Gamestop as a fee-free, convenient banking institution


JWZ's law states that "Every program attempts to expand until it can read mail." A corollary is that every complex system expands until it becomes a bank. Yesterday, I wrote about how a chatbot for organizing coffee orders became a full-fledged bank.

Now, here's a 4chan post explaining a dumb/clever way of using Gamestop stores as fee-free banking institutions by pre-ordering (and pre-paying) for games, then cancelling your orders and getting a refund (to make a withdrawal), and ordering new games (to make a deposit). It's fee-free, and as a pre-orderer, you get all the bonus stuff (your bank pays you!).

This is probably more of a reflection of the total dysfunction of banking, where low interest rates and hidden inflation, as well as high fees, conspire to bleed out savers to pay for reckless speculation, but it's still a pretty clever way of getting fee-free banking from an institution with more branches, and better hours, than many banks.

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How a coffee-order chatbot turned into a bank


This great 2011 post by Roy Rapoport tells the story of how a software company created and incrementally improved a chat-bot that collected and organized the team's coffee orders -- and how the system grew, drip by drip, into a full-fledged bank. Rapoport presents it as a cautionary tale about feature creep -- but it's also a neat parable about how all currency arises from debt, which is the thesis of Debt: The First 5,000 Years, which is one of the most provocative books I've read in years.

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Photos from the Rothschilds' 1972 surrealist ball


Hang the Bankers has a set of photos from 1972 surrealist ball hosted by Marie-Hélène de Rothschild at the Château de Ferrières, with Salvador Dali in attendance. Hang the Bankers cites this as evidence of "the underlying ideology and the mind state of the occult elite," which sounds like hogwash to me. I mean, I'm all for reflexively condemning the hyper-rich, but if you're a weird shadowy billionaire aristo, better you should be spending your unimaginable riches on cool dress-up parties than tacky mega-yachts or sabotaging health care bills.

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Tim Cook to climate deniers: get bent

The National Center for Public Policy Research, group of climate deniers with stock in Apple, tried to force a motion to terminate Apple's use of renewable energy (and failed miserably). At the company's AGM, an NCPPR spokesdenier asked Apple CEO Tim Cook to defend the profit-maximization nature of green energy. Cook told him -- more or less -- to go fuck himself: "If you want me to do things only for ROI reasons, you should get out of this stock." Cory 28

Obama's top Trans-Pacific Partnership officials were given millions by banks before taking the job


The top Obama administration officials working on the Trans-Pacific Partnership came to government from investment banks who will benefit immensely from its provisions, which severely curtail countries' ability to pass laws regulating banks and other corporations. These top advisors, who came from Bank of America and Citigroup, were given multimillion-dollar exit bonuses when they left their employers for government. For example, the US Trade Representative, Michael Froman, was handed $4M from Citigroup as a goodbye gift on his way into his new job.

This is standard operating procedure for America's financial industry, where the largest players all have contracts guaranteeing millions to employees who leave the firm for government jobs.

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Report from a meeting of Wall Street's secret, tasteless plutocrats' club


In the process of writing his just-released book Young Money, an investigative look at the bankers who've joined Wall Street since the crash of 2008, author Kevin Roose snuck into a meeting of the secretive Kappa Beta Phi club -- an organization of hyper-rich Wall Street bankers.

Roose recorded the captains of of industry, whose shady dealing had crashed the world economy and plunged millions into untold misery, cavorting on stage, making jokes about poor people and Hillary Clinton, dressing up in drag, and singing an anthem about how much bailout money they'd suckered out of the feds, to the tune of Dixie: "In Wall Street land we’ll take our stand, said Morgan and Goldman. But first we better get some loans, so quick, get to the Fed, man."

New York Magazine has a membership roll of the Kappa Beta Phis, which is a who's who of the richest, most powerful men on Wall Street.

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The UK Gold: riveting documentary on the deep, ingrained corruption of the UK's banking centre, the City of London

Jeff writes, "Featuring a brand new soundtrack from Radiohead's Thom Yorke, Massive Attack and Elbow, and narrated by Dominic West (The Wire), journalist Marke Donne has put together a riveting documentary exposing the tax avoidance 'industry' operated by the highly secretive, centuries old institution, The City of London.

With a permanent office in Parliament, a budget of $1.2 billion and the media-avoiding tactics of the super-rich, the City relies on lobbying and silence to carry out it's offshore tax avoidance, robbing the state of tens of billions in revenue every year."

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For sale: Swiss Scrooge McDuck swimming pool/vault full of shiny coins


If you've ever dreamed of owning a bank-vault mounded high with shiny coins in which you can bathe like Scrooge McDuck, now is your chance. A Swiss bank-vault filled with 8 million Swiss 5-cent pieces is up for auction. The vault was made in 1913 for the Schweizer Volksbank. The coins -- 15 tons' worth -- were used in a 2013 installation in which they were dumped in a public square, with no security, as an exercise in public trust. The coins and the safe are presently in Basel. You will have to relocate them.

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HSBC settlement approved: no criminal charges, 5 weeks' profit in fines, deferred bonuses for laundering billions for narco-terrorists


Remember when HSBC got caught laundering billions for Mexican narco-terror cartels? Remember how they offered to pay five weeks' profits in fines and to defer their executive bonuses to escape criminal charges?

The crime-fighting legal eagles at the Department of Justice approved the settlement last week. Remember, though, if you are suspected of laundering money or selling drugs, the DoJ will take your house away and put you in jail for the rest of your life. Nice to be "too big to jail." Still, deferring multimillion-dollar bonuses has gotta hurt, huh?

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Feds spend more subsidizing undergrads than undergrads pay in tuition


Here's an analysis of the New America Foundation's Federal Education Budget Project, a wide-ranging and thorough look at the way the government spends on education. It shows that the total take from American universities in tuition for undergraduate programs is $62.6B, while the Federal government is spending $69 billion on grants, aid loans, tax breaks and other funding.

The implication is that it would be cheaper to give away university education than to charge for it, but that's not quite right (federal education funding pays for more than tuition -- it also includes housing, food and other expenses, and the feds are already subsidizing colleges out of their $69B spend). But it does suggest that the education system is really screwed up, an expensive boondoggle that is optimized for paying bondholders who own student debt, rather than turning out an educated, resilient and adaptable nation.

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South Dakota: the Bermuda of the prairie, letting billionaires avoid millions in estate tax


America's billionaires are able to avoid paying millions in inheritance taxes by renting empty storefronts in South Dakota in order to give their trust-funds an SD address, from which they can exploit a deliberate loophole in state tax-law. Over $121 billion in trust-funds is administered through South Dakota, mostly for out-of-state families -- a figure that's tripled in four years. South Dakota's corrupt tax laws also allow for avoiding millions in tax from ordinary investments by the richest people in NY and MA.

South Dakota itself has some dire poverty -- two of the 10 poorest counties in America are in SD -- and lawmakers describe their project to turn the state into "the Bermuda of the prairie" as an economic development project, creating jobs for lawyers and bankers, and "[forging] ties with prosperous families that may one day decide to build a factory or a warehouse here."

The project has failed. The entire trust industry only employs about 100 South Dakotans, but Republican Governor Dennis Daugaard, a former banker, says it's worth it: "If you've got several hundred well-paying jobs, it's worth it to us."

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Apps come bundled with secret Bitcoin mining programs, paper over the practice with EULAs


Researchers at Malwarebytes have discovered that some programs covertly install Bitcoin-mining software on users' computers, papering over the practice by including sneaky language in their license agreements allowing for "computer calculations, security."

The malicious programs include YourFreeProxy from Mutual Public, AKA We Build Toolbars, LLC, AKA WBT. YourFreeProxy comes with a program called Monitor.exe, which repeatedly phones home to WBT, eventually silently downloading and installing a Bitcoin mining program called "jhProtominer."

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JP Morgan's "Twitter takeover" seeks questions from Twitter, gets flooded with critiques of banksterism #AskJPM

When JP Morgan's Twitter account announced last month that "VC Jimmy Lee" take questions from the net with the #AskJPM hashtag, they should have been able to predict what was coming next: a stream of hilarious, vicious critiques of late-stage capitalism, banksterism, and financial corruption. One day later, the Q&A was cancelled. The astonishing thing isn't how predictable this was, but how anyone at JP Morgan failed to see it coming -- the greatest irony isn't the questions raised, it was the hubris in thinking that these questions wouldn't be raised at all.

The fiasco is being called one of the worst social media disasters in corporate history, and has spawned lots of creativity, including this video of Stacy Keach and a sock puppet performing the tweets and a Matt Taibbi-sponsored haiku contest.

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Pope blasts capitalism


In a new Evangelii Gadium, Pope Francis has condemned doctrinaire capitalism, "deified markets," trickle-down economics, and the finance industry. He decried the growing gap between the rich and the poor, tax evasion by the wealthy, and characterized ruthless free-market economics as a killer that was inherently sinful.

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$147M Bitcoin transaction

A Bitcoin address with a history of large transactions just conducted a transfer worth $147M, more or less.