Thursday, March 19, 2009

Taxing AIG Bonus

It is skeptical if all of the US$165 mil will be recovered by the US government. If you add transaction cost, wouldn't the money shrink smaller? The fed have to show with full transparency that they recovered the money.

It also shows how powerless the government can be even when they own 80% of AIG. Does this show that the powerful executives have powers no one actually ever questioned. I believe it is easy to catch a homeless person on the street for interrogation but hard for the man in wall street.

As history unfolds, many will look back and realise that the fed was created to support the rich and powerful. They comprise of prominent people and bankers, all of higher status and financial power. The congress seemingly represents the people but lack the power to create transparent of the fed. The reality is that the rich will always be more important than the power, always.

Obama has not kept his word in the things he said before he was elected president. He promised change. But politician will always be the same. There is a conflict in interest.

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