Where Your Tax Dollars are Going

ABC reports that after a difficult season wrangling money out of the government, AIG executives went on a retreat costing $440,000 at the St. Regis Resort in Monarch Beach, California, where rooms run up to $1000 a night. The group should be commended for only changing $23,000 in spa fees, but after eating $200,000 worth of food in a week, they may not have been able to get to the spa.

We are quite literally paying for this with tax money in order to stabilize financial institutions.

The bailout involves us just buying worthless securities.  The banking lobby convinced Congress that it should not follow the recommendation of economists in taking stock in the financial institutions that it is propping up.  By buying the garbage generated buy these institutions instead of taking a stake in them, we as taxpayers do not only lose the right to future profit of the business but the right to curb the sort of behavior reported on by ABC News.

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One Response to Where Your Tax Dollars are Going

  1. AIG Blog Relations says:

    Earlier today, AIG announced an important policy change – one that we wanted to be sure you knew about.

    A short time ago, our Chairman and CEO Ed Liddy said that he has ordered the immediate cancellation of all outside meetings, conferences, and recognition events across AIG, except those that are required by law or that are deemed absolutely critical to sustain our ongoing business needs.

    Given AIG’s commitment to our customers, business partners, regulators, and American taxpayers, coupled with the new and very different challenges our company now faces, we take these responsibilities extremely seriously. Their trust is critical to our success. We recognize the need to be sensitive about all company expenditures.

    As we move forward, we will continue our focus our efforts to pay back the $85 billion loan from the Federal Reserve Bank of New York as quickly as possible.

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