Less than a week after the federal government had to bail out American International Group Inc., the company sent executives on a $440,000 retreat to a posh California resort, lawmakers investigating the company's meltdown said Tuesday.
The tab included $23,380 worth of spa treatments for AIG employees at the coastal St. Regis resort south of Los Angeles even as the company tapped into an $85 billion loan from the government it needed to stave off bankruptcy. [AP]
Bailouts are an all-around bad idea, no matter what mumbo jumbo financial pundits spew. They always amount to this—fat cats feeling they can do anything with impunity. Like taking nearly half a million taxpayer dollars for a luxury retreat less than a week after a merciful, though unpopular bailout.
Interpretation:
American taxpayers: "Here, AIG, is a bunch of money. Please try to act responsibly this time. We are giving up some luxuries to give you a second chance."
AIG execs: "In your face! We deserve this money so WE can have the luxuries."
Both sides were wrong on the bailouts.
