Is our economy really slowing down? Common people are really talking about economic recession instead of sports and films ? If I go by the newspaper headlines, it seems economic recession has really caught the imagination of print media. Each day I can see the creases and frowns in their headlines about recession. Instead of political news, economic recession news seem grabbing the headlines.
I know vaguely about this company AIG, because I have seen the ads of Tata-AIG insurance on TV. What I know is, AIG is one of the biggest insurance companies in the world. Recently AIG was hit hard by the turmoil in the credit markets in September 2008. But AIG got a fresh lease of life after an $85 billion government bailout. Basically AIG had faced a near death situation. But I have my own doubts that economic recession is actually happening when I read about this company AIG something like this:
AIG big shots get $500G vacations on taxpayers’ dime
Just six days after sticking taxpayers with an $85 billion bailout, AIG’s top executives dropped $500,000 whooping it up at a swanky California beach resort.
Among the charges American International Group racked up at last month’s week-long retreat:
- $150,000 for banquets,
- $10,000 in bar bills,
- $3,000 on tips,
- $7,000 in greens fees,
- $23,000 at the hotel spa
- $1,400 at the salon.
"They were getting their manicures, their facials, their pedicures and their massages while American people were footing the bill!" barked Rep. Elijah Cummings (D-Md.), a senior member of the House Oversight and Government Reform Committee, which is probing the ever-growing financial collapse.
Do you still think that we are facing economic recession?
Certainly we can’t deny that the economy is slowing down. But the fact that these companies are wasting precious dollars on useless things is sad. Instead the top management should be framing and implementing strategies to reduce costs.
Such actions by the company is really a shame and makes me wonder if the whole bailout thing was the right thing to do
In the international arena games are played for which we the spectators know only as much that is shown to us.
The expression, ‘creases and frown in their headlines’ was indeed creative.
Alka, you and I chose the wrong job it seems 😛
It is true the economies are under pressure, it is also true bad management and lax regulations resulted in this and it is also true (howsoever socialistic it may sound) the rich got richer but having said that the media exaggerate quite often. I don’t know what to trust and what not and to what extent. !!!
Alka-you know what I feel?I feel it’s ‘crap of the first order’-there’s no real economic recession,but,as always,one rumour leads to another leads to another….
And, this AIG employees Ball,at such a time, is just proof positive of what happened.And,I bet,it’s still happening,with many of these high fliers grinning away to glory!Sadly,in all this mayhem,it’s always the medium and lower class which suffers-be it courtesy savings lost in shares,or,inflation killing one of the two ends required to meet!! For them, it might soon be a situation of ‘Ne’er the Twain shall meet’,where making ends meet is concerned.
Very intresting post on economy slowing down and i think nation will see more bad situation in coming year.
http://www.oxyshopping.com
Alka,
Good point. The way I see it. Make hay while the sun shines.. and in these cases even after the sunset 🙂
Corporate life is all about managing to make money .. and as much as you can .. before its too late
S
Devakishor, welcome. I too am quite perplexed and was thinking which management school the AIG executives had studied?
Paradox, I agree.
Sudipta, why are you saying so?
Tanmoy, lax regulations are certainly one of the reasons and its not socialistic at all. Most of the humans take advantage of the lax regulations.
AmitL, AIG executives certainly have balls.
Karan, thank you very much.
S, that’s a pretty interesting comment. I want to know how these guys are making money? 🙂
After all thers a slow down that was created by faulty financial planning by the so called current suffering nations,i feel that.
And S, i couldn get you completely.I believe its a wrong attitude->’Corporate life is all about managing to make money .. and as much as you can .. before its too late.’
Corporate life is not just about money.Its not set by any rules nor a life style,but rather ruled by the innovative and fresh thoughts that drive the econnomy directly/indirectly through consumers!This is the single reason why India fails many times in innovation and satisfy herself as a ‘Service Provider’. 🙂