AIG, Contracts, and Government
This happened on Obama's watch not Bush's, so can Obama have the government step in to private business and ignore legal contracts? This is a prime example of Big Brother trying to run private business for the "benefit" of the popular sentiment.
AIG was stupid enough to give out contracts to certain employees guaranteeing them bonuses even if they did not produce profit. This is bad business practice but is it illegal? No it is not! It just means that stock holders need to take a closer look at what the board of directors are doing in their name. Again a little personal responsibility and fact finding for the individual is what this calls for. This does not answer the question though.
Can the government step in and say wait a minute you are not entitled to a legal contract because we do not think that it is fair. Clearly the government was not paying attention in its rush to throw money at a problem that they had no business throwing money at in the first place. Government is not the answer to all problems , despite what the enlightened progressive thinking economist tell us. In a capitalistic system companies have to from time to time fail. Sorry for those who loose money (that would include Congress who have their retirement funds insured through AIG).
Legally the government CANNOT, I say again CANNOT, null and void contracts. Just because our government was once again foolish enough to give money, and reward incompetence. Does not mean that they can come back and change things afterwards. It equates to handing the bum on the street corner who has a sign saying he needs food. You give him a sawbuck and he runs to the liquor store and buys a bottle of Nitetrain. You can not demand the money back. It is too late. If you wanted to get him food then you should have bought it for him.
If government is allowed to rewrite a legal contract because they do not like it. Then we have no Constitution nor any freedom of enterprise left. Just because the government screwed up AGAIN. Does not allow them to null and void a legal contract between two private parties. Sorry but that is what this is. A contract between two private parties. AIG and the person that they hired.
*********************UPDATE**********************
So guess what person in Washington is behind grandfathering in the AIG bonuses??
One of the morons that helped create the financial mess this country is experiencing. Yeppers that's right Sen. Christopher Dodd. He wrote in to the bailout that certain bonuses be allowed to be given out. So when he runs his mouth about how this is wrong who in the media is going to ask him then why he allowed it.
AIG was stupid enough to give out contracts to certain employees guaranteeing them bonuses even if they did not produce profit. This is bad business practice but is it illegal? No it is not! It just means that stock holders need to take a closer look at what the board of directors are doing in their name. Again a little personal responsibility and fact finding for the individual is what this calls for. This does not answer the question though.
Can the government step in and say wait a minute you are not entitled to a legal contract because we do not think that it is fair. Clearly the government was not paying attention in its rush to throw money at a problem that they had no business throwing money at in the first place. Government is not the answer to all problems , despite what the enlightened progressive thinking economist tell us. In a capitalistic system companies have to from time to time fail. Sorry for those who loose money (that would include Congress who have their retirement funds insured through AIG).
Legally the government CANNOT, I say again CANNOT, null and void contracts. Just because our government was once again foolish enough to give money, and reward incompetence. Does not mean that they can come back and change things afterwards. It equates to handing the bum on the street corner who has a sign saying he needs food. You give him a sawbuck and he runs to the liquor store and buys a bottle of Nitetrain. You can not demand the money back. It is too late. If you wanted to get him food then you should have bought it for him.
If government is allowed to rewrite a legal contract because they do not like it. Then we have no Constitution nor any freedom of enterprise left. Just because the government screwed up AGAIN. Does not allow them to null and void a legal contract between two private parties. Sorry but that is what this is. A contract between two private parties. AIG and the person that they hired.
*********************UPDATE**********************
So guess what person in Washington is behind grandfathering in the AIG bonuses??
One of the morons that helped create the financial mess this country is experiencing. Yeppers that's right Sen. Christopher Dodd. He wrote in to the bailout that certain bonuses be allowed to be given out. So when he runs his mouth about how this is wrong who in the media is going to ask him then why he allowed it.
