Tag: corporations

Creative Accounting, or GO REBELS!

So Jeff Skilling got a new sentence handed down for his role in the financial shenanigans at Enron. Actually, it’s a reduction of the sentence he was given back in 2006 for stuff that happened throughout the 90s and caused the company’s collapse in 2004. In case you’ve forgotten:

Enron’s collapse put more than 5,000 people out of work, wiped out more than $2 billion in employee pensions and rendered worthless $60 billion in Enron stock. Its aftershocks were felt across the city and the U.S. energy industry.

That’s over and above defrauding local power companies and gouging “Grandma Millie.”

For years, Enron was able to make people think things were much better than they were. They were able to make people believe they were making money.

Which brings me to this item from ThinkProgress:

America’s colleges and universities used more than $2 billion in student fees — an average of more than $500 per student — to subsidize rapidly growing university athletic budgets, as Ohio University professor Richard Vedder wrote at BloombergView today. Those fees can top $1,000 a year at some schools, and as Vedder writes, reliance on them ends up making college more expensive for students and often places the burden on the poorest students. And most of the time, students don’t even know they’re paying the fees.

In addition to student fees, athletic programs are relying more on money from general university budgets, so taxpayers are also spending millions of dollars a year to cover shortfalls as athletic budgets continue to grow faster than academic budgets.

Now, I have long thought that the accepted wisdom of “sports brings in money and students so we have to fund it” was flawed. If sports are really profitable, why are students and taxpayers paying so much money to support them? I have suspected that the “accounting” used to make sports profitable would have made Jeff Skilling drool. How did they pay for the stadium? It would never have been built without wealthy donors who like having their names on buildings. What about the maintenance for that stadium? Oh, that’s a different budget. What about the scholarships for athletes? Another budget. The coaches? Oh, they’re faculty so that’s yet another budget. Security, ticket sales, advertising the big game? Three different budgets. So most of the expenses of a good athletic program are offloaded onto other areas, leaving only the juicy profits and the bragging rights.

The idea that the money for sports is — really, truly — being paid for by students rips back the curtain on the Great Oz. In an age where the cost of college is rising much faster than either inflation or the wages they can expect to earn, where a student loan crisis is on the horizon, how can any college justify these costs?

No wonder so many young adults don’t know how to handle money. Where would they have learned?

In case you didn’t get the title, University of Nevada Las Vegas’s sports teams are the Rebels. Enjoy this unintentionally hilarious radio ad. 

In Closing: a few items on the NSA, FBI, and the government spying on us including a petition you can sign; some stuff on food, obesity, additives, and whatnot; about time somebody used some freaking common sense; assorted nonsense about the latest attempt to make abortion so hard to get that it might as well be illegal; and corporate America running amok or returning from insanity.

Oh Noes, BE AFRAID!!!1!

So as I was in the midst of my morning newscrawl, I came across the headline “Report: Terrorists may poison US food supply.” Well, it turns out that the DHS knew about “a possible credible terrorism plot that targets food products in the restaurant and hotel industry, though the threat is non-specific about time and location for the plot.” And truth be told the Jerusalem Post reports that “Al Qaida planned to poison US hotel buffets, salad bars.”

Nevertheless, be afraid! The Evil Terrorists are wanting to poison your food!!

Of course it seems obvious to me that if we gave a damn about food security and really thought terrorism from foreign terrorist organizations was a risk, the first thing we would do is make sure that illegal immigrants are not harvesting and processing our food! But no, even many latte liberals think we somehow need underpaid, undocumented workers to get food from the farm to our plates.

In Closing: Amen; maps; food stamps; 308.7M; student loan debt; Dave Johnson is on a roll; CEOs; temps; and WTF.

On Being a Responsible Consumer

I grew up in a household that values the power of the consumer. I have never crossed a picket line. My father refused to so much as ride in a Mercedes because of what the company did in World War 2, before he was born. I’m not sure, but I think when Mercedes bought Chrysler, he sold his 10 year old New Yorker in favor of a Ford. He had purchased it used. I have at least forgiven VW for things done over 60 years ago.

Alright then. Just about the time that Wal-Mart (mostly) rehabilitated it’s corporate image, Target got itself in hot water with the liberal/progressive communities with ill-considered campaign donations, and stayed there after some Halloween ads that were considered in poor taste by Parent-Americans. Ok, fine, looks like Wal-Mart has moved to be the lesser of two evils, at least until the other day when they “teamed up” with the Department of Homeland Security to “catch terrorists” (remember, terrorists do “suspicious” things). Clearly, no officials from the DHS have ever actually been inside a Wal-Mart.

So where am I supposed to shop? Albertsons apparently wants to get rid of unions; is it alright to shop at Smith’s or Von’s? Will it be acceptable next week? Even if I could afford to shop at Whole Foods, there’s still the scandal surrounding their purchase of Wild Oats. I could go down to the farmer’s market, but unlike those amazing markets in cities like San Francisco, there’s just not a whole lot available. This of course assumes that the vendors at my local farmer’s market aren’t practicing the exact same contemptible business practices of the worst factory farms. “Hey Mr. Farmer! You don’t mind if I drive on out to your farm and see if your workers are legal before I spend $3 on onions, do you??”

And now I’m supposed to get rid of my Amazon.com account because they decided that the rest of their clients were more important than one controversial one? Screw that!

Since I am clearly not allowed to shop anyplace convenient or close, that means I’ll be using a bunch more gas: do I buy it from the guys who polluted Alaska, the guys who poisoned the Gulf of Mexico, one of many that is stirring up Middle East unrest, or the Venezuelan “dictator”? How do I reconcile my bigger “carbon footprint” with avoiding businesses whose practices I don’t like? Do I buy the electric car from Japan, or the American one that unlocks all my doors and puts my life in danger every time I put it in park?

Things get even worse if you want to boycott products by a certain company. Let’s say for the sake of argument that Proctor and Gamble has done something you disapprove of: here’s everything you must avoid if you want to vote with your wallet! You’ll have an easier time getting by without Colgate-Palmolive’s products. If you decide you won’t give money to P&G, Colgate, or Unilever, give up any hope of cleanliness. Ever. We’ll just call you Pig-Pen. Unless you prefer “Dirty Hippie.”

And let’s not get started on banks! Even if you are willing to endure the hassle of changing banks, the only way to be sure your new bank won’t be taken over by one of the big players is to give up and bank with a “too big to fail” institution and just live with the BAMTOR Principle. It’s worse with mortgages: you can’t control who buys the note, you can’t control who your servicer is, and you may not be able to stop them from claiming you owe money even if you don’t.

So how exactly am I supposed to “vote with my wallet”?

I’m deadly serious about this. It has literally gotten to the point where I cannot avoid doing business with companies I don’t like. How can I possibly stick it to the Oligarchy when I can’t go a day and a half without giving them my money or using their products and services?

When Ted Kaczynsky starts to look sane, the nation has gone crazy.

Reform. For Freedom.

We have officially gotten to the point where corporations control us.

They control how much money we are allowed to make. They control our finances on the national, international, and personal level — badly. They control our health care in a system that is doomed to collapse under the weight of its own expense real soon now. Worst of all, they play by whatever rules they like while squeezing ordinary people to desperation. Now they have a green light to even more openly control our government.

And unless this worthless Congress remembers that the one thing corporations can’t do — yet, anyway — is vote, things are going to get worse rather than better. We desperately need real financial reform now, the kind that restores rules that worked through most of the 20th century and not the kind so riddled with loopholes as to be a gift to the financial services industry. We need insurance reform that puts more of our health care dollars to work providing health care and curtailing the abuse of patients who foolishly want the care they think they (or their bosses) are paying for, not a “reform” that forces everyone to participate in a broken system through mandatory coverage.

“I’m proud to be an American, where at least I know I’m free,” the song goes. Free to do what? Free to get involved in staged protests of issues we don’t understand? Free to loudly proclaim “facts” with no basis in reality? Free to watch propaganda dressed up as news? Free to owe everything to the companies that hire us, care for us, and mis-manage our money with no hope of anything else?

If you don’t mind, I’d prefer a different flavor of freedom.

In Closing: Roman Army Knife; “Um, because it was the right thing to do and we didn’t want any lawyers saying we did wrong later? Was the 5th Amendment repealed while I wasn’t looking?”; nice to see that we are going to count job losses more honestly, but it’s a shame that Mr. Obama will be blamed for “losing” these jobs when he merely counted Bush Administration losses correctly; I couldn’t have said it better either; at least child abuse is down!; where genetic testing and “pro-life” collide; trees are loving global warming (much more so than the polar bears); and Americans are drinking more, but we’re not paying for the Good Stuff. So, uh, maybe the price of Scotch will return to rational levels? No? I thought not.