Never mind who that guy is - just another point enhancer. So I've been reading about these AIG bonuses being paid out of TARP money and all the frustration, indignation, finger-pointing generated from it. Let me back up and retrace the events (correct me if I am wrong):1. Financial companies created wealth out of thin air - Einstein-like intelligence required to understand it.
2. Last year, they tripped themselves (mousetrap or hot wire?) and required bailout (B/O) from the Federal Govt.
3. Federal Govt. generously gave them billions in B/O without much strings attached as to how to spend the dough.
4. Lavish parties and excessive bonuses were discovered in these B/O companies.
5. Everyone under the sun was upset with these B/O companies.
So far so good. My 2 cents:
1. I understand if any of these big companies fail, the ripple effect on the economy is enormous. But who decides which company is too big to fail? Lehman went under-not much ripple effect felt. (Sorry, Lehman shareholders and bondholders.)
2. In general, no matter how well-intended the programs are, when the government spends money, there is a lot of waste and fraud. There is hardly any oversight.
3. B/Os are only in billions. What about the trillions that have been spent/proposed for the stimulus I, stimulus II and the budget? Any assurance that money will be well spent?
1 trillion = $1,000,000,000,000
(I just want to get a feel of how many zeros are in a trillion ... a lot.)
ok fine, I understood this one much better :D hmm very interesting.. keep feeding me more info!!
ReplyDeleteyour laptop is so small it's hard for me to type but I like it, it's cute
Unfortunately no. No assurance whatsoever and that's what makes it worrisome with this huge stimulus.
ReplyDeletePuzzled, are there a lot of umemployed on Wall Street? In California, umemployment is over 10%. Stores and restaurants are closing and a lot of empty offices for lease. Not a good sight!
ReplyDeleteYes, LOTS! My company laid some off too.. ahem... my job could disappear too if next few quarters' numbers are not too good!! Yep, there is a great sense of job insecurity. Because quite a lot of Wall street execs live in New Jersey and Connecticut, and some in Philadelphia, the layoffs in Wall street affects the unemployment in these three neighboring states too.
ReplyDeleteBTW, love the PACMAN... have not played this game in years..... still got a little bit of reflex and skill left : )
Lehman went under-not much ripple effect felt.???? MsDeem must be living in the moon the past year.
ReplyDeleteCorrection: 1 trillion has 12 zeros! (instead of 9 as D1 has pointed out). Here is an old song with new lyrics -
ReplyDeleteOld Obama on the Hill
EE I EE I oh
And on the Hill he had some bailouts
EE I EE I oh
With a trillion here
And a trillion there
Here a trillion, there a trillion
Everywhere a trillion ...
Ah Fat, my apologies to the Lehman shareholders and bondholders. I just don't see the end of the tunnel. How many more b/o do we need?
ReplyDeletePuzzled, I used to play PACMAN for hours on end.