Just like the bonuses are a smoke screen to AIG's larger problems. AIG is a smoke screen that keeps attention off of Freddie and Fannie and the Community Reinvestment Act. The government fell down from a regulatory standpoint - no doubt. But, this raging fire started with bad paper written to people who couldn't pay it back, even in a great economy.
Lastly, it's hard to comment on Spitzer. I do happen to think that he had target on Hank Greenberg and that it was largely personal. I believe that if Greenberg had still been with AIG, we may have avoided many of the problems that we're now dealing with. That's Spitzer's fault.
What kills me, is that congress acted that fast on some pissant bonus issue, but meanwhile.
Naked shorting, was never dealt with. Uptic rule still not in place. Mark to market still not dealt with. Meanwhile the US Govt is stealing equity ownership of US Corporations being called a “bailout”.
Even Carter didn’t steal Chyrsler from the shareholders!!??
Ok, You and I agree on almost everythign. But, I think like anyone going to DC, the power and money there is so tasty, they eventually forgot why they got there. Same thing with Spitz. He may have been driven at some point by justice, but got corrupted along the way. That doesn’t mean they don’t know the difference later, between what they think is right/wrong.
Fortunately, Obama becomes harmless for this, and even if not, there are people more powerful and money hungry than Obama is an idealist. They’d boot him out before he violated their needs. Obviously, that is EXACTLY what happened to spitz and blago.