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If contracts are void after a bankruptcy and need to be renegotiated?
AIG had contracts that went back years, promising bonuses. The federal government could have avoided AIG making these huge payments by simply letting them fail and go into bankruptcy. Why is the government now so upset that AIG is paying bonuses that were in contracts from years ago?
Public Comments
- You're right. We need to stop taking the risk out of businesses. If we bailout every failure, there won't be any incentive to succeed. If a company fails, they either need to revamp or go out of business. That is the way free enterprise works and it has worked well. This bailout mess is causing so many problems now but the long term effects will be immense.
- Because of public outrage over the use of bailout money. No one is looking at their lease agreements. car rental, catering.....
- sadly I agree~let them fail these people who got the bonus money (our money) were the worst they failed in business and now we reward them? I say the BAD APPLE will end up hurting a lot of good apples To me this is the height of insanity but it is a strange world We can't let AIG ~~to many people and businesses depend on the but as one Congressmen said~~~Tax the people who got these huge bonuses ~~~95%~~that would cook their little Goose
- The government is reacting to the public outcry because they are elected by the public and want to be reelected in the future. The public is so upset about it because no one ever digs down into the details, they just read the headlines and think they know everything about the situation. Hindsight is 20/20. You can look back now and say they should have done this and that, but the truth is, they didn't. Instead of spending all this time and energy (and more taxpayer money) investigating them and what should have been done, let's just learn from what happened and not make the same mistake again. Should we have just let them fail? Under normal economic situations, I would say yes. But if we let them fail now (or when they initially got the bailout), it will not do anything to improve the economy, and will have just the opposite effect. I don't like the idea of all these bailouts, but I also don't like the idea of having the economy go farther down the drain.
