crony capitalism

Wall Street hires Washington

"The financial industry has long been a draw for former political operatives seeking a bigger paycheck and New York lifestyle. But with the big banks now under constant assault from reformers, regulators and some members of Congress, the flow of top talent from Washington to Wall Street has become a small flood. Goldman Sachs and Morgan Stanley will soon have top-level executives with the ear of the CEO who once occupied senior jobs in the White House and the U.S. Treasury. Other banks including Citigroup, Credit Suisse and JPMorgan Chase also have staffed up with former political and regulatory officials." Continue reading →

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League City, Texas Red Light Cameras Bagged

"Red light cameras in League City, Texas were covered with bags this week, but not by vigilantes. Australian camera vendor Redflex Traffic Systems had no choice but to shut down the devices. Last November, 77 percent of voters approved a measure banning the use of automated ticketing machines -- the fifth city in the Lone Star State to do so. City officials last year re-wrote the immediate ban initiative circulated by citizens and replaced it with a measure that would only take effect on October 29, 2014, when the city's contract with Redflex expired. The change proved politically untenable, so on April 23, the council voted to pay Redflex $350,000 to end the contract on July 1." Continue reading →

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Mexico Bill Loosens Restrictions On Foreigners Buying Residential Property

"The longstanding restrictions on foreigners buying property along Mexico's coast and borders were loosened on Tuesday after Congress' lower house voted on a proposal that drew stiff criticism from some quarters. For decades, foreigners have had to use real-estate trusts or Mexican front companies to buy beachfront properties, because Article 27 of the constitution prohibits non-Mexicans from directly owning land within 31 miles (50 kilometers) of the coast and 62 miles (100 kilometers) of the nation's borders. The trusts and front companies have provided a lucrative income for banks, lawyers and notaries who are required to operate them." Continue reading →

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The Truth About Fake Hospital Pricing (And What To Do If You Are Uninsured)

"People without insurance, on average, are being charged 3 times what insurance companies pay. When the uninsured patients can’t or don’t pay, the balance is written off and the tax liability is reduced. Some uninsured people try to raise the funds, and it breaks my heart that they go bankrupt trying to pay these debts. If you’re ever uninsured and wind up with a huge hospital bill, go negotiate with the hospital CFO for a 66% reduction in the bill. Use the government data (link here) as leverage in negotiating with the CFO. Threaten to expose the racket and I bet the CFO will write down your bill to keep you quiet." Continue reading →

Continue ReadingThe Truth About Fake Hospital Pricing (And What To Do If You Are Uninsured)

The Internet Sales Tax: Taxation Without Representation

"Why should a taxation principle which is obviously preposterous when applied to tax jurisdictions around the world be regarded as tax fairness when applied inside the jurisdictional limits of the United States government? We are talking about invisible lines that separate tax jurisdictions. If the sales tax principle is legitimately applicable between states inside the United States, then the principle ought to be equally applicable between states inside the United States and states outside the United States. If the principle is preposterous when we cross national borders,then it should be equally preposterous when we cross state jurisdictions inside the United States." Continue reading →

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Internet Sales Tax Passes the Senate, 69 to 27

"Republicans in the U.S. Senate caved in. They voted to force businesses located in one state to serve as unpaid tax collectors for 45 other states. (Five states have no sales tax.) The RINO Party Line is that this is not a tax increase. It is a huge tax increase. Voters will pay it. Businesses will pay it. The nightmare of complying will kill tens of thousands of online businesses. This is a subsidy to Walmart, which pays sales taxes because it is physically located in all states. Amazon has also joined in — same reason. It has delivery centers in several states, and it plans to add lots more. These companies want small businesses to pay. They do not want competition." Continue reading →

Continue ReadingInternet Sales Tax Passes the Senate, 69 to 27

Policy battle rages in China as slowdown feeds ‘sense of crisis’

"China's Caixin Magazine reports that there is a growing 'sense of crisis' not felt since the depths of the global banking crash in 2008-2009. The State-owned Assets Supervision and Administration Commission (SASAC) has assembled a team to 'protect economic growth' and pressure state companies to boost jobs at all costs. SASAC is the bastion of vested interests and controller of 115 state behemoths with assets above $6 trillion and lock on much of the economy. The move comes amid further signs that growth is faltering across all fronts. HSBC's gauge of Chinese services fell three points to 51.1 in April, the lowest in almost two years." Continue reading →

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New Travel Accessory for Beijing: Gas Masks

"As I prepare for an upcoming trip to Beijing, both expat and Chinese friends have been sending me suggestions of the best gas mask to buy. An item considered rare or unnecessary as of late 2012 is now highly recommended for outdoor commutes during Beijing’s smoggiest days. But which mask should I use? In addition to buying face masks, people in China who can afford them are also picking up indoor air filters. Most office workers spend 80 percent of their time indoors, but Beijing’s poorly insulated buildings can’t fully keep the smog outside." Continue reading →

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The Food-Truck Business Stinks

"In the ’80s, the city capped the number of carts and trucks at 3,000. Technically, a permit for a food cart or truck is not transferable, but vendors regularly pay permit holders something like $15,000 to $20,000 to lease their certificates for two years. I was reminded of corrupt countries that I’ve visited, like Iraq and Haiti, where illogical and arbitrarily enforced rules create the wrong set of incentives. Perhaps the biggest winner in our current system is an obscure type of business known as an authorized commissary. By city law, every food cart and truck must visit a licensed commissary each day, where a set of mandated cleaning services can be performed." Continue reading →

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Food Stamp Nation: 20% of U.S. Households

"The economic recovery rolls on. The number of American households receiving food stamps has hit 23 million. This is 23 million out of 115 million households. That’s 20%. The government has a solution. Stop calling them food stamps. It has now issued cards that look just like credit cards. If the recovery is real, why are more Americans on food cards? Because the farm bloc wants its subsidies, and the welfare bloc does, too. It’s a matter of supply and demand. If demand stays high, farm prices stay high. There is nothing like free food to increase demand. Food cards offer free food. Rising demand proves there is rising need. Rising need proves that more food cards are necessary." Continue reading →

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