March 19, 2009

My Reaction: Nausea, Shame, and Fear

The House voted to retroactively tax the AIG bonuses.

It's claimed that the people who ruined AIG are long gone and in effect the bonuses are being given to the janitors hired to clean up the mess.
If they did walk out the door, who would volunteer to work at the Chernobyl of the financial world? And what would become of the mammoth portfolio that remains?

"It would become the biggest naked position on Wall Street," one longtime Financial Products executive said, "and everybody would exploit it."
...
"Nobody is going to give it back and then stay," said one of the firm's employees. "If they give back the money, then they will walk. And they will walk into the arms of AIG's counterparties."
Failure of AIG was said to imply the collapse of the world financial system…

These people are receiving death threats, and politicians like Cuomo and Frank are pushing to have their names made public.

Is this the worst Congressional abuse we've seen since the McCarthy era?

(To be sure, the rulebook gets thrown out the window when the national interest is seriously threatened. But that's obviously not the case here. Or it wasn't.)

Is this the worst abuse of Congressional power since the McCarthy era? The effects could be even more destructive. Who will trust the United States after seeing this? I’m appalled. I’m ashamed. I’m scared.

Even if the effects are not apocalyptic, note that they’ve set the precedent of a 90% tax.

Vermin.

And half of the Republicans went along.

Corrupt gutless morons.

Divided government is the only reason I see to vote Republican.

Addendum. Connecticut's Republican governor, Democrat Attorney General, and Democrat legislature are piling on, issuing subpoenas to the AIG bonus recipients and CEO. And the NY Attorney General has demanded and obtained the names. Their names and home towns are being published. Voices of sanity are being ignored.

The American political class is threatening and ripping at the AIG people while they are literally struggling to save the world.

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