AIG had two alternatives right?

1. GO Bankrupt

2. Get bailed out

In scenario #1, if AIG goes bankrupt, then bonuses probably cannot be paid. They have no money and creditors are lining up to get pennies on the dollar. There isn’t any money to pay “valuable employee” a bonus…contract or no contract. So all of these guys who got paid bonuses are looking for new jobs without the benefit of getting a bonus.

In scenario #2, AIG gets bailed out by the government so everybody gets paid?? But they would have gone bankrupt! There are no bonuses if they go bankrupt because there is no money. But bailout funds mean somehow these employees are entitled to their bonuses.

I really, like most Americans, cannot believe how this has been handled. At the end of the day, whomever handed out the money should really be in a tough spot. There should have been a really easy way to attach strings to the money given AIG. “You can have this bailout money if it goes to shoring up the balance sheet” or something else. Some many govenment officials are acting tough when they handed the money to AIG with no strings attached.

So frustrating and such a waste of taxpayer money.

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