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Megan Flanagan

Hidden Side of the College Dream: Mediocre Graduation Rates - The New York Times - 0 views

  • “go to college” is such a proven prescription
  • college graduates have lower unemployment rates, earn higher wages and even have longer-lasting marriages
  • 7.2 million students who need federal loans to attend college
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  • Of the 1,027 private colleges studied, 761 have graduation rates of less than 67 percent.
  • the rate is even lower, 46 percent
  • high schools in which more than a third of students do not graduate on time are labeled to receive special attention by federal standards.
  • a college can have a graduation rate as low as 2 percent and still preserve its accreditation
  • “We act as if they’re all the same right now. In K-12 we differentiate.”
  • “Graduation rates are primarily two factors: what the student brings and what the college brings to the experience,”
  • Colleges with lower graduation rates tend to admit a higher percentage of students with Pell grants, which usually go to lower-income students.
  • money is a huge roadblock to graduation.
  • “That is the No. 1 reason our students give when they drop out,”
  • any setback or poor grade can make them question whether they should be in college in the first place
  • colleges are not fulfilling their promise of upward mobility to students, particularly those who are trying to become the first in their families to earn a degree
  • “It’s not that the low-income students are destined to fail,” Mr. Shireman said. “It’s just that they have more challenges, so it takes a lot more resources to ensure that they succeed.”
nataliedepaulo1

Economists Have Been Demoted in Washington. That's a Bad Idea. - The New York Times - 0 views

  • Economists Have Been Demoted in Washington. That’s a Bad Idea.
  • Academic economists have received a demotion. The Trump administration has been filling out its cabinet and, unlike in the Obama administration, the chairman of the Council of Economic Advisers will not be part of it.
  • Yes, academics fret about what their peers think, just as other people do. In this case, it’s a good thing. It is important to have someone in the cabinet who is more interested in protecting academic integrity than in protecting business interests or the president’s image.
julia rhodes

Federal Brain Science Project Aims To Restore Soldiers' Memory : Shots - Health News : NPR - 0 views

  • When President Obama announced his plan to explore the mysteries of the human brain seven months ago,
  • BRAIN Initiative will include efforts to restore lost memories in war veterans, create tools that let scientists study individual brain circuits and map the nervous system of the fruit fly.
  • The agency wants to focus on treatments for the sort of brain disorders affecting soldiers who served in Iraq and Afghanistan, according to Dr. Geoffrey Ling, deputy director of DARPA.
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  • DARPA hopes to do that with an implanted device that will take over some functions of the brain's hippocampus, an area that's important to memory. The agency has already used a device that does this in rodents, Ling said, and the goal is to move on to people quickly.
  • We believe that the tools and technologies that will come from this initiative will actually enable all brain scientists to do their work better, faster and with more impact,"
  • For several years now, people with Parkinson's have been able to reduce their tremors with a treatment known as deep brain stimulation.
  • But Dr. Tom Insel, director of the National Institute of Mental Health, said it's important to remember that the immediate goal of the BRAIN Initiative isn't developing treatments, but understanding the inner workings of the most complex system in the universe.
  • "They're interested in the brain as a way to understand who we are, what makes us different and what is special about the human brain."
julia rhodes

Why Seven African Nations Joined Anti-Monsanto Protests Last Weekend | ThinkProgress - 0 views

  • One of the company’s most compelling arguments for its quest to spread GMOs is that Monsanto products are the solution to world hunger
  • The company’s defenders claim that opposing GMOs is a luxury of Western privilege that denies developing countries vital resources to feed impoverished communities
  • According to Food Sovereignty Ghana, seven African countries held anti-Monsanto rallies on Saturday
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  • “GMO will make Ghanaian farmers poor” and “Our Food Under Our Control!!!”
  • Monsanto is also part of the New Alliance for Food Security and Nutrition, a group of private corporations tasked by the G8 to invest in solutions to African hunger over the next decade.
  • Hating Monsanto is “a luxury when you’re surrounded by food 24/7,” writes one defender, who argues that spreading negative sentiment against the company actually “impedes global economic growth.” Even Britain’s Environmental Secretary, Owen Paterson, said organizations fighting the spread of GMOs are “absolutely wicked” and “cast a dark shadow over attempts to feed the world.”
  • But African farmers also have very legitimate concerns about Monsanto’s reputation for investigating, suing, and ruining farmers who try to save GM seeds.
  • ood Sovereignty Ghana warns against the “control of our resources by multinational corporations and other foreign entities,” and the “avaricious calculations behind the proposition that food is just another commodity or component for international agribusiness.”
  • they call for “collective control over our collective resources.”
  • ontroversial GM golden rice, which is supposed to pump up Vitamin A levels in regular rice to make it more nutritious, could well be a promising use of technology
  • However, golden rice is still mainly theoretical after a decade of research.
  • hunger is not caused by a food shortage but by “a lack of purchasing power and/or the inability of the rural poor to be self-sufficient.”
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    Who has the right to decide liberties, farmers or NGOs?
Javier E

Slavery's Long Shadow - The New York Times - 0 views

  • he racial divide is still a defining feature of our political economy, the reason America is unique among advanced nations in its harsh treatment of the less fortunate and its willingness to tolerate unnecessary suffering among its citizens.
  • let me try to be cool and careful here, and cite some of the overwhelming evidence for the continuing centrality of race in our national politics.
  • My own understanding of the role of race in U.S. exceptionalism was largely shaped by two academic papers.
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  • nd this party-switching, in turn, was what drove the rightward swing of American politics after 1980. Race made Reaganism possible. And to this day Southern whites overwhelmingly vote Republican, to the tune of 85 or even 90 percent in the deep South.
  • But Mr. Bartels showed that the working-class turn against Democrats wasn’t a national phenomenon — it was entirely restricted to the South, where whites turned overwhelmingly Republican after the passage of the Civil Rights Act and Richard Nixon’s adoption of the so-called Southern strategy.
  • The first, by the political scientist Larry Bartels, analyzed the move of the white working class away from Democrats, a move made famous in Thomas Frank’s “What’s the Matter With Kansas?” Mr. Frank argued that working-class whites were being induced to vote against their own interests by the right’s exploitation of cultural issues.
  • The second paper, by the economists Alberto Alesina, Edward Glaeser, and Bruce Sacerdote, was titled “Why Doesn’t the United States Have a European-style Welfare State?”
  • Its authors — who are not, by the way, especially liberal — explored a number of hypotheses, but eventually concluded that race is central, because in America programs that help the needy are all too often seen as programs that help Those People:
  • you might wonder if things have changed since then. Unfortunately, the answer is that they haven’t, as you can see by looking at how states are implementing — or refusing to implement — Obamacare.
  • states were being offered a federally-funded program that would provide major benefits to millions of their citizens, pour billions into their economies, and help support their health-care providers. Who would turn down such an offer?
  • The answer is, 22 states at this point, although some may eventually change their minds. And what do these states have in common? Mainly, a history of slaveholding
  • it’s not just health reform: a history of slavery is a strong predictor of everything from gun control (or rather its absence), to low minimum wages and hostility to unions, to tax policy.
  • Every once in a while you hear a chorus of voices declaring that race is no longer a problem in America. That’s wishful thinking; we are still haunted by our nation’s original sin
Javier E

A Super-Simple Way to Understand the Net Neutrality Debate - NYTimes.com - 0 views

  • there is a really simple way of thinking of the debate over net neutrality: Is access to the Internet more like access to electricity, or more like cable television service?
  • For all the technical complexity of generating electricity and distributing it to millions of people, the economic arrangement is very simple: I give them money. They give me electricity. I do with it what I will.
  • One theory of the case, and the one that the Obama administration embraced Monday, is that the Internet is like electricity. It is fundamental to the 21st century economy, as essential to functioning in modern society as electricity. It is a public utility. “We cannot allow Internet service providers (ISPs) to restrict the best access or to pick winners and losers in the online marketplace for services and ideas,” the president said in his written statement.
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  • Comcast, my cable provider, offers me a menu of packages from which I might choose, each with a different mix of channels. It goes through long and sometimes arduous negotiations with the owners of those cable channels and has a different business arrangement with each of them. The details of those arrangements are opaque to me as the consumer; all I know is that I can get the movie package for X dollars a month or the sports package for Y dollars and so on.
  • just as your electric utility has no say in how you use the electricity they sell you, the Internet should be a reliable way to access content produced by anyone, regardless of whether they have any special business arrangement with the utility.
  • Those arguing against net neutrality, most significantly the cable companies, say the Internet will be a richer experience if the profit motive applies, if they can negotiate deals with major content providers (the equivalent of cable channels) so that Netflix or Hulu or other streaming services that use huge bandwidth have to pay for the privilege.
  • It would also give your Internet provider considerably more economic leverage. It would, in the non-net-neutrality world, be free to throttle the speed with which you could access services that don’t pay up, or block sites entirely, as surely as you cannot watch a cable channel that your cable provider chooses not to offer (perhaps because of a dispute with the channel over fees).
Javier E

The Narrative Frays for Theranos and Elizabeth Holmes - The New York Times - 1 views

  • Few people, let alone those just 31 years old, have amassed the accolades and riches bestowed on Elizabeth Holmes, founder and chief executive of the blood-testing start-up Theranos.
  • This year President Obama named her a United States ambassador for global entrepreneurship. She gave the commencement address at Pepperdine University. She was the youngest person ever to be awarded the Horatio Alger Award in recognition of “remarkable achievements accomplished through honesty, hard work, self-reliance and perseverance over adversity.” She is on the Board of Fellows of Harvard Medical School.
  • Time named her one of the 100 Most Influential People in the World this year. She was the subject of lengthy profiles in The New Yorker and Fortune. Over the last week, she appeared on the cover of T: The New York Times Style Magazine, and Glamour anointed her one of its eight Women of the Year. She has been on “Charlie Rose,” as well as on stage at the Clinton Global Initiative, the World Economic Forum at Davos and the Aspen Ideas Festival, among numerous other conferences.
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  • Theranos, which she started after dropping out of Stanford at age 19, has raised more than $400 million in venture capital and has been valued at $9 billion, which makes Ms. Holmes’s 50 percent stake worth $4.5 billion. Forbes put her on the cover of its Forbes 400 issue, ranking her No. 121 on the list of wealthiest Americans.
  • Thanks to an investigative article in The Wall Street Journal this month by John Carreyrou, one of the company’s central claims, and the one most exciting to many investors and doctors, is being called into question. Theranos has acknowledged it was only running a limited number of tests on a microsample of blood using its finger-prick technology. Since then, it said it had stopped using its proprietary methods on all but one relatively simple test for herpes.
  • “The constant was that nobody had any idea how this works or even if it works,” Mr. Loria told me this week. “People in medicine couldn’t understand why the media and technology worlds were so in thrall to her.
  • that so many eminent authorities — from Henry Kissinger, who had served on the company’s board; to prominent investors like the Oracle founder Larry Ellison; to the Cleveland Clinic — appear to have embraced Theranos with minimal scrutiny is a testament to the ageless power of a great story.
  • Ms. Holmes seems to have perfectly executed the current Silicon Valley playbook: Drop out of a prestigious college to pursue an entrepreneurial vision; adopt an iconic uniform; embrace an extreme diet; and champion a humanitarian mission, preferably one that can be summed up in one catchy phrase.
  • She stays relentlessly on message, as a review of her numerous conference and TV appearances make clear, while at the same time saying little of scientific substance.
  • The natural human tendency to fit complex facts into a simple, compelling narrative has grown stronger in the digital age of 24/7 news and social media,
  • “We’re deluged with information even as pressure has grown to make snap decisions,”
  • “People see a TED talk. They hear this amazing story of a 30-something-year-old woman with a wonder procedure. They see the Cleveland Clinic is on board. A switch goes off and they make an instant decision that everything is fine. You see this over and over: Really smart and wealthy people start to believe completely implausible things with 100 percent certainty.”
  • Ms. Holmes’s story also fits into a broader narrative underway in medicine, in which new health care entrepreneurs are upending ossified hospital practices with the goal of delivering more effective and patient-oriented care.
  • as a medical technology company, Theranos has bumped up against something else: the scientific method, which puts a premium on verification over narrative.
  • “You have to subject yourself to peer review. You can’t just go in a stealthy mode and then announce one day that you’ve got technology that’s going to disrupt the world.”
  • Professor Yeo said that he and his colleagues wanted to see data and testing in independent labs. “We have a small army of people ready and willing to test Theranos’s products if they’d ask us,” he said. “And that can be done without revealing any trade secrets.”
  • “Every other company in this field has gone through peer review,” said Mr. Cherny of Evercore. “Why hold back so much of the platform if your goal is the greater good of humanity?”
Javier E

The Obama Boom - The New York Times - 1 views

  • What did Mr. Obama do that was supposed to kill jobs? Quite a lot, actually. He signed the 2010 Dodd-Frank financial reform, which critics claimed would crush employment by starving businesses of capital.
  • He raised taxes on high incomes, especially at the very top, where average tax rates rose by about six and a half percentage points after 2012, a step that critics claimed would destroy incentives.
  • Yet none of the dire predicted consequences of these policies have materialized.
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  • And he enacted a health reform that went into full effect in 2014, amid claims that it would have catastrophic effects on employment.
  • what do we learn from this impressive failure to fail? That the conservative economic orthodoxy dominating the Republican Party is very, very wrong.
  • conservative orthodoxy has a curiously inconsistent view of the abilities and motivations of corporations and wealthy individuals — I mean, job creators.
  • On one side, this elite is presumed to be a bunch of economic superheroes, able to deliver universal prosperity by summoning the magic of the marketplace. On the other side, they’re depicted as incredibly sensitive flowers who wilt in the face of adversity — raise their taxes a bit, subject them to a few regulations, or for that matter hurt their feelings in a speech or two, and they’ll stop creating jobs and go sulk in their tents, or more likely their mansions.
  • It’s a doctrine that doesn’t make much sense, but it conveys a clear message that, whaddya know, turns out to be very convenient for the elite: namely, that injustice is a law of nature, that we’d better not do anything to make our society less unequal or protect ordinary families from financial risks. Because if we do, the usual suspects insist, we’ll be severely punished by the invisible hand, which will collapse the economy.
  • From a conservative point of view, Mr. Obama did everything wrong, afflicting the comfortable (slightly) and comforting the afflicted (a lot), and nothing bad happened. We can, it turns out, make our society better after all.
Javier E

The Virtues of Reality - The New York Times - 1 views

  • SINCE the 1990s, we’ve seen two broad social changes that few observers would have expected to happen together.
  • First, youth culture has become less violent, less promiscuous and more responsible. American childhood is safer than ever before. Teenagers drink and smoke less than previous generations. The millennial generation has fewer sexual partners than its parents, and the teen birthrate has traced a two-decade decline. Violent crime — a young person’s temptation — fell for 25 years before the recent post-Ferguson homicide spike. Young people are half as likely to have been in a fight than a generation ago. Teen suicides, binge drinking, hard drug use — all are down.
  • But over the same period, adulthood has become less responsible, less obviously adult. For the first time in over a century, more 20-somethings live with their parents than in any other arrangement. The marriage rate is way down, and despite a high out-of-wedlock birthrate American fertility just hit an all-time low. More and more prime-age workers are dropping out of the work force — men especially, and younger men more so than older men, though female work force participation has dipped as well.
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  • I want to advance a technology-driven hypothesis: This mix of youthful safety and adult immaturity may be a feature of life in a society increasingly shaped by the internet’s virtual realities.
  • It is easy to see how online culture would make adolescent life less dangerous. Pornography to take the edge off teenage sexual appetite. Video games instead of fisticuffs or contact sports as an outlet for hormonal aggression. (Once it was feared that porn and violent media would encourage real-world aggression; instead they seem to be replacing it.) Sexting and selfie-enabled masturbation as a safer alternative to hooking up. Online hangouts instead of keggers in the field. More texting and driving, but less driving — one of the most dangerous teen activities — overall.
  • The question is whether this substitution is habit-forming and soul-shaping, and whether it extends beyond dangerous teen behavior to include things essential to long-term human flourishing — marriage, work, family, all that old-fashioned “meatspace” stuff.
  • It wasn’t so long ago that people worried about a digital divide, in which online access would be a luxury good that left the bottom half behind. But if anything, the virtual world looks more like an opiate for the masses
  • trends in the marketplace — ever-more-customized pornography, virtual realities that feel more and more immersive, devices and apps customized for addictive behavior — seem likely to overwhelm most attempts to enjoy the virtual only within limits.
  • Patricia Snow (yes, even columnists have mothers), in an essay for First Things earlier this year, suggested that any effective resistance to virtual reality’s encroachments would need to be moral and religious, not just pragmatic and managerial
maxwellokolo

Senators ask FBI for evidence of Trump wiretap claim - BBC News - 0 views

shared by maxwellokolo on 08 Mar 17 - No Cached
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    Two US senators have written to US law enforcement to inquire if there is any evidence to support President Donald Trump's claim that he was wiretapped. Democratic Senator Sheldon Whitehouse and Republican Lindsey Graham sent the letter to the FBI on Wednesday. They requested "any warrant applications and court orders...
clairemann

What Biden's May 1 COVID-19 Vaccine Deadline Means For You | HuffPost Life - 0 views

  • President Joe Biden also said in an address on Thursday that all Americans would be eligible for a COVID-19 vaccine by May 1
  • Now, this does not necessarily mean everyone in the country will be rolling up their sleeves on that day. The general public may start scheduling appointments in early May, but it’s probably going to take a few months to work through the general population.
  • So far, the vaccine rollout has been sticky — it’s difficult to secure an appointment and supply continues to be tight across the country.
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  • The country will also need to open more vaccination sites, some of which should be open 24/7 to ensure people who get off work at odd hours have easy access to the vaccine.“This is a wartime sort of response,” Fagbuyi said. “You’re going to pull all the stops and not leave any stone unturned.”
  • “Enjoy the opportunity, but also be cautious and look at what’s going on around you,” Fagbuyi said.
  • So, when will we get to a point where it won’t be so complicated for the general public to score a vaccine appointment? Fagbuyi predicts sometime in June.
  • Adalja predicts that by the Fourth of July, vulnerable people will be vaccinated in all states and there will no longer be concerns about reaching hospital capacity.
  • “We’re going to be trying to convince people to come get vaccinated,” Adalja said.
  • We often hear doctors say we want 70% of the population to be immune to COVID-19, whether through vaccination, natural infection or preexisting immunity, to achieve herd immunity. Each dose pricked in someone’s arm makes it harder for the virus to spread.
  • “What I think is more important than herd immunity is making sure vulnerable populations are vaccinated so that COVID loses the ability to cause severe illness, hospitalization and death,” Adalja said.
cvanderloo

North Korea's Kim Talks Of New Weapons, But Leaves Door Open For Biden : NPR - 0 views

  • North Korean leader Kim Jong Un is calling for beefing up his country's nuclear and military capabilities, but appears to be leaving open the possibility for negotiation with the U.S., just days before President-elect Joe Biden takes office.
  • he also affirmed previous agreements with the Trump administration, which suggests that they could serve as the basis for future negotiations
  • That declaration called for denuclearization and a peace regime on the Korean peninsula, and a new, presumably less hostile, relationship between Pyongyang and Washington.
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  • Kim's remarks are "not exactly an olive branch, but it's not slamming the door, by any stretch of the imagination, either
  • Kim kicked off the congress by bluntly admitting that his plans for the past five years had fallen flat.
  • "Most consumer goods are now produced within the country, whereas in the past, they depended a lot on Chinese-made goods,
  • Kim conceded that, in addition to external factors, such as the pandemic, international sanctions and natural disasters, the party had committed "serious mistakes" that contributed to the country's dire economic situation.
  • "Instead of accusing the North Korean people or laborers, he blames bureaucrats, including himself."
cvanderloo

Donald Trump leaves White House with lowest-ever approval rating - 0 views

  • only 29% of Americans said they approve of how Trump is handling his job – the lowest of his tumultuous presidency and down 9 percentage points from August. Sixty-eight percent said they disapprove of his job performance.
  • – surveyed 5,360 U.S. adults, including 4,040 who said they voted in the presidential election.
    • cvanderloo
       
      Sample size is fairly small.
  • Biden, conversely, will begin his presidency with 64% of Americans expressing a positive opinion of his conduct since winning the election, according to the Pew Research poll.
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  • The poll found 75% of Americans believe Trump bears at least some of the responsibility for the attack, with only 24% saying he has no responsibility.
  • A narrow majority of Americans, 54%, said it would be best for Trump to be removed from office prior to Biden's Jan. 20 inauguration, while 45% said Trump should finish his term.
    • cvanderloo
       
      According to the poll, more people feel that Trump should be removed from office prior to the inauguration.
tongoscar

Did Trump Propose Cuts to Federal Pay Raises, Citing 'Serious Economic Conditions'? - 0 views

  • It was. In the message, Trump stated that federal law “authorizes me to implement alternative plans for pay adjustments for civilian Federal employees covered by the General Schedule and certain other pay systems if, because of ‘national emergency or serious economic conditions affecting the general welfare,’ I view the increases that would otherwise take effect as inappropriate.”
  • Congress approved a 3.1% raise for federal workers, which went into effect in 2020. It was the largest pay increase in a decade. Legislation introduced for 2021 calls for for a 3.5% increase.
  • It’s not unusual for presidents to make efforts to prevent full pay raises for federal workers from going into effect, Kauffman said. What is unusual is that Trump is using the economy to justify cuts even as he has been outspoken about the strength of the economy. One day after his message to Congress, Trump tweeted, “BEST USA ECONOMY IN HISTORY!”
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  • “If the economy is doing so well, then why can’t we afford to provide a pay raise to the federal workers, a third of whom are veterans, who ensure our democracy is working every day and ensure services are delivered,” Kauffman said. “Currently federal employees make about 4% less today than they did at the start of the decade, counting for inflation.”
  • But “every single president except maybe the first year [the law was in effect] under [George H.W. Bush], they have used national security reasons or national economic concerns to prevent the full raise from taking effect,” Kauffman said.
tongoscar

Trump trade war, tariffs giving China political, defense opportunity - Business Insider - 0 views

  • "We're the ones that are deciding whether or not we want to make a deal," Trump said in a speech at the Economic Club of New York this month. "We're close."
  • The reality of what Beijing wants is far more complicated than an end to the recent economic hostilities. Instead, it is balancing a variety of interests, some more important than the trade war.
  • Beijing's ideal scenario includes a free hand to violate human rights in Xinjiang and Hong Kong; it includes continuing to press for reunification with Taiwan; and it includes achieving the aims of China 2025, the Chinese Communist Party's plan to transition the country's economy to one based on technology.
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  • Trump's laser focus on trade has given Beijing the latitude to deal with those and other critical issues without fear interference from the White House.
  • Trump is correct to say that the Chinese economy is slowing down, but there is little evidence to support his assertion that Beijing is "dying" to make a deal anytime soon.
  • For months, Chinese economic data has been trending down, but it's only in the past few week that policymakers have slightly lowered key interest rates to keep money flowing through the economy.
  • China has also ignored US ire over its "Made in China 2025," a plan to build up China's tech sector using methods US officials have said violate the aims of the trade war — methods that allow more state control of China's economy and encourage more intellectual-property theft.
Javier E

Why Didn't the Government Stop the Crypto Scam? - 0 views

  • By 1935, the New Dealers had set up a new agency, the Securities and Exchange Commission, and cleaned out the FTC. Yet there was still immense concern that Roosevelt had not been able to tame Wall Street. The Supreme Court didn’t really ratify the SEC as a constitutional body until 1938, and nearly struck it down in 1935 when a conservative Supreme Court made it harder for the SEC to investigate cases.
  • It took a few years, but New Dealers finally implemented a workable set of securities rules, with the courts agreeing on basic definitions of what was a security. By the 1950s, SEC investigators could raise an eyebrow and change market behavior, and the amount of cheating in finance had dropped dramatically.
  • Institutional change, in other words, takes time.
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  • It’s a lesson to remember as we watch the crypto space melt down, with ex-billionaire Sam Bankman-Fried
  • It’s not like perfidy in crypto was some hidden secret. At the top of the market, back in December 2021, I wrote a piece very explicitly saying that crypto was a set of Ponzi schemes. It went viral, and I got a huge amount of hate mail from crypto types
  • one of the more bizarre aspects of the crypto meltdown is the deep anger not just at those who perpetrated it, but at those who were trying to stop the scam from going on. For instance, here’s crypto exchange Coinbase CEO Brian Armstrong, who just a year ago was fighting regulators vehemently, blaming the cops for allowing gambling in the casino he helps run.
  • FTX.com was an offshore exchange not regulated by the SEC. The problem is that the SEC failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) went offshore. Punishing US companies for this makes no sense.
  • many crypto ‘enthusiasts’ watching Gensler discuss regulation with his predecessor “called for their incarceration or worse.”
  • Cryptocurrencies are securities, and should fit under securities law, which would have imposed rules that would foster a de facto ban of the entire space. But since regulators had not actually treated them as securities for the last ten years, a whole new gray area of fake law had emerged
  • Almost as soon as he took office, Gensler sought to fix this situation, and treat them as securities. He began investigating important players
  • But the legal wrangling to just get the courts to treat crypto as a set of speculative instruments regulated under securities law made the law moot
  • In May of 2022, a year after Gensler began trying to do something about Terra/Luna, Kwon’s scheme blew up. In a comically-too-late-to-matter gesture, an appeals court then said that the SEC had the right to compel information from Kwon’s now-bankrupt scheme. It is absolute lunacy that well-settled law, like the ability for the SEC to investigate those in the securities business, is now being re-litigated.
  • Securities and Exchange Commission Chair Gary Gensler, who took office in April of 2021 with a deep background in Wall Street, regulatory policy, and crypto, which he had taught at MIT years before joining the SEC. Gensler came in with the goal of implementing the rule of law in the crypto space, which he knew was full of scams and based on unproven technology. Yesterday, on CNBC, he was again confronted with Andrew Ross Sorkin essentially asking, “Why were you going after minor players when this Ponzi scheme was so flagrant?”
  • it wasn’t just the courts who were an impediment. Gensler wasn’t the only cop on the beat. Other regulators, like those at the Commodities Futures Trading Commission, the Federal Reserve, or the Office of Comptroller of the Currency, not only refused to take action, but actively defended their regulatory turf against an attempt from the SEC to stop the scams.
  • Behind this was the fist of political power. Everyone saw the incentives the Senate laid down when every single Republican, plus a smattering of Democrats, defeated the nomination of crypto-skeptic Saule Omarova in becoming the powerful bank regulator at the Comptroller of the Currency
  • Instead of strong figures like Omarova, we had a weakling acting Comptroller Michael Hsu at the OCC, put there by the excessively cautious Treasury Secretary Janet Yellen. Hsu refused to stop bank interactions with crypto or fintech because, as he told Congress in 2021, “These trends cannot be stopped.”
  • It’s not just these regulators; everyone wanted a piece of the bureaucratic pie. In March of 2022, before it all unraveled, the Biden administration issued an executive order on crypto. In it, Biden said that virtually every single government agency would have a hand in the space.
  • That’s… insane. If everyone’s in charge, no one is.
  • And behind all of these fights was the money and political prestige of some most powerful people in Silicon Valley, who were funding a large political fight to write the rules for crypto, with everyone from former Treasury Secretary Larry Summers to former SEC Chair Mary Jo White on the payroll.
  • (Even now, even after it was all revealed as a Ponzi scheme, Congress is still trying to write rules favorable to the industry. It’s like, guys, stop it. There’s no more bribe money!)
  • Moreover, the institution Gensler took over was deeply weakened. Since the Reagan administration, wave after wave of political leader at the SEC has gutted the place and dumbed down the enforcers. Courts have tied up the commission in knots, and Congress has defanged it
  • Under Trump crypto exploded, because his SEC chair Jay Clayton had no real policy on crypto (and then immediately went into the industry after leaving.) The SEC was so dormant that when Gensler came into office, some senior lawyers actually revolted over his attempt to make them do work.
  • In other words, the regulators were tied up in the courts, they were against an immensely powerful set of venture capitalists who have poured money into Congress and D.C., they had feeble legal levers, and they had to deal with ‘crypto enthusiasts' who thought they should be jailed or harmed for trying to impose basic rules around market manipulation.
  • The bottom line is, Gensler is just one regulator, up against a lot of massed power, money, and bad institutional habits. And we as a society simply made the choice through our elected leaders to have little meaningful law enforcement in financial markets, which first became blindingly obvious in 2008 during the financial crisis, and then became comical ten years later when a sector whose only real use cases were money laundering
  • , Ponzi scheming or buying drugs on the internet, managed to rack up enough political power to bring Tony Blair and Bill Clinton to a conference held in a tax haven billed as ‘the future.’
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