Free Lunch (40 page)

113
Gerald S. J. Cassidy:
Cassidy & Co. Form
S-1 at sec.gov.

Jefferson would be
appalled:
Letter at Library of Congress,
Information Bulletin
, June
1998, Vol. 57, No. 6; nobeliefs.com/jefferson.htm.

One idea was to question:
Kennedy, Sam, “Have Cabela's Tax Breaks Paid Off?” Allentown
Morning Call
, October 17, 2004.

Bass Pro even talked:
Pre-development
Agreement, Erie Canal Harbor District, Buffalo, New York, posted May 26, 2007, at greaterbuffalo.blogs.com.

Chapter 11. BEAUTY AND THE BOUNTY

Mike Keiser acted on his own:
Author interviews
May 2007;
Dream Golf:

The Making of Bandon Dunes
by Stephen Goodwin, Algonquin Books.

Even so, without asking:
Johnston, David Cay,
“Assisting the Good Life,”

The New York
Times
, June 15, 2007.

For thousands
of years the Coo:
Robbins, William G.,
Hard Times in Paradise: Coos
Bay
,
Oregon
, Seattle: University of Washington Press, 1988; files of
Western World, Bandon, Oregon.

Like Keiser,
Bandon area native:
Johnston, David Cay, “A Man Would Lose His Land While Another Would Benefit,”
The New York Times
, June 15, 2007; and “Who Pays to Play,” a video by David Cay Johnston
and Kassie Bracken at video.on.nytimes.com under Business/Business News.

Chapter 12. FALSE ALARM

Three dozen terrified children ran:
Johnston, David
[Cay], “The Dead Parks: Insufficient Funding, Drugs and Violence Drive Many Away From City Recreation Areas,”
Los Angeles Times
, Sept. 3, 1987.

The commercials are effective:
Johnston, David [Cay], “Burglar Alarms: False Reports Drain
Police Resources,”
Los Angeles Times
, Aug. 9, 1982.

Of the $29 average monthly fee:
“The U.S. Burglar
Alarm Market,” by Stat Resources, 2004; additional industry statistics at alarm.org/stats-industry. html.

Worse, almost three decades:
Justice Department
Bureau of Justice Statistics, Tables 106 and 107; Blackstone, Erwin A., Simon Hakim, and Uriel Spiegel, “Not Calling the Police
(First),”
Regulation
, Spring 2002.

In the sixties and seventies:
Johnston, David [Cay],
“Many Require Security Devices in Buildings,”
Los Angeles Times
, Aug. 30,
1976.

Chapter 13. HOME
ROBBERY

A title proves
ownership:
Saranow, Jennifer, “Title Insurance for Used Cars: Is It Worth It?”
The Wall
Street Journal
, September 18, 2006.

Erin Toll:
U.S. Congress, House of Representatives, Committee on Financial Services,
“Problems and Concerns Regarding the Marketing and Sales of Title Insurance and LandAmerica Financial Group Inc.'s Conduct
Regarding Federal and State Examinations of Title Insurance,” April 26, 2006.

Even though kickbacks:
“An Investigation into the
Use of Incentives and Inducements by Title Insurance Companies,” Office of the Insurance Commissioner, Washington State,
October 2006.

In 2005 the industry
paid:
“Title Insurance Statistical Analysis by Family,” American Land Title Association, alta.org.

Chapter 16. SUFFER THE LITTLE
CHILDREN

The story
begins:
William Barron Hilton v. Conrad N. Hilton Foundation et al.
, Los
Angeles County Superior Court case #P644 729 and related litigation; interviews with lawyers by author or Cindy Santos in 1986
and 2007; Johnston, David [Cay] and Al Delugach, “Fight Over Conrad Hilton Estate Gets Increasingly Bitter,”
Los Angeles Times
, March 4, 1986.

And what of the stated purpose:
Story, Louise, “Blackstone to Acquire Hilton Hotels,”
The New York Times
, July 4, 2007.

Chapter 17. TROJAN HORSE

“Oft the clashing sound”:
Translation by John Dryden, poet laureate of England,
1697.

Chapter 18. SIGHTLESS
SHERIFFS

At their April 17
meeting:
Lazarus, David, “Memo details Cheney-Enron links,”
San Francisco
Chronicle
, January 30, 2002.

Chapter 19.
PAYING TWICE

Talukdar created an
ideal market:
Talukdar, Sarosh and Kong-Wei Lye, “Symmetry and Verification: Critical Parts of Market Design,”
Carnegie Mellon University, June 2005.

Consider
what happened:
Johnston, David Cay, “Paying the Highest Price for Power,”
The New
York Times
, November 21, 2006.

Some of these plants were then resold:
Johnston, David Cay, “In Deregulation, Plants Turn
into Blue Chips,”
The New York Times
, October 23, 2006.

Chapter 20. RISING SNOW

This work to reduce regulation:
Cover story,
IndustryWeek
, October 18, 1982.

The executive who ran Conrail:
Labich, Kenneth, “The Great Conrail Sweepstakes,”
Fortune
, February 18, 1985.

CSX also regarded:
Bogdanich, Walt, “For Railroads and the Safety Overseer, Close Ties,”
The New York Times
, November 7, 2004.

The falling stock price did not align:
Deutsch,
Claudia H., “A Career as a Window to the Future,”
The New York Times
, December 25,
2002.

Snow also benefited:
Johnston, David Cay, “Executive Pensions Eclipse Years on the Job,”
The New York
Times
, December 17, 2002.

Chapter 21.
UNHEALTHY ECONOMICS

When
Linda Peeno became:
“Managed Care Ethics,” testimony before U.S. Congress, House of Representatives,
Commerce Subcommittee on Health and the Environment, May 30, 1996.

At its core:
Schlesinger, Mark, and Bradford H. Gray, “How Nonprofits Matter in American
Medicine, and What to Do About It,” Urban Institute, Oct. 13, 2006; Lieberman, Trudy, “The Medicare Privatization Scam,”
The Nation
, July 16, 2007.

The uniquely American system:
The World Factbook
2007
, Central Intelligence Agency and
OECD Health Data 2006
at
oecd.org.

Chapter 22. LESS FOR
MORE

Wasserman and Anderson
offered:
Maxicare SEC filings and author interviews with Wasserman.

The money paid to buy FHP:
Johnston, David
[Cay], “State to Enter Legal Battle of 2 HMOs,”
Los Angeles Times
, October 3, 1985;
and Johnston, David [Cay], “Judge Blocks Buy-Out Plan for FHP, Inc.,”
Los Angeles
Times
, October 4, 1985, and numerous other articles.

Gumbiner won:
John K. Van de Kamp v. Robert
Gumbiner
, Los Angeles County Superior Court Case C-56507.

Chapter 24. “I'M BEING TRAPPED”

Simons charged even higher fees:
Nocera, Joseph, “$100 Billion in the Hands of a
Computer,”
The New York Times
, November 19, 2005.

Chapter 25. NONE DARE CALL IT
STEALING

In thinking
about:
Bill Lockyear,
Atty. Gen. v. Leandro Andrade
, Supreme Court
case 01-1127, decided Nov. 5, 2002.

Chapter 26. NOT
SINCE HOOVER

For the richest
Americans:
From the Piketty and Saez tables cited in the chapter; computations by the author.

In fact, most of the savings:
“The Wealthiest
Benefit More from the Recent Tax Cuts,”
The New York Times
, June 5,
2005.

Allowing so many children:
Holzer, Harry, Diane Whitmore Schanzen-bach, Greg J. Duncan, and Jens Ludwig, “The Economic Costs of Poverty,” Center for
American Progress, January 24, 2007.

Abramoff, Jack

absolute
advantage

Advanta

Agnew,
Spiro

airline pilots, pensions of

airline travel,
safety statistics

Alderson, James F.

Allen,
Paul

Allentown
Morning Call

Alliant Energy

Alpha
magazine

Alston & Bird

alternative minimum tax

Amcest

American Airlines

American Land Title
Association

Amtrak

Anderson, Pamela
K.

Andrade, Leandro

Apple,
Inc.

arbitrage

Arden, Patrick

Arison, Mickey

Arterton, Judge Janet Bond

Arthur Anderson

Articles of Confederation

Ashby, Justice Herbert

Association of American
Railroads

Atlantic City casinos

Bagli, Charles V.

Bailey, Kevin

Baker, Mark

Balclutha

ballparks

economic
deadzones around

eminent domain
and

naming
rights

seats demanding the highest
prices

ticket
prices

Baltimore & Ohio Railroad

Baltimore Ravens

Bandler, James

Bandon Dunes Golf Resort

Bank of America

bankruptcy law

executive
pensions and

student
loans

banks and hedge funds

Barclays

Barnhart, F. Gregory

baseball strike of 1994

Bass Pro

Bates, James

Baucus, Max

Bayh, Evan

Bear Stearns

Beat the Dealer
(Thorp)

Berman, Howard

Birnbaum, Birny

Bisio, B. John

Bjorklund, Cybele

Black-Scholes method of valuing stock options

Blackstone,
Erwin A.

Blackstone, William

Blackstone
Group

Blank, Arthur

Blankenship,
Herman

Blankenship, Kim

Blinder,
Alan

Bloomberg, Michael

Blue Cross/Blue
Shield of Rochester

Blunt, Roy

Bogdanich,
Walt

Bogle, John

Bongo,
Omar

Boren, Justice Roger

Bourdeau,
Nicholas L.

Bowers, Buster

Bradley,
Tom

Breaux, John

Briesemeister,
Janee

Brink's

Britain, railroad crossings
in

Broby, Thomas

Brookings
Institution

Brown, Jerry

Buchanan,
James

Buffalo, New York, subsidy culture of

Buffalo News

Buffett, Warren

burglar alarm systems

Burman, Len

Burns, Kathy

Bush, George H. W.

Bush, George W., and Bush
administration

Abramoff
and

Enron
and

income inequality
and

income tax
returns

Medicare Part D
and

Northwest electricity crisis
and

Pell grants
and

presidential
campaigns

tax
cuts

Texas Rangers
and

Bush, Jeb

Bush,
Prescott S.

BusinessWeek

Cabela, Dick

Cabela's

Hamburg,
Pennsylvania store

Cagan, Joanna

California

concentration
of power plant ownership in

electricity
crisis in

California Blue Cross

California Department of Corporations

campaign finance
system

Enron and

reforming the

Canada

education
in

U.S. trade
with

Cantwell, Maria

captive
company

card counting at casinos

Carlyle
Group

Carnegie, Andrew

Carnegie Mellon
University

Casimir, James

casinos, card
counting at

Cassidy, Gerald S. J.

Cassidy
& Associates

Cato Institute

Cato Journal

Cayman Islands

Census Bureau, U.S.

Center for American
Progress

Centerpoint

Central Intelligence
Agency (CIA)

Cerberus Capital Management

Chandler, Ted

checks and balances,
Constitutional

Cheney, Dick

electricity prices and

Ken Lay and

childhood
poverty

Chiles, Eddie

China corporate
income tax

economic growth of

magnets used for military purposes and

rights of Chinese workers

rules of international trade and

U.S. jobs moving to

U.S. trade deficit with

China National Nonferrous Metals

Chrysler
Corporation

Citigroup

Citizens for Tax
Justice

Clamp, Allen

Clark,
Jason

Cleghorn, Sarah Northcliffe

Clinton,
Bill, and Clinton administration

Sallie Mae
and

tax
cuts

welfare reform
and

Coase, Ronald

Cole,
Douglas R.

Coleman, Gary

college
admissions officers

College Republicans

college tuition

student
loans

Columbia/HCA Healthcare

Columbia University

Columbus, Christopher

Committee on Foreign Investment in the United States

Commonwealth Edison

comparative
advantage

Conrail

Constellation
Energy

Constitution, U.S.

consumer
protections

Consumers Union

Continental
Airlines

contract workers

Convertible Hedge
Associates

Cook, Scott

Coos County,
Oregon

Bandon Dunes

Californians moving to

economy of

Cordi, James

Cornell University

corporate income taxes

corporate jets, tax treatment of
personal use of

Cox, Archibald, Jr.

Crane,
Stanley

crime

burglar alarm systems

decline in

CSX

Cuban, Mark

Cummings, Dave

Cuno, Charlotte

Cuyahoga River

Damelin, Harold

Davis, Gray

Davis, Norwood

“dead capital,”

DeLay, Tom

Deloitte & Touche

Delta Air Lines

deMause, Neil

Deng Nan

Deng Xiaoping

Department of Education,
U.S.

Department of Energy, U.S.

Department
of Justice, U.S.

Department of Transportation, U.S.

Department of the Treasury, U.S.

deregulation

of electricity
prices

of
railroads

the results
of

of trucking
industry

derivatives

de Soto,
Hernando

dividends

Dole,
Elizabeth

Doolittle, John T.

dormant
Commerce Clause

Dreier, Peter

drug
companies

Dubuque
Telegraph
Herald

Dunn, Jennifer

DuPont

earmarks, appropriation

Ebbers, Bernie

Ebright, Mary

economic pollution

economy of the United States

distribution of income

principles to guide economic policy

in 1970s

of
1980s compared to current economy

EduCap

education

GI
Bill

inequality
in

Education Trust

Eichenwald, Kurt

elasticity

electricity prices

auction
system

caps
on

government-imposed secrecy on
electricity markets

West Coast crisis of
2001

Electronic Data Systems

Elwood, Dr. Paul

eminent domain

ballparks and

Enrich, Peter D.

Enron

environmental protections

equilibrium economic principle
of

Erlichman, John

Everson, Mark
W.

Ewald, David

Ewald, Doug

Ewald Consulting

executive compensation

golden parachutes

at HMOs

pensions

stock options,
see
stock
options

stock prices, company
performance and

Exxon Mobil

Family Health Plan (FHP)

Federal Bureau of Investigation (FBI)

federal debt, interest
on the

Federal Energy Regulatory

Commission

Federal Railroad
Administration

Federal Reserve

Federation of
American Hospitals

Feldstein, Martin

FHP
Foundation

Fidelity National Financial

Field of Schemes
(deMause)

Finkbeiner,
Carty

First American Corporation

First &
Goal

fiscal impact

Fisher, Ann

Fleischer, Ari