Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: banks

Jury Punishes JPMorgan With $4 Billion in Damages for Mishandling $20 Million Estate

This article appeared online at TheNewAmerican.com on Wednesday, September 27, 2017:

English: Category:JPMorgan Chase

Attorneys for the widow and children of Max Hopper, the developer of the SABRE reservation software used by American Airlines, wanted to deliver a message to JPMorgan. On Tuesday they got their wish. Their attorneys announced that not only did the six-member jury award them nearly $5 million in actual damages, plus another $5 million to cover their legal fees for bringing a lawsuit against the bank, the jury doubled what the family wanted in punitive damages. They wanted to make an impression on the bank that would be heard all way from Dallas to 270 Park Avenue, New York City, the bank’s headquarters.

The jurors, apparently so outraged after listening to the bank’s fraudulent, negligent, and malicious behavior toward Hopper’s widow and two children, decided to

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China is Suffering from the Same Curse as the U.S.: Too Much Debt, Too Little Growth

This article was published by The McAlvany Intelligence Advisor on Friday, September 22, 2017:  

Live video feed of Zig Ziglar speaking at the ...

Zig Ziglar speaking at the Get Motivated Seminar at the Cow Palace in Daly City, California.

When Zig Ziglar was trying to motivate salesmen, he would often tell them that “there aren’t very many problems that can’t be solved by sufficient production.” This, unfortunately, has been picked up by statist economists who have assumed that any production, at any cost, will solve any problem. Put another way, “We can grow our way out from under the massive debt we have. And we can grow the economy by stimulating it with borrowed funds.”

Zig would be appalled:

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If Dudley is Right, Then Let’s Pray for the Flooding of the Entire Country!

This article was published by The McAlvany Intelligence Advisor on Monday, September 11, 2017:

Cover of "The Emperor's New Clothes"

Cover of The Emperor’s New Clothes

Taken to its logical conclusion, William Dudley, the president of the Federal Reserve Bank of New York, thinks a flood covering all of the United States would stimulate the economy. Several sources confirmed that this is what Dudley said on Friday in an interview at CNBC concerning the economic effects of hurricanes Harvey and Irma:

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Hurricane Harvey, President Trump Putting More Pressure on Venezuela

This article appeared online at TheNewAmerican.com on Sunday, August 27, 2017:

On Friday President Donald Trump once again ramped up sanctions against Venezuela’s Marxist dictator, shutting off his ability to sell new debt or equity in the U.S. financial markets. On Saturday, Hurricane Harvey, the worst hurricane to hit the Gulf Coast in 50 years, has all but sealed Maduro’s fate.

Following Maduro’s installation of his illegal “constituent assembly” in July, President Trump placed sanctions on Maduro himself, freezing any and all of his assets lying within American jurisdiction. A week later Trump added a few of Maduro’s cronies to that list, and on August 9 he added a few more. At the time The New American expressed skepticism that they would have any effect on Maduro’s obstinacy and determination to continue policies that have caused Venezuela’s economy to shrink by 35 percent just since 2014.

On Friday the Trump administration broadened those sanctions to include

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Operation Choke Point is a Zombie: Once Declared Dead, It Remains Alive and Well

This article was published by The McAlvany Intelligence Advisor on Wednesday, August 16, 2017:

FDIC eagle seal in the main lobby of the headq...

Zombies are often depicted as mindless, unthinking henchmen operating under the spell of an evil magician. A lot of that defines Operation Choke Point, a mindless, unconstitutional apparition invoked by the evil intentions of the previous administration to shut down gun stores, payday loan companies, tobacco sellers, and the like. Each of these was determined to be “disreputable” dictated by the totalitarian worldview of Obama and his henchmen.

Declared dead back in 2015, it lives. Back on January 29, 2015, the FDIC said it was dead:

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OPEC Getting Some Help from Nervous Energy Company Bondholders

This article was published by The McAlvany Intelligence Advisor on Friday, July 21, 2017:

It’s no wonder that investors owning bonds of companies in the energy business are getting nervous. They purchased high-yield bonds issued by them, seeking income when there was little to be had elsewhere. Last year they were rewarded with 38 percent gains in their holdings as the industry rebounded.

But in June Bloomberg reported that those same bondholders saw their values drop by two percent. This is on top of energy stocks that have tanked 16 percent so far this year.

It’s the vicious circle facing frackers.

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From Hero to Zero: $2-Billion Private Equity Fund Goes Broke in Oil

This article appeared online at TheNewAmerican.com on Tuesday, July 18, 2017:

J. Paul Getty Trust

EnerVest Ltd., a Houston-based private equity firm run by John Walker, is being taken over by one of its largest lenders to satisfy its unpaid debts. The firm raised capital from large investors, foundations, and pension plans and bought existing oil wells, improved them, and sent the dividends back to the investors.

In 2011, it had come off a very successful year. It owned 19,000 onshore oil wells on four million acres of land in 12 states. Its previous investments delivered a compounded annual return of 36 percent, a track record that made it relatively easy for Walker to raise additional capital. In a classic understatement, Walker said, “We had an outstanding year.” He explained just how he and his company did it; he bought cheap and sold dear, without using borrowed funds:

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From Hero to Zero: $2-Billion Private Equity Fund Goes Broke in Oil

This article appeared online at TheNewAmerican.com on Monday, July 17, 2017:  

Wells Fargo

Wells Fargo

EnerVest Ltd., a Houston-based private equity firm run by John Walker, is being taken over by Wells Fargo, one of its largest lenders, to satisfy its unpaid debts. The firm raised capital from large investors, foundations, and pension plans and bought existing oil wells, improved them, and sent the dividends back to the investors.

In 2011, it had come off a very successful year. It owned 19,000 onshore oil wells on four million acres of land in 12 states. Its previous investments delivered a compounded annual return of 36 percent, a track record that made it relatively easy for Walker to raise additional capital. In a classic understatement, Walker said, “We had an outstanding year.” He explained just how he and his company did it; he bought cheap and sold dear, without using borrowed funds:

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Puerto Rico’s Vote for Statehood Means Nothing

This article appeared online at TheNewAmerican.com on Monday, June 12, 2017:

Despite 97 percent of Puerto Ricans voting for statehood in Sunday’s plebescite, the chances of adding the island as the country’s 51st state are between slim and none.

The island’s voters had three choices on Sunday’s ballot: Stay as a U.S. territory, move ahead with statehood, or seek full independence as a sovereign nation. This is the fifth vote on the issue since 1967, with the first three failing to gain a majority vote for statehood. That majority is required for the U.S. Congress to consider it. The fourth vote was marred by some 500,000 voters boycotting it to protest the ballot allegedly being rigged in favor of statehood.

The chances this time aren’t any better.

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Moody’s Revelation: “Managed” Economies fail

This article was published by The McAlvany Intelligence Advisor on Friday, May 26, 2017:  

Perhaps without knowing it, Moody’s downgrade of China one full notch on Wednesday exposed the fallacy of managed economies: that government bureaucrats with fancy degrees from the University of Chicago, Harvard, or Yale know what they’re doing. One of those fallacies that have been promoted for years came from Yale grad Arthur Laffer as far back as the Reagan administration. On the surface it sounds eminently logical: cut taxes and the economy will grow. The fallacy is knowing just how much to cut, whose to cut, when to cut, and how long to cut.

The Laffer Curve undergirds the whole idea of “supply side economics” –

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Moody’s Credit Downgrade of China First in Almost 30 Years

This article appeared online at TheNewAmerican.com on Thursday, May 25, 2017:

China GDP

China GDP

Moody’s Investors Service, one of the big three credit-rating services in the country, downgraded China’s creditworthiness one full notch on Wednesday. It moved the world’s second-largest economy from Aa3 (“high quality [with] very low risk”) to A1 (Upper-medium grade [with] low credit risk”). It explained why:

The downgrade reflects Moody’s expectations that China’s financial strength will erode somewhat over the coming years, with economy-wide debt continuing to grow as potential growth slows.

That “potential growth” has been slowing since at least 2010. In that year Chinese government agencies reported growth in excess of 10 percent. By 2014, it had slowed to 7.3 percent, to 6.9 percent in 2015, and is now at a reported 6.7 percent.

Moody’s is late to the game.

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Supreme Court’s Non-decision Expands Passenger Ridesharing Freedom

This article appeared online at TheNewAmerican.com on Thursday, April 27, 2017: 

By declining to hear an appeal, the Supreme Court on Monday essentially declared that rules protecting the taxi cartel in Chicago were null and void, thus expanding passenger freedom. As an attorney with the Institute for Justice (IJ), which represented Chicago Uber driver Dan Burgess, explained: “Today’s decision makes clear what [IJ] has said for years. The Constitution does not require [city] governments to stick with outdated protectionist regulations in the face of technological innovation.”

When Uber and other ride-sharing companies entered the Chicago market several years ago, they soon became a thorn in the side of the taxi cartel that had operated under protectionist rules dating back to 1937. Those rules

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Trump Administration Tips Its Hand, Oks Third Greek Bailout

This article appeared online at TheNewAmerican.com on Monday, April 17, 2017:

It took EURACTIV, the online source that focuses on European policymaking, to report that the Trump administration has signaled that, previous protestations to the contrary, it won’t object to a third Greek bailout. The anonymous Trump administration tipster told its reporters: “We’re looking for the Europeans to help Greece to resolve its economic problems by the Fund [the International Monetary Fund], despite the criticism of many Republicans regarding the two previous bailout programs in 2010 and 2012.”

This anonymous tip kicks to the curb protestations voiced by Trump’s Secretary of the Treasury Steven Mnuchin in February that

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Trump’s Strange Reversal on Ex-Im Bank: Names One Opposed to It to Run It?

This article appeared online at TheNewAmerican.com on Monday, April 17, 2017:

English: Congressman Justin Amash

Congressman Justin Amash

When Representative Justin Amash (R-Mich.) learned on Friday that President Trump intended to resuscitate the Export-Import Bank by naming two people to its board (it has been limping along with just three out of five board members present), he nailed it, tweeting, “ExIm corporate welfare bank is the symbol of D.C. cronyism. It steals from taxpayers to subsidize big corporations. End ExIm. Drain the Swamp.”

For a while it looked as if the Ex-Im Bank was for all intents and purposes dead. In 2015, the House failed to renew its charter for the first time since 1945. However,

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Simmering Greek Financial Crisis Explodes Once Again

This article appeared online at TheNewAmerican.com on Thursday, December 15, 2016:  

Under the terms of its last bailout, Athens (above) was required not only to continue to impose harsh austerity terms (higher taxes, less government spending, better accountability, and increased tax collection enforcement onto Greek citizens) but to inform the unelected “higher” European authorities of any change in those terms by Athens.

Last week Athens unilaterally

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Civilization’s Thin Veneer

This article was published by The McAlvany Intelligence Advisor on Wednesday, December 14, 2016:  

The dictionary defines civilization as “an ideal state of human culture characterized by a complete absence of barbarism and non-rational behavior.” Rich Galen thinks a better definition is living in a “constant state of positive assumptions.”

Many of those assumptions are coming into question, with many more already proven to be false. One of them is that pension plans are safe, that promises made will be kept, and that the assumptions underlying those plans regarding rates of return on invested assets are reasonable and that they virtually guarantee predictable results.

Those positive assumptions vanished last summer in Athens when

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Mutt and Jeff? Laurel and Hardy? Crosby and Hope? Preibus and Bannon?

This article was published by The McAlvany Intelligence Advisor on Wednesday, November 16, 2016:  

Cover of "The Road to Hong Kong"

The Mutt and Jeff comic strip began in 1907 and lasted until 1983, with Al Smith drawing them for nearly 50 years. The slapstick comedians Stan Laurel and Oliver Hardy played to audiences from 1927 to 1950 while Bing Crosby and Bob Hope made seven “Road” films starting in 1940 and ending with “the Road to Hong Kong” in 1962. An eighth “Road” film was planned in 1977, “The Road to the Fountain of Youth,” but it was canceled when Crosby died of a heart attack that year.

Question: how long is the “co-equal” partnership of Reince Preibus and Steve Bannon likely to last?

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Trump’s First Challenge: the Iranian Nuclear Deal

This article appeared online at TheNewAmerican.com on Friday, November 11, 2016:  

On Wednesday Iran’s Foreign Minister Javad Zarif warned Donald Trump to keep his hands off the nuclear deal he and Secretary of State John Kerry made last year:

Every U.S. president has to understand the realities of today’s world. The most important thing is that the future U.S president sticks to agreements.

Whether Trump agrees with Zarif, or not, will likely be among the very first decisions he’ll be forced to make in January. During his campaign Trump repeatedly called the Iran nuclear deal “the worst deal ever negotiated,” a “disaster,” and said that it could lead to a “nuclear holocaust.” In March he told the American Israel Public Affairs Committee, “My number one priority is to dismantle the disastrous deal with Iran.”

Iran is making Trump’s decision easy.

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Trump Adds to His List of Advisors

This article appeared online at TheNewAmerican.com on Thursday, November 10, 2016:  

English: Deck of cards used in the game piquet

In March, Donald Trump trotted out an early list of foreign-policy advisors on whom he would be relying if he were elected president. In an interview with the Washington Post, Trump said, “I can give you some of the names … Walid Phares, who you probably know, PhD, adviser to the House of Representatives Caucus, and counter-terrorism expert; Carter Page, PhD; George Papadopoulos — he’s an energy and oil consultant, excellent guy; the Honorable Joseph Schmitz, [former] inspector general at the Department of Defense; [retired] Gen. Keith Kellogg; and I have quite a few more.”

In August he added “quite a few more” and then, the day after he was elected, Trump added still more, this time in the economic policy area.

There are at least four “wild cards” in the deck that Trump is building,

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Saudi Arabia to Sell $10 Billion in Bonds to Shore Up Its Finances

This article appeared online at TheNewAmerican.com on Wednesday, October 19, 2016:  

Coat of Arms of Saudi Arabia

Coat of Arms of Saudi Arabia

Oil ministers from Saudi Arabia have been traveling the world doing investment “roadshows” to promote their $10-billion bond offering that hits the markets this week. In so doing, they must disclose the risks investors could be taking, and then price the bonds according to those risks.

The Saudis appear to be paying the price for losing their bet about American oil producers. In November 2014 they made a massive wager that they could

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.