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Author Topic: On the anthropomorphisation of corporations
Stephen Gordon
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posted 09 July 2008 01:15 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
There have been many threads in which the misdeeds of corporations have been discussed. But too many of them remind me of this wonderful scene from Fawlty Towers, when Basil's car refuses to start at a crucial moment:

Now, we've all been there, and as a piece of theatre, it's supremely effective. But does anyone really think that throwing a tantrum at a car and bashing it with a stick will make it run better?

It's important to remember that corporations aren't people and don't have interests on their own. The people who own corporations, the people who are employed by them, and the people who may be affected by their activities (either as consumers or as victims of pollution) all have interests - sometimes similar, sometimes competing. But not corporations per se.

And trying to psychoanalyse corporations is just silly.

This may seem like splitting hairs, but think about (for example) corporate income taxes. Many progressives instinctively favour them, and cite a lengthy list of bad things done by corporations as justification for raising corporate taxes, or for at least not cutting them. But this idea of corporate taxes as punishment for corporate misdeeds makes about as much sense as administering a beating to a car that won't start. It might make you feel better, but it won't actually make it work the way you'd like it to.


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Fidel
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posted 09 July 2008 01:29 PM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
What I'd like to know is what are the differences in overall labour costs in Nordic countries, especially Sweden, compared to Canada and the U.S. I'm not talking about wages and market income, but overall cost to businesses, payroll, VAT's, corporate contributions to worker's funds, the whole shabang.
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Stephen Gordon
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posted 09 July 2008 01:52 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
So start a thread on those topics. I spent a certain amount of time drafting my post, and I'd like to discuss the issue it raises.
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Fidel
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posted 09 July 2008 01:55 PM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
You mentioned corporate income taxes. Scuse.
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Fidel
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posted 09 July 2008 03:17 PM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
Well I think not bashing corporations wouldn't do a whole lot to influence the way they do things. I still think, as some famous lefty described, that most MNC's are miniatures of command-style slow moving, inefficient entities, and really only accountable to only a few blue chip shareholders. They are structured top-down, and as some studies have shown, CEO remuneration isn't necessarily tied to overall corporate performance. Some corporate shares are widely-held but not for very long if its energy sector or banking, or something of vital national interest. No citizens groups are as influential at lobbying governments. Essentially, a dollar democracy favours corporate rights over people's rights.
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Stephen Gordon
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posted 09 July 2008 03:23 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
Actually, I think that a lot of the problems we've seen with corporations is that they are not doing what they are supposed to do, namely, represent the interests of their shareholders. Too often, CEOs and other management officials are able to arrange things such that they cash in at the expense of investors.
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Fidel
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posted 09 July 2008 03:37 PM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Stephen Gordon:
Too often, CEOs and other management officials are able to arrange things such that they cash in at the expense of investors.

Exactly. CEO's and CFO's, top end managers' motivation driven by self-interest has sometimes tended to supercede even the interests of shareholders and most certainly overshadows the interests of the company's workforce in general when it does happen. The U.S. and other countries have moved on legislating regulations to deal with malfeasance and insider trading. I think they did a job on Eliot Spitzer, and it's questionable how serious they are in the U.S. about regulations. FBI has threatened not to include our guys with investigations if feds here aren't interested. Canada has done very little by comparison. We need a federal securities commission says the NDP.


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M. Spector
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posted 09 July 2008 04:01 PM      Profile for M. Spector   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Unlike Basil Fawlty's car:

Corporations have legal standing to commence lawsuits or be sued themselves; they can be charged with regulatory offences and fined. They can be convicted of criminal offences. They can enter into contractual relationships and assume legal obligations and responsibilities. They can have recourse to the protection of the Charter of Rights.

And Stephen says that corporations have no interests on their own? Poppycock.

[ 09 July 2008: Message edited by: M. Spector ]


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Stephen Gordon
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posted 09 July 2008 04:11 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
Does that make them people? No. Treating them as such is the error of anthropomorphism.
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M. Spector
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posted 09 July 2008 04:16 PM      Profile for M. Spector   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Your statement was "It's important to remember that corporations aren't people and don't have interests on their own."

The first part is correct. The second is false.

ETA: And BTW the idea of corporate taxes as punishment for corporate misdeeds makes about as much sense as the idea of criminal punishment for those same misdeeds - i.e. a great deal of sense.

[ 09 July 2008: Message edited by: M. Spector ]


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Fidel
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posted 09 July 2008 04:43 PM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
They're not people. Corporations are artificial abstractions which enjoy even more rights and privileges than ordinary people. Generally when people avoid paying taxes, we either go to jail or they come after us with full force of the law. Deferment of municipal and federal taxes is not an option for mere mortals.
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Stephen Gordon
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posted 09 July 2008 04:43 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
Could you elaborate on the bit "ETA.... ?"

Are you disagreeing or agreeing with something I said? If so, what?


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M. Spector
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posted 09 July 2008 04:52 PM      Profile for M. Spector   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Stephen Gordon:
This may seem like splitting hairs, but think about (for example) corporate income taxes. Many progressives instinctively favour them, and cite a lengthy list of bad things done by corporations as justification for raising corporate taxes, or for at least not cutting them. But this idea of corporate taxes as punishment for corporate misdeeds makes about as much sense as administering a beating to a car that won't start. It might make you feel better, but it won't actually make it work the way you'd like it to.
Do try to keep up with the conversation, old bean.

[ 09 July 2008: Message edited by: M. Spector ]


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Stephen Gordon
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posted 09 July 2008 04:54 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
Could you please make a point?
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Fidel
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posted 09 July 2008 04:57 PM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
If the feds refuse to train and hire more competent tax auditors to investigate shady tax shelters and eliminate transfer pricing - or actually use technology to stop corporate profits hemorrhaging - then in a lazy-faire way it's giving the high-sign approval for tax avoidance. Corporations don't have to worry about the law when it's bought and paid for beforehand.
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Cueball
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posted 09 July 2008 05:02 PM      Profile for Cueball   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
He's barraged you with points, you could respond to any of them at your leisure. At the end there is seems your refusal to respond to any of his points precipitated a drying up of the flow of new points, and he simply gave up the effort.

Oh well.

My question is how far up the Ivory Tower do you have to be in order to finally get word of this film, some five years after it was released, when it specifically addresses the area of your expertise, after it has one 28 international awards for film?

My guess is pretty far.


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M. Spector
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posted 09 July 2008 05:07 PM      Profile for M. Spector   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
My point, if I have to spell it out, is that using taxes as a way to control corporate behaviour is nothing like administering a beating to a car that won't start. If corporations can be made to comply with the law through the imposition of fines for criminal misconduct (and they can), then there is no reason in principle why the imposition of taxes cannot have a salutary effect on corporate behaviour as well.

After all, to a corporation, a tax and a fine are the same thing - money.


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Stephen Gordon
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posted 09 July 2008 05:08 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Cueball:
He's barraged you with points, you could respond to any of them at your leisure. At the end there is seems your refusal to respond to any of his points precipitated a drying up of the flow of new points, and he simply gave up the effort.

Oh well.

My question is how far up the Ivory Tower do you have to be in order to finally get word of this film, some five years after it was released, when it specifically addresses the area of your expertise, after it has one 28 international awards for film?

My guess is pretty far.


Oh, I'd heard of the film before. And I'm guessing that the people who thought that it was prize-worthy hadn't a freaking clue about the issues it raised.

But hey - all the cool people thought it was totally awesome!!!!

What the hell difference does it make if it was based on a completely stupid premise? It millions of $$$!!!

[ 09 July 2008: Message edited by: Stephen Gordon ]


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Cueball
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posted 09 July 2008 05:11 PM      Profile for Cueball   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Oh I see, so regular ordinary folks thought the film was awesome, and you decided to ignore it for five years, rather than find out what those people who are supposed to benefit from your sage wisdom want, think and believe. Even slightly elitist?
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Stephen Gordon
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posted 09 July 2008 05:15 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
I honestly don't recall a thread on the movie before this one. I certainly wouldn't have been shy about explaining why it was a pile of pig doots.
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Cueball
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posted 09 July 2008 05:22 PM      Profile for Cueball   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
You started it. I am amazed. Truly.

This film is a cult classic, verging on a mainstream documentary smash, at the level of "Roger and Me," focussed specifically on your major area of interest, and in fact your job, and you are so out of touch with anything that you don't get it up to go see it, or rent it, until many years later, after the fact.

I think it says a whole lot, about your theoretical approach, your methodolgy and its social value.

[ 09 July 2008: Message edited by: Cueball ]


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Stephen Gordon
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posted 09 July 2008 05:25 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
You will no doubt do me the honour of telling me what it says.
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M. Spector
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posted 09 July 2008 05:28 PM      Profile for M. Spector   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
Start here
From: One millihelen: The amount of beauty required to launch one ship. | Registered: Feb 2005  |  IP: Logged
Cueball
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posted 09 July 2008 05:30 PM      Profile for Cueball   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
It says, if corporations want to be so silly as to identify themselves as "persons" under the law, then lets extend this ridiculous concept to its full extension of its meaning, and analyse them using psychiatric standards, as we would persons. Pyschology being a central aspect of what makes a person, a "person".

In other words, the point is that the anthropomorphization of corporations is ridiculous, and this first started with implimentaion of a very stupid non-sensical legal principle that anthropomophized corporations in law. That is the point.

The filmmakers agree, anthropomorphization of corporation is obscenely stupid, they have no motives, no emotions, no morals, just as you have asserted, that is why corporations should never have been deemed "persons" under the law. If they have no motives, no emotions, no morals, in fact they conform to the exact psychological definition of sociopaths, if we analyze them as "persons".

Sorry you missed it on the first run, both in the theater, and when viewing.

[ 09 July 2008: Message edited by: Cueball ]


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Fidel
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posted 09 July 2008 05:41 PM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
Ordinary people with ordinary access to the law and political influence can exercise only so much protest as individuals through free market mechanisms, like our right to just not buy their stuff.

Most of us can't open up a new car industry and start competing with GM or Ford because we lack access to capital and industry expertise. So GM pours money into insurance and divests into financial sector over the years to hide profits from taxation and avoid actually being a car company responsive to free market forces.

Similarly, we could all compete with Canada's big banks for extending microloans at the local level and become financially well off while stimulating our municipal economies. But Canada's big six are protected from individual entrepreneurs like us with a stack of oppressive rules and regulations governing banks and finance. It's good to be a Soviet-in-size corporation or bank, like islands of top-down command style entities in a sea of free market dogma littered with baloney, throwaway people and styrofoam cups.


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Stephen Gordon
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posted 09 July 2008 05:48 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
I'm willing to make a distinction between what US corporate law calls a 'person' and the real thing.
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Frustrated Mess
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posted 09 July 2008 05:51 PM      Profile for Frustrated Mess   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
It's important to remember that corporations aren't people and don't have interests on their own.

Again with this wrong-headed argument? I see you are serious. I thought you were joking. This is truly a little disturbing.

Would you argue states don't have interests? You could argue that, but you would be quickly dismissed by any serious thinker.

The very fact that corporations spend billions in lobbying, supporting election campaigns, and in marketing image and opinion is, alone, enough to lay bare the extent of your naiveté on this matter, at least.


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Cueball
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posted 09 July 2008 05:54 PM      Profile for Cueball   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Stephen Gordon:
I'm willing to make a distinction between what US corporate law calls a 'person' and the real thing.

I expected nothing less.


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Stephen Gordon
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posted 09 July 2008 05:55 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Frustrated Mess:
Would you argue states don't have interests? You could argue that, but you would be quickly dismissed by any serious thinker.

Are your interests represented by the Canadian State?

quote:

The very fact that corporations spend billions in lobbying, supporting election campaigns, and in marketing image and opinion is ...

evidence that there are people willing to sign off on the expenses.


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Fidel
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posted 09 July 2008 06:08 PM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
What happens when the Canadian state no longer represents the interests of ordinary people? We end up being the large majority with minority shareholder status, and mere consumers subordinate to a corporatist state.
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Frustrated Mess
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posted 09 July 2008 06:17 PM      Profile for Frustrated Mess   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Are your interests represented by the Canadian State?


Not always. Are yours? If not, why is it your interests and Canada's interests can diverge? How is that possible?

As an example, the Government of Canada, representing the nation, not you or I, has decided it is in the nation's interests to engage in war in Afghanistan. I would argue the decision serves neither your interest nor my interest, or the interests of Canadians broadly, but it does serve the national interest of maintaining a positive national relationship, that includes military cooperation, with the United States and its empire to which Canada is a junior partner.

quote:

evidence that there are people willing to sign off on the expenses.

Yes, signed off on expenditures to promote corporate interests.

From: doom without the gloom | Registered: Feb 2005  |  IP: Logged
Stephen Gordon
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posted 09 July 2008 06:34 PM      Profile for Stephen Gordon        Edit/Delete Post  Reply With Quote 
Please to be reading the OP. The interests that are being promoted are those of people. Not all people. But people nonetheless.
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Frustrated Mess
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posted 09 July 2008 06:45 PM      Profile for Frustrated Mess   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
You are being, I think, purposely obtuse Stephen.

I think we both know that while, ultimately, corporations are serving the interests of specific humans or groups of humans, I think we both also know that in pursuing those interests corporations act independently. And in so doing, often pursue interests ultimately at odds with even those individuals whose interests they are supposedly created to serve.

A good example is Exxon which has spent vast sums of money in the corporate, rather than shareholder interest, of funding climate change deniers.

The shareholders of Exxon will not be immune from climate change and the effects of greater environmental decline resulting from activities undertaken by Exxon, and other corporations, in the pursuit of profits.

Stock will have no value in a world of global environmental collapse. Even a few of the Rockefellers are awakening to that reality.


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Fidel
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posted 09 July 2008 08:06 PM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
So where do we sign up to adopt a wayward corporation who, I mean which wants to serve my best interests as a, what, as a consumer?: a human bean? How do corporations see ordinary people?

How can one corporation know what I want and need unless it can make use of a database of my personal info, like the government has?

I know, why don't we just elect corporate heads to Ottawa and let's us pay THEM taxes to be transparent and accountable, and intervene against themselves on our behooves whenever they do more harm than good?

Or maybe we could just not vote for anybody - let our wallets decide like a true dollar democracy. Free for all capitalism. I wonder if it's ever been tried before?


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just one of the concerned
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posted 09 July 2008 09:12 PM      Profile for just one of the concerned     Send New Private Message      Edit/Delete Post  Reply With Quote 
Since corporations do not have interests, and only the interests of the people that staff them, than why don't newly-hired labourers, managers and executives continue to uphold the interests of the old companies where they used to work? Say I work for Pepsi and I get hired by Coke, why wouldn't I continue to help Pepsi? If my personal interests changed at the moment when I changed companies, then can we not agree, for the sake of the thread, that companies have interests that persist even after its human workforce turns over?
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Dana Larsen
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posted 10 July 2008 11:00 PM      Profile for Dana Larsen   Author's Homepage     Send New Private Message      Edit/Delete Post  Reply With Quote 
The problem with the corporate structure as it currently exists is mainly that corporations are a means for individuals to remove their own personal responsibility for their actions.

When a corporation does something illegal or destructive, it is usually because individuals made conscious decisions to act in a certain way. But those individuals are rarely personally punished or suffer any personal consequence, instead the responsibility is absolved onto the group.

People are much more likely to behave unscrupulously and unethically when they feel like they are part of a group and they know that they will not suffer any personal repercussions for their actions.

The corporate structure isn't the only way for humans to organize themselves into groups to perform complex and productive organizations. We need to look at some other ways of structuring our businesses that don't absolve individuals of their personal responsibility for their actions.


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George Victor
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posted 13 July 2008 08:46 AM      Profile for George Victor        Edit/Delete Post  Reply With Quote 
Right on DL.

And that's why Canada's now famous MD of doctors without borders,James Orbinski, author of An Imperfect Offering, says market solutions are all about "humanity's capacity for evil".

Let the corporation do it. And the effect on distant, out of sight, out of mind people is quite real.

[ 13 July 2008: Message edited by: George Victor ]


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jester
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posted 13 July 2008 10:14 AM      Profile for jester        Edit/Delete Post  Reply With Quote 
quote:
Originally posted by Stephen Gordon:
Actually, I think that a lot of the problems we've seen with corporations is that they are not doing what they are supposed to do, namely, represent the interests of their shareholders. Too often, CEOs and other management officials are able to arrange things such that they cash in at the expense of investors.

Agreed. The concern with corporations is not their legal function but the perverted function (in collusion with inbred government enablers) to utilise them as a vehicle to privatise profit and socialise risk.

The top echelon of corporate bankers and government financial functionaries are interchangeable and party to the collusion of monetary policy to defraud the populace for the benefit of the banks.

Whether by currency devaluation or easing of capital reserve requirements or government guarantees of ill-advised private risk or lax enforcement of so-called white-collar crime, (especially in Canada) government enables the elites' increasingly bold corporate malfeasance.


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Fidel
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posted 13 July 2008 10:22 AM      Profile for Fidel     Send New Private Message      Edit/Delete Post  Reply With Quote 
That's what I was going to say, but you beat me to it.
From: Viva La Revolución | Registered: Apr 2004  |  IP: Logged
jester
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posted 13 July 2008 10:29 AM      Profile for jester        Edit/Delete Post  Reply With Quote 
I'm not surprised since we appear to agree on everything .

Corporations are utilised as proxy psychopaths, enabling the colluders to deny responsibility and hide behind a myriad of self-serving unenforceable (or merely unenforced by their cohorts)regulatory bumph.

As Spector states, the corporate disincentives to malfeasance are available but the mechanisms for prosecution are not.


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jester
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posted 13 July 2008 07:13 PM      Profile for jester        Edit/Delete Post  Reply With Quote 
quote:
While some stragglers are believed to have successfully crossed into Mexico, Cushing said the bulk of the CEOnistas have holed themselves up at the Alamo.

"No, not the fort, the car rental place at the airport," she said. "They're rotating all the tires on the minivans and accounting for each change as a sale."


Satirewire

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