What if you gave someone a helping hand then sued them for taking it?
Is that any different from what the government is doing regarding AIG? Financial support has been given now AFTER THE FACT the 'government' is going after some AIG employees that have benefited from the government's aid because they have contracts that pre-dated the support. That's right 'predated.' They are not even benefitting so much from what the government is doing as their pre-arranged compensation is making it look bad for the Feds. It is a nightmare 'PR' event for the government. And the elected officials are handling it well -- as well as any other group of elementary school children might.
Facts Vs fallout
Read my previous posting for more on this topic of AIG and the government's trampling of the rule of law. I am not here concerned with those facts rather with the fallout. The fallout is that with the government playing HG Wells and the time machine with the rules many will choose not to play. What a pity.
Revision does not work here.
TALF rhymes with Ralph - what's Up-Chuck?
The Fed has now launched the TALF a program that could help restart lending to consumers in the economy. But NO ONE wants to use it. Why? Well I have no scientific survey but you can bet that it has a lot to do with the treatment of banks and of AIG under TARP. Private firms are chocking on the potential consequences. No sooner do they get the money than the not-so-golden handcuffs start to come out and the rules get changed. And if the current rules can't be changed legally Congress passes new ones to achieve the same impact. Don't mess with us! That's what this says. but what it really says is don't DEAL with us and markets have gotten that message
Got a deal with the Fed's? ...want to rethink that?
Suddenly the 'deal' is something different than when it was discussed. And while you can't do that retroactively remember you have to be careful when you play against the guys who write and can rewrite the rules. You would not play Monopoly with someone that had that power so why play 'real life?'
Yet another inconvenient truth
No one wants to have their terms of employment and compensation controlled by a government with politicians more concerned with throwing red meat to an outraged public than in standing up to the firestorm of concerned voters and explaining what happened. It's easier to point a finger and get red-faced than to deal with the issue at hand.
Talk about being overpaid... at any price...
Now they have killed the Fed's goose that was going to lay some golden eggs. Instead, that foul is nearly sterile.
The Fed's first TALF offering was woefully undersubscribed. Underwriting 2 percent of its capacity is not going to help the economy much.
Pelosi puts her best foot forward...
Meanwhile, Nancy Pelosi set us straight. House Democrats are not at fault. Senator Dodd (rhymes with God) and the White House set those details...not House democrats. Pelosi is crowing that when the chips were down, she was irrelevant. Just to be sure, though, she blamed the Fed for riding in on short notice to the rescue. Nancy, baby, you know what public service is all about. It's all about YOU. Just like the politicians that have tried to set up residency in Maryland for tax purposes to avoid taxes in the state they represent! (Democratic Rep. Pete Stark, for one). This stuff is priceless. Public service. Now you understand it. It's why farmers say they are getting their Cattle 'serviced'. We are getting 'serviced' by our elected representatives as well? Try to enjoy it. And although it's bad for your health, have a cigarette, when they're done - if they ever finish.