Monday, March 16, 2009

Publie outrage of AIG

I wrote yesterday, that I have HAD IT, with AIG.

I don't care what the amount in the large millions these bonuses were, you mean to tell me that either the former Bush Administration or the Obama Administration did not ask about these bonuses? I think they did ask, AIG just was not truthful about it. Why? The way and I will write shady way this all was spilled out this weekend and the letter of CEO, Edward Liddy dropped on Treasury and the White House.

The tough talk time is over for all these corporations, yes, let's call it what they are PRIVATE CORPORATIONS, the time of verbal outrage is over. Action and stern action is needed to send a message to these corporations and Wall Street. Why? Because the public is sick, just sick of reading about all this money going to these banks and corporations and their arrogance and constantly giving us, the taxpayers the finger while they still whoop-de-do it like this was 1999.

Should the Obama Administration be worried about public outrage? You betcha.

The Obama administration is increasingly concerned about a populist backlash against banks and Wall Street, worried that anger at financial institutions could also end up being directed at Congress and the White House and could complicate President Obama’s agenda.

The Obama Administration should be very worried. The public is behind this president, no doubt, but when you constantly read the f*ck ups of these banks, AIG, etc., the anger of the public is over the top. People out hear are working hard, working for LESS MONEY, scrimping by, worried about bills, their kids college tuition, if they will have a job tomorrow and we have to repeatedly, again repeatedly read about blowhard corporations and banks taking our money only to give themselves bonuses in the MILLIONS almost BILLIONS of dollars? People out here may not understand the total financial meltdown, which is something the Obama Administration needs to be clearer about, but they surely understand average joe and josetta's tax dollars being given to these corporations and banks and they don't play by the rules but continue to act like nothing happened.
“We’ve got enormous problems that need to be addressed,” David Axelrod, Mr. Obama’s senior adviser, said in an interview. “And it’s hard to address because there’s a lot of anger about the irresponsibility that led us to this point.”

“This has been welling up for a long time,” he said.

Mr. Obama’s aides said any surge of such a sentiment could complicate efforts to win Congressional approval for the additional bailout packages that Mr. Obama has signaled will be necessary to stabilize the banking system.

This is the real issue. The public will have no sentiment for giving any more money to these corporations and banks, and quite frankly they shot themselves in the foot on this one. Their excessive lavishness, no carishness, continuing business as usual mentality has led the public to turn around and want to give them the F'U you when it comes to more dollars being given to them.
Even as Mr. Summers was denouncing A.I.G. for the bonuses, he suggested that there was little if anything the government could do to stop them, seconding the conclusion of Treasury Secretary Timothy F. Geithner. But even if their reasoning was legally sound, they also risked having the administration look ineffectual in the face of what Mr. Summers said was the worst financial abuse of the last 18 months, since the economy began turning down in earnest.

“Never underestimate the capacity of angry populism in times of economic stress,” said Robert Reich, a professor of public policy at the University of California, Berkeley, and labor secretary under President Bill Clinton. “A big challenge for President Obama will be to maintain a rational and tactical public discussion in the midst of this severe downturn. The desire for culprits at times like this is strong.”

In a further development, A.I.G. on Sunday named dozens of financial institutions that benefited from its huge rescue loan from the Federal Reserve last fall. The list included Goldman Sachs, Merrill Lynch and Wachovia.

Nothing the government can do about it? It starts with not giving them anymore money. I know this may sound harsh, or even unrealistic, but just sit back and listen to the public, they are fed the f*ck up with this. Reich is right, don't underestimate the public's anger that is brewing and it is hotter than a pot of coffee.

The Obama Administration was handed a desk load of problems by the Bush Administration and this mess with AIG comes from the Bush Administration, but going forward the decisions by the White House must be on point, must quell the anger out here, if not it will be a very bumpy ride ahead.


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