Wednesday, March 18, 2009

AIG is not thinking - are you?

Contrast these two stories:


In the one the emerging market expert, guru etc advises his audiences |(incorrectly). If it takes a rookie blogger like myself to see that these celebrity economic experts are suffering from delusional hubris, you know we're in deep shit.

Oh, there goes the herd. Going to join 'em are ya?
clipped from
Treasury Secretary Timothy Geithner said AIG will have to return $165 million in bonuses for executives.

(CNN) -- Insurance giant AIG will have to return to the Treasury Department the $165 million it just paid out in executive bonuses, Treasury Secretary Timothy Geithner said Tuesday in a letter to congressional leaders.

Cuomo also wrote that 11 of the employees no longer work for the company. The largest bonus paid was $6.4 million; seven other people also received more than $4 million each.

Grassley and Baucus said all retention bonuses would be subject to a 35 percent excise tax for excessive compensation to be paid by the company and an additional 35 percent tax to be paid by the individual.

"Millions of Americans are losing their jobs -- millions. And to some degree, they're losing their jobs because of actions taken by some of these firms," Baucus said. "At the same time, they're giving themselves bonuses. I mean, give me a break. What are these people thinking? That's part of the problem. They're not thinking."

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