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Thread: Executive Bonuses should not be paid with public money.

  1. #11
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    Re: Executive Bonuses should not be paid with public money.

    Quote Originally Posted by Reverend_Hellh0und View Post
    read on, dodd wrote in protections of bonuses in the bill at the request of the Obama administration.
    Last I heard (which was 3 or 4 days ago, so this could be out of date) Dodd was claiming he wrote in a provision that would've prevented the bonuses, but it was watered down in committee or something. Strangely, he claimed he didn't know who gutted that provision. If something has come out that gives us more information, let us know.
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    Re: Executive Bonuses should not be paid with public money.

    Quote Originally Posted by Psychoclown View Post
    Last I heard (which was 3 or 4 days ago, so this could be out of date) Dodd was claiming he wrote in a provision that would've prevented the bonuses, but it was watered down in committee or something. Strangely, he claimed he didn't know who gutted that provision. If something has come out that gives us more information, let us know.




    catch up my friend.


    Dodd admitted he wrote in the protection of bonuses at the request of the obama administration

    Ghietner admitted it.

    Obama played dumbass on late night tv.


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    Think not that I am come to send peace on earth: I came not to send peace, but a sword.

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    Re: Executive Bonuses should not be paid with public money.

    Quote Originally Posted by Reverend_Hellh0und View Post
    catch up my friend.


    Dodd admitted he wrote in the protection of bonuses at the request of the obama administration

    Ghietner admitted it.

    Obama played dumbass on late night tv.
    Thanks for the update.

    But back to my basic point, this story isn't about corporate greed. It's about government stupidity.
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    Re: Executive Bonuses should not be paid with public money.

    Quote Originally Posted by Reverend_Hellh0und View Post
    catch up my friend.


    Dodd admitted he wrote in the protection of bonuses at the request of the obama administration

    Ghietner admitted it.

    Obama played dumbass on late night tv.
    He wasn't playing.

    Anyone paying attention the last few weeks and has not realized he actually is one must also be one.

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    Re: Executive Bonuses should not be paid with public money.

    Quote Originally Posted by Psychoclown View Post
    But back to my basic point, this story isn't about corporate greed. It's about government stupidity.
    The two go hand-in-hand, don't you think? The lack of oversight which allowed AIG to behave so recklessly in the first place was something fiercely lobbied for by the corporations, and this is an important part of what allowed those corporations to grow "too big to fail" in the first place.

    And then, even when they are failing and begging for government money, the Congress refuses to impose conditions upon them... because the Congressmen are still in their pockets.

    Hopefully, Congress will be a little more cautious when it tries to bailout all the companies forced under by the panic created by their little kneejerk Bill of Attainder.

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    Re: Executive Bonuses should not be paid with public money.

    I do think the fact that AIG is "too big to fail" is a major issue that people aren't talking about. This crisis is driven by individuals who borrowed money they couldn't afford to pay back from banks who couldn't afford to risk so many sub-prime loans. So the bankers and borrowers were idiotic and normally I'd say they made their bed so they can lay in it. I have zero sympathy for both the individuals who are defaulting on loans they shouldn't have taken in the first place and the bankers that foolishly took on that enormous risk without a thought to what would happen when borrowers started defaulting.

    But the problem is if they are allowed to go down in flames, they take the rest of us with them. So what do we do? We prop them up with bailouts removing the penalties for their poor decision making - essentially encouraging them to do it (or some other stupid greedy scheme) again because they know we can't afford to let them go under. If one company is that key to the economy, its too big. We should seriously look into breaking up AIG and any other corporation that is "too big to fail". Every company should be responsible to the market corrections. They might think twice about taking ridiculous risks without the possibility of a government bailout to save their asses every time.
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    Re: Executive Bonuses should not be paid with public money.

    Quote Originally Posted by Reverend_Hellh0und View Post
    Awesome, so you hold Dodd accountable for writing it, and Obama signing it into law.....
    And what they did wasn't a bad thing with the exception of bonuses going towards the executives at the financial products division.

    http://www.debatepolitics.com/bias-m...post1057967341
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    Re: Executive Bonuses should not be paid with public money.

    Quote Originally Posted by Psychoclown View Post
    I do think the fact that AIG is "too big to fail" is a major issue that people aren't talking about. This crisis is driven by individuals who borrowed money they couldn't afford to pay back from banks who couldn't afford to risk so many sub-prime loans.
    Driven? Questionable. People keep hammering on the sub prime mortgages themselves while ignoring everything else. The real problem when you examine it is not necessarily the mortgages themselves. It's the leveraging that went on to buy all of the securitized assets. As I've stated several times here, investment banks took out huge loans to purchase such assets. When the revenue streams from the mortgages dried up, the securitized assets essentially became worthless. Normally, on an equity purchase the firm merely writes it down, takes a charge on income and is done with it. It hurts no question and they'll likely have to restrict lending to cover their losses but it's more or less a done deal once the charge dries. Now, what had was leveraged purchases. So instead of writing it off and being done, the investment banks now have to make payments on their loans, largely commercial paper. So no revenue from those assets and liabilities on the original purchase. You see the problem. So banks slash lending to conserve case to try to stay afloat. They call in their lines of credit from regular banks who suddenly see huge outflows from their off the books obligations. So they start cutting lending to cover their lines of credit. So not only are investment banks slowing or stopping lending but regular banks. If the asset backed securities had merely been equity purchases, we wouldn't have this problem. This is lost on so many people it's amazing. Remember that the US housing market is only around 3% of the entire economy and sub prime is a tiny fraction of that 3%. It alone cannot account for this problem. The reason why most mainland European banks are no where near our level of mess is because their leveraging never exceeded something like 15 to 1. At home in the good ol' USA we had leveraging of over 60 to 1. Similar instances happened in England.

    The problem itself isn't the sub prime. It's the obscene leveraging. AIG is in the mess because it's essentially insured bonds with CDS which it historically made billions off doing nothing (literally nothing) but is now called upon contractually to make firms whole on largely commercial loans that are going bad.

    But the problem is if they are allowed to go down in flames, they take the rest of us with them. So what do we do?
    Slice up AIG into financial products and insurance and sell the profitable insurance and let the financial products go under. And pray to God that Congress doesn't outlaw CDS.
    "If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu

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    Re: Executive Bonuses should not be paid with public money.

    Quote Originally Posted by obvious Child View Post
    And what they did wasn't a bad thing with the exception of bonuses going towards the executives at the financial products division.

    http://www.debatepolitics.com/bias-m...post1057967341



    and what excuse are you making here?


    Matthew 10:34
    Think not that I am come to send peace on earth: I came not to send peace, but a sword.

  10. #20
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    Re: Executive Bonuses should not be paid with public money.

    Quote Originally Posted by Reverend_Hellh0und View Post
    and what excuse are you making here?
    I provided a link to an argument regarding the actual nature of the bonuses. You are free to read it and discuss things like adults. If you wish to continue the "I hate OC and will make disparaging comments to him whenever I reply to him" go to the basement.
    "If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu

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