Obama's Bailouts Questioned

An underlying question keeps occurring regardless of what topic we are discussing. That question would be, “When should government step in…or out.”
I believe it is probably human nature to take the path of least resistance. The concern that one may have is... does this short cut take you to a dead end?
It seems recently all we have been hearing is talk of bailouts. Mortgage companies have all gotten in line to take the bailout money. Now we have stumbled across another obstacle. Once the money is given should the companies be accountable for how it is used?
President Obama’s political honeymoon is in danger. AIG is giving huge bonuses to there employees. Do they deserve such bonuses when they are taking money to keep the company running? I would say “NO.” However, was there a discussion that took place or contingency on accepting these funds? I think not.
One may assume that in the economic climate that is has sparked awareness for companies to be more pro-active in doing the right thing. Mortgage companies where encouraged to do loans. The majority of Loan Originators worked off straight commission. Shouldn’t one assume that they weren’t just concerned about the homeowner’s decision to buy a home, but that they needed to close the loan in order to be paid? AIG employees, regardless of what shape the company is in, is interested in fulfilling there own financial interests. Congressional leaders are threatening not to approve further bailouts for banks and financial institutions. AIG lost $100bn last year. These executives obviously where not making good decisions, but they still feel like they deserve bonuses? This is asinine.
Obama has become the “yes” man. He has hurried through quick fixes that have turned into large problems. He has failed to fill key administration posts, such as appointing Tim Geithner who had failed to pay his taxes, as US treasury secretary. Charles Grassley said that AIG executives have committed hara-kiri. In a radio interview yesterday, he said: "I would suggest the first thing that would make me feel a little bit better toward them if they'd follow the Japanese example and come before the American people and take that deep bow and say, 'I'm sorry', and then either do one of two things: resign or go commit suicide. And in the case of the Japanese, they usually commit suicide before they make any apology."
Obama is naïve to think that these companies are looking after the common folk. I would tend to agree with Charles Grassley. They have met immediate gratification, but the opportunity will never rise again. Now it is a matter of time to see how they plan to fix their problems. Remember, they have backed themselves into a corner thus fare. There needs to be a plan that is well sought out and that can be implemented for a long-term fix. Not one that is a band aid fix that will only endure the next four years that the President is in office.
http://www.guardian.co.uk/world/2009/mar/17/aig-bonuses-obama-economy

Renee Fogle
Your Credit Company