Possibly the most perceptive analysis I've read

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http://www.bloomberg.com/apps/news?pid=206...columnist_lewis

Mass Hysteria Over AIG Obscures Simple Truths: Michael Lewis

2009-03-20 04:00:29.0 GMT

Commentary by Michael Lewis

March 20 (Bloomberg) -- Last September the U.S. government

began to dole out the first of $173 billion to American

International Group. A big chunk of it passed right through to

banks that had bought insurance from AIG against mortgage and

corporate defaults -- foreign banks such as Deutsche Bank and

Societe Generale but also some domestic ones, such as Goldman

Sachs and Bank of America.

U.S. government officials then went to great lengths to

disguise from the public exactly what they had done, and why,

going so far as to declare the ultimate list of recipients of

taxpayer funds off limits to the taxpayer. To its immense

credit, the media -- or, rather, a handful of diligent

reporters, the New York Times’ Gretchen Morgenson chief among

them -- prevented the public officials from getting their way.

(Michael Lewis, author of “Liar’s Poker,” “Moneyball”

and “The Blind Side,” is a columnist for Bloomberg News. The

opinions expressed are his own.)

The other interesting spectacle today was the House passing this 90% retrospective tax bill. Two points:

1. It's blatantly unconstitutional; you can't retrospectively change the tax rate on money that people have already been paid, paid the tax on, and spent!

2. It's amusing watching these alleged politicians trying to 'control' or 'punish' Wall St. - it's rather like watching a flock of sheep trying to legislate against wolves. Wall St. will find approximately 58 different ways round any such laws within five minutes of Obama signing them.

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2. It's amusing watching these alleged politicians trying to 'control' or 'punish' Wall St. - it's rather like watching a flock of sheep trying to legislate against wolves. Wall St. will find approximately 58 different ways round any such laws within five minutes of Obama signing them.

And the biggest one is Barney Frank who is trying so hard to divert any attention away from him.