Never Mind the AIG Bonuses: We May Have "Redistributive Change" on an International Scale

I wrote about the obscene practical joke played on American taxpayers by American International Group yesterday. Two more observations -

A Simple Apology and Resignation Would be Sufficient

An Iowa politico made a modest proposal, regarding how AIG executives might deal with the regrettable embarrassment they face.

"...Republican Sen. Charles Grassley of Iowa didn't appear to be joking, however, when he spoke with Cedar Rapids, Iowa, radio station WMT.

" 'I would suggest the first thing that would make me feel a little better toward them [AIG executives] is if they follow the Japanese example and come before the American people and take that deep bow and say, "I am sorry," and then either do one of two things: resign or go commit suicide,' he said.

" 'And in the case of the Japanese, they usually commit suicide.' " (CNN)

I cannot, as a practicing Catholic, suggest that anyone commit suicide. With that proviso, however, I think that Senator Grassley's suggestion has merit.

I think it would be decent of those AIG executives who ran their company into the ground, and rewarded themselves with taxpayer's money, to reimburse the federal government for money wasted on their bonuses. But, an apology and resignation would be sufficient. Providing that they do no more harm to America or the world.

AIG, The Washington Crowd, and, Maybe, Redistributive Change

I don't think that The Wall Street Journal could reasonably be called a scandal sheet. That's why I was a bit disturbed to read this:

"...The politicians also prefer to talk about AIG's latest bonus payments because they deflect attention from Washington's failure to supervise AIG. The Beltway crowd has been selling the story that AIG failed because it operated in a shadowy unregulated world and cleverly exploited gaps among Washington overseers. Said President Obama yesterday, 'This is a corporation that finds itself in financial distress due to recklessness and greed.' That's true, but Washington doesn't want you to know that various arms of government approved, enabled and encouraged AIG's disastrous bet on the U.S. housing market....." (WSJ) (emphasis mine)

And, now that the federal government owns 80% of AIG, I'm very concerned about what money funneled through that company will be used for: and who it will go to.

I suggest, strongly, reading that Wall Street Journal article ("The Real AIG Outrage" (March 17, 2009)). Apparently, "...The U.S. government is now in the business of distributing foreign aid to offshore financiers, laundered through a once-great American company...."

Coming from another source, I might be more skeptical. Reading about what might be the start of "redistributive change" on an international scale - in The Wall Street Journal - I think there's some reason for concern: or at least a high level of interest.

American Money Going Overseas Can Make Sense - But This Looks Sneaky

I think that there are times when it's good policy to send tax dollars overseas: either directly or indirectly. Looking through my Another War-on-Terror Blog should give you an idea of my view of the world, and America's place in it. I'm no isolationist.

However, it looks like there may be something very sneaky going on with the feds and AIG. And, given Obama's views on redistributive change and related topics, I'm very concerned about the federal government quietly acquiring a massive interest in AIG, and the amount of money that's being channeled (the WSJ author wrote "laundered") through AIG.

I sincerely hope there's a nice, reasonable - and acceptable - explanation.

Related posts:

• "AIG, Outrage, Corporations, Unions, and Common Sense"
  (March 16, 2009)
• "The Catholic Church Won't Even Let People Kill Themselves"
  A Catholic Citizen in America (January 28, 2009)
• "Marxism: It Looks So Good on Paper"
  (October 28, 2008)
• "Barack Obama: Lack of 'Redistributive Change' Was Tragedy of Civil Rights Movement"
  (October 28, 2008)
• "Spread the Wealth Around,''Change,' 'Redistributive Change' What's the Big Deal?"
  (October 27, 2008)
• "Am I a Partisan?"
  (October 27, 2008)
• "Joe the Plumber Asked the Wrong Question"
  (October 25, 2008)
• "FBI and Republicans in 'Unholy Alliance' to Stop ACORN and Obama: Of Course! It all Makes Sense Now"
  (October 17, 2008)

News and views:

• "Iowa senator wants public apology from AIG"
  The Associated Press (March 16, 2009)
• "Justice Thomas: Americans don't sacrifice as much"
  The Associated Press (March 16, 2009)
• "Obama tries to stop AIG bonuses: 'How do they justify this outrage?' "
  CNN (March 16, 2009)
• "The Real AIG Outrage"
  The Wall Street Journal (March 17, 2009)