Good Richards Almanac

March 16, 2009

Who Else Is Responsible For The AIG Mess?

I previously recorded how Obama's own prodigy, Tim Geithner was architect-in-chief of the AIG bailout. It was his failure to negotiate robust terms for the issuance of TARP funds that led to this disaster. But, who gave Geithner the mandate to oversee this train wreck?

A complicit Bush administration and every congressman who abrogated their duty when they voted to relinquish responsibility for congressional oversight. Here are some notables...

Barack H. Obama

How do they justify this outrage to the taxpayers who are keeping the company afloat?

Barney Frank

It does appear to be that we’re rewarding incompetence.

Chris Dodd

Received more contributions by AIG employees than any other politician.

Charles Grassley

The first thing that would make me feel a little bit better towards them if they’d follow the Japanese model 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.

Remember that old saying? "No taxation without representation." What good is a representative when they vote away their responsibility for oversight? If congress were more concerned with doing the right thing and less concerned with spreading pork, perhaps they would've shepherded the responsible dissolution of failing companies like AIG.

Instead, they choose not to represent us, then are upset at the world when they look bad.

Posted by Richard at March 16, 2009 7:23 PM

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Comments

AIG should be Broken Up. When a company, bank or insurer reaches a size where illicit, illegal or internal actions affect the entire economy, that company has Monopoly impact and is throttling competition. It has grown too large - we (America) suffers from "GIGANTISM", where the mantra "too large to fail" supports and artificially props up failed actions which lead to major disruption of the economy.

In this case too few people engaged in actions which led to collapse - not only of the companies financial abilities, but by extension also to that of the countries financial stability.

Breaking up the huge banking cartels and the incredibly huge insurance companies (holding companies) into smaller units will effectively lessen the risk that one huge company (sic) will so negatively affect the entire economy.

Posted by: Edwin Johnson at March 16, 2009 9:30 PM