With Donald Trump reversing Obama's ban on the use of private prisons for federal prisoners and vowing to deport 11 million people; and Attorney General Jeff Sessions instructing prosecutors to seek long prison sentences for minor offenses, the investor community could not be more bullish on the private prison sector.
Deutsche Bank analyst Kevin McVeigh has issued strong "buy" recommendations for incarceration profiteers CoreCivic (the latest incarnation of the murdering Corrections Corporation of America) and GEO Group. In a similar report, JPMorgan Chase acknowledges that both companies are likely to attract significant liability due to suicides, murders, sexual assaults, torture, escapes and riots in their overcrowded, under-resourced gulags, but assures investors that this will be covered by the companies' insurance policies.
The companies seemed to be aware of the windfall that Trump's election might bring them. During the election campaign, CoreCivic donated $254,000 to the Republicans and also provided an additional $250,000 for Trump's inaugural celebrations. The GEO Group spent even more, donating $1.1 million to the Republicans.
Two former staff members of Sessions, who spent years in the Senate before becoming attorney general, took jobs in October at a lobbying firm that now represents the GEO Group.
The bets these private prison operators made on the law-and-order duo Trump and Sessions are already paying off. Under their leadership, the U.S. prison population is likely to rise again -- especially in the deportation detention centers along the border to Mexico.
The Golden Age of Private Prisons
[Marc Pitzke/Der Spiegel]
(via Naked Capitalism)
They told the public everything would be okay with the virus outbreak. Then they privately dumped stocks. Over the past 24 hours, news has spread that various U.S. lawmakers received advance private briefings about the severity of an oncoming coronavirus/COVID-19 pandemic — then, they sold stocks before the public knew how bad it would get, […]
President Trump today announced that he is commuting the prison sentence of Rod Blagojevich, a former Illinois governer jailed for corruption, and pardoning Bernard Kerik, the former New York Police Commissioner jailed for tax fraud. Blagojevich attempted to sell Barack Obama’s senate seat; Kerik was found to have accepted a $250,000 bribe from a billionaire […]
“What does this guy worth $60 billion own, who wants to be president?”
While all the downsides of stay-at-home orders and social distancing are evident, there are at least a few small silver linings to come out of all this. For many, this time spent indoors has meant a happy reintroduction to your very own kitchen. You know your kitchen. It’s usually the place that holds all your […]
Have you ever had more time to hone in on fine details than right now? Sure, at first glance, this might not seem like the time to get tripped up on the nitty-gritty of minutia. But how often are you ever going to have this much time to really stop and think about hows and […]
There are plenty of productive ways to spend time while stuck indoors. While it’s undoubtedly fun to binge all 15 seasons of Supernatural or sink days of playtime into an Overwatch campaign, learning something new is definitely a more meaningful and long-term beneficial use of open hours. And if you’re going to invest time in […]