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Tuesday, December 24, 2002

Molly Ivins on Bush's new economic team:

According to The Wall Street Journal, "In Dec. 2000, nine months after he took over, Mr. Donaldson told investors that the company's problems with skyrocketing medical costs were finally under control and projected rosy 2001 earnings, driving Aetna's stock price up.

"It turned out that Aetna's system for calculating costs was out of whack (oops!). In April, four months after Mr. Donaldson's upbeat predictions, Aetna announced that earnings would be 'significantly lower' than expected, driving its stock price down by 18 percent in one day.

"Mr. Donaldson had retired 10 days before the profit warning. Aetna's board months earlier had set his compensation for his 10 months of service as CEO in 2000 at a $1 million salary, a $6 million bonus and more than $11 million in restricted stock and options." Our kind of guy.
But what a payoff on the investment! A mere $5.9 million in campaign contributions over 13 years and they got $164 million in the last four years in tax rebates without ever paying taxes. I'm telling you, this guy Mr. Snow is a genius, and I have perfect faith that as the Bush team moves ahead to cut more taxes for the rich, fight a $200 billion war and increase defense spending, the books at Treasury will balance nicely. It all makes perfect sense to me.