Category Archives: William K. Black

Let’s Call It What It Is – Murder

By William K. Black
Kilkenny, Ireland: November 8, 2014

Clarence Ditlow and Ralph Nader wrote a column in the New York Times on October 29, 2014 that should be reread in light of the November 6, 2014 NYT article’s subsequent revelations about the Takata’s cover up of sometimes lethal defects in its airbags – a cover up that reportedly continued for over a decade.

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The Euphemistic “White Collar Watch” is Addicted to Euphemism

By William K. Black
Kilkenny, Ireland: November 7, 2014

Kilkenomics pairs top professional comedians with economics contributors who share two characteristics: wide-ranging interests and knowledge and candor. This means that the contributors take clear positions and defend those positions with facts and logic. That refreshing willingness to actually be blunt about important things may be what set my teeth so on edge when I read the New York Times’ “White Collar Watch” feature. It is written by Peter J. Henning, who teaches, and writes about, white-collar crime. The problem is evident in the “brand” that Henning has chosen for his columns. Note the deliberate exclusion of the word “crime.” What is Henning doing – writing a column (from Detroit) on the lives of “white-collar” employees, professionals, and officers? His very brand is based on the bowdlerization of his academic specialty through euphemism.

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Germany’s Leaders Denounce those who “Take an Axe to European Solidarity”

By William K. Black
Kilkenny, Ireland: November 7, 2014

The news in Europe (I’m in Kilkenny, Ireland participating in Kilkenomics V) is filled with coverage of the latest travesty of the Troika – a leak disclosed the “let’s make a (secret) deal to virtually eliminate your corporate taxes” practices of Luxembourg under the reign of Jean-Claude Juncker. The leaks show that over 300 corporations have used such deals to produce what German leaders aptly describe as “non-taxation.” I described the resultant “magical fairyland” of tax havens that resulted in an earlier column. Juncker is the newly appointed head of the European Commission (EC). The EC is the most deranged member of that Troika – the home turf of those that insist on inflicting the most ruinous austerity and the war on workers’ wages. Juncker was chosen by the Germans to run the EC as a reward for his willingness to support these twin German diktats.

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The “Magical Fairyland” of Corporate Tax Scams

By William K. Black

I’m in Kilkenny, Ireland where Kilkenomics V begins tonight. Kilkenomics is the economics festival in which economists and professional comedians combine to produce a blunt presentation of issues involving economics that have enormous effects on our lives. One of the traditions of Kilkenomics is that the travesty of some act by the Troika (the European Central Bank (ECB), the International Monetary Fund (IMF), and the European Commission (EC)) is revealed just in time to kick off the festival. This year, the Troika produced a double-barreled blast. First, the ECB’s November 2010 letter extorting the Irish government to inflict austerity and produce a second Great Recession in Ireland was leaked.

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The New York Times Finally Allows Competent EU Commentators

By William K. Black

As my regular readers know, the NYT coverage of the EU financial crisis has been shameful, economically illiterate, and harmful. In the last two weeks, however, that coverage has finally begun to mention the concept of inadequate demand, the fact that governmental spending can provide demand, and that austerity is not the only available choice. In the last 10 days the coverage even began to quote economists who made the point that austerity is the problem rather than the solution. This modest improvement has taken six years, two gratuitous Great Recessions, and Great Depressions for about one-third the eurozone’s population.

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Jamie Dimon: U.S. Must Create a “Safe Harbor” Where JPM’s Corruption Is Not “Punished”

By William K. Black

I want to give a hat tip to a recent Wall Street Journal article that brought to my attention two damning admissions by JPMorgan’s (JPM) CEO and Chairman of the Board, Jamie Dimon.  The irony is that Dimon was lulled into making these admissions because he was basking in the perfect calm created by the confluence of Sorkin’s and CNBC’s storied sycophancy at the one place on earth where elite bankers feel most loved, honored, and protected – the annual meeting of the ultra-wealthy in Davos, Switzerland.  Sorkin was the only interviewer, so Dimon faced no risk of tough questions.  It may well have been this perfect setting that caused Dimon to let slip the mask and reveal two illustrative sins of elite bankers reported in the WSJ article.

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How the Rocket Scientists Aided the Senior Fraudulent Bank Officers

By William K. Black

In my first column in this two-part series I explained how the Department of Justice’s (DOJ) non-prosecutorial effort against the banksters’ frauds that caused the financial crisis had ended with a pathetic whimper uttered by Deputy Attorney General James Cole during his ritual exit interview with Bloomberg. Cole’s explanation for DOJ’s failure to prosecute a single senior banker for leading the three fraud epidemics that drove the financial crisis was that DOJ was “dealing with financial rocket science.” My first column made the point, which escaped DOJ and Bloomberg that if this were true it would presumably have been modestly important for DOJ to do something about the ability of “rocket scientists” to grow wealthy by leading the frauds that cost the U.S. $21 trillion in lost GDP and 10 million jobs. In my second column I explained why no rocket science was required to prosecute the senior bank officers that led the three most destructive epidemics of financial fraud. In light of a reader’s comment I promised to write this third piece on “rocket science” in the financial context.

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Liar’s Loans Ain’t “Rocket Science”

By William K. Black

In my first column in this two-part series I explained how the Department of Justice’s (DOJ) non-prosecutorial effort against the banksters’ frauds that caused the financial crisis had ended with a pathetic whimper uttered by Deputy Attorney General James Cole during his ritual exit interview with Bloomberg. Cole’s explanation for DOJ’s failure to prosecute a single senior banker for leading the three fraud epidemics that drove the financial crisis was that DOJ was “dealing with financial rocket science.” My first column made the point, which escaped DOJ and Bloomberg that if this were true it would presumably have been modestly important for DOJ to do something about the ability of “rocket scientists” to grow wealthy by leading the frauds that cost the U.S. $21 trillion in lost GDP and 10 million jobs. I also promised this column explaining why it was not true. In light of a reader’s comment I’ll add a third piece on “rocket science” in the financial context.

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Not with a Bang but a Whimper: DOJ Says it Cannot Prosecute “Rocket Science” Frauds

By William K. Black

This is the way the Department of Justice’s (DOJ) greatest strategic prosecutorial failure ends, not with a bang but a whimper that it is too hard to prosecute “rocket science” frauds.  The context is the ritual Bloomberg exit interview with the senior DOJ official going off to make his new fortune.  The lucky fellow this week is Deputy Attorney General James Cole.  This genre of interview is designed to allow the man in the revolving door to announce his great accomplishments as a prosecutor, or in this case, non-prosecutor.  Cole gamely claims that zero prosecutions constitutes a brilliant success because DOJ’s civil cases “have resulted in banks paying huge fines and altering their behavior.”

“Holder today praised Cole as his ‘indispensable partner’ since taking the deputy’s job in January 2011. ‘Jim’s leadership and ingenuity have been critical in attaining historic results on behalf of the American people,’ Holder said in a statement.”

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Krugman’s Bashes Progressives for Criticizing Obama on Grounds that He Criticizes Obama

By William K. Black

Paul Krugman’s admirers would never list modesty as one of his characteristics. He has written a column “In Defense of Obama” that begins by explaining that his criticisms of President Obama were correct, but that unidentified others’ criticisms of Obama constitute “trash talk.”

Specifically, Obama “came perilously close to doing terrible things to the U.S. safety net in pursuit of a budget Grand Bargain.” Obama sought to produce a self-inflicted disaster by desperately trying to reach a “Grand Bargain” with Republicans that would have inflicted austerity on our Nation in 2012, “slash[ed] Social Security and [raised] the Medicare [eligibility] age.” As even Krugman admits, we were saved from this catastrophe “only by Republican greed, the GOP’s unwillingness to make even token concessions” to achieve the Grand Bargain. What Krugman omits in the tale is that it was also a revolt by Democratic progressives against the Grand Bargain that saved Obama and the Nation.

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