AIG, Bonuses, Trust
There have been a number of articles which make the argument “we must pay the AIG bonuses so that businessmen keep their trust in the system.”
I heard that a few times yesterday before it occurred to me how exactly backwards it was.
At this point in time, business needs to earn our trust. They need to convince us that they are not playing the game laid out by Taleb (and probably others) before this blew up. They need to convince us that they aren’t making long-term risky bets in exchange for short-term bonuses.
Until they convince us of that, I am not going to trust them with an unregulated, too big to fail, investment bank and bonus structure.
That was my thought, and it turns out I’ve got a big thinker in my corner:
James Hamilton on “AIG outrage”
To add another: