[FoRK] Scary

Adam L Beberg beberg at mithral.com
Tue Mar 17 13:34:23 PDT 2009


No, the solution is bankruptcy. THIS is why the companies refuse to do 
that, because they would go un-bonused.


Stephen Williams wrote on 3/17/2009 11:26 AM:
> The problem to begin with is that the government should have negotiated 
> a number of requirements with the companies to prevent this kind of 
> debacle.  While Congress or the Treasury Secretary or the Fed or 
> whatever might not be able to invalidate a contract, they can certainly 
> say: "Secure agreements voiding any provision like 'x', or you don't get 
> the money and you fold now."  Duh.  Sure you trust companies to do the 
> right thing to some extent, but not when you're forking out billions.  Wow.
> 
> At this point, there are various solutions, but the damage is already done.
> 
> sdw
> 
> Jeff Bone wrote:
>>
>> Now, I am in *no way* defending the abysmal decision by AIG regarding 
>> bonuses *or* the even-worse PR around it;  however, please consider 
>> what the following statements *actually mean* with respect to the 
>> power our elected officials (and their appointed bureaucrats) 
>> apparently believe they have over individuals and their lives and 
>> livelihoods.
>>
>>
>> -- #1 --
>>
>>
>>   http://www.reuters.com/article/ousiv/idUSTRE52G3BQ20090317
>>
>>
>> "Senator Charles Grassley, the top Republican on the Senate Finance 
>> Committee, made the comments Monday in an interview with a radio 
>> station in his home state of Iowa...  The first thing that would make 
>> me feel a little bit better toward them (is) if they'd follow the 
>> Japanese example and come before the American people and take that 
>> deep bow and say, I'm sorry, and then either do one of two things: 
>> resign or go commit suicide," Grassley said... And in the case of the 
>> Japanese," he added, "they usually commit suicide before they make any 
>> apology."
>>
>>
>>
>> -- #2 --
>>
>>
>>
>> "Let the recipients of these large and unseemly bonuses be warned – if 
>> you don’t return it on your own, we’ll do it for you," Senator Chuck 
>> Schumer said in a speech on the Senate Floor.
>>
>> But how?  As a Congress struggles translate outrage over the bonuses 
>> into action, a new idea has emerged:  tax 'em.
>>
>> The idea, first floated by Senate Banking Chairman Chris Dodd (D-CT), 
>> is to impose a massive confiscatory tax narrowly targeted the $165 
>> million dollars in bonuses recently doled out by AIG.  Call it the AIG 
>> Bonus Tax.
>>
>> Senate Finance Chairman Max Baucus (D-MT) is working to put the idea 
>> into law.  At a hearing today, he asked IRS Commissioner Douglas 
>> Shulman, "What's the highest excise tax we can impose that will stand 
>> up in court?" Shulman said he'd have to get back to Baucus on that, 
>> but promised to work with the Senate a drafting the new AIG bonus tax.
>>
>> Senator Schumer, Senate Majority Leader Harry Reid and six other 
>> Democratic Senators have written a letter to AIG Chairman Edward Liddy 
>> demanding the bonuses be rescinded.  If he doesn't rescind them, the 
>> letter warns, the bonuses will be taxed away.
>>
>>
>>
>> -- 
>>
>>
>>
>> I will leave contemplations of the problems posed by these statements 
>> to the reader.
>>
>>
>>
>>
>>
>> jb
>>
> 
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-- 
Adam L. Beberg
http://www.mithral.com/~beberg/


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