Naked Capitalism

Lee Camp: How to Write Propaganda for the NY Times - As Demonstrated in an Article About Me

On June 7, the New York Times vomited up a hit piece on little ol’ me – a guy who has been doing stand-up comedy for nearly 20 years and thought maybe that comedy could be used to inform and inspire audiences, rather than just make fun of the differences between men and women.

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The Brexit Ushers in a New Era of Rebellion Against Neoliberal Economics

British voters delivered a stunning repudiation to their political and economic elites by voting to leave the European Union by a margin of 52 to 48. The fallout has already started. The pound is down by over 11%, and some experts anticipate that it could ultimately fall to as low as 1.05 to the dollar, its low in the early 1980s sterling crisis. British bank stock prices have fallen by roughly 25%. Safe haven investments have spiked: gold is up 6% and the yen has traded through 100 to the dollar. The Nikkei fell by 8% and US stock futures suggest that the Dow could open down by 600 points.

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Destroying Medicare to Save ObamaCare: Hillary Clinton’s 'Public Option' Plan

“The narrative” is that Sanders is pulling Clinton left, and one example is Clinton coming out in favor of a “public option” for Medicare. Unfortunately for the narrators, Clinton’s proposal is insultingly unserious, the “public option” has always been a defense against single payer rather than a step towards it, the Democrat nomenklatura remains as implacably opposed to single payer as it has ever been, and, most important of all, the “public option” — as a neo-liberal, market-based solution — could have a significant negative impact on Medicare. In other words, Clinton attempt to save ObamaCare politically by supporting a “public option” is — to mix metaphors terribly — a poisoned chalice for the health care system, and not an olive branch to the left. Let’s get the narrative out of the way first, and then treat the rest of these topics in order

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Uber Spends $100 Million to Save Its Business Model, But It May Have Just Doomed It

I’ve written before at this august site about how Uber’s business model is to arbitrage state and federal law and replace a monopoly with a different monopoly. They obviously placed a high value on the arbitrage. How high? About $100 million:

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Greece's PM Accepts Most Creditor Terms as Merkel Insists on Referendum

Post-bailout expiration dynamics are likely to produce even worse outcomes for Greece than it had on offer from the creditors last month. It isn’t just that the bailout funds of €7.2 billion are gone; it’s that Greece has gone over an event horizon with stringent capital controls on and the ECB ready and able to push the Greek banking system over the brink.

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How Wall St Has Quietly Bilked Billions from Cities Across the US

A recent report by Saqib Bhatti of the Roosevelt Institute describes a number of financial deals between Wall Street and municipalities as predatory. Bhatti asserts that these dirty transactions have forced cities and states to cut essential services to pay off the financial sector. On Tuesday, Bhatti's ReFund America project issued a new report specifically directed at the financial problems of Chicago and calling on the city to fight back in the courts and elsewhere against these deals.

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Obama Endorses the Bankers' Plan to Crush Greece

This story first appeared in Naked Capitalism.

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How Karl Polanyi's 'The Great Transformation' Changed My Views on the Economy

The first Christmas-New Years period for my website Naked Capitalism, in 2007, we featured a series “Something That Changed My Perspective,” which presented some things that affected how I viewed the world. The offerings included John Kay on obliquity and Michael Prowse on how income inequality was bad for the health even of the wealthy.

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The Student DebtCropper System: Even the Destitute Hounded by Debt Collectors

This article originally appeared on Naked Capitalism, and is reprinted here with their permission.

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Has Anyone Noticed That Most New Jobs Suck?

 I’m going to reverse my normal convention when I have a cross post but have something to add. Here I first offer you a MacroBusiness post (which in the layered ways of the Web relies heavily on an article by David Graeber) and natter afterwards.

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Eliot Spitzer Could Take on Private Equity Firms That Scam New York City

Eliot Spitzer, now the top contender to be the next New York City Comptroller, has said he wants to use the office to pursue financial reform. He has a ready, obvious, and comparatively easy target: the private equity industry.

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Why Larry Summers Shouldn't Be Permitted to Run a Dog Pound, Much Less the Federal Reserve

I’ve been gobsmacked to see that not only is Larry Summers on various short lists of candidates to become the next Fed chairman, but that Summers is also supposedly closing in on the favorite, Janet Yellen.

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The Sneaky Game Banking Giants Are Playing to Suck More Money From the Foreclosure Crisis

It’s conventional to deem local journalism to be dead, but Josh Salman at the Sarasota Herald-Tribune has written well-researched investigative story on bank bidding at foreclosures in his neck of the woods, Big lenders bidding to keep homes, that has national implications.

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Disgusting! Top University Administrators Create Student Debt Slaves to Subsidize Summer Palaces, Ginormous Pensions

When union members demand decent pay levels and work conditions, they are charged with featherbedding and overmanning or the new neoliberal catchall, “demanding uncompetitive wages”. But when the upper crust loots institutions, the mainstream media is typically missing in action.

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Why Are Techies Trying to Tar Snowden and the Reporters Who Went After the Story?

Some Silicon Valley figures, along with some Democratic party-aligned media outlets, have tried assailing Glenn Greenwald, and indirectly, Edward Snowden, by trying to discredit certain aspects of the Guardian account of NSA surveillance in the US. Greenwald, who has an appetite for trench warfare, deigned to rebut their efforts as of last Friday. But the tech pedants’ efforts to take down Greenwald and Snowden aren’t simply petty and disingenuous, they are ultimately destructive of the interests of American technology companies and American security.

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What's the Real Story on How Much Obamacare is Going to Cost?

Loyal Dems were over the moon with reports from California that the costs provided by insurers of various levels of plans on state exchanges were coming in under CBO estimates, as well as below prices on the current small-group market. The early huzzahs survived an effort to claim otherwise by Avik Roy at Forbes; his creative footwork with numbers was shredded in the blogosphere (although still curiously repeated by Reuters).

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"They're not rational": 80-Year-Old Educator Speaks About Her Arrest in “Moral Monday Protests” Against Extreme Right-Wing Agenda in North Carolina

Yves here. NC intern Jessica Ferrer interviewed 80 year old Barbara Parramore, who was one of 57 arrested in North Carolina on May 20 as part of what has become weekly protests at the state General Assembly called “Moral Mondays”. Background courtesy Daily Kos:

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Catholic Church Finally Decides That Austerity is Bad

It’s been slow in coming, but religious leaders are starting to speak out against the mechanisms and high social cost of austerity. One dramatic but ineffective effort was when the Archbishop of Cyprus offered to contribute all the church land in Cyprus to a rescue package. He also urged Cyprus to exit the eurozone:

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Welcome to the Brave New World of Corporatized Medicine: Just Hope You Don't Get Sick!

One of the most effective scare techniques employed to preserve our grotesquely inefficient, overpriced health care system has been to invoke the red peril of “socialized medicine”. Never mind that foreigners in advanced economies fail to recognize the caricatures scaremongers supply, or that Americans who need emergency care while overseas are almost without exception impressed with the caliber of care and astonished by the low (sometimes no) cost to them. After all, Americans live in the best of all possible worlds, and consumer and business freedom are always better.

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Economic Slowdown Coming - Even for the Fatcats

There’s a remarkable amount of optimism in the US financial media given the underlying health of the economy. Of course, the sort of short term investors that have come to dominate securities trading had been in a “risk on/risk off” pattern for a protracted period before commodities weakness and the remarkable run of the Nikkei has led to some renewed focus on relative values of various macro plays. But the markets are still dominated by an underlying faith in the willingness of central bankers to protect the backs of investors and limit any downside (while, ironically, many of these same investors howl about ZIRP and QE, which were clearly intended to goose the value of financial assets and real estate, with the hope that would lead to more consumer spending).

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How To Get Filthy Rich in Obamaworld

When I was in DC about a month ago, speaking at the Atlantic Economy conference, the keynote speaker was Paul Volcker. Tall Paul could not refrain from starting his remarks by commenting on how prosperous the capital looked and made it clear he regarded it as unseemly. And indeed, at least to someone breezing in and out, the town is ostentatiously well turned out, with lots of new construction and upscale stores and restaurants. The cab driver pointed out a new commercial building which he said had been built on spec and was leasing up well.

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Nobel Prize-Winner Joe Stiglitz Blasts America's 1 Percent-Coddling Tax System

It’s a sign of how well relentless propagandizing works that Joe Stiglitz has to devote a lengthy op-ed in the New York Times to debunking the idea that our income tax system, whose salient characteristic is low tax burdens for the rich, is good for anyone other than the rich. Economists have increasingly taken note of the fact that the US experiment in lowering taxes produced the opposite of the outcomes that were claimed for it, namely, spurring growth and increasing incomes in all cohorts (the barmy “trickle down” theory). Cross-country comparisons show that advanced economies with higher growth rates, like Germany, typically tax their wealthy more, showing that high taxes on the rich are not a negative for growth. Instead, giving tax breaks to the rich has turbo-charged rentier capitalism:

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Obama Wants to Be the President Who Rolled Back the New Deal

There is no more pretense possible. As we’ve warned for some time, Obama is eager to put a notch on his belt by being the President that rolled back the New Deal programs that helped create broad-based middle-class prosperity and dignity. He’s cast himself as an adult inflicting discipline on profligate Americans. But in reality, the profligacy was most concentrated among elite financiers who used leverage on leverage vehicles to stoke liquidity that led to worldwide underpricing of risk. They paid themselves record bonuses in the years immediately preceding the crisis, and then in a grotesque display of ingratitude, did so again in 2009, able to do so only thanks to massive taxpayer support, alphabet-soup special borrowing programs, and the tax on savers known as ZIRP. And the direct result of their looting exercise that produced the crisis was the explosion in government deficits, due to a collapse in tax revenues and a rise in payments under countercyclical programs such as unemployment insurance and food stamps.

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Corruption Alert: Presumed Incoming Treasury Secretary Jack Lew's Deal With Citigroup

Corruption has now become so routine in Washington that improprieties far worse than Turbo Timmie’s implausible failure to pay taxes on income from his days working as a consultant to the World Bank barely evoke a yawn from the media. Apparently the fourth estate is either so bedazzled by star turns, like Michelle Obama presenting at the Oscars (!!!) or so cowed by the prospect of being cut off from information that it dutifully falls in line.

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Bank of America v. The American Homeowner

Editor's Note:  This is the second post in a new series examining foreclosure settlements and the disturbing patterns of incomptency, malfeasance, and conflicts of interest which have marked their execution.Yves Smith of Naked Capitalism takes a deep dive into the mireof America's mortage industry and investigates the continued suffering of the public at the hands of greedy predators.

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Bank of America Bombshell: Whistleblowers Reveal Orchestrated Coverup and Massive Borrower Harm

Editor's Note:  In his 2012 State of The Union address, President Obama spoke of American homeownersabused by unscrupulous banks and financial institutions.Have they gotten justice? What follows is the first in a new series examining foreclosure settlements and the disturbing patterns of incomptency, malfeasance, and conflicts of interest which have marked their execution.Yves Smith of Naked Capitalism takes a deep dive into the mireof America's mortage industry and investigates the continued suffering of the public at the hands of greedy predators.

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Koch Brothers Warn GOP to Back Away from Debt Ceiling Brinksmanship

A important shift in the Republicans’ negotiating stance over the austerity fight (do we go Dem lite or Republican high test?) was duly noted in the Financial Times a day ago, but a search in Google News (“debt ceiling”) suggests a lot of other commentators have not yet digested its significance, so it seemed worthy of a short recap here.

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8 Huge Corporate Handouts in the Fiscal Cliff Bill

Throughout the months of November and December, a steady stream of corporate CEOs flowed in and out of the White House to discuss the impending fiscal cliff. Many of them, such as Lloyd Blankfein of Goldman Sachs, would then publicly come out and talk about how modest increases of tax rates on the wealthy were reasonable in order to deal with the deficit problem. What wasn’t mentioned is what these leaders wanted, which is what’s known as “tax extenders”, or roughly $205B of tax breaks for corporations. With such a banal name, and boring and difficult to read line items in the bill, few political operatives have bothered to pay attention to this part of the bill. But it is critical to understanding what is going on.

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