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Obama, No Take-Backs

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Obama, No Take-Backs

The Washington Post recently reported that the federal government has changed the rules of the $1 trillion program to relieve banks of toxic assets. President Obama’s administration is back-pedalling on promises it made to financial institutions only a month ago that they would not face executive compensation restrictions—ala AIG bonuses—if they participated in the program. […]

Broken Windows, Broken Principles

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Broken Windows, Broken Principles

In spending its way to economic recovery, the government boldly casts principles aside Many Americans have experienced the adverse consequences of the recent economic downturn: retirement savings wiped out, jobs lost, or at least a general feeling of financial uncertainty. Our leaders in Washington have reacted by enacting a flurry of new government spending initiatives […]

AIG Executives and Mob Rule

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AIG Executives and Mob Rule

The recent bonuses paid to executives in the financial division of AIG have created a firestorm. In response to the national outrage, the government has bent over backwards to find some loophole that would allow it to take back these bonuses, bonuses that were not shadily distributed to these executives but were contractually promised to […]

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AIG Witch Hunt

The continuing AIG controversy is a textbook example of blaming the market for the sins of government. Rather than allowing a bankrupt company to get its just desserts, the government stepped in and took it over. Now taxpayers are on the hook for billions of dollars in bad bets. And instead of being outraged at […]

No Bonuses = No Contract Law

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No Bonuses = No Contract Law

Over the last few days Washington has been denouncing AIG for paying out retention bonuses to employees in its financial-products division—the same division responsible for much of the company’s recent losses. Relegated to the background is the fact the bonuses are a lawful contractual obligation. While bonuses are normally discretionary, in this case, presumably to […]