AIG: Bailout, Bonuses & Blame

The Columbus (Ohio) Dispatch newspaper runs a regular feature called the Hot Issue, where they ask their readers a question of interest and ask them to answer the question and comment on their answer. Here is the question of the day and my answer.

The Hot Issue:

"Should companies receiving federal government bailout funds be banned from paying bonuses?"

My Response:

No – if there were pre-existing contracts in place and the government lacked due diligence and failed to stipulate something to the contrary as with AIG. Yes, if the government makes it absolutely clear upfront.

The Soetoro (a/k/a Obama) Administration being in such a hurry to "help" the economy failed miserably in establishing the proper criteria. It is the chief tax evader, Timothy Geithner, who should be held accountable for this terrible oversight.

A better question to ask is, “Should government be banned from doling out bailouts to companies, when that government does not have the finances to do so and cannot do so without incurring unconscionable amount of debt?” That, I think, would be the more appropriate question to ask!

But then, what do you expect from Wasting-a-ton, D.C.?