Directly via bailouts and indirectly via inflation, COVID was the biggest wealth transfer to the rich in history.
How does inflation help the rich? Doesn't that devalue their net worth?
Only if they didn't invest it in real estate etc.
Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
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Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#32If we're really going to insist on bailing out private companies (rather than letting them fail and using the money to help those left without work) - then surely these bailouts should come with rules that prevent the money from basically being embezzled by top management?
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#33I'm surprised anyone is surprised. Here in the US we've spent several trillion dollars on Covid relief so far, and there's more to come. When you're dealing with a torrent of printed cash of this magnitude, there's of course going to be a lot of it that ends up in the wrong hands for the wrong reasons.
The most surprising thing here is how egregious it is. Like everyone in these positions or studies this area knows there is no accountability on these, but they don't usually do it.
Outside of these circles I've definitely heard people assume there were greater stipulations on state funding or even bond issuances in the fixed-income market, and want to argue that with me mostly given the lack of evidence of executives taking advantage of it for personal gain.
This one is shocking because they actually did.
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#34Directly via bailouts and indirectly via inflation, COVID was the biggest wealth transfer to the rich in history.
How does inflation help the rich? Doesn't that devalue their net worth?
The rich own assets like real estate/stocks that will hold their value through inflation. People with savings or no assets/savings are hurt most by inflation.
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#35Directly via bailouts and indirectly via inflation, COVID was the biggest wealth transfer to the rich in history.
How does inflation help the rich? Doesn't that devalue their net worth?
Inflation on its own isn't helpful, but when you print money just to pour it into the stock market, you help wealthy people disproportionately. You raise stocks while devaluing currency. Poorer people have a higher proportion of their wealth in cash, and are often paid in static amounts.
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#36I know at least one French consulting company did the same (Amaris). They basically gave the benefits they made from state aid straight to their shareholders. And at the same time they laid people off.
My guess is: most companies who could do this did. No conspiracy, just plain greed.
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#37The real error here is public money being given to private companies. Let them break Fund people, not companies
>Fund people, not companies
it depended. large corporation like Apple don't need the money but mom and pop shop that is forced to close during the peak should receive money. the sad thing is corporation that clearly can make it thur covid is receiving the largest amount like https://www.npr.org/sections/coronavirus-live-updates/2020/0...
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#38Well blame the politicians who left loopholes in the laws to be exploited. Or blame yourselves for falling for the same stupid trick over and over.
If everything they did was legal and by the book you shouldn't be blaming them, you should blame the lawmakers that allowed it to happen. There are no excuses when you write and vote on laws for millions of people to abide by.
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#39It's interesting the CFO got more than 3x the CEO, and more than 2x CEO + VP. Does anyone know the reasoning behind that? It seems a bit shady to me in general for a CFO to be paid large performance bonuses.
The CEO and the VP get the taste of the wig to not make much noise.
Re: Booking.com gives €28m in bonuses to three top execs; Took €65m in State aid
#40The real error here is public money being given to private companies. Let them break Fund people, not companies
Imho, the main error is that they gave away the money unconditionally. The fact that the particular government didn't foresee this outcome is quite astonishing.