"President Obama may not realize it yet, but his Katrina moment has arrived.Altmaier goes on to identify herself as an Obama voter, ands calls for deeds, not words.
"This is a defining moment for his presidency, and how he responds will determine the trajectory of his term. He needs to deal with the excesses within the financial industry with the same toughness and conviction that President Ronald Reagan brought to bear during the air traffic controllers’ strike. To date, he is sorely wanting."
Are the AIG bonuses a tipping point? They certainly make the government look hapless at the moment. What about the fact that AIG has really just been a conduit for billion-dollar payments to foreign banks and Goldman Sachs?
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Some or most of the bonus money will be given back. But the basic question remains: Did AIG have to pay their London loonies so much to stay aboard and fix the mess they created? Could nobody else figure out what they had done?
My hunch: A few quant-type grad students could have gotten up to speed in about a week.
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