This AIG outrage is getting a little old. Lets look at the basic facts:
- AIG made stupid decisions which resulted in losing a huge amount of money.
- The Government gives AIG a huge amount of money
- AIG makes more stupid decisions (say some) which resulted in losing more money.
Did they honestly think that AIG was going to get lots smarter simply because they were all of a sudden spending other people's money?
As some really dense Democrat Congressmen said recently 'It looks like we are rewarding incompetency.' Well, the bonuses were not the reward for incompetency. The Government bailout of the company was the reward. (And as far as I am concerned, the employees should be able to keep the bonuses. The company used the money as it thought it needed to. As I just said, the bonuses were not the mistake. Giving the money to the company was.)
In a fair world this company would have failed. That would have rewarded the other companies that did not much such bad mistakes. Now these stronger companies have to put up with this subsidized competitor which threatens to now weaken the their position in the market.