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Monday, March 16, 2009

How to pay AIGFP bonuses and live happily ever after

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I wish I could take credit for the following brilliance, but in fact it came from one Lucious MacAdoo or someone very much like him.

We're told that AIG Financial Products (AIGFP) is contractually obligated to pay almost half a billion dollars in bonuses to AIGFP execs and other "key personnel", and that there is nothing Uncle Sam can do about it even though the U.S. Treasury owns 80 percent of the corporation's necrotic corpus. Josh Marshall took aim at that concept today with bullshit detector blazing. Meanwhile, NPR dutifully spent the day explaining to us rubes that not even the federal government can force a corporation to "abrogate" a contract. (Inexplicably, NPR did not tell us why it's possible for a corporation to abrogate its contracts with unions and pensioners.)

Enter Lucious with a fine idea, possibly overheard from his own id: force the AIGFP execs to accept their bonuses in the form of the "innovative financial products" they created. In my opinion, this would represent the most elegant solution to any problem ever conceived since the dawn of human history. Think of how easily these wizards could sell their bonus portfolios at huge profits on the unregulated open market for financial derivatives, then spend the proceeds on goods and services crafted by American workers who, early every Saturday morning, spring out of bed and drive to big box stores to purchase massive amounts of swag using credit cards that are readily available with no questions asked.

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