Author Archives: Guy B.

Scams

Foreclosure rescue fraud — A Florida company that made false promises that it could help homeowners avoid foreclosure has agreed to pay $2.4 million to settle a lawsuit brought by the FTC. Home Assure LLC typically charged consumers an upfront fee ranging from $1,500 to $2,500 but did little or nothing to help them avoid foreclosure, the lawsuit alleged. Under the settlement, the company agreed to refrain from making false promises.

No debt relief, no fee — Starting in October, for-profit companies that help consumers reduce credit-card debt won’t be able to charge fees until they’ve successfully renegotiated the debt, the FTC said. The advance-fee ban was aimed to prevent these companies from collecting fees and then failing to perform services for consumers, said FTC Chairman Jon Leibowitz. “Too many of these companies pick the last dollar out of consumers’ pockets and, far from leaving them better off, push them further into debt — even bankruptcy,” he said. In order to charge a fee, the companies will need to reduce or renegotiate at least one debt, the FTC said.

L.A. Times Aug 2nd 2010

Casino Jack & Seeing the Barrel not the Apples

I had dinner last week with some pretty well-to-do, erudite, 50-70 year-olds. All of whom were well-traveled, with successful careers in finance and business.  And so, conversation turned to the European Crisis concerning the Greece bailout. The gist of the whole thing was platitudes like, this or that government should have been quicker to respond or Angela Merkel should not have dragged her feet about this or that point.

And then I was like what about Wall-Street (Goldman Sachs advisory role to Greek government)?  What about the US mortgage crisis and the barely averted collapse of the world financial system?

“Yeah, but those are two separate issues.”

I was like: “Not really, because most of this would not have been possible without lack US regulation, which foments an industry of fraud (lets not mince words) and in turn this industry, creates a de-regulatory race to the bottom around the world, but more importantly engenders extreme market volatility that is disruptive to responsible public and private financial planning and creates unprecedented events Nissim Taleb likes to call ‘Black Swans’.

So, A N Y W A Y S, . . . after we labored through a few more points, I argued that behind all this is, if the United States and its businesses are to be considered a substantial influence of world affairs and global trends, then an astute observer would have to trace this de-regulatory bonanza to a profoundly corrupt political system where money alone is the only currency.

And of course there is corruption around the world, including in Europe.  Hell, like most things you could argue Greece invented it!  But I still find that the relationships American power brokers entertain with the mirror they face in the morning simply doesn’t compare to their European equivalents.  I feel the presence of a remnant, but still tenacious thin layer of minimum self-respect within the governing classes of Europe that seems largely absent in America.

This documentary, Casino Jack and the United States of Money, about Jack Abramov, looks excellent and hopefully will do a great job of illustrating those two churning wheels that are Congress and moneyed interests that fit and feed off each other.

And hopefully the documentary will resonate the words of Philip Zimbardo: “Its not about the a few ‘bad apples’, its about the barrel“.  In other words its not about Chancellor Merkel holding a particular viewpoint, or the level of government coordination in response to a given crisis.  Its about the system that birthed this crisis.

- Guy B.

Mr Blackwell and Plate Tectonics?

Video: Exclusive – Ken Blackwell Extended Interview Pt. 2 | The Daily Show | Comedy Central.

Ken Blackwell says President Obama is building an unchecked executive branch in this complete, unedited interview.

Its no small feat to attempt to understand something rather then get infuriated by it.  But indeed, as often as possible, I try to start from the humanist perspective that nobody wakes up in the morning and decides to be a douche bag.  That’s my starting point.

Somethings are like explaining the Himalayan Mountains with plate tectonics:  its complicated and hard to fathom.

I figure Mr Blackwell just really didn’t think this through when he decided to put his name to a book he was probably offered ready-made with a bow and check.

[SCENE]

February 12, 2010 Cincinnati, OH

Publishing Rep: “Hey, it’ll be easy.  You sign this book deal.  Go on a light book tour – all amenities -, radio, TV a few days a week for 2 or 3 months.  And you get to pocket this big check.”
“Hmmm, …” Mr Blackwell thought to himself as he considered the offer.

“Look this is the way all the books come out these days.  Our research confirms there is a market for this kind of material.  People want to read about this stuff, they want to buy this book.  We’re just providing them with a product.  Putting it on a shelf, you know, if someone walks by and wants to pick up a copy for $22.95 (on each of which incidentally, you will get $2.50) … Really Ken…who are we to to stop ‘em?”

Continuing after pausing for the last gulp out of a diet Coke can, “Look, this book is coming off the press in 8 weeks.  We are looking for a high-profile name to put on the cover and slipping in a 6 figure thank you note for your trouble.  I mean really Ken, you were Mayor 30 years ago.  You lost your gubernatorial bid in 2006, you had a nice day job as Secretary of State.  You’re 62 for Christ sake.  Why don’t kick back.  Lighten up.  Enjoy yourself a little.  You deserve this, man.”

Here is my card again, think it over the weekend.  Give me a holar if you have any questions and I’ll call you on Monday. Aight?  Give my best to Rosa.”

Ken stared at the card and started to feel like this indeed starting to make sense.

[END SCENE]

Mr Blackwell is clearly not enjoying himself on the Daily Show.  He did not wish this on himself, to be obliged to defend completely bogus, unsubstantiated claims on TV for money.

I mean, seriously, who actually WANTS to be a douche bag? Answer:  No One.  But it happened, for reasons that are kinda complicated and not intuitively perceivable .

Like plate tectonics and the Himalayas, money corrupts everything.

YouTube – RIGHT WING ANTI-GOV. COWARDS THREATEN CONGRESS’S KIDS WHILE ON SOCIAL SECURITY OVER H.C. REFORM

Newborn with Birth Defect Denied Health Care Coverage Because of ‘Pre-existing Condition’

The backlash: Reform turns personal – Jake Sherman and Marin Cogan – POLITICO.com

The backlash: Reform turns personal – Jake Sherman and Marin Cogan – POLITICO.com.

THE TEA PARTY & THE CIRCUS – Final Healthcare Reform Protest

Markets, State & Democracy: Lessons from the Crisis

Here I thought to post something a little different.  Less provocative.  I’d say this is an elegant, balanced and erudite explanation of why its a POSC.  But, more importantly why its important to not allow it to worsen and identifying the front-lines to be defended.

FORA.tv – Markets, State & Democracy: Lessons from the Crisis

BIO:

Jeffrey Sachs – Jeffrey Sachs is the Director of the Earth Institute at Columbia University. He also is the author of Common Wealth: Economics for a Crowded Planet.

Originally one of the youngest economics professors in the history of Harvard University, Sachs became renowned for implementing economic shock therapy throughout the developing world, and subsequently for his work on the challenges of economic development, environmental sustainability, poverty alleviation, debt cancellation, and globalization.

Lisa J. Servon – Lisa J. Servon is Dean of Milano The New School for Management and Urban Policy. She is also a Senior Research Fellow at the Center for Work Life Policy. Former Associate Professor and Associate Director, Community Development Research Center. Dr. Servon was also assistant professor at the Bloustein School of Planning and Public Policy at Rutgers University. Professor Servon’s teaching and research focus on urban poverty, community development, economic development, and gender issues. Her book, Bootstrap Capital: Microenterprises and the American Poor, was published by Brookings Institution Press in 1999.

Man Racks Up Giant Phone Bill Trying to Claim Unemployment Check

Man Racks Up Giant Phone Bill Trying to Claim Unemployment Check.

A 72-year old man spent so much time on hold with a state unemployment agency trying to claim his benefits that he racked up a $700 cell phone bill, reports Jeremy Joyola of Eyewitness News 4 in Albuquerque.

Ernie Sanchez called the New Mexico Department of Workforce Solutions, a government-run unemployment relief agency over a thousand times trying to get his unemployment money to cover his basic needs, but could not seem to get through. Now, he told Joyola, he has to use almost all of the benefits to pay his Verizon bill.

“It’s almost the same amount for two weeks of benefits that I was trying to get,” Sanchez said.

Joyola writes: “The bill shows Sanchez made 1,114 calls to the unemployment office in one month. Some days, it took hundreds of calls to get through — each call costing $0.45. When he would get through, he says he would be put on hold. One time, he was on hold for almost 3 1/2 hours.”

That one phone call cost Sanchez nearly $100, the article reports..

“I feel cheated in some way,” Sanchez said.

Reader debate: Is America ungovernable? | The Economist

Oy - Vey!

Reader debate: Is America ungovernable? | The Economist.

Yes it is broken.  And yes it has become ungovernable.

It’s about time a publication such as the Economist treats the real larger problem of the forum in which public debate is conducted in America. It is however very disappointing to see that the Economist sides with the view that nothing out of the ordinary is going on.

In fact, Rome is burning.

For starters, You can not have a healthy democracy without an informed citizenry.  In this regard, US media institutions do not fulfill their important role as the fourth pillar of government.  They have been faced with a conflict of interest as they have become corporations and have been under growing pressure to interpret their statutory object ever more strictly (the object of the company is … to maximize profits.)  And as any decent fan of Spiderman will know from the not so endearing character Mr Paterson, Editor-in-chief at the Daily Bugle, “If it bleeds, it leads”.

With the FCC’s 1987 decision to repeal of the “fairness doctrine”, sensationalism led the way to greater profitability.  Media’s profit margins were no longer restrained by the obligation to inform the public in an honest and equitable fashion of events of public importance.  And so the deluge of asinine pundits and their deliberate shenanigans began their work in every home in America.

So the idea that a majority of American’s believe this or that, terrifyingly loses its force as a compelling argument.

I dare say that not all opinions are equal.  Some people indeed speak with more authority then others.  Those who have reached a position on a subject after considerable thought and information, do not have the same resonance as those who support Sarah Palin, for example because she’s “a mom” or “she stands for what America is”.   See their inability to explain why they support her her: http://bit.ly/8sVZ4Z They can’t because its like asking someone why they like chocolate or why they’ve fallen in love.  It is not a rational informed decision.

And so we must distinguish between between rational and emotional decision-making.  Both are very important in human behavior and both are indispensable, but they are also very different and more or less suitable for different exercises.  The science of pushing emotional buttons in conjunction with broadcasting technology has completely changed the democratic landscape.  On the Science of Public Relations (aka: propaganda) and its application to modern politics, see BBC’s 4 part special The Century of the Self by Adam Curtis.

So all the above is important to understand how intellectual lightweights have taken over congress in unprecedented numbers.  And that is a sacrilege to the venerable institution.  Those lightweights are more likely to be malleable to their corporate sponsors.  And so the vocation has become professionalized re-election.  Just as News chiefs are no longer in the business of informing but in the business of ratings, congressmen are not in the business of solving problems, but in the business of re-election.  And that requires first and foremost, financing.  See Lawrence Lessig’s efforts: http://bit.ly/5htaPc

In sports there is such a thing as fair play and we find it admirable.  A healthy sense that while we are adversaries, ultimately we’re all in this together, to play ball.  In politics too there has to be a minimum duty of care to debate and confront ideas fairly.  And this has all but disappeared.  Demagoguery is rampant.

Campaign Finance reform seems to be the absolute first step necessary for any change for the better.  Otherwise the countries immobilism will simply lead America to be crushed under its own weight, plundered by its wealthiest and outpaced by other nations to be reckoned with.  Considering America has half of the worlds fire power this should be a worrisome prospect for the entire human race.

Rome is burning and someone should start to cry “Fire”.