Another debacle
I was downstairs in the “shop” last night putting a coat of stain on a small woodworking project I started over the weekend. I have an old stereo receiver and a couple of speakers down there to give me something to listen to while I tinker. While I was working I was listening to Herman Cain, a local talk show host. Herman Cain is the founder and former CEO of Godfather’s Pizza, and serves on the boards of several international corporations. Herman’s show is syndicated, but I’m not sure how many stations he is on throughout the country, but you can also visit his website, www.hermancain.com. If you can find his show he is well worth listening to.
Herman had just returned from Italy where he was at a board meeting of one of these corporations. Yes, the evil corporation had a board meeting in Europe! How dare they! When he got back the AIG bonus story had just started to break, and of course, that is about all we have been hearing about for the past few days.
Herman had a somewhat different view of the situation, as he often does. His point, that the AIG Bonus controversy shows just how incompetent our legislators and bureaucrats are. It is unbelievable that they would invest Billions of dollars into a company and not have any idea of what liabilities the company had and how they would spend the money.
If you were an investor and were going to pour $160 Billion into a company the normal process would be, after the terms of the agreement were determined, to perform “due diligence” to make sure what you were investing in. You would have your accounting people examine, even audit, the company’s books and make sure you fully understood what assets the company has and what outstanding liabilities the company has accumulated. This is just good business sense!
Do you think that our legislators and the Obama Administration would do such a thing. No, they were in too much of a hurry to find out what they were getting into or to put any “strings” on the use of the money by AIG. The same way they were in too much of a hurry to pass the Omnibus Spending Bill to take the time to root out the earmarks. Despite Obama’s promise during the campaign to eliminate earmarks, post bills on the internet for the public to examine for a week before they are voted on by the legislature, and providing us with “Change you can believe in.” Yeah, right! In fact the bail out bill was rushed through the House and Senate so fast that most all of the members never even read the bill! I find that not only incompetent but criminal!
I have heard our President in several speeches blame the economy on “corporate greed.” Sure, there was some of that in play, but when you get right down to the root cause, it was the government, in particular the Democrats, changing mortgage rules that allowed the corporate greed to take hold. I have documented on this website many of the policy changes going back as far as the Carter Administration that were the roots of the mortgage meltdown. I have many posts on this website of the way Presidents Carter and Clinton set up this disaster with the full support and aid of the congress.
AIG had contracts for the payment of bonuses to certain employees, this was well known before the bailout money was sent to AIG, but no one in the government paid any attention. Now that it has been made public and they look like the idiots they have polished up and brought forth their indignation for the television cameras! Their answer, they’ll tax the recipients of the bonus money at a 90% tax rate to get the money back. Sounds like armed robbery to me. But after all, they would never admit that they screwed up. I heard today the measure has passed the House, hopefully cooler heads will rule in the Senate.
I’m telling you now, we need to replace the whole lot of them. We need to vote every last one of these scoundrels out of office!
God Help Us!

