President Obama is determined to try and stop the ailing insurance giant American International Group from paying out hundreds of millions of dollars in bonuses to executives, as the administration scrambled to avert a populist backlash against banks and Wall Street that could complicate Mr. Obama’s economic recovery agenda, according to The New York Times
Of course it makes good print for the news hounds but as we see it they have missed the point. Firstly the government owns approximately 70% of AIG so they must have known that this payment was coming up, so why all the fuss. If they didn't know then the governmental representation on the AIG's board must be asleep! Either way it does not instill confidence, does it.
Similar things are going on in the UK where the government pumps tax payers cash in to a bank and then makes a statement to the effect that it will stimulate economic activity in the UK. The bank then invests in Russia or some far flung place that looks like a good bet. Thats the banks job to make the best possible investment but you would have thought that the UK government would have established just what the banks intentions were before parting with the cash.
The more the governments take action the bigger the mess appears to become. If you scan Youtube.com you can see people like Peter Schiff tearing his hair out at the governments actions, Jim Rogers has pulled the pin and relocated to Singapore and Max Keiser just takes the P on his TV programme the Oracle.
If it wasn't so serious it would be funny!
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