Thursday, April 30, 2009  Fallout of hostility towards bonuses
to AIG employees  I have an article in Financial Express today
titled Political problems of governments intervening in
financial firms. Also see:     1. Re your article in the FE
today.      Ajay, I usually find very little to disagree with in
your writing, but this is an exception.      Without going into
the rights or wrongs of the bailout/outrage cycle, your
statement:      "The larger community needs to understand that
in a financial crisis, what is being bailed out are the
households of the country and not the shareholders of the
financial firms."      is disingenuous to say the least.
Households don't need a bailout. They have the federal deposit
insurance scheme. The bailout is for other creditors. And who
are these creditors? And who owns them?      btw, your link's
broken.    2. Besides the FDIC bond gaurantees, banks in general
have been 'bailed' out via AIG. The govt. effectively gave them
a new counterparty instead of AIG for free!