alki_2008
Those who were on the inside at AIG and other financial institutions had to have known they were juggling in a house of cards
From the above statement, I thought you were referring to what employees should’ve known BEFORE the company failed…which would also be BEFORE retention contracts were offered.
From the following statement (em>if those at AIG who required retention bonuses to stay with the company weren’t in financial roles they evidently were aware that there were reasons they might not want to stay employed with AIG), it sounds like you’re referring to what employees should’ve known AFTER the company failed…in which case, I agree. I think both employees and non-employees knew the instability of their jobs AFTER the companies failed…which is why retention contracts were necessary to ensure essential employees wouldn’t leave. I guess I’m chronologically confused.
and because the financial reporters love them when they do.
When financial reporters love what a company does, then the Street also loves the company. When the Street loves a company, then shareholders are encouraged and share prices rise. When share prices rise, then investment portfolios holding those shares gain (or ‘regain’ the way things are now) their value. Investment portfolios belong to ‘rich’ people, ‘regular’ people, pension funds, 401k’s, mutual funds, etc.
as for people demonstrating outside other people’s houses and scaring their kids.. i have no idea what you are talking about
HMC Rich addressed this well. What I’ll add is that kids didn’t have to be home to be affected. Kids go to school, their friends hear things from their parents and talk about other kids. The world isn’t as isolated as it used to be.
Sorry for not including more details earlier…I assumed from your comments in this thread that you were already aware of the various happenings regarding AIG and the ‘demonstrating’ bus tour was well-covered in national media.
i suspect they were picketing outside the gates:)
They don’t all live in gated neighborhoods.
Picketing is not so different than the media frenzy that camps itself outside the homes of anyone who happens to find themselves in the midst of a public story
I don’t recall folks picketing outside the homes of Firestone employees when Firestone tires were falling apart and folks were dying.
I’m not sure what initiated the Boeing/Autoworkers vs financial comparison…but it seems like apples-to-oranges to me. Here’s how I see the difference (genericized to make it simple):
1/1/09: Company presents employment contract saying…Employee agrees to work from 1/1/09 to 6/1/09, Company will pay Employee $100 at 6/1/09. Employees disagree with contract and leave Company OR Employees agree with contract and stay.
6/1/09: Employee is paid $100.
Here’s where things are different…
Boeing/Autoworkers – Get their contracted payment and negotiate new contract for employment after 6/1/09.
Financial employees – Get their contracted payment, which gets cannibalized by legislation that passes AFTER they agreed to the contract…and their employment is terminated on 6/1/09.
Of course…both will pay regular income taxes, which is a moot point since income taxes could be anticipated at the time the contracts were presented.
And yes – the legislation hasn’t yet passed into law. Seems to me that it’s better to discuss the effects of potential legislation (of any type) BEFORE it becomes law, rather than AFTER…but that’s just me.
Haven’t read your links yet, will do that later tonight. :)