October 22, 2009
Posted by Adam King on October 22, 2009
October 22, 2009 – Our government’s lackadaisical attitude toward its unmotivated bailout beneficiaries is irking many American investors, and the latest development in the Troubled Asset Relief Program (TARP) has many taxpayers up in arms. The mounting lack of trust in our elected officials and corporate leaders has influenced many investors to purchase certified gold coins, which are a highly recommended way for investors to gain long-term insulation from our current recession. AIG, the failed insurance giant who has received more than $180 billion in federal assistance since its near-demise, will pay their CEO Robert Benmosche $7 million in 2009. This hefty salary does not include performance bonuses that Benmosche may “earn.” Yes, the Treasury Department knows about this, and they have stated that executives’ salaries need to be lowered until all bailout funds are repaid. The Treasury has even promised to exercise fiscal responsibility with OUR hard-earned money, yet our government’s proven track record of hypocrisy and half-truths has emerged. Just this morning, our Treasury Department announced that corporations with outstanding bailout debts will be forced to lower the salaries of their top 25 executives to $200,000 or less, but the loopholes in this mandate are evidently quite sizable.
This move applies to AIG, Bank of America, Citigroup, GM, GMAC, Chrysler, and Chrysler Financial, but some job titles (such as CEO) are exempt from these pay cuts. Traders and other executives will have their pay capped, but the persons in control of these companies will remain unscathed from the unethical business practices that destroyed their companies-and our nation’s economy. The Treasury Department is expected to “warn” companies with outstanding loans that they must pay down their debt, but they haven’t emphasized the “or else” in their warnings. These mild caveats may not be enough to motivate companies to repay the bailout money that they received, and this adds insult to injury for American taxpayers. Investors were also angered by the clause which demands that executives receive government approval before seeking benefits like country club memberships, chartered flights, and expense accounts above $25,000, which are luxuries that most Americans will never indulge.
Investors who trust themselves and hard assets that they can hold privately are encouraged to take a position in the certified gold coin market. These coins fluctuate in the same direction as gold bullion, and their numismatic value allows investors to hold these coins without fear of a gold bullion confiscation by our current administration. The gold spot price at noon EST was $1058.50, which is a 0.12% decrease for the day.
Stewart Lawson
Senior Staff Writer – Certified Gold Exchange
Categories:
US Gold Market
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