CNBC Congressional Bonus Debate: The Sherminator Kicks Some Wall Street Ass
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The debate with Mark Haynes and Erin banking apologista Burnett is focused on Capitol Hill efforts to impose special taxes on bonus payments made by firms who have received taxpayer bailout cash.
Guess who wins this contest of wit and intelligence. If you thought brunette bimbette, then you are asked to leave the site.
I have been trying to restrain myself in descriptions, but this video is terrific. You will enjoy it.
Some of the Sherminator's great lines: "I want all bailouts to stop. I want capitalism. Bailouts are not capitalism. Tarp is not capitalism. We should have AIG in receivership. It should have been in receivership for months now. We don't have to hunt the witches, we know who they are. What do AIG executives know about running a financial services company? They only know how to destroy one. We need some limitations on salary and bonus. The goal is to get them off the TARP system entirely. Give back the money and run your companies. This is about people who think they are really important but work at bailed out companies. I'm against bailing out Wall Street period. If they want capitalism, let them have capitalism and give the money back.
Related Brad Sherman Video:
Sherman Plays 'Who's The Idiot' with Bank CEOs
Must See Video Mike Capuano Torching Bank CEOs
See also:
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Reader Comments (46)
Since you 2 are the most dedicated commenters here I want to give both of you the opportunity to write a guest post for the site.
Contact me thru the email system and we can talk about it.
It's phenomenal. We've had 17,000 unique visitors since Monday and yet only about 50 comments. I will be posting some of our traffic logs soon in a post when we hit our 60 day anniversary.
Thanks again for always having a point of view.
i personally think leverage caused the problem.
but you can always say the leverage was THE government problem since they are ones who allowed the big 5 to have their leverage exemption via the SEC.
http://www.google.com/hostednews/ap/article/ALeqM5g4tUN7oGvfWYD1eN4daY7ZU01YCQD972F59O0
The new Congressional Budget Office figures offered a far more dire outlook for Obama's budget than the new administration predicted just last month - a deficit $2.3 trillion worse. It's a prospect even the president's own budget director called unsustainable.
In his White House run, Obama assailed the economic policies of his predecessor, but the eye-popping deficit numbers threaten to swamp his ambitious agenda of overhauling health care, exploring new energy sources and enacting scores of domestic programs.
The dismal deficit figures, if they prove to be accurate, inevitably raise the prospect that Obama and his Democratic allies controlling Congress would have to consider raising taxes after the recession ends or else pare back his agenda.
http://apnews.myway.com/article/20090320/D9721GMO0.html
The payouts to executives appear to have helped put a face on the economic struggles the country faces, and the anger targeting AIG is palpable. Death threats have been pouring in since the brouhaha broke, the company said, and its workers are taking no chances.
"It's scary," one executive said, speaking on condition of anonymity because he feared retribution. "People are very, very nervous for their security."
The financial products division is in Wilton in Fairfield County, and many of the company's leaders live in large homes on the "Gold Coast," an area known more for golf courses and sweeping views of Long Island Sound than for the police cars that now regularly patrol the well-kept streets.
http://apnews.myway.com/article/20090320/D9720I901.html
The move by Representative Barney Frank, who heads the House Financial Services Committee, was the latest salvo in a growing controversy over large bonuses paid out to executives of companies receiving billions of dollars in government bailout funds, sparked by outrage over bonuses paid to employees of insurer American International Group.
http://www.reuters.com/article/bondsNews/idUSN2049969120090320?pageNumber=1&virtualBrandChannel=0
The plan is likely to offer generous subsidies, in the form of low-interest loans, to coax investors to form partnerships with the government to buy toxic assets from banks.
http://www.nytimes.com/2009/03/21/business/21bank.html
Wow, I love this guy! "What do AIG executives know about running a financial system?"
Witch-huntery? These fuckers vaporized $11Trillion dollars last year.
It's so good to see a congressman who obviously can think and speak so clearly.
Thanks for the post DB!
WOW, WOW, WOW. Where can I begin to comment on the second most idiotic question asked in human history? I think the question says it all. WOW.
Nice to see a Democrat with some intelligence expressing himself. I think the Repub's hollowed out the country but the Dem's seem intent on doing the same with their unique flair; there's is more of a bumbling, idiotic way, than a greedy immoral method.
If I recall Brad Sherman was one of the few who went public on the secret evening meeting where they were told by all if the Paulson Immuniuity Bill didn't pass the world would explode (aka Goldman Sachs would really be in deep doodoo.). He was asked about this in a subsequent interview and he refused to comment. Hmmmm.
I just hope the people who caused this mess (R) and proceeded to act like hyper-socialists do not stymie Democrat attenmpts to solve this 'problem'. But I fear they would be willing to destroy the US if it meant more power for them in the end.
I am a Canadian FWIW, but I know whatever happens in the US trickles here.
I doubt all the CEO's like Mozillo, Thain and Fuld had ANYTHING to do with where the US finds itself. They lost there jobs anyway, so they paid the ultimate price! HA HA! Ok, so they did take HUNDREDS of millions too, but that is a minor detail.
I really think y'all should set up a guillotine or vats of tar and feathers and have the CEO's and leadership of the ibanks that truly caused this mess to experience some medieval punishment. That all those a-holes got away scott free and with 100's of millions only to leave others in the wake to suffer for their transgressions in unconscionable.
PS add BArney Frank and Pelosi too. They are just idiots.
Tim Geithner's banking fix is getting justifiably slammed by Paul Krugman, Calculated Risk, Yves Smith, et al. Why justifiably? Because the only way it will work is if hedge funds and banks get another huge gift at taxpayer expense.
http://www.businessinsider.com/henry-blodget-krugman-fumes-about-geithners-latest-giveaway-2009-3
http://www.businessinsider.com/obama-wants-bonus-tax-bill-softened-2009-3
http://videocafe.crooksandliars.com/heather/david-shusters-hypocrisy-watch-michelle-bachmann
http://crooksandliars.com/susie-madrak/sherminator-kicks-wall-street-butt
Rep. Sherman seamed to have left out a very important point..The only exec's that will be taxed at 90% are those who are exec's at any bank or corp. that receives tarp funds. If you are a exec at a corp or bank that does not receive tarp funds you will get whatever salary and bonus's are due to you. I mean who could argue against that...wait, oh ya....
peace
Thanks for the kind words.
You make a great point.
I finally sent you a response via email. Sorry for the delay. It's all explained in the message.
The AIG talent is already leaving by the busload after this week's Congressional grandstanding, so now let's ensure we forfeit the entire $170B by putting AIG in recievorship and watching the value of the good businesses dwindle to nothing under government stewardship. All because the American public is pissed about bonuses that equal about half of what the Yankees paid for A-rod, or about 50 cents per capita.
($165 million bonus divided by 330 million population = $0.50)
Insanity.
As a blue collar construction worker if I cause the co. I work for to loose money I GET FIRED!! I DON'T GET A BONUS!!!!
"Leaving by the busload" i say... SO WHAT let them join my fellow tradesman in the unemployment line.
PEACE
Actually Sherman said they should have been in receivership from the beginning. He still wants to because we have about $100 billion more for AIG that will be needed.
Thanks for your post.
http://www.gamingthemarket.com/2009/03/end-of-the-beginning.html
http://www.opednews.com/articles/Was-the-Bailout-Itself-a-S-by-Paul-Craig-Roberts-090319-674.html
By Rick Maze - Staff writer
Posted : Thursday Mar 19, 2009 17:37:56 EDT
The Obama administration waved a white flag of surrender Wednesday, dropping a budget proposal that would have billed private insurance companies for treatment of service-connected medical problems at Veterans Affairs Department hospitals and clinics.
“It was total capitulation,” one participant said at a meeting Wednesday with White House Chief of Staff Rahm Emanuel in which 11 veterans groups vowed they would fight to the end to kill the proposal.
AmVets Executive Director Jim King said he was glad the White House promised to kill the idea, which was distracting from the good news of the Obama administration’s proposed $4.9 billion increase in the VA budget, and which would have hurt disabled veterans, their families and maybe even employees at the same companies.
Billing private insurance to pay for veterans’ health care would make disabled veterans less desirable employees for companies worried about holding down health care costs, and could have led to veterans and their families paying higher premiums — even raising premiums for everyone working for the same company, King said.
http://www.armytimes.com/news/2009/03/military_vetsinsurance_reversal_031809w/
Classic. This has been my argument all along. These financial geniuses should be lucky enough to be in the unemployment lines. If we had justice, many of them would already be in prison. I wish Brad Sherman was my representative. Great post. Yet again CNBC got owned!
@DailyBail
I would be happy to create a guest post for the site. I will email you when I have something good. I want it to be worthwhile for your readers. Congratulations on the unique visitor traffic. Keep up the great work.
"The AIG talent is already leaving by the busload after this week's Congressional grandstanding, so now let's ensure we forfeit the entire $170B by putting AIG in recievorship and watching the value of the good businesses dwindle to nothing under government stewardship."
To the AIG "talent" already leaving by the busload: good riddance and we'll see you on trial day as your jurors you leech-flesh-eating bacteria.
As to the $170B+, you speak as though any of that (or any other monies) will actually be paid back. GS and Co. already completed the heist and have long left the scene of the crime. It will never be recovered. Get over it! We must prevent any additional heists over our dead bodies. Send out a posse and round up the thieves for a firing squad. AIG has been paying out CDS AT PAR EVEN WHEN NO DEFAULTS HAVE OCCURRED! It is no different than if Bernie Madoff had created an unregulated offshore auto insurance agency and paid out the policies to all of his friends for property damage, medical, and rental even if no accidents had actually occurred.
"Two of your snot nosed jockeys did a flyby on my tower at over four hundred knots! I want somebodies butt! I want it now! I've had it God Damnit! That's Twice! I want some butts!"
Third times an AIG bailouts a charm. [sarcasm]
you will be especially interested in this article by Simon Johnson and JAmes Kwak.
They make the same point as you. Check it out.
http://www.nytimes.com/2009/03/20/opinion/20johnson.html?_r=1&ref=patrick.net
Is the guy in the pink tie drunk?
Why do they keep interrupting the Congressman? His comments were all succinct, yet they had to show their aggression by cutting him off before he finished each sentence.
Why are they so rude?
Does anyone actually watch CNBC?
Great clip - Sherman is awesome.
Just curious what is the exact problem with CNBC videos for certain computers?
@James
Alan Grayson, Mike Capuano and the Sherminator are 3 outstanding Democrats when it comes to fighting for taxpayers. I would be happy to call any of them my Representative.
Now, the bailout garbage is a separate issue. If Barney Frank and Chris Dodd would have let those people that complained of pending fiscal doom in Fannie and Freddie have their way, we wouldn't be in this mess. If you want to take action against someone, then forget exec salaries (they were just following the new rules put forth by the CRA under Carter and strengthened under Clinton) and put Dodd and Frank in jail!