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The Old Redneck is confused -- and he hasn't had a drink all day.  Maybe someone can help me out here.

Read on:::

As we all know by now, AIG executives -- many of them the same people who engineered the collapse of AIG -- will receive $165 MILLION in bonusses -- and it's all our money -- their bonusses are being paid from taxpayer bailout funds.

Everyone who comments on this situation says it's outrageous, almost criminal -- BUT -- AIG has contracts with these people and if we don't pay the bonusses, then we are voiding contracts and the implications for that move will shake our entire system -- if we can't honor contracts, we are out of business -- ALL our insurance is based on contracts; mortgages are contracts; marriages are contracts -- and on and on and on -- we must honor contracts.

In fact, this is what Larry Summers said this morning on Face The Nation -- our hands are tied, we must honor these contracts.

Oh, really????  

As I recall, the UAW had contracts that guaranteed wages, hours, and medical benefits -- and we have no problem trashing their contracts.  And we are having no problem with more demands that auto workers give up their contractual benefits.

So -- here's where I need help:  Why is it okay to trash the contracts between the auto makers and their workers, but, it's a mortal sin to trash the contract with a gang of greedy insurance company executives who set up the credit default swaps that screwed AIG??

And if this sounds like class warfare, then so be it -- there are more of our class and we rednecks have more guns.

Originally posted to Old Redneck on Sun Mar 15, 2009 at 08:08 AM PDT.

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Comment Preferences

  •  Exactly. (8+ / 0-)

    Didn't the teachers in California have contracts?  

    Also, lets see the contracts.  Let us be the judge of whether the contacts can be set aside or not, and let our (taxpayers) legal staff (DOJ?) make a decision as to their legitimacy and negotiability.

    Also, as I have posted elsewhere, it seems to me that all of my contracts with banks and insurance companies are routinely and unilaterally modified without my participation or consent.

    My friends, I do not speak, nor do I comprehend, assholian

    by eviemarie on Sun Mar 15, 2009 at 08:25:10 AM PDT

  •  Corporatism heirarchy... (6+ / 0-)

    Corporatism heirarchy at work here. The financial corporation (don't confuse coporation with company) is higher up the scale than the automotive corporation.

    One is openly vilified and punished by government, that being the automotive, and the financial, is being given a pass. They'll feign indignation at the CEO's, and thier management teams, yet refuse to enact what they demand from the automotive corporation.

    Double standard? you bet. But this isn't a government for the people anymore - We live in a country where the poor and elderly shoulder the cost of stadiums for billionaire sport's team owners and millionaire players to stay in business. Have to decide between food and medicine? Tough luck, baseball is more important than your paltry needs.

    In fact, these taxes for sports may indeed be the entire reason these 'financial instrument's' were created in the first place.

  •  media is trying to change subject from Cramer (1+ / 0-)
    Recommended by:

    by focusing on AIG and people are falling for it.   The real crime is market manipulation not legal bonus'.  There is nothing that can be done about bonus' for contracts that were signed years ago.  Jim Cramer admitting to lying to reporters in order to manipulate the market and NBC, MSNBC and CNBC decided to not discuss and now they are giving wall to wall coverage over bonus'.  ABC covered it but failed to mention Cramers lies and instead focused on the reporting.

  •  This is your question (5+ / 0-)

    So -- here's where I need help:  Why is it okay to trash the contracts between the auto makers and their workers, but, it's a mortal sin to trash the contract with a gang of greedy insurance company executives who set up the credit default swaps that screwed AIG??

    Here are my answer:
    Auto workers are workers they are not executives. Worker are only expected to work. What is the job of executives any way. They sit in big office and get paid. You see it is their world they can not be hurt.

    Also AIG is wall street. Their job is to fuck us. in good or bad time we pay them to sell and buy stock for us. Infact when they manage our portfolios we pay them whether the portofolio increase or decrease in value

    If this is a true democracy, we should be able to dictate the tune now, since we are paying the piper. we own AIG. We cannot pay for inefficiency. There is nothing in the contract that say new owner must honor those contract. Infact we should all rise up that we don't want to retain these executives. they are failures. Where are all the talent from Bear Stearn and Lemma Brothers. After a year of unemployment we can higher them, I am sure they will not be looking for a bonus. They must have learn a very good lesson now

  •  I posted this earlier today on another thread: (10+ / 0-)

    I was speaking with an attorney, whom I know socially, whose main stock in trade is contracts, wills, and divorce.  He said, "There is no contract that cannot be broken.  There are ways to show that the terms of the contract are now impossible to meet, which makes the contract void and therefore negotiable at the present time."

    Just one attorney's opinion.  But if he thinks so, maybe there is something to that.

    To say my fate is not tied to your fate is like saying, "Your end of the boat is sinking."--Hugh Downs

    by Dar Nirron on Sun Mar 15, 2009 at 08:42:57 AM PDT

  •  Damn... Old Redneck... (3+ / 0-)
    Recommended by:
    JVolvo, luckylizard, notrouble

    You making too damned much sense on a Sunday morning!

    Matter of fact, I do believe you've crystalized 'da schitt for me!

  •  BONUS? The 'cherry' on top of the sundae. (3+ / 0-)
    Recommended by:
    JVolvo, phonegery, luckylizard

    Bonus implies that you get something extra.  Extra should not be subsidized by the taxpayers.

    Larry Summer was on Face the Nation this AM.  Even he had trouble defending this finally asking us to consider the 'talent' leaving the company.  Boo hoo, cry me a river.  Walmart always has openings.

    I have a friend that used to trade international currencies, she was licensed to move billions of US dollars a day.  Today she works one day a week, at a designer outlet store, for the discounts and just to keep from going stir crazy.  She's downsized her life, but she will never really sink even though her portfolio took a beating, she was diversified.

    "We are what we repeatedly do. Excellence, then, is not an act, but a habit." -Aristotle

    by Aidos on Sun Mar 15, 2009 at 08:46:01 AM PDT

  •  Summers is lying -- he wants AIG to hand out (5+ / 0-)

    these bonuses, but he doesn't want to support this hand-out publicly.  No change from Bush that I can discern.

  •  Obama is not being well-served with (5+ / 0-)

    Summers and Geithner as his two most important economic advisers.  I was bummed when I heard his choices, and nothing that they've done has redeemed my opinion.  Summers performance on This Week is going to tick off SOOO many people.

  •  White Collar Bonus (6+ / 0-)


    Blue Collar Bone Us

    Capital is only the fruit of labor, [...] Labor is the superior of capital, and deserves much the higher consideration.
    President Lincoln, December 3, 1861

    by notrouble on Sun Mar 15, 2009 at 10:00:55 AM PDT

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