[Marxism] Spitzer on the real AIG scandal
larrydamms at yahoo.com
Mon Mar 23 07:45:09 MDT 2009
The Real AIG Scandal
It's not the bonuses. It's that AIG's counterparties are getting paid back in full.
By Eliot Spitzer
Tuesday, March 17, 2009
So close, yet so far. For a DP prig Spitzer has a pretty good handle on the phoniness of
the AIG executive bonus hysteria. But he's still trailing the likes of Graham and Greenspan on the nationalization question. The farthest he'll go is trust-busting. Well, it doesn't matter anyway. The details of Geithner Plan II were just announced. It's basically Geithner Plan I with more fine print. I'm sure beyond the rainbow types will herald the fact that GP II contains some provisions for federal takeover in the event of bank failure, as well as mushy language about monitoring systemic risk. Feh. There's no allusion to the possibility of public management with respect to the strictly hypothetical former situation. And with regard to the latter there's no hint whatsover of outlawing excessive leverage and the racking of massive fees and commissions for the churning of collateralized securities. It ain't about the goddamn trivial bonuses or even standard compensation packages, it's about routine profit-making in hypertrophic financialized
Yeah, I know I sound like a disappointed left Keynesian. I'm not. Actually, the purpose of this was just an intellectual workout. So sue me for self-involvement.
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