It's the Economy Stupid Wednesday

After listening to our fair Representatives orate, pontificate, and bloviate away a good bit of the afternoon, I have to agree with Eliot Spitzer. (Yes, he did have some mighty big personal failings, but the man scared the living shit out of Wall Street when he was the NY AG. On this, and high priced prostitutes, he knows what he is talking about.) The problem ain't the bonuses, they are mere peanuts compared to the what is going out the back door of AIG to other companies to prop them up. I am not sure how it was decided that AIG would be bailed out using Fed monies and not directly our collective tax dollars from TARP (this is a big and very important distinction), but it was, and as such the transparency of the dealings has always been a bit obscured and not aired publically in Congress. Now, I am not saying what the Fed did was shady, I am sure Chairman Bernake did it for a very valid reason. That said, I think a good deal of the confusion (and anger, both justified and unjustified) about the bonuses and how we collectively are sinking money into AIG.

Read Spitzer here.

See where large chunks of money are going. Fed money in the front door, AIG sends it out the back door to...




_John