Timothy Geithner pushed for AIG bonuses

Timothy Geithner has done it yet again. First, we found out that he lied about his taxes. That wasn't too bad. It showed he had some character flaws, but it could have been just a really bad mistake. Then, he went in front of Congress and laid out the most vague, idealogical plan for rescue that I have ever heard. In a time where I wanted to hear specific details of how Geithner, entrusted almost soley with hundreds of billions of dollars to give to Wall Street, would boost the economy, we got rhetoric that would have made even Obama blush. But, he was new on the job.

But, I must say, I really think this is the straw the breaks the camel's back.



Yes, that's right folks. Timothy Geithner is the one that fought for AIG to get their bonuses. After days of posturing and rhetoric, Geithner has admitted that he is at fault.

I have been a nay sayer on the bailouts since the very beginning. At every turn, we've seen that giving these companies bailout money cannot and will not work. The banks just kept it without increasing loans. AIG is trying to give it to their executives. 90% of the executives from the bailed out companies are still employed. Yes, 90% of these "captains of sindustry" (did you like what I did there?) are still running their companies.

I've talked about moral hazard incessantly. But this is really taking that concept to the next level.

This is the government saying, directly, "if you run your company into the ground, we will save you. If that wasn't enough, we'll make sure you get a bonus."