AIG Bonuses

AIG paid 73 employees bonuses of $1 million or more; 11 of whom are nolonger there, according to NY Atty. Gen. Cuomo.

http://www.cnn.com/2009/POLITICS/03/17/aig.bonuses/index.html

Brilliant. You’re not supposed to get bonuses after you’ve left. You’re no longer an employee.

AIG is a bad company and should’ve went under. It would’ve been better for the economy if they collapsed. The mortgages would’ve been sold to Wells Fargo and others for 25 cents on the dollar. On a $400,000 house now worth $200,000 they would’ve paid $100,000 for the mortgage and gladly refinanced it to the homeowner for $200,000. This would’ve lowered their payment, kept them in their house and the new mortgage holder would make a profit off a previously bad loan. With a bailout the horrible status quo is maintained and the economy is held up with a false-bottom and still has room to hit rock-bottom. But this time rock bottom includes a government mortgaged future of bailout money we borrowed from whoever. What a mess.