Category: Business

I Guess that Steve Jobs is Really Dead

Apple and Google have agreed to drop the patent suits that they have filed against each other:

Two giants of the mobile phone industry, Apple and Google, have agreed to drop all current patent infringement lawsuits between them, they said Friday.

“Apple and Google have also agreed to work together in some areas of patent reform,” the companies said in a joint statement. They have not agreed to cross-license each other’s patents, however.

Apple filed a lawsuit with the U.S. International Trade Commission in 2010 against Motorola Mobility, which was subsequently acquired by Google. Google has since agreed to sell the smartphone business to Lenovo, but the deal has not yet closed.

Many of the lawsuits Apple has filed against other smartphone makers, including Samsung, involve Google’s Android operating system. This deal announced Friday does not affect the Apple-Samsung lawsuit, however.

It’s a limited state step, but it is one that Steve Jobs would have taken.

Reasonable and measured was simply not a part of his DNA.

But Remember, By Law this Vote is Non-Binding

Following an abysmal performance, Chipotle shareholders voted against pay raises for senior executives:

Investors in Chipotle Mexican Grill voted overwhelmingly on Thursday against the company’s executive compensation plans, sending a strong rebuke to a company that had awarded more than $300 million to its co-chief executives in recent years.

More than 75 percent of investors voted against Chipotle’s say-on-pay measure, which asked investors to ratify a compensation plan that would continue such payments to Steve Ells, Chipotle’s founder, and his co-chief, Montgomery F. Moran, over the next few years. That was the highest vote against any say-on-pay measure among the country’s largest 3,000 companies this year.

Though the vote is nonbinding, Chipotle said it was taking investor sentiment into consideration.

“We take this very seriously,” a Chipotle spokesman, Chris Arnold, said in a statement. “It has always been, and continues to be, a top priority that our compensation programs are driving the creation of shareholder value. We thank our investors for the feedback we have received on this issue and will continue to engage with our investors as we review our compensation programs that build value for all of our investors.”

Shareholder discomfort with Chipotle’s multimillion-dollar executive compensation plans has grown. At last year’s meeting, 27 percent of shareholders voted against the say-on-pay measure. But in recent months, smaller investors, including the CtW Investment Group, have lobbied big institutional investors to join them in trying to rein in Chipotle’s executive pay.

Note however, this is a non-binding vote.

Binding shareholder votes on executive pay are forbidden by US law.

H/t Crooks and Liars.

Seriously? Chattanooga has the Best Internet in the Nation?

Actually, yes.

You see,  Chattanooga has a municiplally owned fiber optic network:

For thousands of years, Native Americans used the river banks here to cross a gap in the Appalachian Mountains, and trains sped through during the Civil War to connect the eastern and western parts of the Confederacy. In the 21st century, it is the Internet that passes through Chattanooga, and at lightning speed.

“Gig City,” as Chattanooga is sometimes called, has what city officials and analysts say was the first and fastest — and now one of the least expensive — high-speed Internet services in the United States. For less than $70 a month, consumers enjoy an ultrahigh-speed fiber-optic connection that transfers data at one gigabit per second. That is 50 times the average speed for homes in the rest of the country, and just as rapid as service in Hong Kong, which has the fastest Internet in the world.

………

Since the fiber-optic network switched on four years ago, the signs of growth in Chattanooga are unmistakable. ………

………

EPB, the city-owned utility formerly named Electric Power Board of Chattanooga, said that only about 3,640 residences, or 7.5 percent of its Internet-service subscribers, are signed up for the Gigabit service offered over the fiber-optic network. Roughly 55 businesses also subscribe. The rest of EPB’s customers subscribe to a (relatively) slower service offered on the network of 100 megabits per second, which is still faster than many other places in the country.

Gee.  The private sector, largely unregulated, cable and phone companies deliver what is among the slowest and most expensive internet service in the developed world, and publicly owned providers outperform them.

Maybe it’s because the for-profit companies see preserving, and leveraging, their near monopoly status as more ……… well ……… profitable than improving the quality and price service.

Hoocoodanode?

Heads they Win, Tails you Lose

Our executive class, Walmart edition:

Sometimes the effects of our social and income inequality are easy to see, but hard to measure.

But not in this case: despite falling revenues, and despite only reluctantly paying minimum wage to its workers, Walmart increased the pay for its top executives. The people who do the labor get little. The people who make the decisions that can cause falling revenues get more (and more and…) Could it be any clearer what is going on?

This is what Thomas Piketty’s theories look like in practice.

………

A key question for detectives trying to figure out who may have committed a crime is to ask cui bono, “Who benefits?” Who stands to profit from a murder, from a crime? That’s often your perp.

In Walmart’s case, it is not its stockholders who profited. Indeed, this has not been a money year for Walmart shareholders. Despite an overall good twelve months for the stock market in general, Walmart stock bumbled due to lower sales growth.

No joy for Walmart’s customers, or its own employees. Walmart cited cuts in federal food stamps as one reason for its weak sales increase. Since they are paid only minimum wage (and Walmart fights vigorously against any increases) and only are given 39 hours a week or less so as not to qualify for full-time benefits, a fair number of Walmart’s own workers receive food stamps.

Good news though for Walmart’s top executives. The company employed some accounting tricks to “adjust” on paper actual revenues to make them appear higher than in reality. On the strength of that “adjusted” performance, William Simon, CEO of Walmart’s United States unit, received total compensation of $13 million last year. Of that, $1.5 million was a “performance bonus,” paid out actually for declining revenues. In fact, six of Walmart’s top executives received a total of $8.42 million in cash incentive payments for 2014 even as revenues fell and the company closed stores. The former employees of those stores, needless to say, did not receive any performance pay bonuses as they fell deeper into poverty.

They don’t get it.

They won’t get it if they are riding in an oxcart to Madame la Guillotine.

Our Friends in the Ukraine are Hiring Blackwater

Guess what? In addition to advising the current government in Kiev, it appears that we have lent them mercenaries from the firm formerly known as Blackwater:

Soldiers from a private US security company with a record of alleged atrocities in Iraq are supporting Ukraine‘s security forces in the volatile east of the country, the German newspaper Bild reported Sunday.

The report, citing Germany‘s federal intelligence agency BND, said 400 of the heavily-armed men employed by the group formerly known as Blackwater were deployed in the vicinity of Lugansk where pro-Russian separatists are seeking self-rule.

The BND declined to comment on the report, while the security company – now known as Academi – dismissed similar reports in March.

Bild reported that according to a BND assessment, US intelligence services had knowledge of the covert involvement of the private soldiers in Ukraine. BND representatives relayed the information to Germany‘s federal chancellory on April 29, Bild said.

Academi was known as Blackwater during its time as key security services contractor to the US government in the war it led to oust Iraq‘s president Saddam Hussein in 2003.

It was later implicated in the killing of unarmed civilians and arms smuggling in Iraq.

This is nucking futs.

I can think of no more inflammatory news than having the most notorious mercenary organization in the real world providing “security consultants” for a government that is already being viewed with suspicion by much of the eastern half of the country.

I think that we have learned that the EU and US don’t care about the Ukraine as much as they want to just f%$# with Russia.

This is not going to end well.

H/t R1 at the Stellar Parthenon BBS.

Mazel Tov!

Google has fired the head of its Google+ effort, and will be redirecting its resources:

When Vic Gundotra, the head of Google+, suddenly announced his departure from Google today, many were left wondering “why” and what it meant for the future of Google+. He didn’t give a reason for leaving, but according to a report from TechCrunch, the likely reason is a major shakeup for Google’s social network.

In short, Google seems to be backing away from the original Google+ strategy. The report states that Google+ will no longer be considered a product that competes with Facebook and Twitter, and that Google’s mission to force Google+ into every product will end. With this downgrade in importance comes a downgrade in resources. TechCrunch claims that 1000-1200 employees—many of which formed the core of Google+—will be moved to other divisions. Google Hangouts will supposedly be moved to Android, and the Google+ photos team is “likely” to follow. “Basically, talent will be shifting away from the Google+ kingdom and towards Android as a platform,” the report said. The strange part is that both of these teams create cross-platform products. So if the report is true, there will be a group inside the Android team making iOS and Web apps, which doesn’t seem like the best fit.

A Google spokesperson gave Ars the same statement the company gave TechCrunch: “Today’s news has no impact on our Google+ strategy—we have an incredibly talented team that will continue to build great user experiences across Google+, Hangouts, and Photos.” On Gundotra’s announcement post, Larry Page wrote “we’ll continue working hard to build great new experiences for the ever-increasing number of Google+ fans.”

Despite Google’s denial, it makes sense for the company to back away from Google+. The social network hasn’t gained the massive userbase it would need to rival Facebook, and the aggressive integration strategy has been universally hated by users. As Google gets bigger and bigger, it faces harsher scrutiny, and few things the company has done have been more disliked than Google+. According to the report, Google+’s YouTube takeover was seen as “a rocky move” even inside the company.

The G+ strategy was driven by abject terror of Facebook, and the change in direction implies that Google is no longer driven by this.

My guess is that Google sees something in the reams of data that they accumulate showing that Facebook’s “threat” is of less concern.

In any case, I’m just glad that they won’t continue to break their other apps in order to foist Google+ on the rest of us.

Thanks, Obama

You know, this is to be expected. Obama appoints an industry lobbyist to head the FCC, and the FCC ends network neutrality: (See also here)

………

The following can be attributed to Michael Weinberg, Vice President at Public Knowledge:

“The FCC is inviting ISPs to pick winners and losers online. The very essence of a “commercial reasonableness” standard is discrimination. And the core of net neutrality is non discrimination. This is not net neutrality. This standard allows ISPs to impose a new price of entry for innovation on the Internet. When the Commission used a commercial reasonableness standard for wireless data roaming, it explicitly found that it may be commercially reasonable for a broadband ISP to charge an edge provider higher rates because its service is competitively threatening.

“It is hard to see how the commercial reasonableness standard, which inherently offers less protection than the standard in the previous Open Internet Rules, can serve the same policy goals. Additionally, approaching discrimination on a case-by-case basis creates less certainty than clear rules and disadvantages small businesses and entrepreneurs. The Commission should instead seek to find a way to ensure true net neutrality, including protections against discrimination by ISPs for commercial purposes. The DC Circuit Court opinion made it clear that the only way to achieve net neutrality is to reclassify internet access as a telecommunications service.”

What a thought: Obama’s FCC chair does not have the guts to reverse the that it made under the Bush administration to classify if ISP’s service as information services, as opposed to telecommunications services, which meant that they were not common carriers.

It also refused to appeal the DC Court of Appeals decision to the Supreme Court.

And they did this because ……… Regulatory capture, I guess.

It certainly fits in with Obama cozying up to malefactors in dysfunctional markets as opposed to trying to fix those markets. (Obama care, Banksters walking free, The Droning of Brown People, the NSA, etc.)

Oh well, when the Kochs take over the internet, maybe they will give Obama a medal.

Naah ……… I’m just sh%$#ing you ……… They’ll find a trumped up charge to throw him in jail.

H/t Kevin Drum for the pic.

Economics Says that You Should Throw Money at the Problem

It appears that the shale/fracking boom had created a wee labor shortage:

How high is demand for welders to work in the shale boom on the U.S. Gulf Coast?

So high that “you can take every citizen in the region of Lake Charles between the ages of 5 and 85 and teach them all how to weld and you’re not going to have enough welders,” said Peter Huntsman, chief executive officer of chemical maker Huntsman Corp.

So high that San Jacinto College in Pasadena, Texas, offers a four-hour welding class in the middle of the night.

So high that local employers say they’re worried there won’t be adequate supply of workers of all kinds. Just for construction, Gulf Coast oil, gas and chemical companies will have to find 36,000 new qualified workers by 2016, according to Industrial Info Resources Inc. in Sugar Land, Texas. Regional estimates call for even more new hires once those projects are built.

The processing and refining industries need so many workers to build new facilities in Texas and Louisiana because of the unprecedented rise over the last three years in U.S. oil and gas production, much of it due to shale. Labor shortages, causing delays in construction, threaten to slow the boom and push back the date when the country can meet its own energy needs, estimated by BP Plc to be in 2035.

So, in the next two years, you need 36,000 welders.

It’s pretty simple if you want to frack your world:

  • Pay to train your welders.
  • Pay your welders more.
  • Treat your employees better than the other guy.

This sh%$ ain’t rocket science.

The problem is that the “processing and refining industries” want workers who are well trained on someone else’s dollar that are cheap, and readily disposable.

What they want fails economics 101.

What, You Mean $1000.00 a Pill is too Expensive?

A few months back, I wrote of push-back from an NGO about the price of Gilead Sciences’ Hepatitis C drug Sovaldi.

Well the World Health Organization and the pharmacy benefits management company Express Scripts are pushing back as well.

While the WHO is engaging in fairly typical hand wringing:

Gilead Sciences’ new hepatitis C drug, Sovaldi, will cost $84,000 for a 12-week treatment plan, rounding out to $1,000 a day. Bound to cause a whirlwind among investors and the healthcare world, the World Health Organization has stepped in.

The drug is facing protests in the United States because of the excessively high price that Gilead Sciences set for their new product. Despite its potential effectiveness – it is projected to cure 90% of the targeting hepatitis C patients – its gross income will exceed that of every other pharmaceutical drug if a majority of 150 million hepatitis C patients purchase it.

As a result, the World Health Organization is urging Gilead Sciences to make the drug cheaper and more accessible to help those in dire need of the medication and to avoid creating tremendous problems for insurance companies and investors. But pharmaceutical companies argue that they need to charge high prices on new effective drugs because they need to cover the expensive cost of development.

Express Scripts is playing some serious, and very well deserved, hardball:

Express Scripts Holding Co. (ESRX), a pharmacy benefit manager that handles more than 1 billion prescriptions annually in the U.S., is ratcheting up its effort to force Gilead Sciences Inc. (GILD) to cut the $84,000 price of its new hepatitis C pill Sovaldi.

Express Scripts plans to ask its clients, composed of national employers, health insurance plans and government agencies, to join a coalition that would stop using Sovaldi once a rival medicine is approved for the U.S., expected next year, said Steven Miller, chief medical officer of the St. Louis-based company. Express Scripts said in December it may block reimbursement for Foster City, California-based Gilead’s pill once other new hepatitis C therapies are on the market.

“What they have done with this particular drug will break the country,” Miller said in a telephone interview. “It will make pharmacy benefits no longer sustainable. Companies just aren’t going to be able to handle paying for this drug.”

Cara Miller and Amy Flood, Gilead spokeswomen, didn’t return phone calls yesterday seeking comment. The company has previously justified the price for Sovaldi by saying it would pay for itself by avoiding future complications from the virus.

(emphasis mine)

Note that Sovaldi has been granted a breakthrough designation by the FDA, which allows the drug to hit the market faster, for which the US government, and the taxpayers got a consideration of ……… nothing at all.

Basically the declaration of “breakthrough” status, and that is the term the 2010 law uses, is a subsidy to the manufacturer, both extending the time available to Gilead under exclusivity, and reducing capital costs by allowing revenue to start earlier.

Maybe the FDA should include a “reasonable and justifiable pricing” clause to things like this.

Mozilla Cuts Its Losses

Brendan Eich is out as Mozilla Corporation CEO:

Less than two weeks after drawing controversy over his appointment as CEO of the Mozilla Corporation, Brendan Eich has resigned from the position.

In a post at Mozilla’s official blog, executive chairwoman Mitchell Baker confirmed the news with an unequivocal apology on the company’s behalf. “Mozilla prides itself on being held to a different standard and, this past week, we didn’t live up to it,” Baker wrote. “We didn’t act like you’d expect Mozilla to act. We didn’t move fast enough to engage with people once the controversy started. We’re sorry. We must do better.”

The action comes days after dating site OKCupid became the most vocal opponent of Eich’s hiring. Mozilla offered repeated statements about LGBT inclusivity within the company over the past two weeks, but those never came with a specific response from Eich about his thousands of dollars of donations in support of Proposition 8, a California ballot measure that sought to ban gay marriage in the state.

Eich’s bigotry has been an issue before, and for some reason known only to the Flying Spaghetti Monster, they decided to make him the face of the organization.

It was further compounded when Eich refused to offer anything vaguely resembling a sincere apology, and instead offered platitudes about how tolerant people needed to validate his bigotry.

Don’t let this door hit your ass on the way out.

When Someone Defines Tolerance as Accepting His Own Bigotry, He is a Hypocrite and a Fool

Case in point, the self-immolation of Mozilla because they chose to hire an homophobic bigot as CEO:

Mozilla named a new chief executive this week to lead the non-profit Web organization as it tries to keep its Firefox browser relevant in the mobile age. The appointment has proved controversial in more ways than one.

Three Mozilla board members resigned over the choice of Brendan Eich, a Mozilla co-founder, as the new CEO. Gary Kovacs, a former Mozilla CEO who runs online security company AVG Technologies; John Lilly, another former Mozilla CEO now a partner at venture-capital firm Greylock Partners; and Ellen Siminoff, CEO of online education startup Shmoop, left the board last week.

The departures leave three people on the Mozilla board: co-founder Mitchell Baker; Reid Hoffman, co-founder of LinkedIn, and Katharina Borchert, chief executive of German news site Spiegel Online.

The three board members who resigned sought a CEO from outside Mozilla with experience in the mobile industry who could help expand the organization’s Firefox OS mobile-operating system and balance the skills of co-founders Eich and Baker, the people familiar with the situation said. They did not want to be identified because they are not authorized to speak publicly about the matter.

Mozilla spokesman Mike Manning confirmed the three remaining board members, but he declined to comment further on Friday. He did not immediately respond to a request to speak to Eich and Baker.

………

The board departures are not the only source of early pressure on the new Mozilla CEO. Some employees of the organization are calling for Eich to step down because he donated $1,000 to the campaign in support of Proposition 8, a 2008 California ballot measure that banned same-sex marriage in the state.

“I do not support the Board’s appointment of @BrendanEich as CEO,” Kat Braybrooke, a curation and co-design lead at the organization, wrote on Twitter on Thursday:

The problem is that Brendan Eich have $1000 to the H8 amendment, aka Proposition 8, the anti-gay marriage initiative in California, and when this was revealed, his response was to suggest that people should be more tolerant about this.

That is complete bullsh%$.

While I agree with 1st amendment argument  protecting his right to engage in this sort of speech, it is wrong to suggest that his opponents should accept him to, “make Mozilla a place of equality and welcome for all.”

Social, opprobrium is precisely the sort of response that comes from an open marketplace of ideas.

I Really Hope That This Happens

The Supreme Court has declined to hear a case from Delaware which effectively makes arbitration hearings there open to the public:

The Supreme Court on Monday cleared the way for the public and the press to sit in on arbitration of business disputes in Delaware, when a state judge acts as the arbitrator. That was the result of the Court’s denial of an appeal by a group of Delaware judges, seeking to keep those proceedings closed to the public. If business firms do not like having a public audience, that could limit or even kill a four-year-old Delaware experiment.

That was one of several denials of review in significant cases. In addition, the Court agreed to add to its decision docket for next Term a new case on the appeal rights of state prisoners in federal habeas courts. It also sought the U.S. government’s views on the deadline for filing a lawsuit claiming that the manager of a retirement plan made faulty investment decisions, and on the right of an investor to sue over the filing of a defective stock registration statement, when the investor acquired an interest in the stock before such a statement existed.

The Court offered no explanation, as usual, when it decided against reviewing the Delaware arbitration case, Strine v. Delaware Coalition for Open Government.

Ordinarily, arbitration proceedings are not public events, because they are a way to resolve private legal disputes without the formality of a court trial and without much of the expense of hiring trial lawyers and of paying for pre-trial and trial maneuvering. Delaware’s legislature wanted to keep arbitration a closed matter when it decided, in 2009, to allow state judges to take on the task of arbitrator in a closed system.

The U.S. Court of Appeals for the Third Circuit ruled, however, that this would turn arbitration into something like a civil courtroom trial, so they had to be open to the public and the press under a string of Supreme Court precedents on the right of First Amendment access to court proceedings.

Considering Delaware’s history of whoring for shady corporate entities, I expect to see a rewrite of the law to once again favor corporations, but it’s nice to see some more push-back against the corrupt and blatantly unfair arbitration which we are saddled with in the United States.

Looters Gotta Loot

It’s not enough that schools get tax dollars, and get showered with funds from private “charities” dedicated to destroying public education, they want taxpayers to pay for their rent as well:

Eva Moskowitz said she would go to the president of the United States to help her students if she had to. For now, she’s stopping at Andrew Cuomo.

Moskowitz, C.E.O. of Success Academy charter schools in New York City, helped organize a massive rally outside the state Capitol on Tuesday, where she said she was “delighted” to have the governor’s support.

………

During the mayoral campaign, de Blasio threatened to charge charter schools rent and pledged that Moskowitz’s schools specifically would not enjoy the same treatment under his administration as they did under Michael Bloomberg’s. He fulfilled that promise last week when he overturned three Bloomberg administration approvals for co-locations, all Success Academy schools.

“We never expected… I mean, I frankly thought the rhetoric of the mayor would change once he got into government,” Moskowitz said, responding to de Blasio’s decision to reverse the co-locations. “Campaigning is generally different, so I didn’t expect to be in this position. And we’re feeling very vulnerable.”

So, in addition to your getting taxpayer money, you want your basic overhead paid by the taxpayers as well, meaning that the schools are getting more funding than the regular public schools, which cover both their and your building costs.

And while we are at it, I would note that she pays herself a lot of money with taxpayer dollars:

The 990s for Success Academy are public record and located here, so see for yourself: http://www.guidestar.org/FinDocuments/2012/205/298/2012-205298861-095c435d-9.pdf

According to their 2012 tax filings, in 2011, Eva’s salary was $475,244.00 with an additional $12,459.00 in other compensation, totaling $487,703.00. The tax statement also says that was for providing “management and administrative supporting services to nine district charter schools…” Let me repeat, NINE SCHOOLS in 2011.

By comparison, the pay the same year for NYC Schools Chancellor Walcott for managing 1,700 schools was $212,614.00. Let me repeat, ONE THOUSAND AND SEVEN HUNDRED SCHOOLS. Then there is US Secretary of Education Arne Duncan, who oversees the massive federal Department of Education and earns a base salary of $179,700.

Eva’s salary is obscene. Charters want to be called public schools except when it’s more convenient to be labeled private, such as when asking for CEO salaries similar to private corporations, but their revenue is tax dollars –and for schools that pay no rent. If Eva wants a CEO salary similar to private enterprises, she should open up her own privately funded schools, not raid the public coffers.

See also here, where we discover that the “hero” of Waiting for Superman Geoffrey Canada pays himself over ½ million dollars a year.

Like I said, looters gotta loot.

H/t Atrios.

MicroFlaccid is Doomed

Seriously, there is doing the smart thing, and doing the stupid thing, and then there is putting Mark Penn in charge of your strategic planning:

In the biggest shuffling of Microsoft’s executive ranks since the company’s new chief executive, Satya Nadella, took over, Mark Penn, the former aide to the Clinton family, is becoming the company’s chief strategy officer.

The change will give Mr. Penn, who has been an executive vice president at Microsoft overseeing advertising and strategy, a bigger hand in determining which markets Microsoft should be in and where it should be making further investments, according to a person briefed on the change who spoke on the condition of anonymity because it had not been publicly announced.

Tami Reller, the company’s executive vice president for marketing, who shared leadership of advertising and marketing at Microsoft, will leave the company, as will Tony Bates, Microsoft’s executive vice president of business development, this person said.

After the way he handled the Hillary campaign in 2008, when he thought that the Democratic primaries were winner take all, when delegates were proportionately allocated , I’m surprised that anyone would employ him at anything.

This is not bad strategy, this is death throes.

H/t Atrios.

What I Really Hate About United Airlines


On Hold for Hours

If you read of my recent travel problems, I should note that they were all weather related, and everyone at United was polite, and efficient, energetic, and quite competent.

I really mean that.

But, because of the inevitable consequences of the snowtastrophe, it meant that I spent hours on hold.

And United has licensed George Gershwin’s Rhapsody in Blue as its theme, and so it is their on hold music.

So I heard it for hours ……… and hours ……… and hours  ……… AND HOURS ………

It’s a musical masterpiece, and I can no longer listen to it.

UAL, drop Rhapsody in Blue as your hold music, please.

First Look Media Racks Up Another Jewel for Its Crown

This time, it’s Matt Taibbi, who is perhaps the only financial journalist in America who has not gone native with the financial services industry:

Matt Taibbi, who made a name as a fierce critic of Wall Street at Rolling Stone magazine, has joined First Look Media, the latest big-name journalist to leave an established brand to enter the thriving and well-financed world of news start-ups.

Mr. Taibbi will start his own publication focusing on financial and political corruption, he said in an interview on Wednesday. First Look is financed by the eBay founder Pierre Omidyar, who is worth $8.5 billion, according to Forbes. Mr. Omidyar has pledged $250 million to the project.

“It’s obvious that we’re entering a new phase in the history of journalism,” Mr. Taibbi said. “This is clearly the future, and this was an opportunity for me to be part of helping to found something and create something that might carry us into the next generation.”

………

First Look began its first publication, The Intercept, with the national security reporters Glenn Greenwald, Laura Poitras and Jeremy Scahill. In recent weeks, the group has hired Lynn Oberlander, formerly of The New Yorker, as its general counsel, and the author and journalist Peter Maass, among others.

Taibbi, of course nailed Goldman Sachs, and enraged vampire squid aficionados everywhere, when he described them as, “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

Also, we have seen Dan Froomkin and Jay Rosen.

This is beginning to look like an impressive team, if someone *cough* Jim Romenesko *cough* could update us on whether they are getting some utility infielders to go along with the stars, I would be more sanguine about its prospects.

I did Not Expect this From the New York Times

The Times when writing about the debate about raising the minimum wage, calls out a so called “think tank” as being a subsidiary of the hospitality industry:

Just four blocks from the White House is the headquarters of the Employment Policies Institute, a widely quoted economic research center whose academic reports have repeatedly warned that increasing the minimum wage could be harmful, increasing poverty and unemployment.

But something fundamental goes unsaid in the institute’s reports: The nonprofit group is run by a public relations firm that also represents the restaurant industry, as part of a tightly coordinated effort to defeat the minimum wage increase that the White House and Democrats in Congress have pushed for.

“The vast majority of economic research shows there are serious consequences,” Michael Saltsman, the institute’s research director, said in an interview, before he declined to list the restaurant chains that were among its contributors.

The campaign illustrates how groups — conservative and liberal — are again working in opaque ways to shape hot-button political debates, like the one surrounding minimum wage, through organizations with benign-sounding names that can mask the intentions of their deep-pocketed patrons.

Those are the first 4 paragraphs.

Seriously, the New York Times led with the fact that that a lot of the think tanks are little more than whores for their donors.

And then they name the lead pimp:

………

The Employment Policies Institute, founded two decades ago, is led by the advertising and public relations executive Richard B. Berman, who has made millions of dollars in Washington by taking up the causes of corporate America. He has repeatedly created official-sounding nonprofit groups like the Center for Consumer Freedom that have challenged limits like the ban on indoor smoking and the push to restrict calorie counts in fast foods.

………

The sign at the entrance is for Berman and Company, as the Employment Policies Institute has no employees of its own. Mr. Berman’s for-profit advertising firm, instead, “bills” the nonprofit institute for the services his employees provide to the institute. This arrangement effectively means that the nonprofit is a moneymaking venture for Mr. Berman, whose advertising firm was paid $1.1 million by the institute in 2012, according to its tax returns, or 44 percent of its total budget, with most of the rest of the money used to buy advertisements.

Disclosure reports filed by individual foundations show that its donors in recent years have included the Lynde and Harry Bradley Foundation, a longtime supporter of conservative causes. Mr. Berman and Mr. Saltsman would not identify other donors, but did say they included the restaurant industry. But its tax return shows that the $2.4 million in listed donations received in 2012 came from only 11 contributors, who wrote checks for as much as $500,000 apiece.

I am not sure why the New York Times has decided to stop channeling Claude Rains, but it is a refreshing change for the “paper of record”.

Normally this sort of “business as usual” is studiously ignored by the Washington press corps(e).

Just a Reminder: Big Ag is Evil, Not Just Monsanto, and it is US Policy to Subsidize them Through International Agreements

You really need to read this account of a systematic program of harassment and libel against Tyrone Hayes for his research showing that Syngenta’s herbicide atrazine was dangerous:

In 2001, seven years after joining the biology faculty of the University of California, Berkeley, Tyrone Hayes stopped talking about his research with people he didn’t trust. He instructed the students in his lab, where he was raising three thousand frogs, to hang up the phone if they heard a click, a signal that a third party might be on the line. Other scientists seemed to remember events differently, he noticed, so he started carrying an audio recorder to meetings. “The secret to a happy, successful life of paranoia,” he liked to say, “is to keep careful track of your persecutors.”

Three years earlier, Syngenta, one of the largest agribusinesses in the world, had asked Hayes to conduct experiments on the herbicide atrazine, which is applied to more than half the corn in the United States. Hayes was thirty-one, and he had already published twenty papers on the endocrinology of amphibians. David Wake, a professor in Hayes’s department, said that Hayes “may have had the greatest potential of anyone in the field.” But, when Hayes discovered that atrazine might impede the sexual development of frogs, his dealings with Syngenta became strained, and, in November, 2000, he ended his relationship with the company.

………

[Former student Roger] Liu and several other former students said that they had remained skeptical of Hayes’s accusations until last summer, when an article appeared in Environmental Health News (in partnership with 100Reporters)* that drew on Syngenta’s internal records. Hundreds of Syngenta’s memos, notes, and e-mails have been unsealed following the settlement, in 2012, of two class-action suits brought by twenty-three Midwestern cities and towns that accused Syngenta of “concealing atrazine’s true dangerous nature” and contaminating their drinking water. Stephen Tillery, the lawyer who argued the cases, said, “Tyrone’s work gave us the scientific basis for the lawsuit.”

Hayes has devoted the past fifteen years to studying atrazine, and during that time scientists around the world have expanded on his findings, suggesting that the herbicide is associated with birth defects in humans as well as in animals. The company documents show that, while Hayes was studying atrazine, Syngenta was studying him, as he had long suspected. Syngenta’s public-relations team had drafted a list of four goals. The first was “discredit Hayes.” In a spiral-bound notebook, Syngenta’s communications manager, Sherry Ford, who referred to Hayes by his initials, wrote that the company could “prevent citing of TH data by revealing him as noncredible.” He was a frequent topic of conversation at company meetings. Syngenta looked for ways to “exploit Hayes’ faults/problems.” “If TH involved in scandal, enviros will drop him,” Ford wrote. She observed that Hayes “grew up in world (S.C.) that wouldn’t accept him,” “needs adulation,” “doesn’t sleep,” was “scarred for life.” She wrote, “What’s motivating Hayes?—basic question.”

………

In January, 2001, Syngenta employees and members of the EcoRisk panel travelled to Berkeley to discuss Hayes’s new findings. Syngenta asked to meet with him privately, but Hayes insisted on the presence of his students, a few colleagues, and his wife. He had previously had an amiable relationship with the panel—he had enjoyed taking long runs with the scientist who supervised it—and he began the meeting, in a large room at Berkeley’s Museum of Vertebrate Zoology, as if he were hosting an academic conference. He wore a new suit and brought in catered meals.

After lunch, Syngenta introduced a guest speaker, a statistical consultant, who listed numerous errors in Hayes’s report and concluded that the results were not statistically significant. Hayes’s wife, Katherine Kim, said that the consultant seemed to be trying to “make Tyrone look as foolish as possible.” Wake, the biology professor, said that the men on the EcoRisk panel looked increasingly uncomfortable. “They were experienced enough to know that the issues the statistical consultant was raising were routine and ridiculous,” he said. “A couple of glitches were presented as if they were the end of the world. I’ve been a scientist in academic settings for forty years, and I’ve never experienced anything like that. They were after Tyrone.”

………

Michelle Boone, a professor of aquatic ecology at Miami University, who served on the E.P.A.’s scientific advisory panel, said, “We all follow the Tyrone Hayes drama, and some people will say, ‘He should just do the science.’ But the science doesn’t speak for itself. Industry has unlimited resources and bully power. Tyrone is the only one calling them out on what they’re doing.………

The Supreme Court has said that corporations are people in the Citizens United case.

Why isn’t Syngenta being criminally prosecuted for stalking?

H/t The Washington Monthly.

Capitalism, Huh?



click a picture for a slide show

When Metallica discovered that their music was being used to torture inmates at Guantanamo, they send a cease and desist letter.

Canadian electro-industrial band Skinny Puppy went a different route, and have sent an invoice demanding payment:

By now we’re all familiar with the U.S. government’s practice of using heavy metal to torture detainees. We’ve all seen “Zero Dark Thirty” and “Homeland”—we get the drill. Usually metal music is used for its general unpleasantness. It’s impossible to sleep through and just all-around unnerving.

Except Canadian band Skinny Puppy had no idea their music was being used in the service of the U.S. military.

………

The Independent points out Friday that when Metallica learned their music was being used as a torture device at Guantanamo they sent the the government a cease and desist. Skinny Puppy, on the other hand, went the other way and just sent an invoice.

“We heard that our music was used on at least four occasions,” Evin Key said. “So we thought it would be a good idea to make an invoice to the U.S. government for musical services.”

Asked how he felt about his music being used to torture people, he said, “Not too good. We never supported those types of scenarios. Because we make unsettling music, we can see it being used in a weird way. But it doesn’t sit right with us.”

It doesn’t sit right with anyone who values the idea of rule of law and civil rights, Evin.

I would remind you thought that the statutory damages for such a use, it is clearly a public performance, are on the order of $150,000 per infraction.

It might be more worth your while to sue.

Pushback on Drug Pricing

The AIDS Healthcare Foundation is lobbying to keep the $1000.00 a pill Sovaldi out of Medicaid formularies.

I wholeheartedly agree enough is enough:

In a series of letters to be sent to state Medicaid directors starting today, AIDS Healthcare Foundation (AHF) President Michael Weinstein will ask the state directors to block Gilead Sciences’ new $1,000-per-pill Hepatitis C drug Sovaldi (sofosbuvir) from inclusion on their respective state Medicaid and other drug formularies. The drug was approved by the F.D.A. on December 6, 2013 and Gilead immediately announced that it would price the drug at $84,000 for a twelve-week course of treatment—or $1,000 per tablet—making it one of the most expensive drugs ever marketed. Suggested treatment guidelines also require that Sovaldi be used with another drug, ribavirin (a nucleoside inhibitor), further adding to the cost of the prohibitively expensive course of treatment.

“When is enough, enough? At $1,000-per-pill, Sovaldi is priced 1,100% more than Gilead’s most expensive AIDS drug, Stribild, its four-in-one AIDS drug combination, which was priced at $80 per pill a year ago when it came to market,” said Michael Weinstein , President of AIDS Healthcare Foundation. “At that time, Stribild’s price was 35% more than Atripla, the company’s best selling combination HIV/AIDS treatment, and made Stribild the highest priced first-line combination AIDS therapy. Now, Gilead has set a new benchmark for unbridled greed with its outrageous price for Sovaldi—a price that some pharmacy industry sources suggest represents a retail markup of 279,000% over the cost of actually producing the drug.”

In his letter to state Medicaid directors, Weinstein wrote, “Gilead is charging a higher price for this drug even though the cost to produce it is small. According to industry reports, Gilead produces Sovaldi for approximately $1.00 per gram (with only 10 to 30 grams needed to successfully treat patients with Hepatitis C).1 This represents a retail markup of over 279,000%.

Enough is f%$#ing enough.

This sh%$ needs to stop.