Category Archives: Debt

John Oliver tackles $1 trillion student loan debt


Yep, it now tops everything except mortgage debt, and lenders have more coercive power to collect it than do lenders of any other form of debt, while the parallel growth of for-profit colleges [like those owned by UC Regent Richard "Greasy Thumb" Blum, spouse of Sen. Dianne Feinstein] have fuekled the rapid growth of student loans. Blum also presided over the board of regents during the massive inflation in tuition that forced increasingly numbers of students to resort to borrowing to attend the University of California.

From Last Week Tonight with John Oliver:

Last Week Tonight with John Oliver: Student Debt

Program note:

John Oliver discusses student debt, which is awful, as well as for-profit colleges, who are awfully good at inflicting debt upon us.

Chart of the day II: Credit cards debt plunges


From the massive collection of charts [PDF] in the 2013 Survey of Consumer Finances released today by the Federal Reserve Board of Governors:

BLOG Cards

Bankster greed fueled Ferguson violence


Finally someone connects two critical dots, the violence in Ferguson, Missouri, and the crimes of American banksters and bubble collapse foreclosures.

Pay close attention to this conversation from RT’s The Keiser Report featuring Max Keiser and award-winning investigative journalist Matt Taibbi and you’ll see the extremely close correlations between banking deregulating and oppressive policing on the streets of America’s poorest neighborhoods.

From RT:

American gangsters! Matt Taibbi & Max on suckers buying bogus & big bank mass perjury

Program notes:

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss how some looters are more equal than others as Jamie Dimon gets to keep his mortgage fraud deal with the Department of Justice secret while others get gunned down in broad daylight for lifting a cigarette. In the second half, Max interviews journalist and author, Matt Taibbi about the injustice that follows the wealth divide and how Ferguson, Missouri plays into that.

From BBC 2: ‘Super Rich: The Greed Game’


Broadcast, fittingly, on 1 April 2008 just as the bubble was bursting, this BBC 2 documentary, produced and directed by John O’Kane and narrated by Robert Peston, is a reminder that the modern “wealth creator” is rarely the inventor of some new product that makes our lives better but is rather an expert at manipulating the money game, in which creation of notional riches becomes the end rather than a mere byproduct of their efforts.

And at the center of the debacle were the central banksters, acting to ensure that confidence in currency, the prerequisite for green game players, was bolstered, despite all the screeching alarm bells.

And note that facilitating it all were the so-called “liberal” political parties, with Britain’s Labour Party and the Democrats in the U.S. greased the skids in the 1990s by deregulating financial markets and paving the way to an explosion of hedge fund wealth.

What is particularly galling is the rampant and unalloyed arrogance of the players to whom the rest of us, as one of them offhandedly remarks, are mere riffraff.

From BBC 2 via Underground Documentaries:

Super Rich: The Greed Game

Program note:

As the credit crunch bites and a global economic crisis threatens, Robert Peston reveals how the super-rich have made their fortunes, and the rest of us are picking up the bill.

From wiseguys to banksters, nasty payday loans


Wiseguys call it “the vig,” those extortionate rates guys with names like Vinny or Frankie Fists used to collect on loans you got from your friendly neighborhood loan shark.

But wiseguys have fallen on hard times because Uncle Sam has legitimated those muscular interest rates. And now you get ‘em from your friendly neighborhood corporate bankster.

Indeed, the guys who used to hand out in candy stores and dimly lit pool halls have been replaced by grinning hucksters who operate out of brightly lit storefronts that now outnumber Starbucks and Mickey Ds.

But fear not, John Oliver and Sarah Silverman are on the cash.

From HBO’s Last Week Tonight with John Oliver:

Last Week Tonight with John Oliver: Predatory Lending

Program notes:

Payday loans put a staggering amount of Americans in debt. They prey on the elderly and military service members. They’re awful, and nearly impossible to regulate. We’ve recruited Sarah Silverman to help spread the word about how to avoid falling into their clutches.

What a world! There’s now no separation between underworld and upperworld.

EnviroWatch: Loans, drought, laws, radiation


Today’s first item, via the Guardian, covers the sad but not so surprising:

Leaked World Bank lending policies ‘environmentally disastrous’

  • New ‘light touch’ rules on bank’s $50bn annual lending have been gutted to remove protections, watchdogs claim

Radical plans by the World Bank to relax the conditions on which it lends up to $50bn (£29bn) a year to developing countries have been condemned as potentially disastrous for the environment and likely to weaken protection of indigenous peoples and the poor.

A leaked draft of the bank’s proposed new “safeguard policies”, seen by the Guardian, suggests that existing environmental and social protection will be gutted to allow logging and mining in even the most ecologically sensitive areas, and that indigenous peoples will not have to be consulted before major projects like palm oil plantations or large dams palm go ahead on land which they traditionally occupy.

Under the proposed new “light touch” rules, the result of a two year consultation within the bank, borrowers will be allowed to opt out of signing up to employment safeguards, existing protection for biodiversity will be shredded, countries will be allowed to assess themselves, and harmful projects are much more likely to occur, according to World Bank watchdog groups including the Bank Information Centre (BIC), the Ulu Foundation and the International Trade Union Confederation.

And on to our ongoing coverage of the drought parching the Golden State and the West, first with a scorcher from BBC News:

Two California wildfires destroy 10 homes

Two fast-moving wildfires in California have destroyed 10 homes and have forced the evacuation of hundreds more, US officials say.

In the Sacramento region, a fire has spread to cover an area of about 4,000 acres, while another blaze threatens homes around Yosemite National Park.

The Sacramento fire is around 35% contained, officials told local media.

Months of drought have caused more fires in California this year – some 1,400, twice the usual number.

The Los Angeles Times digs down:

Farmers drilling deeper for water as drought drags on

California’s three-year drought has sparked a surge in demand for wells in the state’s agricultural heartland. With federal and state allocations of surface water reduced to a trickle, growers are searching deeper underground for sources of water to keep their farms from ruin.

The clamor has overwhelmed California drillers and pump installers, forcing some farms to hire contractors from neighboring states.

It’s also setting the stage for more problems later as groundwater supplies are shrinking faster than they can be replenished. In parts of the Central Valley, the water table has plummeted, drying up old wells and sinking the land above, a phenomenon called subsidence.

That’s resulted in even deeper wells that cost hundreds of thousands of dollars to build and require more energy to pump water to the surface. As recently as two decades ago, a well several hundred feet would suffice. Today, large farms are drilling to depths of 2,000 feet in anticipation of falling water levels.

“We’re going bigger horsepower every year,” said Charles Barber, president of Caruthers Pump south of Fresno, who has customers on a three-month waiting list. “We’ve lost 30 feet of groundwater in a year in some places. We keep that up for 10 years and we won’t be farming like this anymore.”

From Al Jazeera America, a crackdown:

Cali water cops: What you gonna do when they come for you?

  • State resources officials are aggressively policing the dire shortage by imposing fines on drought rule violators

But the Los Angeles Times covers the scofflaws:

California officials admit they have incomplete water usage data

When state regulators tried to tally water use across California recently, they didn’t exactly get a flood of cooperation.

Of the 440 water agencies in the state, only 276 provided water consumption data. And officials in San Diego made a point of formally refusing the request, saying the state’s method for measuring water use in California’s second-largest city was “misleading and technically inappropriate.”

The State Water Resources Control Board released the result of its survey earlier this month, showing an 8% increase in water use in Southern California in May while most of the rest of the state was using less water.

And what water there in the Midwest, is increasingly likely to be toxic, reports Common Dreams:

Notorious ‘Neonics’ Pervasive in Midwest Waters: Study

Researchers from the USGS found the insecticides in waterways of nation’s corn, soy region.

A new study has added to mounting evidence against a class of insecticides called neonicotinoids, or “neonics.”

Linked in numerous studies to bee declines, the new research looks at neonics’ impacts on surface water.

Researchers with the U.S. Geological Survey looked at 9 rivers and streams in the U.S. Midwest—home to vast plantings of corn and soybeans as well as widespread use of neonics—in the 2013 growing season.

On to the latest chapter of Fukushimapocalypse Now!, starting with this bit of ominous news from the Asahi Shimbun:

Water leaks continue to plague No. 5 reactor at Fukushima plant

A leak of radioactive water was found in the piping of water used to cool the spent fuel pool in the undamaged No. 5 reactor building of the Fukushima No. 1 nuclear power plant, its operator said on July 19, a sign of possible deterioration in the system.

Tokyo Electric Power Co. said water from the cooling pond leaked, citing comparable levels of the concentration of radioactive substances in the leak and the pool.

A TEPCO employee found a pool of water in each of two boxes–75 centimeters by 50 cm–that house a control valve in the cooling water piping system on the fifth floor of the No. 5 reactor building at 1:25 a.m. on July 19.

From the Asahi Shimbun again, why are we not surprised?:

Restarts of reactors in Ehime delayed due to insufficient safety standards

Restarts of reactors at the Ikata nuclear power plant in Ehime Prefecture will be delayed until at least next year because the site does not meet safety standards.

Its operator, Shikoku Electric Power Co., is being forced to construct a new emergency headquarters building at the facility as the current one, which was completed after the March 2011 Fukushima nuclear disaster, fails to meet the new criteria.

The new building is scheduled to be completed in January 2015 at the earliest. Given that procedures for safety screening take time, the utility said it was doubtful the reactors could be reactivated this fiscal year, which ends in March 2015.

From Kyodo News, a measure sure to inspire confidence — or not:

Local gov’ts give iodine tablets to residents as reactor restart looms

Local governments started Sunday handing out iodine tablets to residents living within 5 kilometers of an offline nuclear power plant in Kagoshima Prefecture, southwestern Japan, that may restart in the fall.

It is the first time iodine tablets have been distributed under Nuclear Regulation Authority guidelines instituted following the 2011 Fukushima nuclear disaster. Iodine tablets help protect thyroids from radiation.

The move by the Kagoshima prefectural and Satsumasendai city governments came after Kyushu Electric Power Co.’s Sendai plant cleared a safety hurdle key to its restart earlier this month.

The Asahi Shimbun withdraws:

Plan dropped for land purchases to host nuclear debris storage sites

In the face of strong opposition, the government has abandoned its plan to purchase all of the land needed to build temporary storage sites for radioactive debris, sources said.

The idea was dropped after some landowners at prospective sites refused to sell, fearing the storage facilities located near the stricken Fukushima No. 1 nuclear power plant would end up being permanent.

Instead of purchasing all of the plots, the government now plans on leasing some of the land from landowners.

And from the Japan Times, looking across the Pacific:

Problems dog plans for U.S. nuclear plants

The U.S. nuclear industry has started building its first new plants in decades using prefabricated Lego-like blocks meant to save time and money and revive the once promising energy source.

But so far, it is not working.

Quality and cost problems have cropped up again, raising questions about whether nuclear power will ever be able to compete with other electricity sources. The first two reactors built after a 16-year lull, Southern Co.’s Vogtle plant in Georgia and SCANA Corp.’s VC Summer plant in South Carolina, are being assembled in large modules. Large chunks of the modules are built off-site, in an effort to improve quality and avoid the chronic cost overruns that all but killed the nuclear industry when the first wave of plants was being built in the 1960s and 1970s.

Analysts say engineers created designs that were hard or impossible to make, according to interviews and regulatory filings reviewed by AP. The factory in Louisiana that constructed the prefabricated sections struggled to meet strict quality rules. Utility companies got early warnings but proved unable to avoid the problems. Now the firms leading the project are phasing out the Louisiana factory for work on the biggest modules and contracting with new manufacturers.

While the Los Angeles Times covers another, surprising source of radioactive waste, fracking:

Oil drilling in North Dakota raises concerns about radioactive waste

Every weekday, about a dozen large garbage trucks peel away from the oil boom that has spread through western North Dakota to bump along a gravel road to the McKenzie County landfill.

Nearly 1,000 radioactive filters were found last year at the landfill, part of a growing tide of often toxic waste produced by the state’s oil and gas rush. Oil field waste includes drill cuttings — rock and earth that come up a well bore — along with drilling fluids and wastewater laced with chemicals used in fracking.

To many local and tribal officials, environmentalists and some industry managers in North Dakota, the dumping of the socks and the proliferation of other waste shows the government falling short in safeguarding the environment against oil field pollution.

And for our final item, the New York Times reminds us who’s footing the bill:

The Typical Household, Now Worth a Third Less

Economic inequality in the United States has been receiving a lot of attention. But it’s not merely an issue of the rich getting richer. The typical American household has been getting poorer, too.

The inflation-adjusted net worth for the typical household was $87,992 in 2003. Ten years later, it was only $56,335, or a 36 percent decline, according to a study financed by the Russell Sage Foundation. Those are the figures for a household at the median point in the wealth distribution — the level at which there are an equal number of households whose worth is higher and lower. But during the same period, the net worth of wealthy households increased substantially.

The Russell Sage study also examined net worth at the 95th percentile. (For households at that level, 94 percent of the population had less wealth and 4 percent had more.) It found that for this well-do-do slice of the population, household net worth increased 14 percent over the same 10 years. Other research, by economists like Edward Wolff at New York University, has shown even greater gains in wealth for the richest 1 percent of households.

Tom Toles: In the Hole from Student Debt


From the Washington Post editorial cartoonist:

Toles