It's America Man

The first scene from the brilliant television show The Wire explains the stupidity of the government bailout out AIG. AIG in turn used the money to reward bonuses to the executives that helped sink the company.

Det. Jimmy McNulty questions a young black man about the murder of Snot Boogie.

McNulty: Every Friday night your boys would shot crap, right? And every Friday night you pal Snot Boogie, he'll wait until there was cash on the ground and then he would grab the money and run away?

Young black man shakes his head yes.

McNulty: You let him do that?

Black male: I mean we catch him and beat his ass but ain't nobody ever go past that.

McNulty: I got to ask you. If every time Snot Boogie would grab the money and run away why did you even let him in the game.

Black male: What?

McNulty: If Snot Boogie always stole the money why you let him play?

Black male: Got to. This America man.

AIG waited until the federal government gave out $170 million in bailout money. AIG rewarded executives with $165 million in bonuses. It's America man.

The Federal Reserve owns 80 percent of AIG's stock. I haven't heard anyone about using the majority stock ownership to leverage AIG. That is a better option than Harry Reid's idea of taxing AIG bonus money.

Sens. Ron Wyden (D) and Olympia Snowe (R) wrote an amendment to the TARP bill that would "clawback" any bonus money over $100,000. CEOs voiced their disapproval. Republicans backed the business community and Democrats backed out down under the pretense of "legal concerns." The clawback amendment was killed. It's America man.