Re: $1.6B went to bailed-out bank execs FIRE THE BUMS

[David Farber <dave () farber net>]

Begin forwarded message:

From: Lauren Weinstein <lauren () vortex com>
Date: December 22, 2008 9:34:37 PM EST
To: Declan McCullagh <declan () well com>
Cc: dave () farber net
Subject: Re: [IP] Re:   $1.6B went to bailed-out bank execs FIRE THE  
BUMS



Declan,

Thanks much.  Yeah, lots of people at those levels have a similar
mindset.  But since the bailout specifically was the particular focus,
I decided not to pull in the various other categories, of which,
as you note, there are several.  Plenty of dirt to go around.

As for "useful" income ...  I actually struggled a bit over that word.
What I was trying to exclude was personal wealth derived from criminal
activities, fleecing the poor (e.g. slum lords), that sort of thing.
"Legal income" didn't cover it, and I didn't want to go for concepts
like "virtuous" or "beneficial" -- so I settled on "useful" for now.
Probably not the optimal choice.

Someone I know is a senior commercial airline pilot (for many years).
He tells me that in some countries he flies to, the crew are treated
much worse than the passengers.  He says that he can depend on his
luggage being completely torn apart and tossed around by customs every
time in certain locales.  I found this surprising at first, but
apparently the logic is that crews who are constantly flying back and
forth are *supposedly* the most likely to be drug couriers.  I'm not
sure that I buy this but it's interesting nonetheless.

Thanks again!

--Lauren--

On Mon, Dec 22, 2008 at 06:10:25PM -0800, Declan McCullagh wrote:
> Lauren wrote:
> > The news channels are all abuzz about how the banks who received the
> > bailout billions are still paying and perking their execs like happy
> > days are here again, and their fleets of corporate jets are still
> > criss-crossing the skies. [...]
> > For those of us who live hand to mouth, for whom a trip to Target or
> > Walmart is a somewhat special treat, and just keeping the utilities
> > running is a continuing nightmare, the attitudes of the "privileged
> > class" with their limos and chauffeurs are as far removed from our
> > daily existence as Alpha Centauri.
>
> I enjoyed your post and largely agree. I've written a number of pieces
> about the bailout culture (that is, why we should be skeptical of it):
> http://www.cbsnews.com/sections/politics/otherpeoplesmoney/main503363.shtml
>
> A few things, though:
>
> * You indicate that someone should be free to spend their money only  
> if
> they earned it "in a useful way." Of course, who determines what's
> useful? You? Is Rush Limbaugh's show "useful?" How about anti-Net
> neutrality lobbyists? Or coal mining companies?
>
> * I suspect one reason why execs get limos and private jets paid for  
> by
> corporations is that they're tax deductible as a business expense if
> they're "reasonable." At least this is what the 10th Circuit ruled in
> 2001. Salaries in excess of $1M aren't tax deductible, thanks to the
> social engineering in the tax code, but these perks are. Welcome to  
> the
> world of unintended tax law consequences.
>
> * You're correct to say that the failed executives jockeying for  
> bailout
> dollars "simply don't want to rub shoulders with the unwashed masses  
> in
> overloaded security lines, cramped terminals, and commercial jets."  
> But
> that doesn't go far enough. It's also Washington politicians and
> bureaucrats of both major parties who dislike waiting in security  
> lines
> with the plebes who are forced to pay their salaries. Such important
> people (who can't be bothered with first class) include Hank Paulson,
> Nancy Pelosi, the U.S. ambassador to the United Nations, and even the
> Smithsonian Institution's Lawrence Small.* (Political campaigns do  
> this
> too, borrowing private jets from corporations and reimbursing them
> pennies on the dollar. This is actually legal.)
>
> Clearly the head of the Smithsonian, with its prominent anti-terrorism
> role, needs the additional security that $20,000-an-hour private jet
> travel can provide.
>
> * Let's not overlook governors. Kentucky Gov. Ernie Fletcher almost  
> got
> shot down when his private jet heading to Ronald Reagan's funeral  
> didn't
> follow security protocols.***
>
> As an FAA-licensed pilot, I can attest that bypassing the security
> theater (and ransacked luggage) of commercial aviation and going  
> direct
> to your destination is a splendid thing. At least why I fly, though, I
> don't ask the taxpayers to pick up the tab.
>
> -Declan
>
> * Source:
> http://www.washingtonpost.com/wp-dyn/content/article/2006/09/19/AR2006091901389.html
> http://www.washingtonpost.com/wp-dyn/content/article/2007/03/26/AR2007032600665_pf.html
> http://query.nytimes.com/gst/fullpage.html?res=9503E7DE1F3AF935A1575BC0A96E9C8B63
> http://www.nypost.com/seven/02082007/postopinion/editorials/nancy_pelosi__carbon_criminal_editorials_.htm
>
> ** http://www.nytimes.com/2007/07/26/us/politics/26jets.html?pagewanted=all
>
> *** http://www.washingtonpost.com/wp-dyn/articles/A35440-2004Jul7.html




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