I generally don’t run on Thursday mornings. That means I’m usually even more cranky than usual. And I was planning to write today about what the financial meltdown means to savings and retirements. I still will. But first, here’s a story that should send even those with iron stomachs to the barf bag.
American International Group (AIG), former insurance giant and now ward of the American taxpayers, is heading back to the Federal Reserve for more cash. About $37.8 billion. And that’s after already receiving an emergency loan of $85 million.
Oh boy. Looks like the bailout plan is working — for those who caused this debacle, including the Captains of Industry in charge. Here’s why.
USA Today and The New York Times report that part of the money — about $450,000 — was used by AIG execs to attend the St. Regis Resort in Monarch Beach, Calif., for a week of wine, good food and quality time at the spa.
Wow. This really is a great country. And talk about favorable public relations. Does it get any better than that? No, not really. But it is typical of the thinking — and greed — that got us into this mess.
Even the usually clueless White House press secretary Dana Perino had a tough time with with the resort holiday.
“It’s pretty despicable,” White House press secretary Dana Perino said.
Meanwhile, back in the real world — the Wall Street train wreck will have more than a financial effect on this nation for years, maybe decades, to come. Here’s an example.
With retirement savings evaporating, the baby boomers who were marching toward retirement are going to have to reconsider and remain in the workforce longer. Coupled with a recession and lack of job growth, that means fewer jobs and opportunities for younger workers.
Allison Tomei wrote about this issue this week on the Corporate Voices for Working Families blog, “Reconsidering Retirement.”
The key points: employers are going to have to figure out ways to manage a workforce that is very diverse in terms of age, interests and expectations. That’s difficult. And many organizations are struggling with this issue already.
And — talk of a coming labor shortage in the country is now pretty much just that: talk. The U.S. Department of Labor a year or so ago estimated that between 2010 and 2025 up to 95 million baby boomers will leave the U.S. workforce — but only 40 million members of Generations X and Y will be available to replace them.
Well, we’ll see.