AIG Bonus Issue Is Just A Red Herring

So how does one run across the backs of alligators without getting eaten? First chum the waters with some red meat and while the critters are munching on the screaming bait you hot-foot across their backs.

Now use "AIG bonus issue" for the screaming red meat and use the snarling congressional panel for the alligators and the hot-footed one will be Goldman Sachs a.k.a. Government Sachs who will escape the glare and jaws of government, public and the news media.

Cui bono? Who profited from the enabling Commodity Futures Modernization Act of 2000? Goldman Sachs et all were the ones who introduced these financial derivatives products from hell that took down brokers, bankers and now threatens the world financial system. The products by law couldn't be regulated or have oversight by any agency including state gaming commissions! They planned well. The bonus babies at AIG are mere fodder at $160 million. AIG alone cost the taxpayers $180 billion for being Goldman Sachs' favorite customer who would say "yes" to any product that Goldman proposed.

But Goldman needed help from the federal government to get the Modernization Act of 2000 into law. For that job they recruited former Senator Phil Gramm of Texas, Senator Richard Lugar of Indiana and others. So government was equally criminally irresponsible for passing this law. That's why the bonus babies at AIG are being scapegoated.