House Republicans are now busily working to repeal the Affordable Care Act in secret. Even when the GOP plan is done and made public, the secrecy will continue. The potential impact will still be hidden from the public, as it’s likely to not have any score from the Congressional Budget Office before the House votes on… Continue Reading →
Because it’s really up to us:
— SuburbanGuerrilla (@SusieMadrak) February 3, 2017
One would almost think that every single Trump appointee is a crony capitalist. So far, he’s batting 1.000:
Rex Tillerson, the businessman nominated by Donald Trump to be the next US secretary of state, is the long-time director of a US-Russian oil firm based in the tax haven of the Bahamas, leaked documents show.
Tillerson – the chief executive of ExxonMobil – has been a director of the oil company’s Russian subsidiary, Exxon Neftegas, since 1998. His name – RW Tillerson – appears next to other officers who are based at Houston, Texas; Moscow; and Sakhalin, in Russia’s far east.
The leaked 2001 document comes from the corporate registry in the Bahamas. It was one of 1.3m files given to the Germany newspaper Süddeutsche Zeitung by an anonymous source. The registry is public but details of individual directors are typically incomplete or missing entirely.
Though there is nothing untoward about this directorship, it has not been reported before and is likely to raise fresh questions over Tillerson’s relationship with Russia ahead of a potentially stormy confirmation hearing by the US senate foreign relations committee.
So it looks like the plan over at OMB is to make Trump and his advisers even richer:
On Friday, Trump’s transition team announced his selection of Rep. Mick Mulvaney (R-S.C.) as the nominee to head the Office of Management and Budget. Earlier this year, Mulvaney introduced legislation blocking payments by the housing lenders Fannie Mae and Freddie Mac to funds that support low income housing unless both Fannie and Freddie are recapitalized and released.
This is exactly the policy desired by hedge fund billionaire John Paulson, head of Paulson & Co., among other large investors. He feted Trump for a fundraiser in June at a chic midtown French restaurant built into the Bloomberg building where he donated $250,000 to support the campaign. He then led Trump’s economic advisers for the remainder of the campaign and now sits on the transition team advising him on economic policy.
When the housing market tanked and the Great Recession of 2007-2009 began, the federal government took over Fannie Mae and Freddie Mac, both deeply underwater, sending their stock prices plummeting. The Obama administration has since insisted on keeping the housing lenders under government authority and has redirected their profits into government coffers.
During this time speculators like Paulson bought up stock at bargain basement prices and began lobbying the government to end federal control and oversight of the lenders and then recapitalize them and release them back to the private market. Such a policy would, undoubtedly, send the stock price soaring and those who had tens of millions worth of penny-stock would see billions in profit ― including Paulson. Trump had invested between $3 million and $15 million into Paulson’s funds, according to the president-elect’s most recent disclosure report filed in May.
Remember this motto from the Bush years? “Socialize losses, privatize profits.” Here we go again.
It seems that I spend years of my life fighting to protect Social Security and Medicare, and here we are again as the GOP unleashes their new plan. From Josh Marshall:
Unlike the Bush-era plan to partially phase out Social Security and replace it with private investment accounts, this plan takes a different approach. Through a variety of mechanisms, this plan simply cuts benefits and introduces means testing. To look at specific cuts, changes in eligibility and so forth look at pages 2 and 3 on this official Social Security Administration scoring document analyzing the plan. The benefit cuts appear to hit everyone but are weighted toward more affluent recipients.
The plan with this new GOP bill is to proactively solve this problem entirely with cuts and really big cuts. Out over 75 years, the GOP proposal has the Trust Fund growing substantially out into the infinite horizon. In other words, a lot of the cuts are more than are necessary to pay for all benefits even if you leave the ‘cap’ in place.
I will say that this new bill is different and I think not as bad (extremely low bar) as the partial phase out of Social Security which President Bush tried to push in 2005. Because you have the same essential mechanisms in place. This is a huge benefit cut. Benefits could later be raised again if there was the political will to do so. The means testing component probably does more to endanger the future of the program in political terms.
The last day of session before Christmas break, and a Friday afternoon? Let’s not forget that every single House member is up for reelection in 2018, and none of them ran on cutting Social Security.
So I think something else is happening. This looks like a Trojan horse, used to manufacture a new “emergency” in Social Security funding. Polls and focus groups always show the same thing: No one will consider any kind of reform or privatization unless they think it’s the only way to save it.
You can see where that sense of crisis is useful. Remember, the goal has always been to get that money into private accounts, where Wall Street makes money and charges us hefty fees.
Make sure you call your reps Monday and tell them no.
I’m not being all that flippant. I suspect this crash is going to make the last one look like a rehearsal.
At the possibility of winning back the House and the Senate. (I get geek chills, just thinking about it.) Here’s why.
Some of the policies on the table:
- Expanding Social Security;
- Expanding Medicare to age 50 and up;
- Anti-trust emphasis in the DoJ (be still, my heart!);
- Putting honest-to-God liberals into every open seat on the Supreme Court;
- Paid parental leave;
- Raising taxes on the wealthy;
- No-debt college (I’m too lazy to go into it, but making this income-based is actually more effective at redistributing wealth than free college for everyone);
- Big bump in the minimum wage;
And lots more.
David Dayen wrote a fascinating series on likely fraud by major banks in the penny stock market. If you’re an investor, you will want to read this:
All seven installments can be found here.
Part 1: The Money is Gone
Part 2: Big Players, Little Stocks, and Naked Shorts
Part 3: Naked Shorts Can’t Stay Naked Forever (or can they?)
Part 4: Calling the SEC
Part 5: Turning Up Like a Bad Penny
Part 6: Were Paper Losses the Goal All Along?
Part 7: The Half Billion Dollar Glitch
— USA TODAY (@USATODAY) September 27, 2016
The Arizona Republic just endorsed Hillary Clinton, its first Democratic endorsement ever. https://t.co/FK3ssZVfBC
— Gabriel Debenedetti (@gdebenedetti) September 28, 2016