Clever Diversion by Obama Administration

[bucfan64 309]

The recent chaos over AIG paying out contracted bonuses is nothing more than a clever diversion by the Obama Administration to divert the publics eye from the REAL STORY.

 

165 million is a lot of money but it does not compare to the BILLIONS that are being laundered through AIG. Why the American public criticizes and complains about these folks receiving these bonuses, they are not watching the ELEPHANT that is in the room.

 

If the American people new that AIG took large chunks of the bailout money and forwarded it to Germany 11 Billion, France 19 Billion, the U.K. 11 Billion and Sweden 5 Billion not too mention forwarding Billions to Chase Manhattan, Goldman Sachs etc. They would be OUTRAGED BEYOND CONTROL. By cleverly diverting the American people to focus on the meager 165 million in Bonuses the Obama Administration comes out smelling like a rose.

 

Facts:

 

The Admin. used fear tactics to get the Stimulus Bill passed in a hurried fashion, this prevented it from being thoroughly read and it allowed many QUESTIONABLE items to remain. AFter all as Rahm Emanuel said "we can't let a good crisis go to waste."

 

Senator Dodd (D) placed a measure in the Stimulus Package which actually increased the amounts of the Bonuses.

 

Secretary of the Treasury Gheitner, new that the BAILOUT MONEY would be used for the bonuses, but did not attempt to prevent it from being in the Stimulus package. Now, of course he and the president are acting all up in arms over this great TRAVESTY of justice.

 

Thoughts:

 

AIG should honor the contracts, if the federal government is allowed to VOID the contracts it would violate the Constitution (The Fed. Govt. does not have the right to void any contracts, this allows Free Markets to flourish and it prevents us from falling into Socialism or a Command Economy, our founding fathers new what they were doing when they included this in the Constitution)

 

Should we allow the govt. to stop these bonuses, which is exactly what the President wants the AMERICAN PEOPLE to suggest, it would essentially be destroying the constitution, or at least whats left of it.

 

 

The Govt. caused this problem with AIG and it is not the result of inept business leaders at AIG. This appears to have been the goal all along.

 

1. In '94 under Clinton, AIG was forced to set Quotas for their brokers. These quotas were imposed by the Federal Govt. The purpose of these quotas was to FORCE AIG into making loans to minority groups and lower income persons who WOULD NOT NORMALLY QUALIFY for a home loan.

 

2. In '95 under Clinton, AIG was forced once again to increase their percentage of loans to lower income persons and minorities to 46% of their total loans distributed.

 

3. In '93 under Clinton AIG was forced to grant LARGER BONUSES TO BROKERS that made these poor advised loans. This is where the big bonuses come from.

 

4. In 2000 before Clinton left office AIG was forced once again to give exactly 50% of their loans to low income, financially unqualified individuals. This was a 4 percent increase, meaning that half of ever loan they MADE, HAD TO GO TO PEOPLE WHO DID NOT FINANCIALLY QUALIFY FOR A LOAN. In other words they had to give money to people that they KNEW could not pay the loans back.

 

5. In 2004 under W, AIG was forced again to increase the amount of these "SURE TO LOSE" loans to 56% of their total loans.

 

This is why AIG FAILED, the Government forced them into failure and now they want us to bail AIG out of debt. Despite the fact that the government forced these bad loans on this company.

 

As bad as things are right now, we have yet to feel the true effects of the housing bubble......................but we will!

[Guest BEAVERTAIL]

When Glenn Beck showed where all the money was going yesterday, I was truly shocked.

 

Secondly, if they dissallow these people to have their bonuses, it will be truly the worst mistake Obama and his team has made so far in my opinion. If you believe in the Constitution, you have to agree with me.

[BigD4VT 11]

We have this administration because of the administration we had for the last eight years. Obama promised change while McCain promised to "Stay the course! People wanted change, even if they agreed with the war on terror (as I do)... They didn't want to stay the course. Mickey Mouse could have won this election as long as he made the right promises.

 

Obama has done some things I don't agree with and some that I do. I can say the same for Bush. I supported some of his policies and hated others.

 

If Obama only lasts one term I hope and pray he's succeeded by someone close to the middle. I think Bush was too far right and Obama appears to be too far left. As one of those founding fathers that are so often referenced on this board once said "Moderation in all things -- including moderation" ~ Benjamin Franklin

[futbolking 766]

The recent chaos over AIG paying out contracted bonuses is nothing more than a clever diversion by the Obama Administration to divert the publics eye from the REAL STORY.

 

165 million is a lot of money but it does not compare to the BILLIONS that are being laundered through AIG. Why the American public criticizes and complains about these folks receiving these bonuses, they are not watching the ELEPHANT that is in the room.

 

If the American people new that AIG took large chunks of the bailout money and forwarded it to Germany 11 Billion, France 19 Billion, the U.K. 11 Billion and Sweden 5 Billion not too mention forwarding Billions to Chase Manhattan, Goldman Sachs etc. They would be OUTRAGED BEYOND CONTROL. By cleverly diverting the American people to focus on the meager 165 million in Bonuses the Obama Administration comes out smelling like a rose.

 

Facts:

 

The Admin. used fear tactics to get the Stimulus Bill passed in a hurried fashion, this prevented it from being thoroughly read and it allowed many QUESTIONABLE items to remain. AFter all as Rahm Emanuel said "we can't let a good crisis go to waste."

 

Senator Dodd (D) placed a measure in the Stimulus Package which actually increased the amounts of the Bonuses.

 

Secretary of the Treasury Gheitner, new that the BAILOUT MONEY would be used for the bonuses, but did not attempt to prevent it from being in the Stimulus package. Now, of course he and the president are acting all up in arms over this great TRAVESTY of justice.

 

Thoughts:

 

AIG should honor the contracts, if the federal government is allowed to VOID the contracts it would violate the Constitution (The Fed. Govt. does not have the right to void any contracts, this allows Free Markets to flourish and it prevents us from falling into Socialism or a Command Economy, our founding fathers new what they were doing when they included this in the Constitution)

 

Should we allow the govt. to stop these bonuses, which is exactly what the President wants the AMERICAN PEOPLE to suggest, it would essentially be destroying the constitution, or at least whats left of it.

 

 

The Govt. caused this problem with AIG and it is not the result of inept business leaders at AIG. This appears to have been the goal all along.

 

1. In '94 under Clinton, AIG was forced to set Quotas for their brokers. These quotas were imposed by the Federal Govt. The purpose of these quotas was to FORCE AIG into making loans to minority groups and lower income persons who WOULD NOT NORMALLY QUALIFY for a home loan.

 

2. In '95 under Clinton, AIG was forced once again to increase their percentage of loans to lower income persons and minorities to 46% of their total loans distributed.

 

3. In '93 under Clinton AIG was forced to grant LARGER BONUSES TO BROKERS that made these poor advised loans. This is where the big bonuses come from.

 

4. In 2000 before Clinton left office AIG was forced once again to give exactly 50% of their loans to low income, financially unqualified individuals. This was a 4 percent increase, meaning that half of ever loan they MADE, HAD TO GO TO PEOPLE WHO DID NOT FINANCIALLY QUALIFY FOR A LOAN. In other words they had to give money to people that they KNEW could not pay the loans back.

 

5. In 2004 under W, AIG was forced again to increase the amount of these "SURE TO LOSE" loans to 56% of their total loans.

 

This is why AIG FAILED, the Government forced them into failure and now they want us to bail AIG out of debt. Despite the fact that the government forced these bad loans on this company.

 

As bad as things are right now, we have yet to feel the true effects of the housing bubble......................but we will!

 

AIG offered insurance to these folks banking on the housing market to continue to prosper....when the housing market bottomed out...they had to pay out big $$$ to these folks, money they didn't have....so guess who's paying now...the taxpayers. They should've just let AIG default , but they were too scared of a worldwide economic meltdown. It was bad insurance practices that brought AIG down...and the bad loans that you mentioned...I don't think it's a conspired diversion as you say to divert attention away from the bigger problem that got AIG in the boat they're in, in the first place. I think it's a symptom of the outrage that the American people feel about how greedy these people can be, when everybody else is having to make sacrifices. But I agree with you about some of your points that got them in this mess in the first place.

Edited March 19, 2009 by futbolking

[bucfan64 309]

I don't believe that our leaders were afraid of a world wide meltdown. I believe that the current administration is doing what the Bush Administration did. They are spending money like crazy to defer an economic meltdown.

 

In other words, by spending like crazy now, they will put off the inevitable and thusly pass the buck to the next president, who will in turn attempt to do the same thing.

 

None of these leaders want this to happen on their watch, therefore, they spend excessively in order to make things appear better or at least good while they are in office.

 

The Bush admin, did it and now the Obama admin is doing it, until one of these parties mans up to the plate and cuts spending this problem will not go away. Unfortantely when and if a one party does it, bad times will come economically and the other party will then use that to blame them and capitalize on our nations misery. They will do this just to win votes or to get elected or re-elected.

 

This is the scenario and neither group is going to do what is right and get this debt down and allow poor decisions and bad management to FAIL!

[VHSLhelper 571]

AIG screwed up by putting all their eggs in 1 basket, then the basket fell.

 

I wouldn't call it a diversion, either... it's another piece of the puzzle.

 

"If the American people new that AIG took large chunks of the bailout money and forwarded it to Germany 11 Billion, France 19 Billion, the U.K. 11 Billion and Sweden 5 Billion not too mention forwarding Billions to Chase Manhattan, Goldman Sachs etc. They would be OUTRAGED BEYOND CONTROL. By cleverly diverting the American people to focus on the meager 165 million in Bonuses the Obama Administration comes out smelling like a rose."

 

AIG is an international company, so I'm not surprised the money's spreading out. Think the Big 3 don't have any suppliers that are out-of-country? I'm not expecting all their money to "stay at home", either. We live in a World economy now, and the US has been one of the driving forces. As we go, so goes the World.

[Guest BEAVERTAIL]

Riddle me this then VHSL Helper, if it is an international bank in a global market... Why are we, the taxpayer, bailing out the entire world???

[VHSLhelper 571]

Beacuse we, the taxpayers, allowed our elected officials (Congress) to deregulate the banking/finance industry enough to allow this to happen in the first place.

[bucfan64 309]

AIG screwed up by putting all their eggs in 1 basket, then the basket fell.

 

I wouldn't call it a diversion, either... it's another piece of the puzzle.

 

"If the American people new that AIG took large chunks of the bailout money and forwarded it to Germany 11 Billion, France 19 Billion, the U.K. 11 Billion and Sweden 5 Billion not too mention forwarding Billions to Chase Manhattan, Goldman Sachs etc. They would be OUTRAGED BEYOND CONTROL. By cleverly diverting the American people to focus on the meager 165 million in Bonuses the Obama Administration comes out smelling like a rose."

 

AIG is an international company, so I'm not surprised the money's spreading out. Think the Big 3 don't have any suppliers that are out-of-country? I'm not expecting all their money to "stay at home", either. We live in a World economy now, and the US has been one of the driving forces. As we go, so goes the World.

 

I wasn't surprised either by the fact that AIG was spreading the money out, however the average citizen IS NOT aware of this due to a lack of media coverage, information etc and therefore, when a few media outlets started exposing this truth, the DIVERSION TOOK PLACE.

[Guest BEAVERTAIL]

Beacuse we, the taxpayers, allowed our elected officials (Congress) to deregulate the banking/finance industry enough to allow this to happen in the first place.

 

Which is exactly why we should let them all fail.