Larry Kudlow comments on the real lessons of the AIG scandal.
This whole AIG fiasco - where the entire political class is suddenly screaming over bonuses paid to derivative traders in AIG’s financial-products division - is just a complete farce. What it really shows is how the government has completely bungled the AIG takeover. Blame the Bush administration and the Obama administration. It also shows, once again, why the government shouldn’t run anything, because it cannot run anything.
He also points out a significant technical move by the government that probably will make a positive difference for the economy.
Nevertheless, behind the furor over AIG, there is some good news to report on the banking front. This week’s decision by the Federal Accounting Standards Board (FASB) to allow cash-flow accounting rather than distressed last-trade mark-to-market accounting will go a long way toward solving the banking and toxic-asset problem.
As President Obama has apologized for his clumsy remark regarding the Special Olympics, I won't dwell on the negative. Instead, here's a message on the topic from another political figure with more class and based on real life experience. (Hat tip to Just After Sunrise.)
2 comments:
Oh, and my favorite: Obama's heartwarming, olive branch speech to Iran--which they promptly dismiss. Honestly, I think the whole speech was more for the American audience than the Iranian one--that, or Obama hasn't yet figured out that the whole world does not operate like he thinks the US does.
Hi Karina,
I know. He doesn't seem up to RR's "Tear down this wall!" approach needed to deal with Iran. See what I mean about O providing so much material to blog about, with so little time to blog? (A day job & slow typing fingers get in the way.)
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