crony capitalism

More Redflex Executives Fall Over Red Light Camera Bribery Scandal

"According to the inquiry conducted by the law firm Sidley Austin, a consultant was paid $2 million between 2003 and 2012 for his work in landing the nation's most lucrative photo ticketing contract. Redflex sent a city contracting official on 17 different trips between 2003 and 2010, paying for everything including hotels, flights, car rentals, golfing, meals and a computer worth a total of $20,000. So far, the company has also spent $1.2 million in legal fees related to the Chicago scandal. When Chicago's red light camera contract expires, Redflex will lose another 13.6 percent of its income. The company also warns of the possibility of bribery revelations in other cities." Continue reading →

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Bill Bonner: A Close Encounter with Zombiedom

"When it comes to zombies, nothing beats government. The feds have the power to force people to do things they would rather not do... notably, support bloodsucking zombies. So, when the elite landowners of Anne Arundel County, Md., got together with the environmental protectors and enlisted the power of government... you could be sure that money was going to change hands. In the event, some of it came to your humble zombie-fighting editor. You see, the idea was elegant. Subtle. And very profitable for those who understood what was going on. The landowners – often from old farm families – wanted to hold on to their land. But the cost of holding it was rising." Continue reading →

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Jack Lew and Citigroup: How the Corrupt Rich Get Unjustly Richer with Crony Capitalism

"Warren Buffett lined his pockets by making a government-subsidized investment in Goldman Sachs during the financial crisis. The just-confirmed Treasury Secretary Jack Lew was given a huge bonus for leaving Citigroup several years ago. He was showered with money specifically for leaving the company to take a 'high level position with the United States government'. But Lew’s loot is pocket change compared to the $115 million that former Clinton Treasury Secretary Robert Rubin received for helping to steer the company into financial collapse." Continue reading →

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Why Should Taxpayers Give Big Banks $83 Billion a Year?

"Banks have a powerful incentive to get big and unwieldy. The larger they are, the more disastrous their failure would be and the more certain they can be of a government bailout in an emergency. The result is an implicit subsidy: The banks that are potentially the most dangerous can borrow at lower rates, because creditors perceive them as too big to fail. Economists have tried to pin down exactly how much the subsidy lowers big banks’ borrowing costs. In one relatively thorough effort, researchers put the number at about 0.8%. Multiplied by the total liabilities of the 10 largest U.S. banks by assets, it amounts to a taxpayer subsidy of $83 billion a year." Continue reading →

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Airlines made windfall profits after EU freeze on carbon taxes

"Airlines made up to half a billion euros in windfall profits last year by passing on a carbon surcharge to travellers despite an EU decision to freeze its controversial carbon tax, environmentalists said on Tuesday. Green group Transport and Environment said airlines chalked up extra revenues estimated at 486 million euros ($650 million) even though EU climate commissioner Connie Hedegaard in November decided to 'stop the clock' on an EU carbon tax angering the global aviation industry." Continue reading →

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Another ‘War is Peace’ Award (This Time Hollande Wins!)

"In this case it may be more appropriate than one might first imagine. The prize, awarded by UNESCO, is known as the Félix Houphouët-Boigny Peace Prize in honor of the authoritarian president of of the Ivory Coast from 1960-1993. Could it be, as suggested in this very provocative article in the journal of the Strategic Culture Foundation, that France was over-eager to show its new Rafale fighter jets in action in hopes of scoring the "deal of the century" -- a $12 billion sale of these thus far tepidly received fighters to India?" Continue reading →

Continue ReadingAnother ‘War is Peace’ Award (This Time Hollande Wins!)

Top Spanish official in graft scandal

"A former treasurer of Spain’s ruling People’s Party (PP) hid away his wealth in a Swiss bank account. Court documents from an on-going judicial investigation into former PP treasurer Luis Barcenas revealed the account held up to €22 million, reports Reuters. The party, along with the opposition socialists, has helped govern the nation for the past three decades. In 2011, the conservatives won the general elections and unseated the socialists. Barcenas was the People's Party financial chief for 28 years until 2009 when he became the focal point of an investigation for allegedly accepting bribes from businesses vying for lucrative government contracts." Continue reading →

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Investigation ordered after Spanish politicians got ‘salaries’ from private companies

"Spanish Prime Minister Mariano Rajoy ordered Monday an internal investigation into the finances of his centre-right Popular Party which was shaken by allegations of under-the-table payments to party officials. The centre-right newspaper El Mundo reported Friday that senior members of the party, which Rajoy has led since 2004, had received undeclared salaries, mainly from private companies, over a 20-year period. Citing unnamed former members of the Popular Party leadership, the newspaper said the party’s former treasurer Luis Barcenas distributed envelopes containing thousands of euros to party officials on top of their official salaries." Continue reading →

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16 Ways to Cut Defense Spending

"Admiral Mike Mullen, former chairman of the Joint Chiefs of Staff, said that 'the greatest threat to our national security is our debt.' Senator Coburn said on 'Morning Joe' on Feb 13 that '$100 billion could be cut.' Ron Paul says that only about half the defense budget is for defense, the other half is for militarism abroad. So here are 16 ways to cut its waste, fraud, and abuse of American taxpayers. They don’t include the largest benefit of all: the value many of the highly skilled and motivated men and women in the military could bring to the civilian workforce. The mostly wasted talent pool is incredible. All American strategy should be re-examined." Continue reading →

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