The Casone Exchange
  • March 20, 2009 09:45 AM EDT by Cheryl Casone

    Two Unpopular Views

    1) Calls for Treasury Secretary Geithner to be fired

    This is the wrong time to replace a Treasury Secretary, no matter how much you disagree or just plain hate him. By removing him, or even continuing to call for his resignation (like members of Congress and the public are doing) you are further eroding investor confidence, extending the economic downturn, and hurting out 401k’s. Next week he is planning to unveil his “ban bank” proposal, which is what the financial system needs to find out stock market bottom and stop any more bank failures. That plan is probably dead on arrival. Folks should consider the ramifications of their outrage. Think of yelling at your dog or your child. Are there long term consequences from that?

    2) Taxing Wall Street bonuses at 90%

    The Wall Street bonus system has been in place for decades. Everyone agrees something needs to be changed, but the House action this week to go in and tax bonuses at 90% for tax year 2009 will further destroy jobs and income in the short term. The financial sector continues to lead the nation in job losses, and we will see an escalation in foreclosures and job losses nationwide. There is a better way to deal with the bonus structure in this country, but the House bill is going to go back and tax 70% of companies big and small that took TARP money. Not all of them have the word “Goldman” in front of them.

Jon, Colorado

First, all of these plans on top of plans are getting out of hand. Why does any bank need to be bailed out? They made bets on investments, the investments lost, they loose! If I go to Las Vegas and go all in, I don't ask the casion for a second chance. We are giving money to companies to pay their debt and stay afloat so they can turned around and force their customers to pay their own bills!!!!!! As for the AIG bonus scandal. What scandal???? Let them pay the bonus just do not give them another dime of tax payer money! No news laws need to be considered. Besides, AIG is going to fail anyway no matter how much money we give them. Do you know anyoone who would do business with them right now?? Every American who has an account with AIG should shut down their account tomorrow and withdrawl every dollar. Let's show the government that there is no such thng as to big to fail!!!!!

March 24, 2009 at 4:55 am

R. Lamar Smith, CPA

The biggest problem with the AIG bonus scandal is that it takes the focus off the trillions in projected deficits as well as the magic money that the Fed and the Treasury are creating outside the budget process. This is all very important and it needs a lot of review by the Congress as well as the public. No matter how the AIG issue is resolved, it will make no difference in our economic future.

March 23, 2009 at 3:58 pm

Derek Wilson

Brava, Cheryl! The ranting and raving is getting overwhelming. When a U.S. Senator speaks about mass suicide we are waaaaay off track. Being right is more important than being popular. You're right on the money on both scores.

March 23, 2009 at 11:39 am

Cal

Great, Cheryl! Thanks for satnding up to the demagogues like Hannity! His thick-headed grandstanding gives rise to the torch-and-pitchfork crowd that flourishes here. The American public has been infantilized: the breast-beating about "unfairness" demonstrates the narrow-mindedness and immaturity of the debate. The simple truth is that we will require a massive reflation to get us out of this hole. AIG bonuses and earmarks won't even rate a footnote when the story of our economic recovery is written.

March 23, 2009 at 9:08 am

Jeff V

In regards to the AIG bonus scandal: Who gives a flying fart, our government is throwing trillions of dollars at the banks, lets focus on where our billions are going first then come back for looking for the "chump" change later. In regards to Geithner not being up to the job: There is not much anyone can do about this situation. This country spent years building up the housing and stock market bubbles, the bubbles are bursted and our problems cannot be fixed all at once. These guys at the treasury and fed are trying to strike the right balance between going into a depression or just completely inflating our way out of the mess. Either way we are all going to lose, however inflating things a bit may spread the pain out over time; but again, we are all going to lose.

March 22, 2009 at 6:10 am

Ed Thompson

How can anyone point fingers atothers, if no one read the stupid bill. Transparency my a???

March 20, 2009 at 8:10 pm

mebpm

1) At this point in time, it doesn't make any difference if Geithner stays or goes. No matter what he says, one group will feel relief ( and regain confidence ), while another has just the opposite reaction. As we find out more and more of what was known about AIG, THAT is what undermines everyone's confidence. No matter WHO the "mouthpiece" is speaking the words.., no one is going to be so trusting ( i.e. naive ), as to believe what is being said. Too much has gone on with lieing, and hiding, and sneaking things through, that putting trust in the administration and the powers that be in congress, would rank right up there with buying a position in Enron today. After a while, with this constant stream of untruths and enuendo , it becomes insulting to the public , to keep talking and feel that WE, the public, simply MUST accept what is being said. Think Sen. Dodd. 2) As for bonus reform..,the time for that was TWO years ago. Once you're on the public dime.., all the "old ways" of doing things are null and void. Since the contracts were formed prior to the bail outs..,subtract the amount from the bale out, and THEN pay the bonuses from what's left. Use Lehman as a template. Pay them the same as Lehman bonuses paid at the end of 2008. THAT'S what they are ENTITLED to. This tax bill, should be a wake up call.., that we are NOT being represented by our elected officials. They passed the legislation that caused the need for the tax bill without being given time to read it ! WTF

March 20, 2009 at 4:45 pm

Bill McGroarty

Cody and Rebecca just endorsed activists and assorted loons protesting on the front lawns of the homes of the AIG bonus executives. Regardless of what one may think about the bonuses, since when is cheering on class-envy zealots a part of a free-market (not to mention the rule of law) society? That was despicable and irresponsible and juvenile. This is inviting mob rule. Total boneheaded hysteria - grow up people!

March 20, 2009 at 4:44 pm

Linda

First off, 1) We are not further eroding the public trust and confidence by firing Geithner. The trust and confidence just isn't there, so get someone else who has somc credibility to take his place. The public needs someone OTHER than Geithner to help restore their trust. 2) Simple, you pay your debts first. If you owe someone money, you don't go out and spend lavishly on yourself before you pay them back. Apparently, AIG Executive's greed has blinded them from from common sense. They should pay us, the taxpayers, back first.

March 20, 2009 at 12:43 pm

Bert

Constitutional geniuses Obama, Reid, and Pelosi are probably unfamiliar with Article One, Section 9 of the US Constitution. Won't someone please explain to them what a Bill of Attainder is?

March 20, 2009 at 12:32 pm

Larry, LaGrange Park/USA

Mr. Obama approved the bonus' by signing the stimulus package. Didn't he read it first?

March 20, 2009 at 12:16 pm

ronhen

Funny they listen to the people about the wrong things and have closed ears when it is the right thing. Go figure.

March 20, 2009 at 11:37 am

Cindy

I often don't agree with you but regarding the panic tax on bonuses, I do. It was a bad idea and it will ultimately hurt more people. As far as Geithner is concerned, he should never have been hired in the first place. He's a tax cheat and I believe he should be fired or resign as soon as possible. We need someone squeaky clean in his position.

March 20, 2009 at 11:08 am

JohnC

He needs to go! Didn't pay taxes and was complicit in this protecting the bank bonus scheme. OUT, right now!

March 20, 2009 at 11:04 am

about this blog

  • Cheryl Casone joined FOX Business Network (FBN) in September 2007 as an anchor. Prior to FBN, Casone served as a correspondent for FOX News Channel’s (FNC) business unit and was a regular guest on FNC’s Your World with Neil Cavuto. Casone brings years of experience covering finance, business, and consumer news to FBN.

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