Is it just coincidence that the stock market strung together four consecutive upwardly mobile sessions during a week in which the Obama Administration began to come under fire from liberals and Democrats? That certainly ought to be a hopeful development for investors. They already know that the new President is floundering. As others start to notice, the risk diminishes that he will be able to deploy sheer charisma to wreck the economy over the long haul. That’s a thin hope, but more than the investing class has been able to cling to lately.
Today came another reminder of just how inept The One and his advisors are. They are furious over $165 million in retention bonuses paid last Friday by federal welfare client AIG. That anger may be misdirected, but let’s assume that it’s justified and the bonuses are an indefensible waste of the taxpayers’ money. In that case, is AIG’s management the only culprit? As Jim Geraghty points out, the Treasury doled out its latest tranche ($30 billion, no less) to AIG on March 2nd. Did it occur to Tim Geithner or Rahm Emanuel or the President himself to ask about bonus commitments or to condition the handout on compensation limits? Apparently not, even though bonuses distributed by Merrill Lynch and other TARP recipients were in the news, the subject of heated denunciations, just a couple of weeks ago.
In other words, Team Obama bungled again. It would have been child’s play to tell AIG on March 1st that it would get more money only if it cut back or eschewed its planned payouts. Now it will be all but impossible to reclaim the funds (assuming, again, that they ought to be reclaimed). And some of the heavy-handed methods proposed, such as a confiscatory retroactive tax (urged by that pillar of rectitude Senator Christopher Dodd), are alien to any reasonable sense of fair play.
Sometimes I wonder: Is it possible for grown men to be this incapable of doing their jobs? Could the Administration be filled with closet dittoheads whose aim in life is to rush the new President to failure?
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