Away from the nonsense taking place on Capital Hill, the FOMC took bold action to try and get credit flowing in the system:
"The FOMC said it would buy up to $300 billion in longer-term Treasurys over the next six months. And it said it would boost its purchases of mortgage-backed securities and agency debt, all in a bid to get credit flowing through the economy again." (MarketWatch)
Ed Liddy of AIG To Enter The Lions Den
Oh the outrage by the Congress. As if they have no complicity in any of this. Money has been given, then given and then given again. Should questions have been asked by someone in the government prior to that bailout money being paid? Should contract law be tossed out of the window?
The media as well as Congress is turning this bonus issue into the main event when it should be a sideshow! If there are ways in which to legally break these contracts then it should be done, but the circus taking place serves only one constituency and that would be the egomaniacs and publicity seeking missiles that are out politicians.
Wouldn't there be a better use of entire days of their time than this? Maybe we should have day long testimony on the pork that each one of these representatives has included in bills, with an accounting of exactly who has been helped by the expenditure.
In a scene that has been played out before with the heads of the car companies and Wall Street firms, AIG head Ed Liddy will have faced the grilling from the P.R. seeking congressmen and women on the House Financial Services Subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises.
Some of the questions may have been thoughtful and intelligent, but more than likely they will be preceded self serving, self righteous speeches that will have only a hint of a question yet to be asked. The questions will be more of an accusation than one that is actually looking for an answer. All designed to show their constituents back home how no-nonsense they are.
This is my prognostication at 6:30 Wednesday morning. Let's see if maybe I am wrong and the hearing is actually rational with an attempt to be substantive. No questions about private jets, etc. I doubt it, but who knows. Showtime, 1:30 PM EST.
Some employees have offered to return all of the bonus money and Liddy is asking the rest to return half of it.