A Pamphlet from Don Stuart, Preserve Our Nation, LLC
Pamphlet #11 - 4/5/2009

Pass this pamphlet to your friends!

AIG - Bonuses

How much is money worth to you?

Tax Questions
  • Would you pay $10 to H&R Block to save $100 on your taxes?

  • Would you pay $10 to H&R Block to save $1,000 on your taxes?

  • Would you pay $10 to H&R Block to save $10,000 on your taxes?

  • Would you pay $10 to H&R Block to save $50,000 on your taxes?

Let's turn our attention to the Congress and how they spend money and pass the debt on to our children.

Questions to Congress
  • Should Congress pay $10 to reduce $100 of the debt passed to our children?

  • Should Congress pay $10 to reduce $1,000 of the debt passed to our children?

  • Should Congress pay $10 to reduce $10,000 of the debt passed to our children?

  • Should Congress pay $10 to reduce $50,000 of the debt passed to our children?

I assume that the answer to all of the above is "YES". Those would be my answers.

Let's now turn our attention to the AIG bailout and bonuses. As you know Congress has provided AIG with government loans to enable them to work through this period of time in which they have $2.6 Trillion of insurance obligations. The government loans are $80 Billion up front with another $80 Billion available later. AIG is required to pay this money back to the tax payers with interest, 5% annually for several years then increasing to 8% annually. Congress put their own CEO, Mr. Libby, in charge of AIG and he is working for $1 per year.

AIG recently paid retention bonuses ($178 Million) for individuals for the purpose of reducing $1.0 Trillion of the $2.6 Trillion of insurance obligations. Please note that none of these people are responsible for mismanaging AIG.

They accomplished the job and reduced the $2.6 Trillion insurance obligation to $1.6 Trillion. This information came from Mr. Libby during Congressional hearing in which he was "raked over the coals."

So should have the retention bonuses been paid? Put aside the legal contract obligation, and consider this strictly from an economic standpoint.

If AIG were to default, who would pay the $2.6 Trillion in Insurance Obligations? Well, our Government has already paid a portion of the $80 Billion to foreign companies under this plan via AIG. So who is left holding the bag? American Tax Payers! Or, I should say our Children and Grandchildren.

AIG Bonuses
  • Should AIG pay $178 Million in retention bonuses to save itself $1.0 Trillion in insurance obligations?

  • Should AIG pay $10 to reduce the insurance obligations by $50,000?

Are the answers to the above questions the same? Well, actually the number is $56,180 saved by each $10 paid in retention bonus money. (Remember that the loan still has to be repaid. Paying bonuses do not reduce the money owed, to Tax payers!)

Did we the tax payers get our money's worth? I think so!

Did you know that many of those individuals receiving bonuses or having been promised to receive bonuses in the future from AIG have now resigned? How is Congress via AIG going to save the remaining $1.6 Trillion of insurance obligations if there is no one with adequate knowledge to handle the transactions. Will our Children or Grandchildren have to pay?

Only Congress can ruin a good thing. If you break it you own it! Thus Congress now owns the AIG problem. Or should I say, we do!

Again, Our Government at Work in Washington!

Learn what you can do to help save our Nation! Visit our Website Home Page!
Copyright (c) 2008,2009 - Preserve Our Nation, LLC
www.PreserveOurNation.org - Pensacola Beach, Florida