At this point of the bailouts, the media feeding frenzy over AIG’s bonuses, the resulting 90% tax congress wants to impose, etc, it’s gotten to the point where it’s hard to do much more than just watch in wonder as bailout events unfold. Now, to cap everything, AIG is suing the very government that just gave them billions of dollars.
I’ve got multiple problems with the way the bank bailouts/payoffs/bonuses are unfolding before the public, and it seems like my outrage is directed somewhere else entirely. First and foremost, it seems that the average American is more outraged over the $165 million bonuses AIG is paying than they are over the $185 billion bailout that they received. That’s a bit like getting a $100 bill and throwing a penny into a fountain. Now, I’m not saying that giving out bonuses was OK, so don’t bother accusing me of that. What I’m baffled by is the fact that people are more outraged over the little number than they are over the big. Why is this?
So now, on top of congress “sticking it to AIG” by taxing that “whopping” $165 million, AIG is in turn suing for $300 million. Again, please take a moment to think grandscale and appreciate how small these numbers are when compared to a $180 billion bailout, or an $11 trillion national debt.
Remember back when everyone was calling the Iraq war a weapon of mass distraction? I can’t help but wonder (and fear) what the frenzy over a few hundred million dollars is distracting everyone from… I fear that this “battle” between AIG and congress, and the media’s commentary on the event, is more like a WWF wrestling match, where everything looks showy, and everyone acts really angry, but in reality, it’s nothing more than flashy stage combat.
Stay tuned for tomorrow’s return of the Saturday Matinee, where we’ll take a look at our financial woes from a different angle.
