I was opposed as anyone to the Bank Bailout but now that it has happened we need to just suck it up and move on. The constant whining I've been seeing regarding the apx 120 million in bonuses AIG handed out is a waste of time and breath. Do all the people doing the complaining realize it won't change anything? Instead now we just have our politicians wasting even more money talking about it, complaining about it, and thinking about taxing it.
You might think taxing it is a great idea - except it isn't. You see, the vast majority of the bonuses went to London bankers. That's right, people we CAN'T tax. So were going to waste congresses time getting a bill passed that puts an insanely high tax on money we can't tax anyway. Sounds like cutting off your nose to spite your face to me.
It wouldn't even be a symbolic victory; instead it would be a symbol of how inept our government really is. While the angry masses would be appeased in reality nothing would have changed. Nothing.
Other people have been saying that the next chunk of money AIG gets (they are getting more you know) should have the 120 million withheld from it. That sounds reasonable enough; except it is stupid. What exactly is that going to accomplish? AIG already gave out the money - they HAD to give it out because they were contractually obligated.
You know what else is funny? We, the people, own 70% or more of AIG - so WE gave out those bonuses to the London bankers. We bought a company that had some very poorly worded contracts and we were obligated to fulfill the contract.
You might be saying, well we should have broken the contract and not paid them. Good luck with that. Then the people due the contracts could have sued AIG - which would have cost we the taxpayers even more in court fees before we ended up paying them the money they were due thanks to their legally binding contract.
Instead of being pissed about the contracts that existed when we bought AIG and instead of whining about how much it sucks that we have to honor those contracts, write your representatives and tell them to make sure AIG has to re-work all existing contracts and that under no circumstance should we ever reward people for failure in the future. Tell them this is not an option. Do something constructive for the future instead of bitching about the past.