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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: ChanceIs who wrote (190850)3/15/2009 10:07:17 PM
From: geode00Read Replies (1) of 306849
 
Sorry, that was confusing. Here is the article:

abcnews.go.com

I don't know if this is correct but I believe that under bankruptcy those employee contracts would be stuck fighting for what is left of the company. Since the US government stepped in to purchase 80% of AIG, most people would be correct to suppose that management (and anyone making, say, $6m in a year) would have taken a massive haircut in order to keep what is left of their stock and of their jobs.

It appears that we prevented bankruptcy, pulled their bacon out of the fire and they are turning around and demanding bonuses for a job poorly done. Talk about biting the hand that feeds.

Since AIG is currently a ward of the state it is fair for us to see the contracts, see where all of the money has gone and see what the heck the company is doing today. It is like pulling teeth. What do we get for $170 billion? Don't we get the keys to the front door and the combination to the safe in the basement?

Ethically speaking though, it seems to me that the non-moral-hazard way to go was to let all of these capitalists go down with their ships. Jamie Dimon wouldn't be around to complain that his industry is being vilified...he'd probably be out of a job during an all out financial fiasco and he's one of the better managers out there.

Given the tone deafness of the financial industry, I suspect we are done with bailouts and even stimulus plans now. Unless we have a DOW plunge of, say, 2000 points in a day...then all bets are off.

Sorry about Calpine. Did they get stuck in the fallout over Enron?
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