So here the author provides a counter point. That, despite the inexcusable bonus, we should let that pass. Now that we have invested into 80% of the company, we don’t want to scare off the people from leaving. Then, all that we put in as taxpayers would surely be lost. And since these were contracts written prior to AIG’s million mile fall, contracts should be honored.
I can kind of see that. This was why I wish we had let AIG flop instead. Insuring what was bound to be a catastrophic failure of sub-prime mortgage, they and whoever invested in them should fail. Yes, it would send the world economy into depression perhaps, but we are almost there already despite having invested so much in trying to prevent it.