Your Bailout Money At Work

Last Friday – just before the U.S. Congress totally bailed on capitalism and approved the biggest government intervention in the U.S. economy since the Great Depression – we posted a story on how bailouts don’t work.

Specifically, we noted that global insurance giant AIG had already blown through $61 billion of its initial $85 billion loan from the taxpayers … and yet was still screwed … forced to rely on its chunk of the government’s $700 billion monster bailout just to stay afloat.

Anyway, while “We The Taxpayers” were in the process of forking over this unprecedented coin, here’s what AIG execs were up to … from the AP:

Less than a week after the federal government had to bail out American International Group Inc. (AIG), the company sent executives on a $440,000 retreat to a posh California resort, lawmakers investigating the company’s meltdown said Tuesday.

The tab included $23,380 worth of spa treatments for AIG employees at the coastal St. Regis resort south of Los Angeles even as the company tapped into an $85 billion loan from the government it needed to stave off bankruptcy.

Nice … you know, the only thing that’s missing from this picture is some ascots, Cuban cigars and Chilean sea bass.

Incidentally, AIG also shelled out thousands for catered banquets and rounds of golf for its execs.

Frankly, this reminds us of the conduct of Fannie Mae and Freddie Mac execs, who hosted extravagant parties at both the Republican and Democratic national conventions this year knowing full well that they were about to blow a quarter-trillion hole in our national debt thanks to their shady lending and accounting practices.

Nothing like the government having your back, is there?

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