Tuesday, February 04, 2014

Morgan Stanley to pay $1.25 billion to resolve mortgage lawsuit

Morgan Stanley to pay $1.25 billion to resolve mortgage lawsuit | Reuters

"Morgan Stanley said it would pay $1.25 billion to the U.S. regulator
for Fannie Mae and Freddie Mac to settle a lawsuit related to the sale
of mortgage-backed securities.



The Wall Street bank will add
$150 million to its legal reserves as a result of the settlement with
the Federal Housing Finance Agency, Morgan Stanley disclosed in a
regulatory filing on Tuesday"

"The FHFA in January said it had recouped
nearly $8 billion through settlements with financial institutions it
sued in 2011 over allegedly false and misleading statements relating to
some $200 billion in mortgage-backed securities sold to Fannie and
Freddie.

The housing authority commenced lawsuits against 18 financial institutions in 2011.

Last December, Deutsche Bank said it would pay $1.9 billion to settle claims, while Citigroup paid $250 million."



JPMorgan to pay $614 mln in U.S. mortgage fraud case

JPMorgan to pay $614 mln in U.S. mortgage fraud case | Reuters

"JPMorgan Chase & Co
settled the latest in a string of legal claims on Tuesday when
it agreed to pay $614 million to the U.S. government and
admitted that it defrauded federal agencies by underwriting
sub-standard mortgage loans.

JPMorgan, the largest U.S. bank by assets, said as part of
the settlement that for more than a decade it approved thousands
of insured loans that were not eligible for insurance by the
Federal Housing Administration or the Department of Veterans
Affairs, according to court papers.

As a consequence, "both the FHA and the VA incurred
substantial losses when unqualified loans failed and caused the
FHA and VA to cover the associated losses," the U.S. Justice
Department said in a statement.

JPMorgan is one of several banks that has faced similar
allegations. Citigroup Inc and Deutsche Bank AG
have also reached settlements, while the Justice Department is
seeking $2.1 billion in penalties from Bank of America Corp
after a jury found the bank liable for fraud over
mortgages sold by its Countrywide unit.

Last year, JPMorgan agreed to about $20 billion in
settlements in its drive to clear up legal claims. The deals
covered claims over other mortgage issues, as well as
derivatives and power trading."

Monday, February 03, 2014

Net worth of billionaire community up 12-fold in 15 yrs in India: IMF

Net worth of billionaire community up 12-fold in 15 yrs in India: IMF - Hindustan Times:

"Citing countries like the US and India, the two largest democratic countries, the International Monetary Fund (IMF) managing director Christen Lagarde has said that income inequality is increasing dangerously globally.

"In India, the net worth of the billionaire community increased twelve-fold in 15 years, enough to eliminate absolute poverty in this country twice over," said Lagarde delivering the Richard Dimbleby Lecture in London, according to the copy of the speech made available by the IMF."

Saturday, February 01, 2014

Losing the Propaganda War - NYTimes.com

Israel losing the Propaganda War - NYTimes.com

"The
“apartheid wall,” “apartheid roads,” colonization, administrative
arrests, travel restrictions, land confiscations and house demolitions
are the clay apartheid comparisons are made of, and cannot be hidden or
denied, for as long as Israel continues with the status quo.
Military
occupation comes with checkpoints, antiterrorist barriers, military
courts, armed soldiers and tanks. That’s the reality, no matter what
your politics, and just the ammunition the Palestinians and their
supporters need in their new war."
"..
Israel is doing almost everything it can to help its opponents achieve
their goal. Instead of focusing on peace talks, Israel continuously
signals its intention to build more settlement housing, most recently on
Jan. 10, when plans for 1,400 new homes in East Jerusalem and the West
Bank were announced. Instead of welcoming Eritrean and Sudanese refugees
seeking asylum — the way that a former Likud Party prime minister,
Menachem Begin, did in 1977 with the Vietnamese boat people, saying they
reminded him of Jewish refugees during the Holocaust — Israel is
confining today’s asylum-seekers to a camp in the desert, providing
reams of footage to those who want to prove Israel is a racist society.
And
it didn’t help when, on Dec. 15, a ministerial committee approved a
bill that would impose heavy, punitive taxes on groups like B’Tselem,
which tracks alleged human rights violations in the occupied
territories, and Adalah, the legal center for minority rights in Israel."

Tuesday, January 28, 2014

The American Scholar: The Disadvantages of an Elite Education - William Deresiewicz

The American Scholar: The Disadvantages of an Elite Education - William Deresiewicz:



Came across this blog - some of it resonates so well -



"Elite schools nurture excellence, but they also nurture what a former Yale graduate student I know calls “entitled mediocrity.” A is the mark of excellence; A- is the mark of entitled mediocrity. It’s another one of those metaphors, not so much a grade as a promise. It means, don’t worry, we’ll take care of you. You may not be all that good, but you’re good enough.

Here, too, college reflects the way things work in the adult world (unless it’s the other way around). For the elite, there’s always another extension—a bailout, a pardon, a stint in rehab—always plenty of contacts and special stipends—the country club, the conference, the year-end bonus, the dividend. If Al Gore and John Kerry represent one of the characteristic products of an elite education, George W. Bush represents another. It’s no coincidence that our current president, the apotheosis of entitled mediocrity, went to Yale. Entitled mediocrity is indeed the operating principle of his administration, but as Enron and WorldCom and the other scandals of the dot-com meltdown demonstrated, it’s also the operating principle of corporate America. The fat salaries paid to underperforming CEOs are an adult version of the A-. Anyone who remembers the injured sanctimony with which Kenneth Lay greeted the notion that he should be held accountable for his actions will understand the mentality in question—the belief that once you’re in the club, you’ve got a God-given right to stay in the club. But you don’t need to remember Ken Lay, because the whole dynamic played out again last year in the case of Scooter Libby, another Yale man.
If one of the disadvantages of an elite education is the temptation it offers to mediocrity, another is the temptation it offers to security. When parents explain why they work so hard to give their children the best possible education, they invariably say it is because of the opportunities it opens up. But what of the opportunities it shuts down? An elite education gives you the chance to be rich—which is, after all, what we’re talking about—but it takes away the chance not to be. Yet the opportunity not to be rich is one of the greatest opportunities with which young Americans have been blessed. We live in a society that is itself so wealthy that it can afford to provide a decent living to whole classes of people who in other countries exist (or in earlier times existed) on the brink of poverty or, at least, of indignity. You can live comfortably in the United States as a schoolteacher, or a community organizer, or a civil rights lawyer, or an artist—that is, by any reasonable definition of comfort. You have to live in an ordinary house instead of an apartment in Manhattan or a mansion in L.A.; you have to drive a Honda instead of a BMW or a Hummer; you have to vacation in Florida instead of Barbados or Paris, but what are such losses when set against the opportunity to do work you believe in, work you’re suited for, work you love, every day of your life?
Yet it is precisely that opportunity that an elite education takes away. How can I be a schoolteacher—wouldn’t that be a waste of my expensive education? Wouldn’t I be squandering the opportunities my parents worked so hard to provide? What will my friends think? How will I face my classmates at our 20th reunion, when they’re all rich lawyers or important people in New York? And the question that lies behind all these: Isn’t it beneath me? So a whole universe of possibility closes, and you miss your true calling."
"The system forgot to teach them, along the way to the prestige admissions and the lucrative jobs, that the most important achievements can’t be measured by a letter or a number or a name. It forgot that the true purpose of education is to make minds, not careers.

Being an intellectual means, first of all, being passionate about ideas—and not just for the duration of a semester, for the sake of pleasing the teacher, or for getting a good grade. A friend who teaches at the University of Connecticut once complained to me that his students don’t think for themselves. Well, I said, Yale students think for themselves, but only because they know we want them to. I’ve had many wonderful students at Yale and Columbia, bright, thoughtful, creative kids whom it’s been a pleasure to talk with and learn from. But most of them have seemed content to color within the lines that their education had marked out for them."
"When elite universities boast that they teach their students how to think, they mean that they teach them the analytic and rhetorical skills necessary for success in law or medicine or science or business. But a humanistic education is supposed to mean something more than that, as universities still dimly feel. So when students get to college, they hear a couple of speeches telling them to ask the big questions, and when they graduate, they hear a couple more speeches telling them to ask the big questions. And in between, they spend four years taking courses that train them to ask the little questions—specialized courses, taught by specialized professors, aimed at specialized students. Although the notion of breadth is implicit in the very idea of a liberal arts education, the admissions process increasingly selects for kids who have already begun to think of themselves in specialized terms—the junior journalist, the budding astronomer, the language prodigy. We are slouching, even at elite schools, toward a glorified form of vocational training.
Indeed, that seems to be exactly what those schools want. There’s a reason elite schools speak of training leaders, not thinkers—holders of power, not its critics. An independent mind is independent of all allegiances, and elite schools, which get a large percentage of their budget from alumni giving, are strongly invested in fostering institutional loyalty. As another friend, a third-generation Yalie, says, the purpose of Yale College is to manufacture Yale alumni. Of course, for the system to work, those alumni need money. At Yale, the long-term drift of students away from majors in the humanities and basic sciences toward more practical ones like computer science and economics has been abetted by administrative indifference. The college career office has little to say to students not interested in law, medicine, or business, and elite universities are not going to do anything to discourage the large percentage of their graduates who take their degrees to Wall Street. In fact, they’re showing them the way."
"The world that produced John Kerry and George Bush is indeed giving us our next generation of leaders. The kid who’s loading up on AP courses junior year or editing three campus publications while double-majoring, the kid whom everyone wants at their college or law school but no one wants in their classroom, the kid who doesn’t have a minute to breathe, let alone think, will soon be running a corporation or an institution or a government. She will have many achievements but little experience, great success but no vision. The disadvantage of an elite education is that it’s given us the elite we have, and the elite we’re going to have."



Monday, January 27, 2014

Why Do Some Americans Speak So Confidently When They Have No Clue What They're Talking About? | Alternet

Why Do Some Americans Speak So Confidently When They Have No Clue What They're Talking About? | Alternet:

"The Harvard Business School information session on how to be a good class participant instructs, “Speak with conviction. Even if you believe something only 55 percent, say it as if you believe it 100 percent,” Susan Cain reported in her bestselling book Quiet. At HBS, Cain noticed, “If a student talks often and forcefully, then he’s a player; if he doesn’t, he’s on the margins.”

Cain observed that the men at HBS “look like people who expect to be in charge.... I have the feeling that if you asked one of them for driving directions, he’d greet you with a can-do smile and throw himself into the task of helping you to your destination — whether or not he knew the way.”
HBS alumni include George W. Bush, class of 1975, as well as:
  • Jamie Dimon, 1982, CEO and chairman of JP Morgan Chase
  • Grover Norquist, 1981, president of Americans for Tax Reform
  • Henry Paulson, 1970, former U.S. Secretary of the Treasury, former CEO of Goldman Sachs
  • Mitt Romney, 1975, former governor of Massachusetts, co-founder of Bain Capital
  • Jeffrey Skilling, 1979, former CEO of Enron, convicted of securities fraud and insider trading
People with great power over our lives, in government, business, medicine, and elsewhere, who don’t know what they are talking about are scary. Even more scary are people in authority who don’t know what they’re talking about but who have spent a lifetime perfecting how to appear like they do. Complete conviction and total certainty are sources of great power, especially over vulnerable and uncertain people. And so the pretense of conviction and certainty can be quite damaging.
Jim Cramer, host of CNBC’s “Mad Money” and former hedge-fund manager, received his BA from Harvard and his JD from Harvard Law School. In 2007, Market Watch quoted Cramer: “What's important when you are in that hedge-fund mode is to not do anything remotely truthful because the truth is so against your view, that it’s important to create a new truth, to develop a fiction.”
Some Harvard graduates have famously rebelled against bullshit training, as Harvard alumni also include Henry David Thoreau and David Halberstam. Halberstam’s 1972 book The Best and the Brightest, with its ironic and mocking title, takes down pseudo-certain Harvard (and other Ivy League-educated) presidential advisers who convinced American leaders and the American public that the Vietnam War was a great idea. To be fair to Harvard alumni, some of America’s most famous pseudo-certain government officials did not attend Harvard, including Donald Rumsfeld (Princeton) and Alan Greenspan (New York University)."

Sunday, January 26, 2014

The new face of food stamps: working-age Americans

The new face of food stamps: working-age Americans

"In a first, working-age people now make up
the majority in U.S. households that rely on food stamps - a switch from
a few years ago, when children and the elderly were the main
recipients."


"Economists say having a job may no longer be enough for self-sufficiency in today's economy.

"A
low-wage job supplemented with food stamps is becoming more common for
the working poor," said Timothy Smeeding, an economics professor at the
University of Wisconsin-Madison who specializes in income inequality.
"Many of the U.S. jobs now being created are low- or minimum-wage -
part-time or in areas such as retail or fast food - which means food
stamp use will stay high for some time, even after unemployment
improves.""


 

Bayer Pharmaceutical CEO: Cancer drug only ‘for western patients who can afford it’ | The Raw Story

Bayer Pharmaceutical CEO: Cancer drug only ‘for western patients who can afford it’ | The Raw Story

"In an interview with Bloomberg Businessweek, Bayer CEO Marijn Dekkers said that his company’s new cancer drug, Nexavar, isn’t “for Indians,” but “for western patients who can afford it.”


The drug, which is particularly effective on late-stage kidney and liver cancer, costs approximately $69,000
per year in India, so in March 2012 an Indian court granted a license
to an Indian company to produce to the drug at a 97 percent discount.


Bayer sued Natco Pharma Ltd., but in March of last year, the High
Court in Mumbai denied its appeal. Bayer CEO called the compulsory
license issued by the Indian court “essentially theft,” then said “[w]e did not develop this medicine for Indians…[w]e developed it for western patients who can afford it.”


Nexavar costs approximately $96,000 per year in the United States, but Bayer assures “western patients” that they can have access to the drug for a $100 copay."

Friday, January 24, 2014

Less than a fifth of registered US voters say most in Congress deserve re-election

Record Low Say Own Representative Deserves Re-Election:



"The enduring unpopularity of Congress appears to have seeped into the nation's 435 congressional districts, as a record-low percentage of registered voters, 46%, now say the U.S. representative in their own congressional district deserves re-election. Equally historic, the share of voters saying most members of Congress deserve re-election has fallen to 17%, a new nadir.

Trend: Americans' Views on Whether Their Member, Most Members of Congress Deserve Re-Election
"The 17% of voters who now say most of Congress deserves re-election is well below the roughly 40% threshold that has historically been associated with major electoral turnover. With this in mind, Congress could be in for a major shake-up. Judging by net seats lost in an election as a percentage of the overall number of seats, 2010, 1994, and 2006 register as the top three recent elections. All of these years had election-year averages of 41% or fewer voters saying most of Congress deserved re-election, with the Republican-wave election of 2010 registering the lowest, 30% -- still 13 percentage points higher than the current reading.
Trend: Do Most Members of Congress Deserve Re-Election? 1992-2012 averages, plus House seat turnover and new membership
"Consistent with abysmally low congressional approval ratings and widespreaddissatisfaction with the nation's system of government, the proportion of registered voters saying Congress deserves re-election has hit an all-time low of 17%. While Congress as an institution is no stranger to voter disenchantment, American voters are usually more charitable in their assessments of their own representatives in the national legislature. But even this has fallen to a new trough.
Typically, results like these have presaged significant turnover in Congress, such as in 1994, 2006, and 2010. So Congress could be headed for a major shake-up in its membership this fall.
However, unlike those three years, when one party controlled both houses of Congress, the beneficiary of the anti-incumbent sentiment is not clear in the current situation, in which one party controls the House and the other, the Senate. Partisans on both sides of the aisle are displeased with Congress. But with so few voters saying they are willing to re-elect their own representative, it suggests that many officeholders will be vulnerable, if not in the general election, then perhaps in the host of competitive primaries soon to take place."

Thursday, January 23, 2014

74% Believe U.S. Still in Recession -

74% Believe U.S. Still in Recession



"Seventy-four percent of Americans believe that the nation is still in
a recession, which may be a sign that the lower and middle classes are
still anxious about unemployment, the value of their homes and stagnant
wages.


In a new Fox News poll,
when asked “For you and your family, does it feel like the recession is
over, or does it feel like the country is still in a recession?”
only 22% said they believed the downturn had ended. The 74% is better
than the 86% from the poll in September 2010, but only barely, if the
“improvements” in gross domestic product and unemployment rates are
taken into account.


The results are troubling if people’s beliefs affect their behavior.
It has been assumed that as unemployment fells and home prices made a
modest recovery, Americans would become more likely to be aggressive
consumers. But recent data tell otherwise. Holiday sales were poor by
most measures. There is little sign that the median household income of
Americans has moved much above the $51,000 that the Census Bureau reported for 2012, and in real dollars this is down from a decade ago. A recent Pew study found that:


But starting in the mid- to late 1970s, the uppermost
tier’s income share began rising dramatically, while that of the bottom
90% started to fall. The top 1% took heavy hits from the dot-com crash
and the Great Recession but recovered fairly quickly: according to
Emmanuel Saez, an economics professor at UC-Berkeley, preliminary
estimates for 2012 (which will be updated next month) have that group
receiving nearly 22.5% of all pretax income, while the bottom 90%’s
share is below 50% for the first time ever (49.6%, to be precise)."


Monday, January 20, 2014

Many Baby Boomers Reluctant to Retire

Many Baby Boomers Reluctant to Retire- Gallup

Concerns about money likely play a significant role in explaining why
so many baby boomers see themselves working longer. Even before the
2008-2009 recession, financial advisers were warning that some baby
boomers were carrying too much debt, saving too little, and relying too
heavily on Social Security to retire comfortably. And then came the
economic collapse -- a perfect storm of layoffs, pension and stock
losses, and plummeting home values -- which was particularly ill-timed
for boomers who might otherwise have been in financial shape to retire
on schedule with the start of their Social Security benefits.


Gallup finds that baby boomers who strongly agree that they currently
"have enough money to do everything [they] want to do" expect to retire
at age 66. Boomers who strongly disagree with this statement predict
they will retire significantly later, at age 73.


Baby Boomers Who Feel They "Have Enough Money to Do Everything They Want to Do" Plan to Retire Earlier, December 2013 results

24/7 Wall St. » Blog Archive Why The ’100 Best Companies’ To Work List Is Useless «

24/7 Wall St. » Why The ’100 Best Companies’ To Work List Is Useless «

"24/7 Wall St. spent six weeks looking at Great Place and its practices
both inside and outside the US. and found them to be lacking.

Unlike polls such as those done by Gallup, “Best Companies” is not
scientific, not by a long shot.  Companies interested in being on the
list must apply to the Institute, which despite its academic-sounding
name is a for-profit institution.  To be eligible, companies must meet a
list of criteria including having 1,000 or more U.S. employees and
having been in operation for seven years.  The 100 “Best” are only the best of the 311 that applied, one large national polling firm which does not compete with Great Place, told 24/7 Wall St.  In addition, Fortune tells the winners 24 hours before the list is published while the Institute informs the losers at the same time."

"Great Place does not disclose anywhere which publications actually make
money on these listings through advertising or a share in consulting
fees. All parties 24/7 interviewed said Fortune does not. The marketing
benefits for Fortune are many. Great Place in the US offers a Best
Companies Executive Strategies Network. The forum is only open to firms
that have been on one of the Fortune lists for the past
three years. Membership fees are $7,500 per year for one person. Member
companies include American Express (NYSE: AXP), Goldman Sachs (NYSE:
GS), and KMPG."

The World's 85 Richest Now Worth as Much as 3.5 Billion Poorest - Oxfam

The World's 85 Richest Now Worth as Much as 3.5 Billion Poorest - Oxfam

"The poorest half of the world’s population—that’s 3.5 billion people—control as much wealth as the richest 85 individuals.


On the eve of World Economic Forum, when the global elite gather in
Davos, Switzerland, to forecast international trends, Oxfam has released
a new report, “Working for the Few,” (PDF) documenting yawning global wealth disparities. Other findings:


•The world’s richest 1 percent control nearly 50 percent of global wealth.

•In 24 out of 26 countries studied, the richest 1 percent has increased their share of national wealth since 1980.

•Only three in 10 people live in countries where economic inequality has not increased over the past three decades.

•In the U.S., 95 percent of post-financial crash wealth generated (i.e.,
since 2009) went into the bank accounts of the richest 1 percent.

•Nine in 10 people in the United States control less wealth in real terms than they did before the financial crash."

Friday, January 17, 2014

Robert Reich - Fear is Why Workers in Red States Vote Against Their Economic Self-Interest

Robert Reich - Fear is Why Workers in Red States Vote Against Their Economic Self-Interest
"Last week’s massive spill of the toxic chemical MCHM into West Virginia’s Elk River illustrates another benefit to the business class of high unemployment, economic insecurity, and a safety-net shot through with holes. Not only are employees eager to accept whatever job they can get. They are also also unwilling to demand healthy and safe environments.  
The spill was the region’s third major chemical accident in five years, coming after two investigations by the federal Chemical Safety Board in the Kanawha Valley, also known as “Chemical Valley,” and repeated recommendations from federal regulators and environmental advocates that the state embrace tougher rules to better safeguard chemicals. 
No action was ever taken. State and local officials turned a deaf ear. The storage tank that leaked, owned by Freedom Industries, hadn’t been inspected for decades. 
But nobody complained. 
Not even now, with the toxins moving down river toward Cincinnati, can the residents of Charleston and the surrounding area be sure their drinking water is safe — partly because the government’s calculation for safe levels is based on a single study by the manufacturer of the toxic chemical, which was never published, and partly because the West Virginia American Water Company, which supplies the drinking water, is a for-profit corporation that may not want to highlight any lingering danger.  "
"The wages of production workers have been dropping for thirty years, adjusted for inflation, and their economic security has disappeared. Companies can and do shut down, sometimes literally overnight. A smaller share of working-age Americans hold jobs today than at any time in more than three decades. 
People are so desperate for jobs they don’t want to rock the boat. They don’t want rules and regulations enforced that might cost them their livelihoods. For them, a job is precious — sometimes even more precious than a safe workplace or safe drinking water. 
This is especially true in poorer regions of the country like West Virginia and through much of the South and rural America — so-called “red” states where the old working class has been voting Republican. Guns, abortion, and race are part of the explanation. But don’t overlook economic anxieties that translate into a willingness to vote for whatever it is that industry wants. "

Chart of the Day - Home prices testing support

Inflation adjusted home prices :
"For some perspective on the all-important US real estate market, today's chart illustrates the inflation-adjusted median price of a single-family home in the United States over the past 44 years. There are a few points of interest. Not only did housing prices increase at a rapid rate from 1991 to 2005, the rate at which housing prices increased -- increased. All those gains and then some were given back during the following 6.5 years. Over the past two years, however, the median price of a single-family home has trended significantly higher. More recently, the inflation-adjusted price of the median single-family home has declined and is now testing support of its two-year upward sloping trend channel."

Chart of the Day

'via Blog this'

Wednesday, January 15, 2014

Amazon Employees Reject Forming Company’s First Union in U.S. - Businessweek

Amazon Employees Reject Forming Company’s First Union in U.S. - Businessweek:
“That number is a clear reflection that the tactics Amazon and their law firm employed were very effective,” Carr said. “Under the intense pressures these workers faced on the shop floor, it was an uphill battle all the way.”

More Americans Worse Off Financially Than a Year Ago

More Americans Worse Off Financially Than a Year Ago- Gallup:

"More Americans, 42%, say they are financially worse off now than they were a year ago, reversing the lower levels found over the past two years. Just more than a third of Americans say their financial situation has improved from a year ago.
These results come from Gallup's annual "Mood of the Nation" poll, conducted Jan. 5-8. Gallup has found that Americans' economic confidence, self-reported consumer spending, and perceptions of job creation improved in 2013. Despite Americans' more positive views of the overall U.S. economy in 2013, nearly two-thirds believe their personal financial situation deteriorated or was stable over the past year."


Tuesday, January 07, 2014

Interest Rates Are Manipulated | The Big Picture

Interest Rates Are Manipulated | The Big Picture:

Nice collection of the Manipulations in the blog ...

"
Royal Bank of Scotland Group Plc was ordered to pay $50 million by a federal judge in Connecticut over claims that it rigged the London interbank offered rate.
..."
"To put the Libor interest rate scandal in perspective:
  • Even though RBS and a handful of other banks have been fined for interest rate manipulation, Libor is stillbeing manipulated.  No wonder … the fines are pocket change – the cost of doing business – for the big banks
Why? Because the system is rigged to allow the big banks to commit continuous and massive fraud, and then to pay small fines as the “cost of doing business”.  As Nobel prize winning economist Joseph Stiglitz noted years ago:
“The system is set so that even if you’re caught, the penalty is just a small number relative to what you walk home with.
The fine is just a cost of doing business. It’s like a parking fine. Sometimes you make a decision to park knowing that you might get a fine because going around the corner to the parking lot takes you too much time.”
Experts also say that we have to prosecute fraud or else the economy won’t ever really stabilize.
But the government is doing the exact opposite.  Indeed, the Justice Department has announced it will go easy on big banks, and always settles prosecutions for pennies on the dollar (a form of stealth bailout. It is also arguablyone of the main causes of the double dip in housing.)
Indeed, the government doesn’t even force the banks to admit any guilt as part of their settlements.
Because of this failure to prosecute, it’s not just interest rates. As shown below, big banks have manipulatedvirtually every market – both in the financial sector and the real economy – and broken virtually every law on the books.
And they will keep on doing so until the Department of Justice grows a pair.

Currency Markets Are Rigged

Currency markets are massively rigged. And see this and this.

Derivatives Are Manipulated

Indeed, many trillions of dollars of derivatives are being manipulated in the exact same same way that interest rates are fixed: through gamed self-reporting.

Oil Prices Are Manipulated

Oil prices are manipulated as well.

Gold and Silver Are Manipulated

Gold and silver prices are “fixed” in the same way as interest rates and derivatives – in daily conference calls by the powers-that-be.
Bloomberg reports:
It is the participating banks themselves that administer the gold and silver benchmarks.

So are prices being manipulated? Let’s take a look at the evidence. In his book “The Gold Cartel,” commodity analyst Dimitri Speck combines minute-by-minute data from most of 1993 through 2012 to show how gold prices move on an average day (see attached charts). He finds that the spot price of gold tends to drop sharply around the London evening fixing (10 a.m. New York time). A similar, if less pronounced, drop in price occurs around the London morning fixing. The same daily declines can be seen in silver prices from 1998 through 2012.

For both commodities there were, on average, no comparable price changes at any other time of the day. These patterns are consistent with manipulation in both markets.

Energy Markets Are Manipulated

The Federal Energy Regulatory Commission says that JP Morgan has massively manipulated energy markets in California and the Midwest, obtaining tens of millions of dollars in overpayments from grid operators between September 2010 and June 2011.

Commodities Are Manipulated

The big banks and government agencies have been conspiring to manipulate commodities prices for decades.
The big banks are taking over important aspects of the physical economy, including uranium mining, petroleum products, aluminum, ownership and operation of airports, toll roads, ports, and electricity.
And they are using these physical assets to massively manipulate commodities prices … scalping consumers ofmany billions of dollars each year.

Everything Can Be Manipulated through High-Frequency Trading

Traders with high-tech computers can manipulate stocksbonds, options, currencies and commodities. And seethis.

Manipulating Numerous Markets In Myriad Ways

The big banks and other giants manipulate numerous markets in myriad ways, for example:
  • Engaging in mafia-style big-rigging fraud against local governments. See thisthis and this
  • Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details herehereherehereherehereherehere,hereherehere and here
  • Pledging the same mortgage multiple times to different buyers. See thisthisthisthis and this. This would be like selling your car, and collecting money from 10 different buyers for the same car
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See thisthisthisthis and this
  • Engaging in unlawful “Wash Trades” to manipulate asset prices. See thisthis and this
  • Bribing and bullying ratings agencies to inflate ratings on their risky investments
The criminality and blatant manipulation will grow and spread and metastasize – taking over and killing off more and more of the economy – until Wall Street executives are finally thrown in jail."

This is your brain on religion: Uncovering the science of belief - Salon.com

This is your brain on religion: Uncovering the science of belief - Salon.com:

Nice excerpt from the book "We Are Our Brains"

"There are around 10,000 different religions, each of which is convinced that there’s only one Truth and that they alone possess it. Hating people with a different faith seems to be part of belief. Around the year 1500, the church reformer Martin Luther described Jews as a “brood of vipers.” Over the centuries the Christian hatred of the Jews led to pogroms and ultimately made the Holocaust possible. In 1947, over a million people were slaughtered when British India was partitioned into India for the Hindus and Pakistan for the Muslims. Nor has interfaith hatred diminished since then. Since the year 2000, 43 percent of civil wars have been of a religious nature."
"In 1996 a poll of American scientists revealed that only 39 percent were believers, a much smaller percentage than the national average. Only 7 percent of the country’s top scientists (defined for this poll as the members of the National Academy of Sciences) professed a belief in God, while almost no Nobel laureates are religious. A mere 3 percent of the eminent scientists who are members of Britain’s Royal Society are religious. Moreover, meta-analysis has shown a correlation among atheism, education, and IQ. So there are striking differences within populations, and it’s clear that degree of atheism is linked to intelligence, education, academic achievement, and a positive interest in natural science. Scientists also differ per discipline: Biologists are less prone to believe in God and the hereafter than physicists. So it isn’t surprising that the vast majority (78 percent) of eminent evolutionary biologists polled called themselves materialists (meaning that they believe physical matter to be the only reality). Almost three quarters (72 percent) of them regarded religion as a social phenomenon that had evolved along with Homo sapiens. They saw it as part of evolution, rather than conflicting with it."
"The religious programming of a child’s brain starts after birth. The British evolutionary biologist Richard Dawkins is rightly incensed when reference is made to “Christian, Muslim, or Jewish children,” because young children don’t have any kind of faith of their own; faith is imprinted in them at a very impressionable stage by their Christian, Muslim, or Jewish parents. Dawkins rightly points out that society wouldn’t tolerate the notion of atheist, humanist, or agnostic four-year-olds and that you shouldn’t teach children what to think but how to think. Dawkins sees programmed belief as a byproduct of evolution. Children accept warnings and instructions issued by their parents and other authorities instantly and without argument, which protects them from danger. As a result, young children are credulous and therefore easy to indoctrinate. This might explain the universal tendency to retain the parental faith. Copying, the foundation of social learning, is an extremely efficient mechanism. We even have a separate system of mirror neurons for it. In this way, religious ideas like the belief that there’s life after death, that if you die as a martyr you go to paradise and are given 72 virgins as a reward, that unbelievers should be persecuted, and that nothing is more important than belief in God are also passed on from generation to generation and imprinted in our brain circuitry. We all know from those around us how hard it is to shed ideas that have been instilled in early development."

"The Evolutionary Advantage of Religion
(1) First, religion binds groups. Religions use various mechanisms to keep the group together: 
One is the message that it’s sinful to marry an unbeliever.. This principle is common to all religions, with attendant punishments and warnings. Segregating education according to faith makes it easier to reject others, because ignorance breeds contempt. 
Another is the imposition of numerous social rules on the individual in the name of God, sometimes accompanied by dire threats about the fate of those who don’t keep them. One of the Ten Commandments, for instance, is lent force by the threat of a curse “unto the fourth generation.” Blasphemy is severely punished in the Old Testament and is still a capital offense in Pakistan. Threats have also helped to make churches rich and powerful. In the Middle Ages, enormous sums were paid in return for “indulgences,” shortening the time that someone would spend in purgatory. 
A further binding mechanism is being recognizable as a member of the group. This can take the form of distinguishing signs, like black clothing, a yarmulke, a cross, a headscarf, or a burka; or physical characteristics, like the circumcision of boys or girls; or knowledge of the holy scriptures, prayers, and rituals. You must be able to see who belongs to the group in order to obtain protection from fellow members. This mechanism is so strong that it seems senseless to try to ban people from wearing distinguishing accessories or items of clothing like headscarves...The feeling of group kinship has been strengthened over the centuries by holy relics worshiped by the various faiths. It doesn’t matter that there are wagonloads of Buddha’s ashes in temples in China and Japan, nor that so many splinters of the True Cross have been preserved that, according to Erasmus, you could build a fleet of ships from them. The point is that such things keep the group together. The same applies to the 20 or so churches that claim to have Christ’s original foreskin in their possession.
Finally, most religions have rules that promote reproduction. This can entail a ban on contraception. The faith is spread by having children and then indoctrinating them, making the group bigger and therefore stronger.

(2) Traditionally, the commandments and prohibitions imposed by religions had a number of advantages. 
   Besides the protection offered by the group, the social contacts and prescriptions (like kosher food) had some beneficial effects on health...However, the causality of these correlations hasn’t been demonstrated, and the links aren’t conclusive...An Israeli study showed that, in complete opposition to the researchers’ hypothesis, a religious lifestyle was associated with a doubled risk of dementia 35 years later. 

(3) Having a religious faith is a source of comfort and help at difficult times, whereas atheists have to solve their difficulties without divine aid. Believers can also console themselves that God must have had a purpose in afflicting them. In other words, they see their problems as a test or punishment, that is, as having some meaning. “Because people have a sense of purpose, they assume that God, too, acts according to purpose,” Spinoza said. ...So they viewed all calamities, like earthquakes, accidents, volcanic eruptions, epidemics, and floods, as a punishment by that same being. According to Spinoza, religion emerged as a desperate attempt to ward off God’s wrath.

(4) God has the answer to everything that we don’t know or understand, and belief makes you optimistic .. Faith also gives you the assurance that even if times are hard now, things will be much better in the next life. Curiously, adherents of religion always claim that it adds “meaning” to their life, as if it were impossible to lead a meaningful life without divine intervention.

(5) Another advantage of religion, it would seem, is that it takes away the fear of death — all religions promise life after death. The belief in an afterlife goes back 100,000 years. We know this from all the items found in graves: food, water, tools, hunting weapons, and toys. Cro-Magnon people also buried their dead with large amounts of jewelry, as is still done in Asia today. You need to look good in the next life, too. Yet being religious doesn’t invariably make people less afraid of dying. The moderately religious fear death more than fervent believers and those who are only very slightly religious, which is understandable when you see how often religion uses fear as a binding agent. Yet many appear to feel a little uncertain about the promised life after death. Richard Dawkins rightly wondered, “If they were truly sincere, shouldn’t they all behave like the Abbot of Ampleforth? When Cardinal Basil Hume told him that he was dying, the abbot was delighted for him: ‘Congratulations! That’s brilliant news. I wish I was coming with you.’ ”

(6) A very important element of religion has always been that it sanctions killing other groups in the name of one’s own god. The evolutionary advantage of the combination of aggression, a group distinguishable by its belief, and discrimination of others is clear. Over millions of years, humans have developed in an environment where there was just enough food for one’s own group. Any other group encountered in the savanna posed a mortal threat and had to be destroyed. These evolutionary traits of aggression and tribalism can’t be wiped out by a few generations of centrally heated life. That explains why xenophobia is still so widespread in our society. The whole world is full of conflicts between groups with different faiths. Since time immemorial the “peace of God” has been imposed on others by fire and sword. That’s unlikely to change soon."

   
“Religion is excellent stuff for keeping common people quiet.” — Napoleon Bonaparte
"Religion is regarded by the common people as true, by the wise as false, and by rulers as useful.” -- Seneca
“Emotional excitement reaches men through tea, tobacco, opium, whisky, and religion.” — George Bernard Shaw


Sunday, January 05, 2014

JPMorgan Chase nears a $2 billion deal in a case tied to Madoff

JPMorgan Chase nears a $2 billion deal in a case tied to Madoff
"Working through a long list of legal problems, JPMorgan Chase is starting the new year with another steep payout to the government.

The bank plans to reach as soon as this week roughly $2 billion in criminal and civil settlements with federal authorities who suspect that it ignored signs of Bernard L. Madoff's Ponzi scheme, according to people briefed on the case."

Friday, January 03, 2014

Worldwide, Richest 3% Hold One-Fifth of Collective Income

Worldwide, Richest 3% Hold One-Fifth of Collective Income
"Across 131 countries worldwide, the richest 3% of residents hold 20% of the total collective household income -- as do the poorest 54%. In other words, the 3% reporting the highest household incomes share the same "slice" of collective income across countries that more than half of residents worldwide -- those on the lower end of the income scale -- must share."