-
It's that time of year again - our ISP is asking for money. If you have some spare change, please click the Donate link... Thanks!
- About Us
- Search
- Need Help?
- Donate
- Login/Register
Latest Entries
Actions Menu
Blog Roll
- 4F Facebook Page
- Turn Up The Night with Kenny Pick
- Stephanie Miller Show
- The Tim Corrimal Show
- The Rachel Maddow Show
- Angry Americans with Paul Rieckhoff
- Thom Hartmann Program
- Turnips! Fans of Turn Up the Night Facebook Page
- Snopes.com
- Factcheck.org
- Official White House Page, if you must.
- The Brad Blog / Green News Report
- The Poorly Written Political Blog (Joe Santorsa)
Off With Their Heads!
Author: BobR
Date: 03/18/2009 12:38:49
The economic news since before the election last year has been mostly bad. Numerous well-known companies have shuttered permanently or come close to it. Auto companies are teetering on the edge. Yet one previously little-known company has captured the imagination and the ire of the nation: AIG. The big story is the bonuses, but the sideshow is noteworthy on its own.
First: How did AIG get here? From the NYTimes:
That's it in a nutshell - they insured not the mortgages on the houses, but the value of the houses. They assumed that house values would only go up. Once the housing bubble burst and values started dropping, they were screwed.
What never seems to get mentioned is that:
This has led to both Obama and Congress trying to negate that obligation. Obama is also placing the blame on the previous administration:
Obama has said he will pursue "every single legal avenue" to either prevent the bonuses from being paid, or to recoup the bailout funds in the same amount. Congress in turn is pursuing options from its end, and will have AIG CEO Edward M. Liddy testify before them later today. Expect grand displays of righteous indignation...
What's more disturbing (yet not unexpected) are the responses from the right-wing. Senator Grassley (R-IA) suggested the AIG execs commit harikari:
(naturally, he later backtracked on his comments...)
And those fabulous folks at FAUX News had their own fabulous comments to make. After Krauthammer made a rather well-reasoned explanation as to the AIG situation, the crazy came out:
Time marches steadily... backwards... for these folks...
So we'll see what happens on the Hill today. There will linguistic tarring and feathering; of that I am certain. This has all the makings of the theatre absurd, with everyone trying to one-up their fellow congress critters for the folks back home.
Welcome to the circus - and in the center ring...
First: How did AIG get here? From the NYTimes:
A.I.G.’s problems rest in its London-based financial products unit, part of its financial services group, which is exposed to securities tied to the value of home loans. The financial products group sold credit-default swaps, complex financial contracts allowing buyers to insure securities backed by mortgages. As home values have fallen, the value of the underlying mortgages has declined, and A.I.G. has had to reduce the value of the securities on its books.
That's it in a nutshell - they insured not the mortgages on the houses, but the value of the houses. They assumed that house values would only go up. Once the housing bubble burst and values started dropping, they were screwed.
What never seems to get mentioned is that:
- Most of the company is doing fine, it's just the one unit that's dragging the rest of the company down
- The unit is based in London, not the U.S.
- The head of that unit is a contract employee, still earning $1,000,000.00/month, even after the meltdown.
This has led to both Obama and Congress trying to negate that obligation. Obama is also placing the blame on the previous administration:
"The Secretary of Treasury did as much in his legal power at the time to lessen the impact of what we all understand is outrageous," Gibbs said during a Tuesday afternoon press conference. "Let's make sure that everybody understands that there was a change in administration between September of 2008 and what we were talking about sometime last week,"
Obama has said he will pursue "every single legal avenue" to either prevent the bonuses from being paid, or to recoup the bailout funds in the same amount. Congress in turn is pursuing options from its end, and will have AIG CEO Edward M. Liddy testify before them later today. Expect grand displays of righteous indignation...
What's more disturbing (yet not unexpected) are the responses from the right-wing. Senator Grassley (R-IA) suggested the AIG execs commit harikari:
I suggest, you know, obviously, maybe they ought to be removed," Grassley said. "But I would suggest the first thing that would make me feel a little bit better toward them if they'd follow the Japanese example and come before the American people and take that deep bow and say, I'm sorry, and then either do one of two things: resign or go commit suicide.
"And in the case of the Japanese, they usually commit suicide before they make any apology."
(naturally, he later backtracked on his comments...)
And those fabulous folks at FAUX News had their own fabulous comments to make. After Krauthammer made a rather well-reasoned explanation as to the AIG situation, the crazy came out:
Get the Flash Player to see this player.
Time marches steadily... backwards... for these folks...
So we'll see what happens on the Hill today. There will linguistic tarring and feathering; of that I am certain. This has all the makings of the theatre absurd, with everyone trying to one-up their fellow congress critters for the folks back home.
Welcome to the circus - and in the center ring...
Comments:
Order comments Newest to Oldest Refresh Comments
Comment by 
wickedpam on 03/18/2009 13:02:26
wickedpam on 03/18/2009 13:02:26
Morning :hug:
Comment by 
Raine on 03/18/2009 13:08:30
Raine on 03/18/2009 13:08:30
Morning all!
Comment by wickedpam on 03/18/2009 13:52:43
wickedpam on 03/18/2009 13:52:43
Comment by 
Mondobubba on 03/18/2009 13:56:09
Mondobubba on 03/18/2009 13:56:09
Morning all. Nice blog today Bobber.
There is one tiny thing I would like to quibble about. Using the term harikiri. That is (in Japanese) a vulgar term for the higly ritualized act of cerimonial suicide rightly called url="http://en.wikipedia.org/wiki/Sepuku"]Seppuku.
We want to be culturally sensitive and correct in our usages don't we?
This will be my last public service announcement of the day
There is one tiny thing I would like to quibble about. Using the term harikiri. That is (in Japanese) a vulgar term for the higly ritualized act of cerimonial suicide rightly called url="http://en.wikipedia.org/wiki/Sepuku"]Seppuku.
We want to be culturally sensitive and correct in our usages don't we?
This will be my last public service announcement of the day
Comment by 
BobR on 03/18/2009 14:02:01
I know about the term Seppuku. However, considering the context and the people involved, the more vulgar term seemed appropriate.
BobR on 03/18/2009 14:02:01
Quote by Mondobubba:
Morning all. Nice blog today Bobber.
There is one tiny thing I would like to quibble about. Using the term harikiri. That is (in Japanese) a vulgar term for the higly ritualized act of cerimonial suicide rightly called Seppuku.
We want to be culturally sensitive and correct in our usages don't we?
This will be my last public service announcement of the day
I know about the term Seppuku. However, considering the context and the people involved, the more vulgar term seemed appropriate.
Comment by Mondobubba on 03/18/2009 14:08:50
Point well taken. They are right bastards. In particular are the eleven people who are no longer working for AIG. I'd like to get a "retention" bonus from a company I no longer work for. Hell, I'd like to get any kind of bonus from a company I no longer work for.
Mondobubba on 03/18/2009 14:08:50
Quote by BobR:Quote by Mondobubba:
Morning all. Nice blog today Bobber.
There is one tiny thing I would like to quibble about. Using the term harikiri. That is (in Japanese) a vulgar term for the higly ritualized act of cerimonial suicide rightly called Seppuku.
We want to be culturally sensitive and correct in our usages don't we?
This will be my last public service announcement of the day
I know about the term Seppuku. However, considering the context and the people involved, the more vulgar term seemed appropriate.
Point well taken. They are right bastards. In particular are the eleven people who are no longer working for AIG. I'd like to get a "retention" bonus from a company I no longer work for. Hell, I'd like to get any kind of bonus from a company I no longer work for.
Comment by 
TriSec on 03/18/2009 14:13:08
TriSec on 03/18/2009 14:13:08
Morning, comrades!
Comment by Raine on 03/18/2009 14:14:10
Raine on 03/18/2009 14:14:10
Did anyone catch the WH yesterday?
Comment by wickedpam on 03/18/2009 14:26:08
wickedpam on 03/18/2009 14:26:08
Ethan is just too cute :D
Comment by Raine on 03/18/2009 14:37:54
Raine on 03/18/2009 14:37:54
It is important to remember that it was AIG that Spitzer was going after before we all found out about the hookers and the flaven.
Those contracts were put in place in EARLY 2008.
Those contracts were put in place in EARLY 2008.
Comment by Raine on 03/18/2009 14:38:16
Raine on 03/18/2009 14:38:16
Grassley is a pig.
Comment by Mondobubba on 03/18/2009 14:39:54
It looks less diseased in a still than it did on video tape. Rachel or KO had some video last night. All in all, way to get in the St Paddy's Day spirit, Pres O'Bama.
Mondobubba on 03/18/2009 14:39:54
Quote by Raine:
Did anyone catch the WH yesterday?
It looks less diseased in a still than it did on video tape. Rachel or KO had some video last night. All in all, way to get in the St Paddy's Day spirit, Pres O'Bama.
Comment by Raine on 03/18/2009 14:44:58
Raine on 03/18/2009 14:44:58
The Truth about AIG is coming out...
Comment by Mondobubba on 03/18/2009 14:52:00
The truth in that they seem to have been running some kind of long con ala Enron with the CDFs and things of this nature?
Mondobubba on 03/18/2009 14:52:00
Quote by Raine:
The Truth about AIG is coming out...
The truth in that they seem to have been running some kind of long con ala Enron with the CDFs and things of this nature?
Comment by TriSec on 03/18/2009 14:57:32
TriSec on 03/18/2009 14:57:32
It's a fountain full of Oobleck?
Comment by Mondobubba on 03/18/2009 14:59:17
Mondobubba on 03/18/2009 14:59:17
Do you feel as I do that KO and Rachel kinda run together? Case in point both of them reporting on the green fountain at the WH yesterdee. Or was it on just one of the shows? I really can't remember.
Blog contest? Come up with a mash up name for the two hour programming block on MSNBC that runs from 8-10pm weeknights. I've got Kachel Maderman, which frankly sucks. I think the collective creative brain power here can come up with something catchier.
Blog contest? Come up with a mash up name for the two hour programming block on MSNBC that runs from 8-10pm weeknights. I've got Kachel Maderman, which frankly sucks. I think the collective creative brain power here can come up with something catchier.
Comment by Mondobubba on 03/18/2009 15:06:48
As I've been following the blame game on this, it comes to this instead of saying they might have some responsiblity for the mess through the continuesly clanging of the deregulation bell, the GOP is trying to muddy the waters and solely blame Democrats/one thing/institution etc (no surprise there, really). Not unlike when mortgages were unraveling and they pointed their pudgy oily fingers at Freddy & Fannie along with that pesky Comunity Redelopment Act. It has been clear to me for a long time that the Republicans don't do any sort of nuance or parsing on arguments. Which is pretty laughable when you get down to it. I think that the rest of America is catching up to where we (bloggy) was about four or five years ago in deconstructing GOP bullshite.
Mondobubba on 03/18/2009 15:06:48
Quote by Raine:
Hold the presses regarding Chris Dodd...
As I've been following the blame game on this, it comes to this instead of saying they might have some responsiblity for the mess through the continuesly clanging of the deregulation bell, the GOP is trying to muddy the waters and solely blame Democrats/one thing/institution etc (no surprise there, really). Not unlike when mortgages were unraveling and they pointed their pudgy oily fingers at Freddy & Fannie along with that pesky Comunity Redelopment Act. It has been clear to me for a long time that the Republicans don't do any sort of nuance or parsing on arguments. Which is pretty laughable when you get down to it. I think that the rest of America is catching up to where we (bloggy) was about four or five years ago in deconstructing GOP bullshite.
Comment by TriSec on 03/18/2009 15:08:32
"The MSNBC Wicked Smahhhhhht show!"
TriSec on 03/18/2009 15:08:32
"The MSNBC Wicked Smahhhhhht show!"
Comment by Mondobubba on 03/18/2009 15:10:20
With Mash up on KO and Rachel's names?
Mondobubba on 03/18/2009 15:10:20
Quote by TriSec:
"The MSNBC Wicked Smahhhhhht show!"
With Mash up on KO and Rachel's names?
Comment by Mondobubba on 03/18/2009 15:12:32
Mondobubba on 03/18/2009 15:12:32
Tri, I.must.dogfight. Haven't.had.dog.fight.in.over.12.hours! :pops sweat, snots up, cramps:
I've upgraded to SPAD XIII, it was too good to pass up. When I traded up, I made like 4300 bucks which went to upgrades. I am going to hold out for a Spitfire next.
I've upgraded to SPAD XIII, it was too good to pass up. When I traded up, I made like 4300 bucks which went to upgrades. I am going to hold out for a Spitfire next.
Comment by Raine on 03/18/2009 15:20:10
Raine on 03/18/2009 15:20:10
CNN reports that AIG is attempting to sell its headquarters in New York City.
Comment by Mondobubba on 03/18/2009 15:20:14
Mondobubba on 03/18/2009 15:20:14
Bobber, I am totally digging the dual monitor set up we have here. I've got all kinds of windows/apps/webpages opened all over the place. I will never want to go back to just one monitor again. Wicked cool.
Comment by 
livingonli on 03/18/2009 15:22:21
livingonli on 03/18/2009 15:22:21
Good morning everyone. 
And once again tonight I have another late shift in the salt mine where I will be there until 3 AM.
Calgon, take me away!
And once again tonight I have another late shift in the salt mine where I will be there until 3 AM.
Calgon, take me away!
Comment by TriSec on 03/18/2009 15:23:45
TriSec on 03/18/2009 15:23:45
Uhh, lessee.
KO your dumb Republican friends with Rachel and the Wicked Smahhhhht show!
KO your dumb Republican friends with Rachel and the Wicked Smahhhhht show!
Comment by livingonli on 03/18/2009 15:27:58
Like Republicans ever let a thing like facts get in the way when there's talking points to spew.
livingonli on 03/18/2009 15:27:58
Quote by Mondobubba:Quote by Raine:
Hold the presses regarding Chris Dodd...
As I've been following the blame game on this, it comes to this instead of saying they might have some responsiblity for the mess through the continuesly clanging of the deregulation bell, the GOP is trying to muddy the waters and solely blame Democrats/one thing/institution etc (no surprise there, really). Not unlike when mortgages were unraveling and they pointed their pudgy oily fingers at Freddy & Fannie along with that pesky Comunity Redelopment Act. It has been clear to me for a long time that the Republicans don't do any sort of nuance or parsing on arguments. Which is pretty laughable when you get down to it. I think that the rest of America is catching up to where we (bloggy) was about four or five years ago in deconstructing GOP bullshite.
Like Republicans ever let a thing like facts get in the way when there's talking points to spew.
Comment by Mondobubba on 03/18/2009 15:28:21
How about Krachel Olberdow and the Wicked Smahhhhht Show! With Kent Jones?
Mondobubba on 03/18/2009 15:28:21
Quote by TriSec:
Uhh, lessee.
KO your dumb Republican friends with Rachel and the Wicked Smahhhhht show!
How about Krachel Olberdow and the Wicked Smahhhhht Show! With Kent Jones?
Comment by TriSec on 03/18/2009 15:29:42
TriSec on 03/18/2009 15:29:42
Keith makes you mad.
Rachel makes you smart.
Kent makes you laugh.
Come on, what more do you want, a freakin' biscuit?
[Tune in MSNBC 8-10 pm, weeknights!]
Rachel makes you smart.
Kent makes you laugh.
Come on, what more do you want, a freakin' biscuit?
[Tune in MSNBC 8-10 pm, weeknights!]
Comment by livingonli on 03/18/2009 15:37:04
livingonli on 03/18/2009 15:37:04
The only question is what will MSNBC eventually put on at 10 PM so then I could end up just watching MSNBC from 8-11 PM and then The Daily Show/Colbert Report to round out the evening viewing.
Comment by Mondobubba on 03/18/2009 15:37:37
:spit:
Well done, Herr TriSec. :staggers to fainting couch, continues to to giggle:
Mondobubba on 03/18/2009 15:37:37
Quote by TriSec:
Keith makes you mad.
Rachel makes you smart.
Kent makes you laugh.
Come on, what more do you want, a freakin' biscuit[b/]?
[Tune in MSNBC 8-10 pm, weeknights!]
:spit:
Well done, Herr TriSec. :staggers to fainting couch, continues to to giggle:
Comment by TriSec on 03/18/2009 15:37:38
TriSec on 03/18/2009 15:37:38
This calls for HaikuMan™!!!
Countdown to your rage
Then calm down and get smarter
8 to 10 tonight!
Countdown to your rage
Then calm down and get smarter
8 to 10 tonight!
Comment by Raine on 03/18/2009 15:40:02
Raine on 03/18/2009 15:40:02
Hi Clint! 
Comment by Mondobubba on 03/18/2009 15:40:30
Mondobubba on 03/18/2009 15:40:30
Krachel Olberdow! I think this is a winner of a mash up name. Discuss.
Comment by Raine on 03/18/2009 15:43:21
Raine on 03/18/2009 15:43:21
Nipsy Russell Rocked!
Comment by livingonli on 03/18/2009 15:46:27
Did he call in?
livingonli on 03/18/2009 15:46:27
Quote by Raine:
Hi Clint!
Did he call in?
Comment by Raine on 03/18/2009 15:52:30
Raine on 03/18/2009 15:52:30
Bayh... he is a DINO, imo...
Comment by 
clintster on 03/18/2009 15:53:29
Hey!
It took a sec to realize how you knew I was here when I hadn't posted yet; thankees, Live Traffic Feed!
Anyway, I am up to my armpits (literally) in papier mache for our next show. Anyone with some free time is welcome to come help me. :)
In other news, I was watching the "Today" show this morning and saw their breathless account of Octomom bringing home two of her babies, and the paparazzi clown car that was following her into her garage. Is there anyone else out there who just wishes this story would go away already?
clintster on 03/18/2009 15:53:29
Quote by Raine:
Hi Clint!
Hey!
It took a sec to realize how you knew I was here when I hadn't posted yet; thankees, Live Traffic Feed!
Anyway, I am up to my armpits (literally) in papier mache for our next show. Anyone with some free time is welcome to come help me. :)
In other news, I was watching the "Today" show this morning and saw their breathless account of Octomom bringing home two of her babies, and the paparazzi clown car that was following her into her garage. Is there anyone else out there who just wishes this story would go away already?
Comment by livingonli on 03/18/2009 15:57:29
livingonli on 03/18/2009 15:57:29
If you think that's bad, I heard KTLA in LA spent almost the entire 10 PM newscast on the Octomom coming home last night and the crowd at the house. I really wish they would go back to real news.
Comment by Raine on 03/18/2009 15:58:23
Raine on 03/18/2009 15:58:23
Jeebus. Speaking of Bayh:
Bayh refuses to name anonymous members of his new Blue-Dog style coalition.
This morning on MSNBC’s Morning Joe, Sen. Evan Bayh (D-IN) officially announced the creation of his new Blue-Dog style coalition of approximately 15 “moderate” Democratic senators. As Roll Call explained last week, members of the group “acknowledge that they are seeking to restrain the influence of party liberals.” During his announcement, host Joe Scarborough asked Bayh who is in the new coalition. Bayh said that while a press release on the group’s creation included the names of 12 senators, there are “three or four” who don’t want to be identified:
SCARBOROUGH: This is great! Can you tell us who’s in it?
BAYH: Well there are about 12 of us on the press release and then there are three or four who we are putting in the witness protection program, who attend our meetings but don’t want to be publicly identified yet.
Explaining the likely rational for senators not wanting to be publicly associated with Bayh’s new group, Matt Yglesias writes, “After all, Barack Obama is popular! And his agenda is popular! So if you choose to oppose it, you might face political problems. So better to keep the sabotage secret.”
Bayh refuses to name anonymous members of his new Blue-Dog style coalition.
This morning on MSNBC’s Morning Joe, Sen. Evan Bayh (D-IN) officially announced the creation of his new Blue-Dog style coalition of approximately 15 “moderate” Democratic senators. As Roll Call explained last week, members of the group “acknowledge that they are seeking to restrain the influence of party liberals.” During his announcement, host Joe Scarborough asked Bayh who is in the new coalition. Bayh said that while a press release on the group’s creation included the names of 12 senators, there are “three or four” who don’t want to be identified:
SCARBOROUGH: This is great! Can you tell us who’s in it?
BAYH: Well there are about 12 of us on the press release and then there are three or four who we are putting in the witness protection program, who attend our meetings but don’t want to be publicly identified yet.
Explaining the likely rational for senators not wanting to be publicly associated with Bayh’s new group, Matt Yglesias writes, “After all, Barack Obama is popular! And his agenda is popular! So if you choose to oppose it, you might face political problems. So better to keep the sabotage secret.”
Comment by Raine on 03/18/2009 15:59:25
Paper mache is fun!
Raine on 03/18/2009 15:59:25
Quote by clintster:Quote by Raine:
Hi Clint!
Hey!
It took a sec to realize how you knew I was here when I hadn't posted yet; thankees, Live Traffic Feed!
Anyway, I am up to my armpits (literally) in papier mache for our next show. Anyone with some free time is welcome to come help me. :)
In other news, I was watching the "Today" show this morning and saw their breathless account of Octomom bringing home two of her babies, and the paparazzi clown car that was following her into her garage. Is there anyone else out there who just wishes this story would go away already?
Paper mache is fun!
Comment by clintster on 03/18/2009 15:59:49
clintster on 03/18/2009 15:59:49
Y'know, I realize that the news can't all be about the stimulus plan and the pigs at AIG, but surely they could find time to talk about something more substantial.
Comment by Raine on 03/18/2009 16:04:17
Raine on 03/18/2009 16:04:17
Betty Bowers explains prayer to everyone else...
Comment by Mondobubba on 03/18/2009 16:05:23
DINO maybe, yes. But he does have a (D) after his name. So until somebody better comes along...IMO
Mondobubba on 03/18/2009 16:05:23
Quote by Raine:
Bayh... he is a DINO, imo...
DINO maybe, yes. But he does have a (D) after his name. So until somebody better comes along...IMO
Comment by Mondobubba on 03/18/2009 16:07:56
Hey Evan, bit me! Restrain the influence of the party's liberals my
Mondobubba on 03/18/2009 16:07:56
Quote by Raine:
Jeebus. Speaking of Bayh:
Bayh refuses to name anonymous members of his new Blue-Dog style coalition.
This morning on MSNBC’s Morning Joe, Sen. Evan Bayh (D-IN) officially announced the creation of his new Blue-Dog style coalition of approximately 15 “moderate” Democratic senators. As Roll Call explained last week, members of the group “acknowledge that they are seeking to restrain the influence of party liberals.” During his announcement, host Joe Scarborough asked Bayh who is in the new coalition. Bayh said that while a press release on the group’s creation included the names of 12 senators, there are “three or four” who don’t want to be identified:
SCARBOROUGH: This is great! Can you tell us who’s in it?
BAYH: Well there are about 12 of us on the press release and then there are three or four who we are putting in the witness protection program, who attend our meetings but don’t want to be publicly identified yet.
Explaining the likely rational for senators not wanting to be publicly associated with Bayh’s new group, Matt Yglesias writes, “After all, Barack Obama is popular! And his agenda is popular! So if you choose to oppose it, you might face political problems. So better to keep the sabotage secret.”
Hey Evan, bit me! Restrain the influence of the party's liberals my
Comment by Raine on 03/18/2009 16:10:43
Raine on 03/18/2009 16:10:43
Ok... this is just amazing... are you ready for a smile?
Dolphins blow bubble rings and play with them!
Dolphins blow bubble rings and play with them!
Comment by Mondobubba on 03/18/2009 17:07:22
Mondobubba on 03/18/2009 17:07:22
Emotocon Theater time:
Mondo learning about XML as it is used by SQL Server 2005.
:thud:
Mondo learning about XML as it is used by SQL Server 2005.
:thud:
Comment by Mondobubba on 03/18/2009 18:09:00
If I may quote from "Trading Places," "Y'all are just a buncha bookies aren't ya?"
Mondobubba on 03/18/2009 18:09:00
Quote by Raine:
Hedge funds may benefit from government cash to AIG
If I may quote from "Trading Places," "Y'all are just a buncha bookies aren't ya?"