Author: Matthew G. Saroff

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I don’t know if my cat wants this, but I do.

Link.

Economists Unconnected to Reality

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You know the ones, the “fresh water” economists, the free-market mousketeer conservatives for whom the rational actor acting in an unconstrained laissez-faire system is king.

It is a matter of faith, completely unsupported by reality, that regulating a market will always be counter productive.

As it pertains to consumer protections for credit cards, to paraphrase the Bard, “There are more things in heaven and earth, than are dreamt of in their philosophy.

Much to ths shock of right wing economists, adding consumer protections to credit cards worked:

Four years ago, Congress decided to force down the hidden fees that credit card companies collect from their customers. It passed a law called the 2009 Credit Card Accountability Responsibility and Disclosure Act — a name chosen so the law would be known as the Card Act.

When Neale Mahoney, an economist at the University of Chicago’s Booth School of Business, set out to evaluate the effect of that law, he was confident he knew what he and his colleagues would find: It didn’t work.

“I went into the project with this sort of conventional wisdom that well-intentioned regulators would force down fees and that other fees and charges would increase in response,” he told me this week, comparing hapless rule makers to the carnival visitors playing the game known as Whac-a-Mole, where a mole springs up somewhere else as soon as one is knocked down.

But his expectation was wrong. The study came to a conclusion that surprised Mr. Mahoney and his colleagues: The regulation worked. It cut down the costs of credit cards, particularly for borrowers with poor credit. And, the researchers concluded, “we find no evidence of an increase in interest charges or a reduction to access to credit.”

The study, whose other authors are Sumit Agarwal of the National University of Singapore, Souphala Chomsisengphet of the Office of the Comptroller of the Currency and Johannes Stroebel of New York University’s Stern School of Business, estimates that the law is saving American consumers $20.8 billion a year.

There are a number of theories as to why this occurred, but the most likely is that regulation, when properly executed, simply works, though an argument could be made (though probably not by the credit card companies) that this worked because much of the credit card companies’ business model is parasitic, and as such they are unwilling to walk from “free” money.

Shoot Me I Agree with James Sensenbrenner

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He is calling for James Clapper to be prosecuted for lying to Congress:

Rep. James Sensenbrenner Jr., the original author of the Patriot Act, says Director of National Intelligence James Clapper should be prosecuted for lying to Congress.

“Lying to Congress is a federal offense, and Clapper ought to be fired and prosecuted for it,” the Wisconsin Republican said in an interview with The Hill.

He said the Justice Department should prosecute Clapper for giving false testimony during a Senate Intelligence Committee hearing in March.

During that hearing, Sen. Ron Wyden (D-Ore.) asked Clapper whether the National Security Agency (NSA) collects data on millions of Americans. Clapper insisted that the NSA does not — or at least does “not wittingly” — collect information on Americans in bulk.

After documents leaked by Edward Snowden revealed that the NSA collects records on virtually all U.S. phone calls, Clapper apologized for the misleading comment.

The intelligence director said he tried to give the “least untruthful” answer he could without revealing classified information.

Sensenbrenner said that explanation doesn’t hold water and argued the courts and Congress depend on accurate testimony to do their jobs.

“The only way laws are effective is if they’re enforced,” Sensenbrenner said. “If it’s a criminal offense — and I believe Mr. Clapper has committed a criminal offense — then the Justice Department ought to do its job.”

He’s right.

This was clearly a case of perjury, particularly since he got the questions in advance as well as being given the opportunity to clarify.

Even if there is not a case for his being prosecuted (there is), his behavior clearly justifies the removal of his security clearance.

It’s not going to happen under this administration, though.

Well, It’s a Start………

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The House of Representatives just passed a (rather weak) bill to reign in patent trolls:

The Innovation Act, a bill with measures aimed to stop “patent troll” lawsuits, passed the US House of Representatives this morning on a 325-91 vote. Several amendments that would have stripped out key parts of the bill were defeated.

Passage of the bill is a big step for patent reformers, which would have been hard to imagine even one year ago. However, patent trolls going after “Main Street” businesses like grocery stores and coffee shops have made headlines and enraged politicians from Vermont to California.

Majorities of representatives in both parties supported the bill. On the Republican side, 195 representatives voted in favor of the bill and 27 voted against, while 130 Democrats supported the bill and 64 opposed it. The White House has said it supports the bill, which must first pass the US Senate.

The key politician pushing the bill ahead thus far has been Rep. Bob Goodlatte (R-VA), chairman of the House Judiciary Committee. The most prominent opponent has been Rep. John Conyers (D-MI), the most senior Democratic member of that committee.

If passed in its current form, the bill will add to transparency in patent litigation and require patent holders to reveal who is profiting from a lawsuit. It will also allow lawsuits against customers to be stayed in certain circumstances and will require fee-shifting to the prevailing party in most patent cases.

………

Stronger action on demand letters is something that proponents of legislation may try to add in on the Senate side. Opponents, meanwhile, will still be looking to stall or kill the bill entirely.

The biggest change to the bill thus far has been the removal of an expanded review program, which could challenge business method patents at the patent office. That plank was strongly desired by anti-troll advocates, since it could have greatly lowered the cost of fighting some patents. But several key tech companies with large patent portfolios, including Microsoft and IBM, were opposed to the expansion of the review program and would likely not have supported the bill if that provision had remained.

This bill is weak tea, particularly with the “lame-ass patent review” provision being stripped from the program, but it passed by an overwhelming vote, which indicates that the political calculus is moving in the right direction.

My Mom Was Involved in Something Like This 40 Years Ago

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When my younger brother, Daniel, was in 5th grade, an Evangelical Christian group set up in the principal’s office, and made an announcement over the PA system that students were to pick up copies of the Christian Bible.

Dan, even at age 10, realized what it was, and so declined, and one of his classmates called him a “Heathen.”

Needless to say, some people were upset by this. My mom was furious (not a good thing for the target of her fury) and she and some concerned parents had a colloquy with Bill Ellena, the then Superintendent of the Charlottesville, VA School District.

Mr. Ellena cited a recent supreme court decision allowing for this, and my mom noted that it meant that everyone had such access, so they wanted a time to hand out a Marxist tract on atheism.

The superintendent decided that no future theological literature would be handed out in such a manner.

Well, it looks like the state of Oklahoma has a similar Hobson’s Choice (or Morton’s Fork, your choice):

Remember the Satanic Temple, which performed a ritual to turn Fred Phelps’ dead mother gay? They are still at it, now in Oklahoma. The Satanic Temple has filed the papers to put up a memorial on statehouse grounds, next to the state’s display of the 10 Commandments. They are doing this by citing Okla.’s religious displays legislation, signed into law in 2009. And they are absolutely serious about it. According to their press release:

The Satanic Temple, an established New York City-based religious organization, has offered to donate a public monument to Oklahoma’s Capitol Preservation Commission for display upon Oklahoma City’s capitol grounds. Described as an “homage” to Satan, the purpose of the monument is to complement and contrast the Ten Commandments monument that already resides on the North side of the building. The donation offer has been submitted and is currently awaiting the commission’s reply.

The Satanic Temple Is Dead Serious About This.

When Patheos heard of this, they reached out to the temple, and had some questions answered. The statement boils down to the Satanic Temple’s willingness to embrace the new Republican-led insistence of religiously backed memorials, and they plan to take full advantage of it.

Let’s be clear here, the Church of Satan is not being insincere here. 

This behavior is not just some sort of “Yes Man” style agitprop.  Causing discomfort is a part of their religious observance.

I Hope That This Will Result in Consequences

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Pope Francis has established a commission to investigate sex abuse committed by agents of the church:

In his first concrete step to address the clerical sexual-abuse problem in the Roman Catholic Church, Pope Francis will establish a commission to advise him on protecting children from pedophile priests and on how to counsel victims, the Vatican said Thursday.

The announcement was a forthright acknowledgment by the Vatican of the enduring problem of abusive priests, and fit with Francis’ pattern of willingness to set a new tone in the governance of the church nine months into his tenure.

Whether the new commission portends a significant change in how the Vatican deals with abusive priests and their protectors remains to be seen, experts on the church said. Yet the timing of the announcement, two days after a United Nations panel criticized the Vatican over its handling of abuse cases, suggested that the pope and his closest advisers wanted to at least be seen as tackling the issue with greater firmness.

Soon after he became pope, Francis directed the Vatican last April to act decisively on abuse cases and punish pedophile priests, in a meeting with subordinates at the Congregation for the Doctrine of the Faith, the church’s enforcement arm. But he had said little about the sexual abuse problem since.

“Francis is great on a lot of stuff but hasn’t really done anything about sex abuse cases,” said John L. Allen Jr., the senior correspondent for The National Catholic Reporter, an American weekly, who frequently reports from the Vatican.

“A lot of people most focused on this issue said that Francis needs to game up,” Mr. Allen said in a telephone interview. “So the P.R. thing to say was, ‘We’re doing something.’ ”

The announcement elicited a mixed reaction, reflecting some skepticism, particularly among victims and their advocates, over whether a new commission would be more than cosmetic.

That is the question.

There are two questions here, one of accountability, and one of transparency.

I am inclined to believe that the we will see some accountability, that the people who are most culpable will be removed from positions of authority, but I am less predisposed to believe that we will see a public accounting.

That is simply not a part of the Catholic Church’s DNA.

Putting the The Right’s Hypocritical Eulogies of Nelson Mandela in Perspective

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I am not referring here to the bigots who responded to Senator Ted Cruz’s (R-Crazytown) tribute to Mandela, while they are repulsive medieval racists, they are honest in their hate.

Rather, I am accusing the folks like Ted Cruz who are now claiming that they’ve always thought that he was a hero opposing a great injustice, when this is clearly not the case.

In fact, while Nelson Mandela was in Robben Island prison, mainstream movement conservatives were literally paid representatives of the Apartheid regime:

Nelson Mandela died yesterday, and all around the world, much-deserved hosannas are coming in, praising the life of one of the most important figures in modern Western history. That last bit reflects my own bias. What’s become clear in all my studies of our history of World War II, of the Civil War, of Tocqueville, of Rousseau, of Zionism, of black nationalism, is that understanding Enlightenment ideals requires understanding those places where ideals and humanity meet. If you call yourself a lover of democracy, but have not studied the black diaspora, your deeds mock your claims. Understanding requires more than sloganeering, and parroting—it requires confronting our failures.

For many years, a large swath of this country failed Nelson Mandela, failed its own alleged morality, and failed the majority of people living in South Africa. We have some experience with this. Still, it’s easy to forget William F. Buckley—intellectual founder of the modern right—effectively worked as a press agent for apartheid:

Buckley was actively courted by Chiang Kai-Shek’s Taiwan, Franco’s Spain, South Africa, Rhodesia and Portugal’s African colonies, and went on expenses-paid trips trips to some of these countries.

When he returned from Mozambique in 1962, Buckley wrote a column describing the backwardness of the African population over which Portugal ruled, “The more serene element in Africa tends to believe that rampant African nationalism is self-discrediting, and that therefore the time is bound to come when America, and the West … will depart from our dogmatic anti-Colonialism and realize what is the nature of the beast.”
In the fall of 1962, during a visit to South Africa, arranged by the Information Ministry, Buckley wrote that South African apartheid “has evolved into a serious program designed to cope with a melodramatic dilemma on whose solution hangs, quite literally, the question of life or death for the white man in South Africa.”

Buckley’s racket as an American paid propagandist for white supremacy would be repeated over the years in conservative circles. As Sam Kleiner demonstrates in Foreign Policy, apartheid would ultimately draw some of America’s most celebrated conservatives into its orbit. The roster includes Grover Norquist, Jack Abramoff, Jesse Helms, and Senator Jeff Flake. Jerry Falwell denounced Desmond Tutu as a “phony” and led a “reinvestment” campaign during the 1980s. At the late hour of 1993, Pat Robertson opined, “I know we don’t like apartheid, but the blacks in South Africa, in Soweto, don’t have it all that bad.”

It’s also important to remember that one of William F. Buckley’s contributions to modern movement conservative was to incorporate, and legitimize a new language of racism into both the conservative movement and the Republican Party:

I know it is often hard to understand the difference between racists and conservatives, but here is some help to redefine the lexicon and come up with a simple translation guide.
………

 Theodore Bilbo

To preserve her blood, the white South must absolutely deny social equality to the Negro regardless of what his individual accomplishments might be. This is the premise – openly and frankly stated – upon which Southern policy is based. This position is so thoroughly justified in the minds of white Southerners that it is sometimes difficult for them to comprehend the reasoning of those who seriously dispute it.

William F. Buckley

The central question that emerges . . . is whether the White community in the South is entitled to take such measures as are necessary to prevail, politically and culturally, in areas in which it does not prevail numerically? The sobering answer is Yes – the White community is so entitled because, for the time being, it is the advanced race. It is not easy, and it is unpleasant, to adduce statistics evidencing the cultural superiority of White over Negro: but it is a fact that obtrudes, one that cannot be hidden by ever-so-busy egalitarians and anthropologists.

 National Review believes that the South’s premises are correct. . . . It is more important for the community, anywhere in the world, to affirm and live by civilized standards, than to bow to the demands of the numerical majority.

See, we’re used to the naked racism of the hood wearing Klansman. Yet, since the 1950’s, most racism has been cloaked in the sort of academic langugae which hides the meaning of the statement.

 We can reduce example one to saying: them niggers will fuck our white women and make us stupid. Yet, Goldberg is no more likely to say that than to run naked down the street. So he has to couch his language in terms which will be polite and acceptable.

 Now, in example two, Buckley, says nearly the same thing as Sen. Bilbo, but in much less passionate language.

(As an aside, I really miss Steve Gilliard’s ferocious writing)

The right wing spent decades demonizing and attempting to marginalize Nelson Mandela.  To pretend anything else is to take the rest of to be historically illiterate idiots.

Your Moment of Kafka

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There was a crazy guy in New York City’s Times Square, one Glenn Broadnax, who was wandering into traffic.

Why is this news?  After all, crazy people interfering with traffic is not particularly newsworthy in Manhattan.

Well it becomes news because, police shot at him while trying to apprehend him, and missed, striking innocent bystanders.

Because of this the prosecutor charged Mr. Broadnax with assault ……… for getting shot at:

An unarmed, emotionally disturbed man shot at by the police as he was lurching around traffic near Times Square in September has been charged with assault, on the theory that he was responsible for bullet wounds suffered by two bystanders, according to an indictment unsealed in State Supreme Court in Manhattan on Wednesday.

The man, Glenn Broadnax, 35, of Brooklyn, created a disturbance on Sept. 14, wading into traffic at 42nd Street and Eighth Avenue and throwing himself into the path of oncoming cars.

A curious crowd grew. Police officers arrived and tried to corral Mr. Broadnax, a 250-pound man. When he reached into his pants pocket, two officers, who, the police said, thought he was pulling a gun, opened fire, missing Mr. Broadnax, but hitting two nearby women. Finally, a police sergeant knocked Mr. Broadnax down with a Taser.

The shootings once again raised questions about the police use of firearms in crowded areas and drew comparisons to a shooting a year ago, when officers struck nine bystanders in front of the Empire State Building when they killed an armed murder suspect.

Initially Mr. Broadnax was arrested on misdemeanor charges of menacing, drug possession and resisting arrest. But the Manhattan district attorney’s office persuaded a grand jury to charge Mr. Broadnax with assault, a felony carrying a maximum sentence of 25 years. Specifically, the nine-count indictment unsealed on Wednesday said Mr. Broadnax “recklessly engaged in conduct which created a grave risk of death.”

“The defendant is the one that created the situation that injured innocent bystanders,” said an assistant district attorney, Shannon Lucey.

You are charging a clearly disturbed man with felony assault for somehow “forcing” to fire recklessly firing into a crowded area?

What the f%$#?

It’s Jobless Thursday!!!!!

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Initial unemployment claims fell to below 300,000, 298000, beating expectations, though the holidays have a lot of noise in there.

More significantly, 3rd quarter GDP was revised upward by a large amount:

The U.S. economy grew faster than initially estimated in the third quarter but weak demand and a pile-up in business inventories buoyed the case for the Federal Reserve to keep up its bond-buying stimulus for now.

Gross domestic product grew at a 3.6 percent annual rate instead of the 2.8 percent pace reported a month ago, the Commerce Department said on Thursday.

It was the biggest gain since the first quarter of 2012, but inventories accounted for almost half of the increase in growth.

“The strong third-quarter growth pace masks the more subdued tone in domestic activity, and as the bloated level of inventory is worked off, we are likely to see a much softer performance in growth in the fourth quarter,” said Millan Mulraine, senior economist at TD Securities in New York.

So, what happened was that more stuff was made, but it just filled up warehouse shelves.

The holiday shopping season could be make or break for the economy.

Just When I Think that the Right Wing Cannot Get Any More Evil………

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The American Legislative Exchange Council (ALEC) is pushing for legislation to fine homeowners for installing solar power:

An alliance of corporations and conservative activists is mobilising to penalise homeowners who install their own solar panels – casting them as “freeriders” – in a sweeping new offensive against renewable energy, the Guardian has learned.

Over the coming year, the American Legislative Exchange Council (Alec) will promote legislation with goals ranging from penalising individual homeowners and weakening state clean energy regulations, to blocking the Environmental Protection Agency, which is Barack Obama’s main channel for climate action.

Details of Alec’s strategy to block clean energy development at every stage – from the individual rooftop to the White House – are revealed as the group gathers for its policy summit in Washington this week.

Great shades of Elvis.

This level of evil and the stupidity is a complete mind f%$#.

The Department of Homeland Security Outdoes Orwell And Kafka

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In the first case to make it to court over the no-fly list, DHS has taken abuse of power to a whole new level.

The case, Rahinah Ibrahim v. Department of Homeland Security.

The claim of DHS is that the list is a state secret, so they won’t even acknowledge that there is a list, much less if someone is on the list, until of course the airlines refuse you a boarding pass, but even then they cannot tell you why they are:

Airlines aren’t told why they have been forbidden to transport any particular person, and are forbidden from telling anyone that they are on the “no-fly” list — although of course that eventually becomes obvious when the airline refuses to issue a boarding pass to an otherwise qualified fare-paying would-be passenger.  The U.S. government’s policy is never to confirm or deny the existence of a no-fly order. That is considered a “state secret”.

 Needless to say, all this makes a mockery of due process and has, until now, frustrated judicial review of no-fly decisions and orders.  Despite numerous attempts to challenge the system of “no-fly” lists and orders, Rahinah Ibrahim v. Department of Homeland Security, et al. (docket and more recent documents) is the first such case to make it to trial.

 Dr. Ibrahim, a Malaysian citizen, was a doctoral candidate at Stanford University, in the U.S. on a valid student visa, when she tried to fly home to Malaysia with her daughter in 2005.  She was refused passage on a United Airlines flight from San Francisco International Airport, detained, and interrogated by SFO airport police.  Although she was ultimately bound for Malaysia, she had planned to stop over in Hawaii to present a research paper at a conference there. She was denied boarding on a domestic flight from San Francisco to Kona. She was allowed to fly to Kona the next day, and on to Malaysia after the conference a few days late, but her U.S. visa was then revoked (although she wasn’t notified, and didn’t learn this until she was at the airport in K.L. trying to check in for a flight back to SFO a couple of months later). She hasn’t been able to return to the U.S. since, even though she had lived legally in the U.S. for many years, had met and married her husband in the U.S., and one of children was born in the U.S. and is a U.S. citizen.  She completed her dissertation remotely, received her Stanford Ph.D. in absentia, and is now a professor at a major Malaysian public university, with an extensive list of academic publications.

 Several other “no-fly” lawsuits have been dismissed without getting far enough to have a judge, much less a jury, review the challenged “no-fly” orders on their merits. Others that haven’t yet made it to trial, but haven’t yet been dismissed, include that of Gulet Mohamed in Northern Virgina and Latif et al. v. Holder in Portland, OR.  Both of these cases involve U.S. citizens who were effectively banished from the U.S. by having their names being placed on the “no-fly” list while they were abroad, preventing them from coming home.

 The city and county of San Francisco paid Dr. Ibrahim $225,000 to settle her claims against the airport police, but the Federal government agencies and employees have opposed Dr. Ibrahim’s right to even have the court review the legality of their actions.

But wait there’s more.

You see, after the lawyers for Dr. Ibrahim put her daughter on the witness list, DHS put that daughter on their no fly list:

The Federal civil rights trial in Ibrahim v. DHS — the first lawsuit seeking judicial review of a government “no-fly” order to make it to trial — began this morning in San Francisco with a surprise:

 When the case was called at 7:30 a.m., Elizabeth Pipkin and Christine Peek, pro bono lawyers for the plaintiff Dr. Rahinah Ibrahim, began by informing U.S. District Judge William Alsup that Dr. Ibrahim’s oldest daughter Raihan Mustafa Kamal was denied boarding in Kuala Lumpur yesterday when she tried to board a flight to San Francisco to observe and testify at the trial in her mother’s lawsuit.

 Ms. Mustafa Kamal, an attorney licensed to practice law in Malaysia, was born in the U.S. and is a U.S. citizen. Ms. Mustafa Kamal was with her mother when Dr. Ibrahim was denied boarding on a flight from K.L. to San Francisco in 2005 (after having been told that her name had been removed from the “no-fly” list) under what now seem eerily similar circumstances. The DHS had been given notice that Ms. Mustafa Kamal would testify at the trial as an eyewitness to those events she witnessed in 2005.

 ………

 “We may have to have a separate evidentiary hearing about this,” Judge Alsup said, and ordered the defendants to provide further information tomorrow (Tuesday). “I want to know whether the government did something to obstruct a witness, a U.S. citizen.”

(emphasis original)

So, they put a witness, and an American citizen at that, on the no fly list in order to prevent them from testifying, and then, they lied to the judge about it:

Ms. Pipkin reminded the court of what government counsel Paul Freeborne of the Department of Justice told the court before the trial recessed on Monday:

Freeborne: Your Honor, we’ve confirmed that the defendants did nothing to deny plaintiff’s daughter boarding. It’s our understanding that she just simply missed her flight. She has been re-booked on a flight tomorrow. She should arrive tomorrow.

“None of that was true,” Ms. Pipkin told the court this morning. “She didn’t miss the flight. She was there in time to check in. She has not been rebooked on another flight.” And most importantly, it was because of actions by the DHS — one of the defendants in Dr. Ibrahim’s lawsuit — that Ms. Mustafa Kamal was not allowed to board her flight to SFO to attend and testify at her mother’s trial.

 Ms. Pipkin said that Ms. Mustafa Kamal had sent her a copy of the “no-board” instructions which the DHS gave to Malaysia Airlines, and which the airline gave to Ms. Mustafa Kamal to explain as much as it knew about why it was not being allowed to transport her. Ms. Pipkin handed Judge William Alsup a copy of the DHS “no-board” instructions to Malaysia Airlines regarding Ms. Mustafa Kamal.

At least now, we may have a reason as to why she is on the no fly list:

The FBI agents also asked about whether Dr. Ibrahim was familiar with Jemaah Islamiyyah in Malaysia. She said she had heard of it only from reading online newspapers, but that from what she had read, it was an un-Muslim terrorist organization.

 Later in her deposition, Dr. Ibrahim noted that since returning to Malaysia in 2005, she has become active in Jamaah Islah Malaysia, a non-profit professional networking group for Muslims who have returned to Malaysia after post-secondary schooling in the U.S. and Europe. The two groups have names that could easily be confused by non-Malays, and are sometimes referred to by the same acronym, “JIM”. But both are well-known and readily distinguishable to Malaysians. And the FBI agents who visited her in 2004 didn’t ask about “Jamaah Isla Malaysia”, the entirely innocent organization with which Dr. Ibrahim is now involved. This potential confusion is the only hint in the public record to date about any possible explanation, legitimate or not, for FBI “Special Agent” Kelly’s nomination of Dr. Ibrahim for inclusion on the “no-fly” list.

I fully expect the US Attorney to f%$#ing turn into a f%$#ing cockroach at this point.

The full sordid story, over the past few years is here.

There are a whole bunch of people at DHS, the FBI, and the DoJ who really need to have their security clearances pulled as arbitrarily as Dr. Ibrahim’s right to travel was.

Here is a suggestion for Barack “Worst Constitutional Law Professor ever™” Obama.  Realize that your state security apparatus has as much interest in fairness, or civil rights, or basic American values as much as Richard Bruce Cheney is interested in discussing who authorized the leaking Valerie Plame’s CIA covert operative status.

Jon Stewart and Samantha Bee Take Down the Financial Press

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On a number of occasions, I have noted that it has been illegal to take out insurance on something in which one does not have an interest in its continued existence.

So, it’s illegal to take out a policy on your neighbor’s house, because otherwise, you would have an interested in burning it down.

This problem was first addressed, in the UK at least in the by the Marine Insurance Act of 1746.

The proximate cause was people who would buy insurance on a merchant ship, and then leak the manifests and schedules to the French, who were at war with the British at the time, and they would collect the insurance payouts.

It has been the law for longer then there has been the United States.

Only in the late 1990s, they decided that it did not apply to credit default swaps, and so the ripe-for-abuse “naked” CDS was born.

Well, the Daily Show found a story on Bloomberg about how the private equity firm Blackstone Group purchased a naked CDS on a 3rd party loan to the Spanish gaming company Codere.

Blackstone then made a loan to Codere that was conditional to their making their making a payment late on the aforementioned 3rd party loan, which was a “credit event” which netted the investment firm a $15,000,000.00 payout.

What I do not understand how this isn’t insurance fraud, except, of course, a CDS isn’t insurance, except, of course, that it is.

But besides the Bloomberg article there has been crickets from the financial press, which Jon Stewart and Samantha Bee discussed last night.

Brutal

Linkage

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H/t New Nutownesaloon

So Google Funds ALEC, but Walmart Won’t

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The American Legal Exchange Council has been dumped by a number of corporate sponsors following the “Stand Your Ground” murder of Trayvon Martin:

The Guardian has learned that the American Legislative Exchange Council (Alec), which shapes and promotes legislation at state level across the US, has identified more than 40 lapsed corporate members it wants to attract back into the fold under a scheme referred to in its documents as the “Prodigal Son Project”.

The target firms include commercial giants such as Amazon, Coca-Cola, General Electric, Kraft, McDonald’s and Walmart, all of which cut ties with the group following the furore over the killing of the unarmed black teenager Trayvon Martin in Florida in February 2012.

Alec was embroiled in the controversy surrounding Florida’s 2005 “stand-your-ground” law under which George Zimmerman, the neighbourhood watch volunteer who shot and killed the 17-year-old Martin, initially claimed self-defence. The Florida law was picked up by Alec, and, working in partnership with the National Rifle Association, used as a template for one of its “model bills”, which was then taken up by other states across the country.

The Guardian has learned that by Alec’s own reckoning the network has lost almost 400 state legislators from its membership over the past two years, as well as more than 60 corporations that form the core of its funding. In the first six months of this year it suffered a hole in its budget of more than a third of its projected income.

So, ALEC is too evil for Walmart, but not too evil for Google.

Excuse me, while my head explodes.

Let Him Pay for His Own Damn Security………

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It looks like the taxpayers of New York City will on the hook for $1½ million a year for a security detail:

After he retires as NYPD commissioner, Ray Kelly is going to have a lot of company.

According to Murray Weiss of DNAinfo New York, the NYPD Intelligence Division has recommended Kelly, upon retiring, be provided with a 10-man, 24/7 security detail — an increase from the six-man detail Kelly had requested earlier. The detail will cost taxpayers more than $1.5 million per year and will include three sergeants, one lieutenant and six detectives.

After six months, the department will reassess Kelly’s security needs.

By Ray Kelly’s own standards, this is completely unnecessary, since he made the city safe by engaging in racial profiling and intimidation.

I Guess that the Whole, “Don’t Be Evil” Thing is Inoperative

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Yes, the boys from Mountain View are funding the usual list of right wing rat f%$#ers:

Google, the tech giant supposedly guided by its “don’t be evil” motto, has been funding a growing list of groups advancing the agenda of the Koch brothers.

Organizations that received “substantial” funding from Google for the first time over the past year include Grover Norquist’s Americans for Tax Reform, the Federalist Society, the American Conservative Union (best known for its CPAC conference), and the political arm of the Heritage Foundation that led the charge to shut down the government over the Affordable Care Act: Heritage Action.

In 2013, Google also funded the corporate lobby group, the American Legislative Exchange Council, although that group is not listed as receiving “substantial” funding in the list published by Google.

BTW, I am well of the irony that I am blogging this on a Google platform, and that my ads are served by the company as well.

Koch suckers.