How Debtors’ Prisons Are Making A Comeback In America

Submitted by Michael Krieger of Liberty Blitzkrieg,

Apparently having 5% of the world’s population, but 25% of its prisoners simply isn’t good enough for neo-feudal America. No, we need to find more creative and archaic ways to wastefully, immorally and seemingly unconstitutionally incarcerate poor people. Welcome to the latest trend in the penal colony formerly known as America. Debtors’ prisons. A practice I thought had long since been deemed outdated (indeed it has been largely eradicated in the Western world with the exception of about 1/3 of U.S. states as well as Greece).

From Fox News:

As if out of a Charles Dickens novel, people struggling to pay overdue fines and fees associated with court costs for even the simplest traffic infractions are being thrown in jail across the United States.

 

Critics are calling the practice the new “debtors’ prison” — referring to the jails that flourished in the U.S. and Western Europe over 150 years ago. Before the time of bankruptcy laws and social safety nets, poor folks and ruined business owners were locked up until their debts were paid off.

 

Reforms eventually outlawed the practice. But groups like the Brennan Center for Justice and the American Civil Liberties Union say it’s been reborn in local courts which may not be aware it’s against the law to send indigent people to jail over unpaid fines and fees — or they just haven’t been called on it until now.

 

The Brennan Center for Justice at New York University’s School of Law released a “Tool Kit for Action” in 2012 that broke down the cost to municipalities to jail debtors in comparison with the amount of old debt it was collecting. It doesn’t look like a bargain. For example, according to the report, Mecklenburg County, N.C., collected $33,476 in debts in 2009, but spent $40,000 jailing 246 debtors — a loss of $6,524.

Don’t worry, I’m sure private prisons for debtors will soon spring up to make this practice a pillar of GDP growth.

Many jurisdictions have taken to hiring private collection/probation companies to go after debtors, giving them the authority to revoke probation and incarcerate if they can’t pay. Research into the practice has found that private companies impose their own additional surcharges. Some 15 private companies have emerged to run these services in the South, including the popular Judicial Correction Services (JCS).

 

In 2012, Circuit Judge Hub Harrington at Harpersville Municipal Court in Alabama shut down what he called the “debtors’ prison” process there, echoing complaints that private companies are only in it for the money. He cited JCS in part for sending indigent people to jail. Calling it a “judicially sanctioned extortion racket,” Harrington said many defendants were locked up on bogus failure-to-appear warrants, and slapped with more fines and fees as a result.

 

Repeated calls to JCS in Alabama and Georgia were not returned.

 

The ACLU found that seven out of 11 counties they studied were operating de facto debtors’ prisons, despite clear “constitutional and legislative prohibitions.” Some were worse than others. In the second half of 2012 in Huron County, 20 percent of arrests were for failure to pay fines. The Sandusky Municipal Court in Erie County jailed 75 people in a little more than a month during the summer of 2012. The ACLU says it costs upwards of $400 in Ohio to execute a warrant and $65 a night to jail people.

 

Mark Silverstein, a staff attorney at the Colorado ACLU, claimed judges in these courts never assess the defendants’ ability to pay before sentencing them to jail, which would be unconstitutional.

Full article here.

On a related note, I strong suggest everyone read the following article from The Atlantic called: I Got Myself Arrested So I Could Look Inside the Justice System.

You’ll never see the “justice” system in the same light again.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/LqUUiGJAsJI/story01.htm Tyler Durden

S&P 500 Should Hit Goldman’s June 2014 Target Some Time Tomorrow

To think it was just two weeks ago, on December 13, when the S&P was being supported by the “Independence Day” barrier of 1776. It was also on that day that Goldman’s strategist David Kostin updated his most recent forward S&P500 price targets for both 6 months ahead (i.e. June), and December 31, 2014. The numbers were 1850 and 1900 respectively.

What is just a little bit concerning, is that the S&P, following yet another 10+ point move today on what can only be characterized as “hilarious” volume, will hit Goldman’s S&P500 June price target some time tomorrow (or maybe today if the NY Fed trading desk sends the VIX to a 10, or single-digit, handle).

What is even a little bit more concerning is that applying the Birinyi rule of forecasting, the S&P will hit Goldman’s full year 2014 price target by Wednesday, or the latest Friday of the first week of 2014.

One just has to sit back and laugh at what the central planners have done.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/D9xw27g9UtI/story01.htm Tyler Durden

S&P 500 Should Hit Goldman's June 2014 Target Some Time Tomorrow

To think it was just two weeks ago, on December 13, when the S&P was being supported by the “Independence Day” barrier of 1776. It was also on that day that Goldman’s strategist David Kostin updated his most recent forward S&P500 price targets for both 6 months ahead (i.e. June), and December 31, 2014. The numbers were 1850 and 1900 respectively.

What is just a little bit concerning, is that the S&P, following yet another 10+ point move today on what can only be characterized as “hilarious” volume, will hit Goldman’s S&P500 June price target some time tomorrow (or maybe today if the NY Fed trading desk sends the VIX to a 10, or single-digit, handle).

What is even a little bit more concerning is that applying the Birinyi rule of forecasting, the S&P will hit Goldman’s full year 2014 price target by Wednesday, or the latest Friday of the first week of 2014.

One just has to sit back and laugh at what the central planners have done.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/D9xw27g9UtI/story01.htm Tyler Durden

The World's Industry Leaders: Which Companies Dominate Their Sectors

When it comes to screening for stocks, one traditionally uses CapIQ, Factset or the Bloomberg Terminal. However, in a welcome development, the Bloomberg website has launched its own free screener of companies titled the Bloomberg Industry Leaderboard, which this day and age of visual learning, has the added benefit of breaking down the data in an easily digestible, visual format. It allows the sorting of industry leaders by virtually every economic metric of relevance, and while it will never replace paid screeners, it does provide a useful first step in understand who the world leaders in any given industry are.

The big picture breakdown can be seen on the chart below.

Those who wish to analyze the underlying Industry Leaderboard data, can do so here.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/-SJfwvBzY-M/story01.htm Tyler Durden

The World’s Industry Leaders: Which Companies Dominate Their Sectors

When it comes to screening for stocks, one traditionally uses CapIQ, Factset or the Bloomberg Terminal. However, in a welcome development, the Bloomberg website has launched its own free screener of companies titled the Bloomberg Industry Leaderboard, which this day and age of visual learning, has the added benefit of breaking down the data in an easily digestible, visual format. It allows the sorting of industry leaders by virtually every economic metric of relevance, and while it will never replace paid screeners, it does provide a useful first step in understand who the world leaders in any given industry are.

The big picture breakdown can be seen on the chart below.

Those who wish to analyze the underlying Industry Leaderboard data, can do so here.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/-SJfwvBzY-M/story01.htm Tyler Durden

Asia’s Richest Man, Li Ka-shing, Invests in Bitpay

If this is true, it is a stunning piece of news for the Bitcoin economy. According to the South China Morning Post, Asia’s richest man, Li Ka-shing has made an investment of an undisclosed amount in BTC payment processor Bitpay, a company I have highlighted on these pages on several occasions.

From the South China Morning Post:

Asia’s richest man, Li Ka-shing has invested in BitPay, the digital currency equivalent of PayPal, through his venture capital company, Horizons Ventures.

A spokeswoman for Horizons Ventures said the group would not comment on the details of the investment.

BitPay said it was “fortunate to have the benefit of many supportive investors, including Horizons Ventures”.

BitPay, founded in May 2011, handles transactions for 14,000 companies across 200 countries. About half are in the United States, with 25 per cent in Europe and 25 per cent in the rest of the world.

Simply incredible.

Full article here.

In Liberty,
Mike

 Follow me on Twitter.

Asia’s Richest Man, Li Ka-shing, Invests in Bitpay originally appeared on A Lightning War for Liberty on December 26, 2013.

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from A Lightning War for Liberty http://libertyblitzkrieg.com/2013/12/26/asias-richest-man-li-ka-shing-invests-in-bitpay/
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What Could Go Wrong Here?

We wondered previously what happens when there are no more greater fools to sell to? But, US investors have turned the euphoria dial to 11 this week as the percent bullish is the highest since the peak in Fall 2007 and bears are at their lowest percentage since Spring 1987. Thus, the Bull-bear spread (based on AAII’s survey) has never been wider (and don’t forget, even Cliff Asness knows the unbridled idiocy of the ‘money-on-the-sidelines’-meme).

 

And remember, we don’t need to worry about record high margin debt as along as stocks keep going up…

As – over the long-term – the bull-bear spread has never been wider (by a long way)…

 

h/t @Not_Jim_Cramer


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Kg_7r8onRSQ/story01.htm Tyler Durden

GM: Momentum Stock Candidate 2014

By EconMatters

 

Momentum Stocks


Every year on average there are at least 4 momentum stocks that capture Wall Street`s fancy and all the fund managers pile into these names. Hedge funds realize this investing phenomenon and try to figure out which names are going to be the chosen ones this year so they can ride along the coattails of the institutions, pension funds and money managers. These stocks are the absolute best stocks to invest in from a risk and return standpoint because you are riding along with the smart money, the crowd and every other technically based buy program as these stock charts are an investor`s paradise.

 

Impossible to Short Momentum Stocks in Heart of Momentum Run


The shorts come in at various times thinking these names are overdone on valuation concerns and they get their head handed to them, or shorts more specifically, causing additional fuel for the upside trek to higher monthly highs in the stocks. In essence, these stocks are ‘un-shortable’ and short sellers need to recognize what constitutes a Momentum Stock on Wall Street just as much as longs because failure to do so is just like committing investor suicide.

 

Notable Momentum Stocks


Notable Momentum Stocks in the past have been Blackberry (BBRY), Crocs, Inc. (CROX), Google Inc. (GOOG), Apple Inc. (AAPL), First Solar, Inc. (FSLR), Potash Corp. of Saskatchewan, Inc. (POT), Sears Holdings Corporation (SHLD), and Freeport-McMoRan Copper & Gold Inc. (FCX).

 

2013 Momentum Stocks


This past year for 2013 the momentum stocks were Netflix, Inc. (NFLX), Amazon.com Inc. (AMZN), Tesla Motors, Inc. (TSLA), priceline.com Incorporated (PCLN), Google Inc. and The Boeing Company (BA). One look at these charts can tell the investor why identifying next year`s momentum stock candidates is so important from an investment strategy. It is very helpful to be aligned with all the players on the right side of the investment.

 

Drivers for GM being a Momentum Stock


Here are some of the reasons why I think General Motors Company (GM) makes for a good momentum stock candidate in 2014. First, the government has finally exited their stake in the company freeing up institutional investors to start acquiring a sizable position in the automaker now that GM is no longer influenced by the government`s jurisdiction.

 

 

The second factor is that several other notable players like Kyle Bass of Hayman Capital Management, L.P. have started talking up the name recently, and when Hedge Funds start talking the old adage where there is smoke, there is fire applies here. GM is being talked about in the investment community which includes conferences, meetings, seminars and money raising initiatives. Big players raise money around investment ideas, and I think GM is one of these names.

 

Relaxing Oil Export Ban is Bad News for US Consumers

 

The third factor is the broader economy seems to be slowly getting better with the jobs environment improving each quarter; this bodes well for new vehicle sales.

 

The fourth factor is now that the government is no longer involved with management influence in regards to decisions, GM can be more aggressive in driving the profit factor, and they should be able to pursue more aggressive business practices which generate better quarterly results year over year on a comparison basis.

 

The fifth driver for the stock is the way it is trading relative to the broader market, and while the broader market has exhibited some weakness mainly on the risks associated with the FOMC meeting this week, GM has been hanging in there quite strong and fighting against this overall recent market weakness. This is a very bullish sign, and it usually means that investors think there is considerable long-term value in the stock so they aren`t selling, and other players like institutions are probably holding this stock up because they are in the acquiring mode on any weakness in the stock. Again, this is what an investor wants to see in a stock, how well it trades against the broader market.

 

Potential Concerns


One potential concern is that GM has sold a lot of automobiles over the last three years, and if there is one factor to watch it is how many more customers there are in the broader economy that need to upgrade to a new vehicle this year. I have seen just an amazing number of those Chevrolet Camaros on the streets, and I wonder if GM could run into some tough comps on certain product categories, and market and product saturation issues. This is something to monitor as a possible concern, and to follow in the quarterly presentations by the company.

 

 

 

The other possible concern is that GM is up about 18% in 6 months, and 61% in 2013. However, the stock is only up 17% over a five year time period, and the government yielded considerable influence during this period both from a management perspective and an ownership stake in the company.

 

My thesis is that with the government being a net seller on the market, this has limited GM`s upside, and now that longer term investors have acquired these shares, the company is set to really take off in 2014 like some of the Momentum Stocks of the past 5 years.

 

Price Targets


However, all that being said my initial price target for the stock is $65 a share sometime over the next six months, and maybe as soon as this April. I also have my mid-term price target at $80 a share towards the end of 2014. Some of this depends upon what the overall stock market is doing, but I am assuming in this analysis that GM holds up better, probably outperforms the overall broader market.

 

Acquiring GM Position & Entry Points


Thus, this is my first Momentum Stock candidate for 2014 in General Motors Company and I would recommend buying this stock if possible on a slight pullback, in the $38 a share range would be a great entry price. However, I have been watching this name, and the investor may not get the chance to get into the stock on a pullback, so beware of that possibility. Sometimes good stocks that everybody is interested in don`t offer ideal pullback entry points, regardless I would recommend acquiring a position before 2014 begins in the investing universe.

 

 

 

Article Update

 

We wrote this article prior to the Ford 2014 Profit Downgrade, which sent GM shares lower just below $40 a share before rebounding higher, but it seems investors are worried that Ford`s troubles may be hinting of broader concerns in the vehicle marketplace. The question for investors is whether these concerns are Ford specific or have broader implications for the rest of the automakers? The next quarterly earnings calls should shed some light on this subject, and give possible clues for investors.  However, GM the stock has definitely underperformed the broader market once the Ford news came out, something to watch before putting new money to work in the stock.

 

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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/V0U-NX0rePQ/story01.htm EconMatters

Itemizing The Obamacare Fees

Obamacare’s rollout may be in limbo even though the official deadline has come and gone (despite a much touted 2 million visitors to healthcare.gov on Monday which probably means it should IPO immediately), but the real sticker shock of actual fees awaits. And even as most insurers are opting to keep the full impact of the higher cost hidden, instead adding them to the overhead premiums charged, one company, Blue Cross Blue Shield of Alabama, has itemized the impact of the Unaffordable Care Act by adding a separate line itme for the “Affordable Care Act Fees and Taxes.” Here is how these add up according to a breakdown conducted by the Post.

The new taxes on one customer’s bill added up to $23.14 a month, or $277.68 annually, according to Kaiser Health News. It boosted the monthly premium from $322.26 to $345.40 for that individual.

 

The new taxes and fees include a 2 percent levy on every health plan, which is expected to net about $8 billion for the government in 2014 and increase to $14.3 billion in 2018.

 

There’s also a $2 fee per policy that goes into a new medical-research trust fund called the Patient Centered Outcomes Research Institute.

 

Americans also will pay hidden taxes, such as the 2.3 percent medical-device tax that will inflate the cost of items such as pacemakers, stents and prosthetic limbs.

 

Those with high out-of-pocket medical expenses also will get smaller income-tax deductions.

 

Americans are currently allowed to deduct expenses that exceed 7.5 percent of their annual income. The threshold jumps to 10 percent under ObamaCare, costing taxpayers about $15 billion over 10 years.

Then there is the new Medicare tax:

Under ObamaCare, individual tax filers earning more than $200,000 and families earning more than $250,000 will pay an added 0.9 percent Medicare surtax on top of the existing 1.45 percent Medicare payroll tax. They’ll also pay an extra 3.8 percent Medicare tax on unearned income, such as investment dividends, rental income and capital gains.

So will a big story for 2014 be Americans taking out student loans, already over $1 trillion and more than all US credit card debt, to pay for their health insurance? We hope to find out soon as the biggest capital misallocation in US history continues.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/VvfRjocM3k0/story01.htm Tyler Durden

Albert Einstein: “A Foolish Faith In Authority Is The Worst Enemy Of The Truth”

 

Albert Einstein said:

A foolish faith in authority is the worst enemy of the truth.

Indeed, scientists have shown that people will go to absurd lengths – and engage in mental gymnastics – in order to cling to their belief in what those in authority have said.

Part of the reason so many are so vulnerable to naive belief in authority is that we evolved in small tribes … and we assume that the super-elites are just like us.

In reality, there are millions of psychopaths in the world … and they are largely running D.C. and on Wall Street.

These people have no hesitation in lying to promote their goals.

The Assistant Secretary of Defense for Public Affairs told Morley Safer of 60 Minutes and CBS News:

Look, if you think any American official is going to tell you the truth, then you’re stupid. Did you hear that? — stupid.

And studies show that the super-rich lie, cheat and steal more than the rest of us.

Who’s to Blame … Big Government or Big Business?

Conservatives tend to believe that the captains of industry are virtuous and that the government can’t be trusted.

Liberals tend to believe that government servants are virtuous and that corporations can’t be trusted.

But the truth is that psychopaths are psychopaths … whether they’re in the private sector or government.

And there is no such thing as representative government or free market capitalism anymore. Big corporate money has coopted the government; and ill-guided politicians have destroyed the free market.

Corrupt government agencies and officials and corrupt corporations and executives have become intertwined in a malignant, symbiotic relationship.

And they’re trying to grab more and more power and wealth every day.

Big Business Has Turned Into a Criminal Syndicate

Big banks and giant oil companies have more or less become criminal enterprises.

And conservatives are not amused.

Government Has Gone Rogue

If the government were accountable, then government corruption, deceit and wrongdoing would be held to a modest level.

But the government is not accountable.

When bad government policy leads to bad results, the government manipulates the data … instead of changing policy.

Government pumps out massive amounts of propaganda through the mainstream and “gatekeeper” alternative media, movies, video games, and other venues.

The government has launched a war on journalism, and censors and manipulates social media. And see this.

The massive NSA is spying on all of us – including government officials, reporters, and everyone else – as a way to crush dissent.

And people who criticize government policy or government officials may literally be labeled terrorists.

No wonder the American public has lost faith in the 2 party system. And see this.

People of faith shouldn’t be fooled into blindly deferring to government authority.

Bonus:


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/G3AwDBbM4Hc/story01.htm George Washington