Scouting America for new victims

 

Boy Scouts victims begin receiving settlement payouts as appeals continue

Reuters, September 19, 2023

The Boy Scouts of America’s $2.46 billion settlement trust has begun sending payments to men who were abused as children by troop leaders, under a bankruptcy settlement still facing appeals from a minority group of abuse survivors.

The initial payments are being sent to 7,000 claimants who chose a "quick pay" option under the Boy Scouts of America's bankruptcy plan, with the first 70 claimants paid on Tuesday. Those claimants will receive $3,500 without going through the lengthier evaluation process that awaits 75,000 others who filed claims.

 

WeWork, which once pretended to be worth $47 billion, files for bankruptcy protection

 From the story here:

WeWork has struggled in a commercial real estate market that has been rocked by the rising cost of borrowing money, as well as a shifting dynamic for millions of office workers now checking into their offices remotely.

 

Bankruptcy estate of FTX sues Barbara Fried, Stanford Law ethics expert, for encouraging son to skirt disclosure rules

 

Very amusing.

We’re law experts, see. This is how you get around the law.

From the story,

FTX sues Sam Bankman-Fried’s parents, aims to claw back some of the $26 million in gifts and property :

The filing characterizes the correspondence as Bankman lobbying his son to “massively increase his own salary.” Within two weeks, the suit claims that Bankman-Fried had collectively gifted his parents $10 million in funds coming from Alameda, and within three months, the couple was deeded the $16.4 million property in The Bahamas.

According to the partially-redacted filing, Bankman-Fried’s parents also “pushed for tens of millions of dollars in political and charitable contributions, including to Stanford University, which were seemingly designed to boost Bankman’s and Fried’s professional and social status.” Fried is also accused of encouraging her son and others within the company to avoid, if not violate, federal campaign finance disclosure rules by “engaging in straw donations or otherwise concealing the FTX Group as the source of the contributions.”

Bankman-Fried’s parents are legal scholars who taught at Stanford Law School. His mother is an expert on ethics, while his father specializes in taxes.

Besides their bad character, what do Trump and Obama have in common in 2009 and 2020?

 Trump and Obama signed off on the two most fiscally irresponsible periods in post-war history, and Biden two years in looks set to join them.

The Executive is supposed to be a check on irresponsible spending. But both Trump and Obama went right along with it instead of vetoing the outrageous spending of the periods.

What else do they have in common?

Two crises, both of which plunged the country into hysteria.

The Great Financial Crisis did not begin to end until March 2009 when the FASB signaled its intent to suspend mark-to-market rules. The stock market bottomed almost immediately, but as with all cases of mass hysteria it took time for the panic to pass as other sectors recovered "one by one". 

The Pandemic Crisis gripped the country in March 2020, sending millions home from work, stocks plunging, toilet paper into shortage, businesses into bankruptcy, and on and on. With just about everyone vaccinated who was going to be by the end of 2021, the country gradually started to come out of it in 2022, eschewing jabs, masks, and social distancing as it became clear that the Omicron variant was infecting tens of millions despite all those measures.

2020 was the single most fiscally irresponsible year in the post-war since 1953. Federal expenditures, bloated by panicked bailouts, outpaced tax revenues by a whopping 216%.

Only 2009 comes close, at 210%, the second worst year on record.

Third, not shown, was 2010 at 196%, and fourth, not shown, was 2021 at 176%, each a part of the respective crisis periods.

Do you know what else those two years share in common?

Spending bills must originate in the House of Representatives.

In 2009 and 2020 its Speaker just happened to be the same person, as she was in 2010 and 2021.

Nancy Pelosi owns the four most fiscally irresponsible years in the entire history of the post-war. Her two speakerships literally busted out all over. 

Sunday morning comedy from CNBC

 

There are only 4 U.S. cities where the average American can afford a starter home

 

Detroit, Tulsa, Memphis, and Oklahoma City

 

Pack the bags, honey! We're moving! 

Adam Tooze: Central bankers' hands were forced in 2010, the poor dears, they aren't the lords of easy money, no, they're its slaves, just like us

 Here, for The New York Times:

If you are worried about wealth inequality in the United States, then the solution is not to tighten monetary policy but to make structural changes to the country’s financial system, starting with the undergrowth of shadow banking. Serious taxation of wealth and capital gains would also push in the right direction.

It would no doubt help if onetime central bankers, rather than cycling in and out of private finance, spoke out seriously in favor of reform. They would be doing the public a service if they spelled out the way that their hands were forced by the current incestuous intertwining of public debt markets with hedge funds and the like. Ultimately, however, it is politics that must grasp the nettle of change.

In the current dispensation, it may be flattering for central bankers to be cast as maestros, but in practice they are less the lords of easy money than its functionaries.     

 

 

Central bankers cycle in and out of private finance raking in millions, Adam.

 

If anyone were serious about restructuring the country's financial system, the place to start would be by restoring the key missing feature of capitalism without which it doesn't really exist. It's called bankruptcy. 

As timely now as it was in 1976

 

Has anyone on the right discussed how Trump and his Fed chair are destroying free market capitalism?

Of course not. When the right does it, it's OK, see. When the left does it, it's socialism or some damn thing. These suck ups say nothing except, "China, baaaaaaaad! America, goooooooood!"

The Fed is now buying EVERYTHING in sight in order to backstop EVERYONE. Today we learned it would buy in the municipal bond market, the commercial mortgage backed securities market, the might as well be junk bond market, and CLOs. That's not free market capitalism.

The Fed balance sheet is already past $6 trillion this week. Remember when it wasn't even a trillion back in 2007? Of course you don't. Remember when Bernanke promised to "normalize" it when the last crisis was over? Of course you don't. Guess who is promising the same thing again? Same Fed chair, different name. Jerry Powell. 

Fed Is Seizing Control of the Entire U.S. Bond Market

It's bad enough the Fed has been long buying agency mortgage backed securities and Treasury securities.

Eventually it will buy stocks, too, now that it is buying anything and everything in the bond markets.

This is all bullshit. If you believe in capitalism, then you believe in bankruptcy. Nobody believes in that anymore, least of all Donald Trump. Otherwise he'd do something about it.

So America declares itself officially dead today, as it literally dies from a virus it willingly invited in.

How fitting. 

Liberalism's mental disorder gets its death wish.

State capitalism means rewarding bankrupt Sears executives with $25 million in bonuses

Rush Limbaugh caller "New Jersey George" explains how Ted Cruz picked a fight with midwest common sense in Indiana and lost

The video of the confrontation with the "do the math" Trump supporter is here. Cruz changed the subject to anything but the fact that he no longer had a path to 1237, and never justified his staying in the race.

From the Rush Limbaugh transcript, here:

CALLER:  Okay, Rush.  Thank you for taking my call.  Been with you for many years.  Love you.  I just have this feeling -- I don't know why -- but I just have a feeling that you're a Cruz supporter.  Not a Trump supporter, I can't find that, but that's how I feel.  But the reason I called, I just wanted to defend the guy that you called brain-dead yesterday.  I watched that interview from the beginning, and, you know, we'll call him "braid-dead" since we don't know his name.  He was a very polite protester.  He was standing on the street with a Trump sign, and he wasn't bothering anybody, and, lo and behold, who comes along to cross the street, Ted Cruz.

Now, Cruz confronted him, and in the very beginning of the conversation, the number 1237 came up, and the guy knew what 1237 was, and he told Cruz in his opinion that Trump was gonna hit the 1237 and in his opinion would probably go over that.  And then he also asked Cruz a question.  He said, "I'd like to ask you a question.  Why don't you step out of the race because you've indicated that Kasich should step out, and, since you've indicated that, you think that Kasich can't make it, and neither do we think that you can, why don't you step out?" 

Now, the reason I mentioned these couple things to you, that doesn't seem to me as a brain-dead person.  That's just my opinion.  And a brain-dead person is just gonna stand there and look brain-dead.  This guy had some some some substance there.  So I didn't think it was fair that you labeled him as brain-dead.  Then Cruz started his stump speech.  And the guy was polite.  He was listening and listening and listening, and Cruz was going over all his stump speech.  And I think the guy had had it and finally didn't want to hear anything more, and he started yelling, you know, Lyin' Ted, Lyin' Ted, and he had had it.  And that's just my opinion.  And I -- I just feel that you labeled him wrong.  And I might even think that sometimes maybe I might be part of the brain-dead crowd. 

Another thing I just wanted to put in there real quick, I have a cleaning lady that was in my house yesterday, and she's from Thailand.  And Trump came on television, and she looked up and she said, I used to work for him.  I live 30 miles from Atlantic City.  So she said, I used to work for him.  And my wife said, what did you think?  Again.  And she said, he was very nice, he was a very nice person, he treated me with respect, and so did he treat all of us.

Now, they were just cleaning people in Trump's casino.  One other quickie.  I was in a restaurant a couple weeks ago, and the owner who I know came up to me, and he knows I'm a Trump guy, and he said I just gotta tell you something, he said I just had a guy was in here, and he got caught up in Trump's problems with the casino and he lost a hundred thousand dollars in the bankruptcy.  He said, but I'm gonna tell you something.  I lost a hundred G's, he says I'm gonna tell you, I'm voting for him.  You know why?  He's a straight shooter.  He said he got caught up in a bad situation, and he did his very best, he says, so he's got my vote.  I just wanted to pass these things on, and I want to tell you, I love you, I'll always be with you.

Enjoy the Big Boob on the Right while you can: Limbaugh's iHeartMedia may not last until the election

 

 From the story here:

Concurrently, iHeartRadio’s parent company, iHeartMedia, is heading to court, teetering on bankruptcy. The once-dominant radio behemoth is saddled with $20 billion in debt, thanks to a misguided leveraged takeover engineered by Bain Capital in 2008, the same year the radio giant inked its disastrous Limbaugh deal. ... “It’s not a question of whether it collapses but when, and it’s likely to come sooner rather than later,” suggested Media Life. “It could be within months."

Obama's war on coal kills Peabody Energy, the US' largest coal company

Number two Arch Coal went belly up in January.

Story here.

Meanwhile 7 coal-fired power plants in Michigan are closing this week to meet new EPA emission regulations. Almost 1,000 megawatts of electricity generating capacity go away as a result, to be replaced by north of 500 megawatts of capacity from a natural gas plant.

Details here.

Another Obama achievement: deliberately bankrupting coal companies, destroying jobs and making electricity more expensive

From the story here at Bloomberg yesterday detailing the coal bankruptcies:

Obama has backed tougher limits on carbon dioxide blamed for climate change.

New mercury standards that took effect last year led utilities to retire 23 gigawatts of coal-fired electricity, according to Bloomberg New Energy Finance.

On Friday, his administration said it will stop leasing public land to coal developers and will weigh raising royalty fees for exploration while it studies the fuel’s environmental impacts.

Both production and demand for coal this year will fall to the lowest level since 1983, the U.S. Energy Information Administration said this week. ...

Arch [Coal Inc.] has followed Alpha Natural Resources Inc., Patriot Coal Corp., Walter Energy Inc. and James River Coal Co., in bankruptcy.

In other news, mining (129,000) and logging jobs (2,000) declined 131,000 in 2015, the biggest decline since 1986 and the third worst year of declines since 1939.

Since 2007 net generation of electricity from coal has declined by almost 30% through October 2015.

While retail sales of electricity in 2014 are almost exactly identical to such sales in 2007, measured in kilowatthours purchased, the cost of that electricity has gone up over 18% over the same period as coal's role is being deliberately curtailed.

Bankruptcy judge lets GM off the hook for 80 deaths

Here's the lede from the story:

A federal judge handed General Motors a multi-billion-dollar reprieve Wednesday, ruling that the company could not be sued in hundreds of death and injury claims related to the defective ignition switches that are estimated to have killed more than 80 people.

According to [retiring] Judge Robert Gerber, GM’s government-overseen bankruptcy and reorganization in 2009 shields it from liability for actions the company had made previously, despite claims by the families of people injured or killed by the ignitions that GM had been misleading the court at that time about the ignition-switch woes in older, smaller cars.

Read the rest here.

Charlie Hebdo to exploit mockery of Muhammad in an attempt to escape bankruptcy

Yahoo News reports here:

This week's three million copies of Charlie Hebdo, the first post-attack issue of the French satirical weekly, will defiantly feature caricatures of the Prophet Mohammed, its lawyer said Monday. ... The paper's distributors, MLP, had initially planned to print one million copies of the issue currently being put together by survivors of the shooting. But MLP said demand from France and abroad has been huge and that three million copies would now be released. The original paper printed at 60,000 copies a week, selling 30,000. ... Charlie Hebdo had been sliding towards bankruptcy before the attack against it. ... Wednesday's edition aims to raise fresh cash to ensure the survival of the weekly, with all revenue from the sales, at three euros ($3.5) a copy, going to Charlie Hebdo once the cost of the paper has been deducted.

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Israeli-American Rahm Emanuel once said "never let a good crisis go to waste".

I predict they'll fail.

IEA revises down 2015 oil demand growth by 20%, a third of British oilers in big trouble, mostly smaller

Andrew Critchlow reported Dec. 12th here:

The International Energy Agency (IEA) said on Friday that world demand for oil will grow by 900,000 barrels per day (bpd) next year, a downward revision of 230,000 bpd from its previous estimate.

The Paris-based watchdog now expects world demand to reach 93.3m bpd in 2015. The agency said: "A strong dollar and the lifting of subsidies have so far limited supportive price effects on demand."

And here on the 29th:

A third of Britain’s listed oil and gas companies are in danger of running out of working capital and even going bankrupt amid a slump in the value of crude, according to new research.

Financial risk management group Company Watch believes that 70pc of the UK’s publicly listed oil exploration and production companies are now unprofitable, racking up significant losses in the region of £1.8bn.

Terri Lynn Land is basically a TARP Republican, not a capitalist who believes in bankruptcy

Terri Lynn Land quoted here:

I think that doing something to protect the auto industry was the right thing to do, but I would have preferred a plan with more private financing. However, if the options were choosing between going this route and doing nothing, I am glad the auto industry was preserved and is growing again.

Gold bug Ralph Benko thinks Richard Nixon had to resign over the closing of the gold window!

I like Ralph Benko. Ralph Benko often makes important arguments on behalf of the gold standard. But when he tries to force everything in the universe to be interpreted through the lens of it you know you have met an ideologue who has become unhinged from reality. Which is why Forbes is a good place for him.

His latest screed here is a mere flight of fantasy, imagining Richard Nixon was forced to resign over the closing of the gold window in 1971. Had he presented it as such, it would have entertained and illumined, even pleased. Instead, its talk of correlation only annoys, the way a chart reader plots two things on a graph and yells 'See! See! They both go up together!' Against Benko, Pat Buchanan may be forgiven for ignoring what didn't exist, just as Nixon's enemies ignored it, except in the fever camps of utopianism.

Benko makes Thomas Paine's opinions about gold a prophecy reaching 200 years into the future where gold becomes Nemesis and the end of Bretton Woods Hubris. Covering up Watergate? Well, simply an instrumental little detail:

"The House Judiciary Committee’s charges and the Connally indictment uncannily fulfill a prophecy by Tom Paine. ... Connally was acquitted on the charges of graft and perjury.  Later he underwent bankruptcy before dying in semi-disgrace.  Nixon resigned rather than undergoing impeachment, also living out his life in disgraced political exile.   The spirit of Paine’s declaration was fulfilled in both cases. Connally and Nixon engineered this violation, abandoning the good, precious-metal, money contemplated by the Constitution. Nemesis followed hubris. The closing of the 'gold window' was based, by Connolly, on deeply wrong premises.  It was sold to the public, by Nixon, on deeply false promises."

Methinks Tom Paine himself would be a little embarrassed at the almost religious regard with which some of his present day followers come to what he has left behind for us on paper.

He'd probably call them Burkeans.

Monetarism on the rocks: TCMDO has grown less than 19% in 6.5 years

Deflation in today's economy is not a decline in the general price level but a decline in the expansion of total credit market debt outstanding, now unhelpfully called "all sectors credit market instruments liability level". The monetarists keep trying to get the borrowing engine going again, but to no avail, and the bottle of Viagra seems to be always in need of a refill. In six and a half years total credit market debt outstanding has grown by a paltry 18.7%. During the good old days of Jimmy Carter and Ronald Reagan TCMDO twice doubled in as little time. At this rate it will take 35 years from 2007 for TCMDO to double again when the longest it has taken in the post-war is about eleven and a half.

Conservatives may well mock the flacid, shriveling manhood of our metrosexual economy, but in the absence of structural measures designed to reward savers in the form of strong currencies and honest rates of return and punish spendthrifts with budget disciplines, what we are witnessing is a crack-up of epochal proportions which threatens to wipe away the achievements of centuries.

Who could possibly be happy about that?

The best that we can hope for is an arrangement which will buy us time to pay back what we have borrowed from the future for the prosperity of the past. It will require us to sober up. It will require personal repentance. The alternatives are a long slow decline into poverty, bankruptcy and war if we do nothing, or a stimulation-induced heart attack if we keep on the present path. 

Criminal GM discovers it can kill 13 people and it only costs them $2.9 million a pop

We bailed out these creeps, why?

The guilty should be in jail and the company dissolved. It remains arrogant about the matter to this day.

Story here:

WASHINGTON — Three months after announcing the start of a safety recall that has swelled to include 2.6 million cars, General Motors has agreed to pay the federal government $35 million -- the maximum penalty -- for failing to report the potentially deadly defect earlier. ... GM has asked a bankruptcy court in New York to rule that it is protected from economic loss claims associated with the recalled vehicles. GM went through a government-backed bankrutpcy reorganization in 2009, which voided any liability claims tied to products made before July 2009.