Financial Advice, Recovery, Trumped by Obama, Congress, Media, Polls

Last week when news came that AIG was paying huge bonuses to employees even after the federal bailout, the president’s two top financial advisors knew what to tell the president.

“Pay the bonuses.  We can’t void a contract.”

That advice came from Larry Summers and Treasury Secretary Tim Geithner: Obama’s top economic advisors.

“Summers is the head dog.  He’s Geithner’s mentor.  Geithner is the protoge.  I don’t know how Obama fires one and keeps the other,” a top man in New York financial circles told us.

So maybe that is why Obama has not yet fired Geithner.

Obama Talks Too Much: Time For Action
(Time to Fire Geithner and Summers Too?)

US President Barack Obama, seen here on January 29, 2009, sits ... 
US President Barack Obama, seen here on January 29, 2009, sits alongside Treasury Secretary Timothy Geithner.  Obama has to get his face out of the same photo with Geithner’s face….

And maybe that is why the stimulus contained a provision to allow the AIG bonuses: Geithner and Summers made sure it was put in.

Dodd would know but hasn’t named names.

Heck: Dodd has a house in Ireland to make his retirement happy and secure.

With the nation in what the president has called a financial “crisis” and even a “catastrophe,” Obama is moving away from his top financial advisors at least on some issues, and sticking close to the advice of White House Chief of Staff Rahm Emanuel and policy advisor David Axelrod.

“Those guys know politics.  They are listening to the Hill and watching the media and the polls.  That’s driving Obama’s policy right now,” a top political analyst told us.

Last year, while still a senator, Obama voted for the bailout for AIG….

Meanwhile, Ben Bernanke is taking heat from media folks.

Bernanke released  more money into the nation’s money supply this week and the price of gold went up while the value of the dollar dropped…..

****************

Dodd under fire in his home state:

Dodd’s decision to move his family to Iowa to campaign for a doomed bid for president, his initial refusal to release documents of his two controversial mortgages with Countrywide, criticism of how he financed a vacation cottage in Ireland, and now his involvement as Senate Banking Committee chairman in the bill that ultimately protected bonuses for executives at insurance giant AIG have all taken their toll.

Read it all:
http://news.yahoo.com/s/ap/2009
0321/ap_on_re_us/aig_outrage_dodd_3

Related:
Wall Street Journal: “Geithner Incapacitated;” President Voices Support

Government To Have Bigger Role in All American Lives; Obama Seeks to Increase Oversight of Executive Pay
Bankers Press Case Against Punitive Tax 

Obama, Geithner, Congress Squandering Confidence Needed For Recovery

Bonus backlash hits Wall Street

American Democracy With Checks and Balances is Broken; Media, Congress Failing

Obama’s Radicalism Is Killing the Stock Market

 Obama Spending, Tax Plans Likely Out The Window As CBO Predicts Much More Debt

Obama: Why Are We Saving Geithner and His Incestuous Relationship With Wall Street?

Finance, one of America’s great industries, being destroyed by Congress during crisis?

For Cuomo, AIG, Financial Crisis Is His Political Moment

 Did Obama White House Fuel AIG Bonus Mess To Enact Tougher Rules With Public Support, “Outrage”?

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