Greenwald’s Half-Truth On AIG Bonuses

By
March 17, 2009

Greenwald tries to shift the blame for those AIG bonuses from Dodd back to Treasury. He's relying on this FDL post but that's mostly half-truth, as well.

Treasury didn't simply "demand" Dodd loosen any restrictions so these bonuses could be paid. He informed Dodd his legislation was flawed and would only lead to more trouble, including expensive law suits.

In developing news Geithner has released a letter sent to Pelosi just today. But the politics are going to play out, here's a new wire story on all this. The Rangel quote on any move to recoup the bonuses is at least fun. Of course he doesn't see it as a weapon, it's a cash cow to him.

Not all Democratic leaders were racing in that direction. Penalizing people with the tax code could be inappropriate, declared Rep. Charlie Rangel, D-N.Y., chairman of the taxwriting Ways and Means Committee. He said, "It's difficult for me to think of the code as a political weapon."

The bottom line for now is that the politics are only going to work against the plan, assuming you support it. Geithner wants to recoup the bonuses by taking it from future monies to be paid. Fine. But that doesn't take it from the employees. It only takes cash away from the very thing they feel requires propping up – AIG.

What this entire fiasco documents is how bad an idea it is when the government gets its hands around elements of the private sector. They invariably screw it up.

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Comments:
  1. Dennis D says:

    I don’t see how Dems threat to tax AIG bonuses is constitutional. Selective taxation won’t stand up in court.

  2. JorgXMcKie says:

    Ex Post Facto *and* a bill of attainder. Surely Gleen Grenwald is furious at this proposed shredding of the Constitution.
    Hoo, boy, they’re starting to eat their own. Some fun.

  3. MuscleDaddy says:

    Uh… not fer nuthin’ here…
    It’s. Greenwald.
    Only half is ever going to be truth – the other half is sock-puppetry.
    http://patterico.com/2006/07/20/devoted-fans-of-glenn-greenwald-emphasize-the-same-points-about-his-resume-from-the-same-ip-address/
    The internet is forever, baby!
    – MuscleDaddy

  4. LOL says:

    They’re both complicit in the bonus abuses. I don’t see how you could feel otherwise.
    On the other hand, these bonuses shouldn’t be bothering you robust capitalists. So why are you even talking about it?

  5. SacTownMan says:

    And Barry and his troll minions want to get their hands on healthcare?
    These guys could screw-up a wet dream!
    There needs to be a serious effort to remove ALL of these feeble minded idiots from office.
    New blood in 2010 with a new message “It’s not YOUR money!”
    Watching these fools parade out each day is beyond the pale. From the giggly “miss piggy” budget chick to the press guy. Where did they find the “Doogie howser” budget guru, he looks like a 19 year old. Turbo Tax Tim, Murtha, Pelosi, Reed, Frank, Biden, Dodd!
    Great brains of our time? All led by easily the worst President in my lifetime! I never thought I would see another braindead asshat like Jimmy Carter again but Xerxes is a man that will do anything and say anything to enact his “vision” of a socialist utopia. He does nothing but stage signing ceremonies and can somebody PLEASE tell this man the election is over!
    He continues to vote “present” as POTUS. The 750 million dollar George Soros owned man! Down to a 56% approval rating as the American people see that the lights are on but no one is home!

  6. Right Voices says:

    Articles Of Interest About The Manufactured Outrage Concerning The AIG Bonus

    These are just a snippets, be sure to read each article
    SPARE US YOUR FAKE FURY, DC HYPOCRITES
    ALL the worlds a stage, wrote Shakespeare, and in the world of Washington, the curtains have opened on the most elaborate farce of the year.
    Welcome, …

  7. seekeronos says:

    Place your bets:
    Obama hits below 28% approval rating before the year’s out.