THE MUCK ON WALL STREET
Whom do we blame? Start with Congress
Rep. Erik Paulsen's March 20 commentary attempting to exploit public outrage about the AIG bonuses is typical of how this sideshow has merely helped to distract blame from where it really belongs: Congress.
The money AIG paid in contractually obligated bonuses is a mere drop in the ocean of bailout funds taxpayers have transferred to AIG and other institutions to save them from their own risky trading practices. The real scandal, as President Obama has pointed out, is that those practices were made entirely legal in the first place by Congress itself.
The 1999 Gramm-Leach-Bliley Act removed the legal barrier separating banks from insurance companies, and the Commodity Futures Modernization Act of 2000 exempted credit default swaps and collateralized debt obligations from government regulation.
Forget the distraction provided by the likes of Paulsen and Rep. Michele Bachmann working themselves into a lather of rage over the AIG bonuses. What taxpayers and voters really need to know is whether they will get equally worked up about supporting the sensible new regulations the new administration will be proposing to make sure that this entire financial and economic meltdown cannot happen again. Paulsen's ridiculous insistence that the real problem here is the government becoming "more and more involved in private enterprise" does not instill confidence that our current congressional delegation will represent our interests any better than the crowd that sowed the deregulatory seeds of this catastrophe a decade ago.
JASON MCGrath, Minneapolis
The aig bonuses
Try giving the good bonus news some ink
There has been a lot of discussion lately regarding bonuses. Citizens are outraged over the fact that executives from AIG are receiving bonuses after AIG had received federal stimulus money. But I'm wondering if we will ever hear about Wal-Mart recently awarding $2 billion in bonuses to its hourly paid employees. If the media are going to cover the bad side of the news, how about maybe just a little coverage of the good news?
MIKE MCLean, Richfield
HIGH-SPEED RAIL
History and facts argue it won't work here
An article in the March 8 Star Tribune extolled the prospect for high-speed rail to Duluth. The editorial that same day was encouraging about high-speed rail to Chicago. This optimism flies in the face of facts well known outside Minnesota.