Thursday, March 19, 2009

Me, Too

Updated Links Below

The AIG bonuses are outrageous, but I agree with Kevin Drum, especially with the passage that I've underlined:

I don't, frankly, care all that much about the AIG bonuses. The only reason AIG isn't in Chapter 11 is technical (they're too big to fail!), so morally I don't see any reason not to treat them as if they were in Chapter 11 like any other failed company. That means employees stand in line for their bonuses along with all the other creditors. On the other hand, this whole thing really is small potatoes in the grand scheme of things, and Tim Geithner and the United States Congress have better things to worry about.

But the culture that brought this on? That deserves to be dismantled brick by brick. I may not care much about AIG, but if it's the spark that finally gets Americans to take the executive comensation racket seriously, then hallelujah. If it's not, then it's just a carnival sideshow. "Bonus Babies," posted March 19, 2009, Mother Jones.

Update: See, here are what people smarter than I are saying--and I agree:

  • Matthew Yglesias' post, "Should We Fear an Exodus of the Talented from Insolvent Financial Firms," posted Friday, March 20, 2009.
  • Kevin Drum's post, "Indispensable?," posted Thursday, March 19, 2009.
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