuses was inserted by Dem Senator Chris Dodd, who watered down his own anti-bonus amendment because he was explicitly requested to do so by Geitner's people in the Obama administration.  Let me repeat that: Obama's treasury department took active steps to ensure these bonuses could be paid out.  None of these guys were blindsided or "shocked" by the bonuses; they planned for them.
 
Fourth, I might be in the minority with this one, but the government blowing $170 million in bonuses makes me much less angry than it blowing $170 billion on overpriced credit default swaps.

Last, those bonuses were already written into people's contracts.  The AIG CEO legally had to pay the bonuses if all of the conditions were met (it seems they were).  If people were shorted on bonuses, they could sue the company and have a good case to win, costing even more money (if the company is still alive by then).

We're going to see many more scandals in the coming months and years as we realize how much money we've handed out and how little control we have over that money.  Spend your outrage on preventing more of these fiascos and not on griping about it after the fact.

And please, don't be surprised at what happens when you quickly throw billions of dollars at a company that you already know isn't trustworthy.

Update: Just to clarify, I want to stress that this is a bipartisan mess, not just a Dem mess.

Update 2: Another relevant insight, in comic form: http://xkcd.com/558/

Barrett, Inglis, Wilson Help AIG Executives Protect Their Bonuses

by: Tim Kelly

Thu Mar 19, 2009 at 15:28:31 PM EDT

Gubernatorial candidate Gresham Barrett, Lexington Republican Joe Wilson and Greenville's Bob Inglis all voted against H.R. 1586 just minutes ago. Henry Brown joined Jim Clyburn, John Spratt and 240 others voting for the bill.

From CNN:

The measure would tax individuals on any bonuses received in 2009 from companies getting $5 billion or more in money from the Troubled Asset Relief Program, or TARP.  Bonuses for people with incomes over $250,000 would be taxed at a 90 percent rate.

Porn to be Wild

by: Atlas

Wed Jan 07, 2009 at 23:32:56 PM EST

Certain South Carolina legislators do their share to support the adult entertainment industry, as they are frequently seen meeting with their constituents at Platinum Plus and other fine establishments along Broad River Road in Columbia. Every vote counts, and so does every g-string dollar bill. We are in a recession, after all. While some prudes prefer pole taxes to pole dancing, some lawmakers don’t mind seeing an eyeful even if they can’t see eye to eye. And, while they’re going out of their way to help the economy, it may not be enough.

“Girls Gone Wild” producer Joe Francis and Hustler front man Larry Flynt are hustling Congress for their money shot. After all, if Wall Street can screw America and get a bailout, why not the cast and crew of Street Walker? Francis and Flynt say they want a $5 billion dollar piece of the action to avoid a “national cold shower.”

"We will use this money well," Francis said Wednesday. "We'll create more jobs."

However, the duo does admit:

“The $13 billion industry is in no fear of collapse, but why take chances?”

Certain lawmakers aren't taking any chances so the strippers can keep taking it off.

Like the Wind, SC Jobs Gone

by: Atlas

Fri Dec 19, 2008 at 03:24:15 AM EST

Jim DeMint is no cheap date. $26,500 won’t buy a bailout from him, so the Big 3 are probably wishing they gave him a bit more cash. The uptight congressman from the Upstate continues to rattle the saber in favor of foreign automakers in South Carolina, forgetting that the Big 3 have an impact in our own backyard.

Detroit is one of the biggest customers of the steel mill in Georgetown, and orders are already down. While I can appreciate the reticence of an additional bailout given the stellar success of the first one, keep in mind that those 2 million-plus jobs on the line if the carmakers fail will likely include folks in South Carolina. Aside from the impact a Detroit implosion will have on the steel mill, don’t forget about the other businesses in the area that depend on those jobs to stay alive. It's not like we have the 4th highest unemployment rate in the nation.

Firebug Brown, who represents a chunk of Georgetown, also seems to be a bit of a dim bulb, not recognizing the Detroit/steel mill connection. Plus, he only got $3,000 from Chrysler, so why should he care? He’s just happy to have his job. Jim and Henry don’t have to give a DeMint, but they could give a damn.

Jim DeMinted

by: Atlas

Thu Dec 11, 2008 at 20:04:31 PM EST

In true Chicken Little fashion, Senator Jim DeMint got on Lou Dobbs and told millions of people a bailout for the Big 3 would lead to riots in the streets. After all, that is exactly what happened with the last bailout. Dobbs countered with the “Are you serious?” question. Not at a loss for a self-fulfilling prophecy, DeMint backpedaled and admitted he was looking for a word big enough to describe the anger voters are feeling about bailing out the Big 3 and settled on riot. When pressed further about what should be done to help the economy, DeMinted, in true Republican fashion, recommended cutting corporate taxes. I hope Republicans come up with some new material, because their talking points are getting real irrelevant.

Fix The Roads

by: Finx

Fri Dec 05, 2008 at 23:06:47 PM EST

Fix the roads..but I said it first, heh.

From The Sun News, MyrtleBeach Online:

Ease Up, Governor
Some bailout forms could really help S.C.
Is it just us or do other local folks also object to Gov. Mark Sanford's view that South Carolina can get by without any of the bailout packages Congress may enact to help beleaguered state governments? In an appearance on PBS-TV's "News Hour" program Tuesday, our governor said Congress should enact no more bailouts, even ones that create lasting public benefits.

Why this non-economist still raises hell about the bailout.

by: RobW

Tue Sep 30, 2008 at 17:32:28 PM EDT

I'd recommend you read NVB's "A little humility" post for yourself ( http://www.indigojournal.com/s... ); basically his point is that because the current economic crisis (and the solution to fix it) are so complex 99% of us don't understand it, we should allow the experts to figure out how to solve the crisis and humbly admit we don't understand everything involved.

I admit I don't really understand the financial crisis or why the government should use (present or future) tax money to buy things no one else wants.  I'm not an economist by profession or training.  I, like NVB, generally believe we'd all be better off if we listened to experts who know what they're talking about.  He's right- a little humility and expertise can go a long way.

However, I guess I still feel like I should contact my representatives about this because it's not just about the stock market.

Barrett Splits With Rest of Delegation on Bailout

by: Tim Kelly

Mon Sep 29, 2008 at 14:50:46 PM EDT

Voting for the proposal:
Henry Brown
Jim Clyburn
Bob Inglis
John Spratt
Joe Wilson

Voting no:
Gresham Barrett