Mayor’s Row…..by Ned Mitchell

          We all have heard and used the expression relating to having egg on our face and today’s column will start out with just that, egg on the face.  Most all of our parents have brought each of us up that it is not a good idea to go out in public without first washing our face.  Just in case a spill was made or a bread crumb is still attached, we have been taught to wash our face before going out.  By doing this we can avoid

          For decades this old expression has also been used to describe us when we have made a mistake or a missed a judgment call.  The term can now be applied to Congress and their latest boondoggle. Let me explain the thought pattern on this subject.

          The gigantic American International Group, an insurance company or better known today as AIG is making headlines much to the dismay of those in Congress.  AIG as you will remember was one of the giants in the industry that was about to go belly up due to poor financial decisions and the downturn in the economy.

          To keep this company from total failure we, that is; me and you, through the actions of those we elect to Congress, have poured millions of dollars into a bailout of sorts to keep this company afloat.  I have mixed emotions about these bailouts for banks, insurance companies, and the auto industry.  However I readily admit that I am not an economist and often tend to over simplify issues.  I’m just a little queasy about spending tax money to refinance someone who has obviously not been paying attention to matters at hand.

          Now that we all have seen and read about AIG and their millions of dollars paid out to executives in the form of a bonus, Congress is fuming!  I just don’t understand why Congress would pick now as the time to fume, well, actually I do understand why.  The cat is out of the bag!  Average Joe on the street is now aware that his hard earned tax dollar is being used to pay out multimillion dollar bonuses to AIG executives and members of Congress are starting to hear from average Joe.

          Congress has now provided us with a typical knee jerk reaction; that is taking action after the horse has already left the barn.  Of course it is my duty as an unbiased writer to inform you the reader that Congress is controlled by my beloved fellow Democrats, but hey, if the shoe fits, you have to wear it.  Congress has now passed legislation that will tax bonuses for these AIG and other corporate executives at 90%.  There is a school of thought from some legal scholars that this knee jerk legislation will not pass the constitutional requirement that it must have to become a law that will be upheld by the courts.

          Of course there are wise guys like me all over the country who have the audacity to think that perhaps Congress should have seen this coming and not been so handy at forking over the cash.  It is not like they did not have a clue or a hint or two.

          Last November the Securities and Exchange Commission (SEC) reported to Congress that in fact AIG was planning on spending $469 million dollars as “retention payments” that would allow them to keep prized employees on board the company.  At this point I would say they bought themselves some real prizes with our money!

          Just this past January two members of Congress two House of Representatives members urged the Federal Reserve and the Treasury to block these bonuses.  Not to be outdone the House counterparts over in the Senate passed an amendment to the law that would outlaw such bonuses and suddenly dropped the idea.

          Enter the White House according to Sen. Chris Dodd (D-Conn.) who says the new administration specifically asked him to attach a provision to the bailout language that would allow such bonuses.  Now Sen. Dodd says he only agreed to do that because he did not understand what that measure would do.  This would probably be a good time to ask Sen. Dodd and the rest of his cohorts exactly why if they don’t understand a bill they are voting on for Pete’s sake, ask a few questions!

          There were a couple of bright lights that did ask pertinent questions.  Rep. Barney Frank (D-Mass) demanded the names of the employees who “had to be bribed not to abandon AIG”.  Rep. Michael Capuano (D-Mass.) urged these same employees be fired.

          What we have here is Congress, after the fact showing just how outraged and angry they are.  A good time to have started that would have been when they passed the law to begin with.  I am outraged and angry at Congress, especially fellow Democrats who have not only allowed this to happen but have actually opened the door and promoted the concept.  I wonder just how much campaign cash AIG executives have funneled to various campaign funds.

          Will new Governor Pat Quinn survive the tax proposals he has recently made to “bailout” Illinois?  As I have previously written I have known Pat Quinn for over 30 years and have supported him just as long.  He is a different sort of politician than we are accustomed to having in Illinois.  I also wrote that he would assess our financial situation, talk to experts, and then put a plan in writing on how he thinks we need to get out of the mess we are in.  I further wrote that it will be a bitter pill to swallow!

          Now that Gov. Quinn has revealed what he thinks the medicine is; he is being shot at from all corners.  Labor unions, business groups, and other elected officials, even Mayors, are not happy.  This goes back to that bitter pill thing.  I for one am willing to look at the proposals, and after all that is all they are, proposals.  I would also challenge anyone in the peanut gallery that is critical of the concepts to put their own ideas on paper and present them as an alternative.  The Pat Quinn that I know is a good listener and if you have a better plan he would be most happy to agree with it.  It is one thing to criticize, and of course none of us want to pay higher anything, but the reality is Illinois has to get their fiscal house in order.  It will be a bitter pill to swallow!

          We hope that you have had a good start of spring even though it has only been here for a few days.  It has been great weather to get outside and clean up leaves and other winter debris and to work in the garden.  If you need help along those lines and are unable to do it yourself or cannot afford to hire it done, give us a call at 625-3611.

          Happy 80th birthday to former Sesser resident and business owner Kathy Fornear.  She was surprised with a special dinner last Saturday by family and friends at the historic Sesser Opera House.  We were happy to host the event and invite you to book the banquet Woll Room for your special occasions by calling 625-6300.

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