March 15, 2009
Obama Tries To Block A.I.G. Corporation Bonuses
President Barack Obama declares he will try and stop the struggling American International Group (AIG) insurance corporation from giving bonuses to their executives while it is coasting on big, rescue bucks from the U.S. government.
“In the last six months, A.I.G. has received substantial sums from the U.S. Treasury,” said Obama to a recent White House meeting with small-business owners.
Consequently he asked Treasury Secretary Timothy F. Geithner “to use that leverage and pursue every legal avenue to block those bonuses and make American taxpayers whole.”
Mr. Obama described A.I.G. as
“a corporation that finds itself in financial distress due to recklessness and greed. Under these circumstances, it’s hard to understand how derivative traders at A.I.G warranted any bonuses at all – much less $165 million in extra pay.
“How do they justify this outrage to the taxpayers who are keeping the company afloat?”
According to the Wall Street Journal, AIG paid bonuses of $1 million or more to 73 employees – including 11 who no longer work for the company. The top ten recipients received a combined $42 million.
A COGENT EXPLANATION
The trouble with Presidential and Congressional explanations is that that they are addicted to political double-speak understood best by other politicians.
As a public service, I herein share an explanation of stimulus bills -- sent to me by my good friend E.E. who has ridden shotgun with me for many years.
FILLING A POOL
Shortly after a college class on economics, a student approached the professor and said: “I don’t understand stimulus bills. Please explain them to me!’
The professor replied: “I don’t have time now. However, if you come to my house on Saturday -- and help me with my weekend project -- I’ll be glad to explain it. The student agreed.
On Saturday morning, the student went to the professor’s home. The professor said, “I’m going to fix my swimming pool today, and you can help.”
They went to the backyard. The professor handed the student a bucket and said: “First, go over to the deep end and fill your bucket.
The student did.
The professor then said: “Now, dump your water in the shallow end, and repeat this as many times as you can.”
The confused student asked: “Excuse me, but why are we doing this?”
The professor matter-of-factly said he was “trying to make the shallow end of his pool much deeper.”
* * *
The student didn’t think the professor was serious, but figured he would find out sooner or later.
After the sixth trip between the shallow end and deep end, the student began to worry that his economics professor had gone mad.
The student finally declared: “All we are doing is wasting valuable time and effort on unproductive pursuits. Even worse, when this process is all over, everything will be at the same level as before. All you have accomplished --really -- is the destruction of what could have been truly productive action!”
The professor put down has bucket and replied with a smile: “Congratulations! You now understand the stimulus bill.”
By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist
