April 26, 2009

THE THEATER IS THE POINT:

Regrettably, TMQ was Right About Something (Gregg Easterbrook, 4/22/09, ESPN: TMQ)

Reader Dan Krueger of Pontiac, Ill., notes that in February, after Barack Obama said he would act decisively to stop executives of bailed-out firms from receiving bonuses, TMQ cautioned, "If the new president stakes some of his prestige on what seems like a dramatic decision and it turns out a year later that CEOs easily evaded the seeming 'limits' and stuffed their pockets with tax money anyway, Obama will seem an ineffectual leader." It didn't take a year -- only a month! In mid-March, the No. 1 news item was tax-subsidized bonuses to the very executives who screwed up AIG. Obama said from the White House he was "deeply outraged." Speaker of the House Nancy Pelosi said she was taken by surprise and called for an investigation. Treasury Secretary Tim Geithner declared he had just absolutely no way on Earth of knowing the bonuses were coming. Wait -- they could all have read about the planned AIG bonuses in November in a football column. Anyone paying attention to the business pages knew in November 2008 that tax-subsidized bonuses for AIG were coming. Yet no national leader paused from the Washington ritual of round-the-clock self-promotion to do anything. When in March the AIG payouts were announced, Federal Reserve chair Ben Bernanke told "60 Minutes" he was "full of anger" about the bonuses. Bernanke was the one who, in the fall of 2008, decided to hand AIG up to $172 billion in taxpayers' money without imposing any accountability or conditions. This was a much worse business decision than anything any AIG executive did.

Beyond the irresponsibility with which Washington's Democrats and Republicans alike are mishandling taxpayers' money, my worry about Obama continues -- if he keeps theatrically denouncing tax-subsidized bonuses, yet does not actually do anything, he's going to make himself into an ineffectual leader.


The normally perceptive M Posted by Orrin Judd at April 26, 2009 6:30 AM
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