11.13.2008

Relishing in Metro's Pain

The "latest" on the Metro-KBC Bank fiasco is that a federal judge suggested the two parties negotiate a compromise. Here’s a compromise for you, albeit a completely facetious one. KBC Bank should repo Metro. Take it all back. Impound the trains, rip them from the tracks and put 'em on the first boat to Europe. At least this way Metro can start anew. Let's bring in a Japanese firm. Have them build some kind of sleek, fully-automated, magnetic hovercraft trains. Let them paint Hello Kitty all over the place if that makes it cheaper.

I’m becoming obsessed with this story. I guess it’s because Metro is finally getting screwed for once instead of the one doing the screwing. After years of crappy service, the karma deficit they’ve racked up has come full circle. I take immense joy in their suffering.

Here’s the scandalous part. From what I can tell, KBC Bank has made a hefty profit off the deal because they technically own the trains. But the mulah ain’t coming solely from leasing the equipment back to Metro, no, it comes from KBC Bank being able to accrue tax breaks.

The Washington Post:
Under the deals, known as lease-back transactions, transit agencies such as Metro sold their rail cars or other equipment to banks and then leased them back. The banks received a tax break on the depreciation of the rail cars. The IRS ended the practice in 2004.

Oh those trains depreciate, alright. What a deal. Now I have even less sympathy for those rascally Belgians.

Treasury officials are reluctant to step in because they would be bailing out a tax-avoidance strategy, sources familiar with Treasury's thinking have said.

The judge suggested that KBC was motivated to collect payment from Metro as a way to recoup some of its tax breaks.

In other news, Fenty is going after shady used car
lots
:

The closure of the car lot comes on the heels of a city-wide sweep the mayor has launched on 100 used car businesses in the city. The investigation focuses on everything from license violations to illegal activity. Police say they have even found a stolen car in one shop.

Aside from the aesthetic improvements resulting from these lot closures (and they are eyesores if you happen to live near one), I predict there will be a slight drop in auto thefts now. As someone who was almost carjacked in NE once, I applaud this action.

Lastly, M@, stay out of the DC strip clubs. It's for your own safety.

7 comments:

  1. M@ I read on your blog that you cannot stand latinos, is this true?

    I am latino and quite frankly, I cannot stand them either.

    ReplyDelete
  2. HRH, your compromise for Metro is the most logical one I have ever read for solving Metro's problems.
    I wish we could do the same for Amtrak.

    ReplyDelete
  3. New York City is getting new trains. Maybe we can have their old ones.

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  4. LIZ = ZILCH, ZERO, NADANovember 13, 2008

    LIZ SPELLED BACKWARDS SPELLS ZIL AS IN ZILCH, ZERO, NADA

    LIZ I KNOW YOU ARE OUT THERE READING THIS

    LIZ YOU ARE THE LOWEST ON THE TRANSPLANT TOTEM POLE

    YOU ARE FROM THE MIDWEST

    NOW GO THE FUCK BACK A.S.A.P.

    ReplyDelete
  5. If you're not standing does that mean you're lying down for them?

    ReplyDelete
  6. Yes lying down at knifepoint as they go through my pockets looking for money and other valuables.

    ReplyDelete
  7. It is really not fair if one does everything and the end time when it is anyhow needed.

    ReplyDelete