Comments on: Emotion and business decisions – the AIG bonus program http://radioviceonline.com/emotion-and-business-decisions-the-aig-bonus-program/ The blog home of The Jim Vicevich Show Thu, 24 May 2012 11:52:27 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: davis http://radioviceonline.com/emotion-and-business-decisions-the-aig-bonus-program/comment-page-1/#comment-3226 davis Tue, 17 Mar 2009 17:57:00 +0000 http://radioviceonline.com/?p=9051#comment-3226 I like ground rules too. Still we have to deal with the hand we were dealt. And you are still speculating (" But the government does not seem........"). I like ground rules too. Still we have to deal with the hand we were dealt. And you are still speculating (" But the government does not seem……..").

]]> By: Steve McGough http://radioviceonline.com/emotion-and-business-decisions-the-aig-bonus-program/comment-page-1/#comment-3188 Steve McGough Tue, 17 Mar 2009 05:34:33 +0000 http://radioviceonline.com/?p=9051#comment-3188 I like ground rules, you need to have them. But the government does not seem to have any forward thinking when it comes creating or changing them. The Sarbanes-Oxley <em>gotta-prevent-another-Enron</em> Act is an example. Quick tactical government decisions certainly do not seem to be helping, nor is the quick decision to provide a $100 billion-plus float to AIG. I like ground rules, you need to have them. But the government does not seem to have any forward thinking when it comes creating or changing them. The Sarbanes-Oxley gotta-prevent-another-Enron Act is an example. Quick tactical government decisions certainly do not seem to be helping, nor is the quick decision to provide a $100 billion-plus float to AIG.

]]> By: davis http://radioviceonline.com/emotion-and-business-decisions-the-aig-bonus-program/comment-page-1/#comment-3183 davis Tue, 17 Mar 2009 04:14:41 +0000 http://radioviceonline.com/?p=9051#comment-3183 Erik got it, and gets it. Some people  still do not get the fact that the problems are not in the regulated part of banking where the FDIC is doing its thing. Even the AIG mess was not in the traditional part of insurance. Erik got it, and gets it. Some people  still do not get the fact that the problems are not in the regulated part of banking where the FDIC is doing its thing. Even the AIG mess was not in the traditional part of insurance.

]]> By: Dimsdale http://radioviceonline.com/emotion-and-business-decisions-the-aig-bonus-program/comment-page-1/#comment-3181 Dimsdale Mon, 16 Mar 2009 20:40:45 +0000 http://radioviceonline.com/?p=9051#comment-3181 I agree.  Just put the ground rules back into place, colorblind, of course, reinstate Glass-Steagall, and return to doing the business that kept these local banks and credit unions solvent and healthy while the "too big to fail" banks did their level best to fail. Since when did we provide a safety net for banks?  I thought FDIC was sufficient, along with good commonsense banking practices. I agree.  Just put the ground rules back into place, colorblind, of course, reinstate Glass-Steagall, and return to doing the business that kept these local banks and credit unions solvent and healthy while the "too big to fail" banks did their level best to fail.

Since when did we provide a safety net for banks?  I thought FDIC was sufficient, along with good commonsense banking practices.

]]> By: Erik Blazynski http://radioviceonline.com/emotion-and-business-decisions-the-aig-bonus-program/comment-page-1/#comment-3179 Erik Blazynski Mon, 16 Mar 2009 20:24:58 +0000 http://radioviceonline.com/?p=9051#comment-3179 It is not fair. Life is not fair. You have to be big enough to get in line, and it is total BS. We have to make this about making changes going forward. To have a successful free market you have to put ground rules in place, enforce those ground rules and then let the markets work. The ground rules include anti-trust regulation and  consumer protection laws which have all been forgotten and lead to this situation. We need to restore these ground rules and restore our free markets. It is not fair. Life is not fair. You have to be big enough to get in line, and it is total BS. We have to make this about making changes going forward. To have a successful free market you have to put ground rules in place, enforce those ground rules and then let the markets work. The ground rules include anti-trust regulation and  consumer protection laws which have all been forgotten and lead to this situation. We need to restore these ground rules and restore our free markets.

]]> By: Steve McGough http://radioviceonline.com/emotion-and-business-decisions-the-aig-bonus-program/comment-page-1/#comment-3178 Steve McGough Mon, 16 Mar 2009 19:19:41 +0000 http://radioviceonline.com/?p=9051#comment-3178 I seem to remember writing about how these bailouts effect business in the same industry. Some played smart, others did not. Look at the big banks that got loans to save their buts compared to banks like Rockville Savings. I've posted a <a href="../your-local-bank-is-in-fine-shape-thank-you/" rel="nofollow">quote from Bill McGurk</a> who flat out said community banks are fine since they don't lend to people who can't pay it back. Why should anyone want to take a personal risk on investments these days? If you do things right, your competition might screw up and get bailed out. So much for an equal marketplace. How is that fair? If you screw up, you get in line for a bailout. I seem to remember writing about how these bailouts effect business in the same industry. Some played smart, others did not. Look at the big banks that got loans to save their buts compared to banks like Rockville Savings. I've posted a quote from Bill McGurk who flat out said community banks are fine since they don't lend to people who can't pay it back.

Why should anyone want to take a personal risk on investments these days? If you do things right, your competition might screw up and get bailed out. So much for an equal marketplace. How is that fair? If you screw up, you get in line for a bailout.

]]> By: Erik Blazynski http://radioviceonline.com/emotion-and-business-decisions-the-aig-bonus-program/comment-page-1/#comment-3177 Erik Blazynski Mon, 16 Mar 2009 18:58:34 +0000 http://radioviceonline.com/?p=9051#comment-3177 These "bonuses" are more like compensation rather than bonus. Bonus implies that there was some sort of performance incentive associated with receiving the compensation and that is not likely the case.  This whole bonus blow up is just a distraction from real issues, it is time to pay them what is owed them and move on. I agree with Davis, what is done is done, focusing on what we should have done is futile. From everything that I have come to understand about this AIG situation we had to take over 80% of this company. As the resident wack job libertarian you would never expect such a thing from me, but without this infusion of cash the financial system really would have collapsed. Though kind of neat to see such a colamity, the novelty would have worn off quickly. AIG needed an investor to provide them capital to get out of this jam. There is only two places to get that kind of money, the Fed and the government and that is where they got the money. They are paying back money that they borrowed from the Fed, but I don't see the government being able to sell their shares, and I don't see the Fed even wanting to sell their shares.  So we have an insurance/investment banking insurance company that is owned by the government. I think the questions that we need to be asking is how will AIG's government ownership change the dynamics of the marketplace? I have not heard anyone talk about that, and it is important. -Erik These "bonuses" are more like compensation rather than bonus. Bonus implies that there was some sort of performance incentive associated with receiving the compensation and that is not likely the case. 

This whole bonus blow up is just a distraction from real issues, it is time to pay them what is owed them and move on.

I agree with Davis, what is done is done, focusing on what we should have done is futile. From everything that I have come to understand about this AIG situation we had to take over 80% of this company. As the resident wack job libertarian you would never expect such a thing from me, but without this infusion of cash the financial system really would have collapsed. Though kind of neat to see such a colamity, the novelty would have worn off quickly. AIG needed an investor to provide them capital to get out of this jam. There is only two places to get that kind of money, the Fed and the government and that is where they got the money. They are paying back money that they borrowed from the Fed, but I don't see the government being able to sell their shares, and I don't see the Fed even wanting to sell their shares. 

So we have an insurance/investment banking insurance company that is owned by the government. I think the questions that we need to be asking is how will AIG's government ownership change the dynamics of the marketplace? I have not heard anyone talk about that, and it is important.

-Erik

]]> By: davis http://radioviceonline.com/emotion-and-business-decisions-the-aig-bonus-program/comment-page-1/#comment-3172 davis Mon, 16 Mar 2009 12:31:54 +0000 http://radioviceonline.com/?p=9051#comment-3172 So what is your solution for the AIG mess? Rehashing what has already happened in not a solution. All of us taxpayers have a share in this. Are you hinting that we should give no more money and let AIG go totally belly up? Don't tell us what SHOULD have been done, that train has left the station a long time ago, and saying we should not do this again does not solve the existing AIG problem. So what is your solution for the AIG mess? Rehashing what has already happened in not a solution. All of us taxpayers have a share in this. Are you hinting that we should give no more money and let AIG go totally belly up? Don't tell us what SHOULD have been done, that train has left the station a long time ago, and saying we should not do this again does not solve the existing AIG problem.

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