industryterm:bank

  • View from Nowhere. Is it the press’s job to create a community that transcends borders?

    A few years ago, on a plane somewhere between Singapore and Dubai, I read Benedict Anderson’s Imagined Communities (1983). I was traveling to report on the global market for passports—how the ultrawealthy can legally buy citizenship or residence virtually anywhere they like, even as 10 million stateless people languish, unrecognized by any country. In the process, I was trying to wrap my head around why national identity meant so much to so many, yet so little to my passport-peddling sources. Their world was the very image of Steve Bannon’s globalist nightmare: where you can never be too rich, too thin, or have too many passports.

    Anderson didn’t address the sale of citizenship, which only took off in earnest in the past decade; he did argue that nations, nationalism, and nationality are about as organic as Cheez Whiz. The idea of a nation, he writes, is a capitalist chimera. It is a collective sense of identity processed, shelf-stabilized, and packaged before being disseminated, for a considerable profit, to a mass audience in the form of printed books, news, and stories. He calls this “print-capitalism.”

    Per Anderson, after the printing press was invented, nearly 600 years ago, enterprising booksellers began publishing the Bible in local vernacular languages (as opposed to the elitist Latin), “set[ting] the stage for the modern nation” by allowing ordinary citizens to participate in the same conversations as the upper classes. In the 18th and 19th centuries, the proliferation (and popularity) of daily newspapers further collapsed time and space, creating an “extraordinary mass ceremony” of reading the same things at the same moment.

    “An American will never meet, or even know the names of more than a handful of his 240,000,000–odd fellow Americans,” Anderson wrote. “He has no idea of what they are up to at any one time.” But with the knowledge that others are reading the same news, “he has complete confidence in their steady, anonymous, simultaneous activity.”

    Should the press be playing a role in shaping not national identities, but transnational ones—a sense that we’re all in it together?

    Of course, national presses enabled more explicit efforts by the state itself to shape identity. After the US entered World War I, for instance, President Woodrow Wilson set out to make Americans more patriotic through his US Committee on Public Information. Its efforts included roping influential mainstream journalists into advocating American-style democracy by presenting US involvement in the war in a positive light, or simply by referring to Germans as “Huns.” The committee also monitored papers produced by minorities to make sure they supported the war effort not as Indians, Italians, or Greeks, but as Americans. Five Irish-American papers were banned, and the German-American press, reacting to negative stereotypes, encouraged readers to buy US bonds to support the war effort.

    The US media played an analogous role in selling the public on the 2003 invasion of Iraq. But ever since then, in the digital economy, its influence on the national consciousness has waned. Imagined Communities was published seven years before the fall of the Berlin Wall, twenty-two years before Thomas Friedman’s The World Is Flat, and a couple of decades before the internet upended print-capitalism as the world knew it (one of Anderson’s footnotes is telling, if quaint: “We still have no giant multinationals in the world of publishing”).

    Since Trump—a self-described nationalist—became a real contender for the US presidency, many news organizations have taken to looking inward: consider the running obsession with the president’s tweets, for instance, or the nonstop White House palace intrigue (which the president invites readily).

    Meanwhile, the unprofitability of local and regional papers has contributed to the erosion of civics, which, down the line, makes it easier for billionaires to opt out of old “imagined communities” and join new ones based on class and wealth, not citizenship. And given the challenges humanity faces—climate change, mass migration, corporate hegemony, and our relationships to new technologies—even if national papers did make everyone feel like they shared the same narrative, a renewed sense of national pride would prove impotent in fighting world-historic threats that know no borders.

    Should the press, then, be playing an analogous role in shaping not national identities, but transnational ones—a sense that we’re all in it together? If it was so important in shaping national identity, can it do so on a global scale?

    Like my passport-buying subjects, I am what Theresa May, the former British prime minister, might call a “citizen of nowhere.” I was born in one place to parents from another, grew up in a third, and have lived and traveled all over. That informs my perspective: I want deeply for there to be a truly cosmopolitan press corps, untethered from national allegiances, regional biases, class divisions, and the remnants of colonial exploitation. I know that’s utopian; the international working class is hardly a lucrative demographic against which publishers can sell ads. But we seem to be living in a time of considerable upheaval and opportunity. Just as the decline of religiously and imperially organized societies paved the way for national alternatives, then perhaps today there is a chance to transcend countries’ boundaries, too.

    Does the US media help create a sense of national identity? If nationalism means putting the interests of one nation—and what its citizens are interested in—before more universal concerns, then yes. Most journalists working for American papers, websites, and TV write in English with a national audience (or regional time zone) in mind, which affects how we pitch, source, frame, and illustrate a story—which, in turn, influences our readers, their country’s politics, and, down the line, the world. But a news peg isn’t an ideological form of nationalism so much as a practical or methodological one. The US press feeds off of more pernicious nationalisms, too: Donald Trump’s false theory about Barack Obama being “secretly” Kenyan, disseminated by the likes of Fox and The Daily Caller, comes to mind.

    That isn’t to say that global news outlets don’t exist in the US. When coaxing subscribers, the Financial Times, whose front page often includes references to a dozen different countries, openly appeals to their cosmopolitanism. “Be a global citizen. Become an FT Subscriber,” read a recent banner ad, alongside a collage featuring the American, Chinese, Japanese, Australian, and European Union flags (though stories like the recent “beginner’s guide to buying a private island” might tell us something about what kind of global citizen they’re appealing to).

    “I don’t think we try to shape anyone’s identity at all,” Gillian Tett, the paper’s managing editor for the US, says. “We recognize two things: that the world is more interconnected today than it’s ever been, and that these connections are complex and quite opaque. We think it’s critical to try to illuminate them.”

    For Tett, who has a PhD in social anthropology, money serves as a “neutral, technocratic” starting point through which to understand—and tie together—the world. “Most newspapers today tend to start with an interest in politics or events, and that inevitably leads you to succumb to tribalism, however hard you try [not to],” Tett explains. “If you look at the world through money—how is money going around the world, who’s making and losing it and why?—out of that you lead to political, cultural, foreign-policy stories.”

    Tett’s comments again brought to mind Imagined Communities: Anderson notes that, in 18th-century Caracas, newspapers “began essentially as appendages of the market,” providing commercial news about ships coming in, commodity prices, and colonial appointments, as well as a proto–Vows section for the upper crust to hate-read in their carriages. “The newspaper of Caracas quite naturally, and even apolitically, created an imagined community among a specific assemblage of fellow-readers, to whom these ships, brides, bishops, and prices belonged,” he wrote. “In time, of course, it was only to be expected that political elements would enter in.”

    Yesterday’s aristocracy is today’s passport-buying, globe-trotting one percent. The passport brokers I got to know also pitched clients with the very same promise of “global citizenship” (it sounds less louche than “buy a new passport”)—by taking out ads in the Financial Times. Theirs is exactly the kind of neoliberal “globalism” that nationalist politicians like Trump have won elections denouncing (often hypocritically) as wanting “the globe to do well, frankly, not caring about our country so much.” Isn’t upper-crust glibness about borders, boundaries, and the value of national citizenship part of what helped give us this reactionary nativism in the first place?

    “I suspect what’s been going on with Brexit and maybe Trump and other populist movements [is that] people. . . see ‘global’ as a threat to local communities and businesses rather than something to be welcomed,” Tett says. “But if you’re an FT reader, you see it as benign or descriptive.”

    Among the largest news organizations in the world is Reuters, with more than 3,000 journalists and photographers in 120 countries. It is part of Thomson Reuters, a truly global firm. Reuters does not take its mandate lightly: a friend who works there recently sent me a job posting for an editor in Gdynia, which, Google clarified for me, is a city in the Pomeranian Voivodeship of Poland.

    Reuters journalists cover everything from club sports to international tax evasion. They’re outsourcing quick hits about corporate earnings to Bangalore, assembling teams on multiple continents to tackle a big investigation, shedding or shuffling staff under corporate reorganizations. Perhaps unsurprisingly, “more than half our business is serving financial customers,” Stephen Adler, the editor in chief, tells me. “That has little to do with what country you’re from. It’s about information: a central-bank action in Europe or Japan may be just as important as everything else.”

    Institutionally, “it’s really important and useful that we don’t have one national HQ,” Adler adds. “That’s the difference between a global news organization and one with a foreign desk. For us, nothing is foreign.” That approach won Reuters this year’s international Pulitzer Prize for uncovering the mass murder of the Rohingya in Myanmar (two of the reporters were imprisoned as a result, and since freed); it also comes through especially sharply in daily financial stories: comprehensive, if dry, compendiums of who-what-where-when-why that recognize the global impact of national stories, and vice versa. A recent roundup of stock movements included references to the US Fed, China trade talks, Brexit, monetary policy around the world, and the price of gold.

    Adler has led the newsroom since 2011, and a lot has changed in the world. (I worked at Reuters between 2011 and 2013, first as Adler’s researcher and later as a reporter; Adler is the chair of CJR’s board.) Shortly after Trump’s election, Adler wrote a memo affirming the organization’s commitment to being fair, honest, and resourceful. He now feels more strongly than ever about judiciously avoiding biases—including national ones. “Our ideology and discipline around putting personal feelings and nationality aside has been really helpful, because when you think about how powerful local feelings are—revolutions, the Arab Spring—we want you writing objectively and dispassionately.”

    The delivery of stories in a casual, illustrated, highly readable form is in some ways more crucial to developing an audience than subject matter.

    Whether global stories can push communities to develop transnationally in a meaningful way is a harder question to answer; it seems to impugn our collective aptitude for reacting to problems of a global nature in a rational way. Reuters’s decision not to fetishize Trump hasn’t led to a drop-off in US coverage—its reporters have been especially strong on immigration and trade policy, not to mention the effects of the new administration on the global economy—but its stories aren’t exactly clickbait, which means ordinary Americans might not encounter them at the top of their feed. In other words, having a global perspective doesn’t necessarily translate to more eyeballs.

    What’s more, Reuters doesn’t solve the audience-class problem: whether readers are getting dispatches in partner newspapers like The New York Times or through the organization’s Eikon terminal, they tend to be the sort of person “who does transnational business, travels a good deal, is connected through work and media, has friends in different places, cares about what’s going on in different places,” Adler says. “That’s a pretty large cohort of people who have reason to care what’s going on in other places.”

    There are ways to unite readers without centering coverage on money or the markets. For a generation of readers around the world, the common ground is technology: the internet. “We didn’t pick our audience,” Ben Smith, the editor in chief of BuzzFeed, tells me over the phone. “Our audience picked us.” He defines his readers as a cohort aged 18–35 “who are on the internet and who broadly care about human rights, global politics, and feminism and gay rights in particular.”

    To serve them, BuzzFeed recently published a damning investigative report into the World Wildlife Fund’s arming of militias in natural reserves; a (not uncontroversial) series on Trump’s business dealings abroad; early exposés of China’s detention of Uighur citizens; and reports on child abuse in Australia. Climate—“the central challenge for every newsroom in the world”—has been harder to pin down. “We don’t feel anyone has cracked it. But the shift from abstract scientific [stories] to coverage of fires in California, it’s a huge change—it makes it more concrete,” Smith says. (My husband is a reporter for BuzzFeed.)

    The delivery of these stories in a casual, illustrated, highly readable form is in some ways more crucial to developing an audience than subject matter. “The global political financial elites have had a common language ever since it was French,” Smith says. “There is now a universal language of internet culture, [and] that. . . is how our stuff translates so well between cultures and audiences.” This isn’t a form of digital Esperanto, Smith insists; the point isn’t to flatten the differences between countries or regions so much as to serve as a “container” in which people from different regions, interest groups, and cultures can consume media through references they all understand.

    BuzzFeed might not be setting out to shape its readers’ identities (I certainly can’t claim to feel a special bond with other people who found out they were Phoebes from the quiz “Your Sushi Order Will Reveal Which ‘Friends’ Character You’re Most Like”). An audience defined by its youth and its media consumption habits can be difficult to keep up with: platforms come and go, and young people don’t stay young forever. But if Anderson’s thesis still carries water, there must be something to speaking this language across cultures, space, and time. Call it “Web vernacular.”

    In 2013, during one of the many recent and lengthy US government shutdowns, Joshua Keating, a journalist at Slate, began a series, “If It Happened There,” that imagined how the American media would view the shutdown if it were occurring in another country. “The typical signs of state failure aren’t evident on the streets of this sleepy capital city,” Keating opens. “Beret-wearing colonels have not yet taken to the airwaves to declare martial law. . . .But the pleasant autumn weather disguises a government teetering on the brink.”

    It goes on; you get the idea. Keating’s series, which was inspired by his having to read “many, many headlines from around the world” while working at Foreign Policy, is a clever journalistic illustration of what sociologists call “methodological nationalism”: the bias that gets inadvertently baked into work and words. In the Middle East, it’s sectarian or ethnic strife; in the Midwest, it’s a trigger-happy cop and a kid in a hoodie.

    His send-ups hit a nerve. “It was huge—it was by far the most popular thing I’ve done at Slate,” Keating says. “I don’t think that it was a shocking realization to anyone that this kind of language can be a problem, but sometimes pointing it out can be helpful. If the series did anything, it made people stop and be conscious of how. . . our inherent biases and perspectives will inform how we cover the world.”

    Curiously, living under an openly nationalist administration has changed the way America—or at the very least, a significant part of the American press corps—sees itself. The press is a de facto opposition party, not because it tries to be, but because the administration paints it that way. And that gives reporters the experience of working in a place much more hostile than the US without setting foot outside the country.

    Keating has “semi-retired” the series as a result of the broad awareness among American reporters that it is, in fact, happening here. “It didn’t feel too novel to say [Trump was] acting like a foreign dictator,” he says. “That was what the real news coverage was doing.”

    Keating, who traveled to Somaliland, Kurdistan, and Abkhazia to report his book Invisible Countries (2018), still thinks the fastest and most effective way to form an international perspective is to live abroad. At the same time, not being bound to a strong national identity “can make it hard to understand particular concerns of the people you’re writing about,” he says. It might be obvious, but there is no one perfect way to be internationally minded.

    Alan Rusbridger—the former editor of The Guardian who oversaw the paper’s Edward Snowden coverage and is now the principal at Lady Margaret Hall, a college at Oxford University—recognizes the journalistic and even moral merits of approaching news in a non-national way: “I think of journalism as a public service, and I do think there’s a link between journalism at its best and the betterment of individual lives and societies,” he says. But he doesn’t have an easy formula for how to do that, because truly cosmopolitan journalism requires both top-down editorial philosophies—not using certain phrasings or framings that position foreigners as “others”—and bottom-up efforts by individual writers to read widely and be continuously aware of how their work might be read by people thousands of miles away.

    Yes, the starting point is a nationally defined press, not a decentralized network, but working jointly helps pool scarce resources and challenge national or local biases.

    Rusbridger sees potential in collaborations across newsrooms, countries, and continents. Yes, the starting point is a nationally defined press, not a decentralized network; but working jointly helps pool scarce resources and challenge national or local biases. It also wields power. “One of the reasons we reported Snowden with the Times in New York was to use global protections of human rights and free speech and be able to appeal to a global audience of readers and lawyers,” Rusbridger recalls. “We thought, ‘We’re pretty sure nation-states will come at us over this, and the only way to do it is harness ourselves to the US First Amendment not available to us anywhere else.’”

    In employing these tactics, the press positions itself in opposition to the nation-state. The same strategy could be seen behind the rollout of the Panama and Paradise Papers (not to mention the aggressive tax dodging detailed therein). “I think journalists and activists and citizens on the progressive wing of politics are thinking creatively about how global forces can work to their advantage,” Rusbridger says.

    But he thinks it all starts locally, with correspondents who have fluency in the language, culture, and politics of the places they cover, people who are members of the communities they write about. That isn’t a traditional foreign-correspondent experience (nor indeed that of UN employees, NGO workers, or other expats). The silver lining of publishing companies’ shrinking budgets might be that cost cutting pushes newsrooms to draw from local talent, rather than send established writers around. What you gain—a cosmopolitanism that works from the bottom up—can help dispel accusations of media elitism. That’s the first step to creating new imagined communities.

    Anderson’s work has inspired many an academic, but media executives? Not so much. Rob Wijnberg is an exception: he founded the (now beleaguered) Correspondent in the Netherlands in 2013 with Anderson’s ideas in mind. In fact, when we speak, he brings the name up unprompted.

    “You have to transcend this notion that you can understand the world through the national point of view,” he says. “The question is, What replacement do we have for it? Simply saying we have to transcend borders or have an international view isn’t enough, because you have to replace the imagined community you’re leaving behind with another one.”

    For Wijnberg, who was a philosophy student before he became a journalist, this meant radically reinventing the very structures of the news business: avoiding covering “current events” just because they happened, and thinking instead of what we might call eventful currents—the political, social, and economic developments that affect us all. It meant decoupling reporting from national news cycles, and getting readers to become paying “members” instead of relying on advertisements.

    This, he hoped, would help create a readership not based on wealth, class, nationality, or location, but on borderless, universal concerns. “We try to see our members. . . as part of a group or knowledge community, where the thing they share is the knowledge they have about a specific structural subject matter,” be it climate, inequality, or migration, Wijnberg says. “I think democracy and politics answers more to media than the other way around, so if you change the way media covers the world you change a lot.”

    That approach worked well in the Netherlands: his team raised 1.7 million euros in 2013, and grew to include 60,000 members. A few years later, Wijnberg and his colleagues decided to expand into the US, and with the help of NYU’s Jay Rosen, an early supporter, they made it onto Trevor Noah’s Daily Show to pitch their idea.

    The Correspondent raised more than $2.5 million from nearly 50,000 members—a great success, by any measure. But in March, things started to get hairy, with the publication abruptly pulling the plug on opening a US newsroom and announcing that staff would edit stories reported from the US from the original Amsterdam office instead. Many of the reasons behind this are mundane: visas, high rent, relocation costs. And reporters would still be reporting from, and on, the States. But supporters felt blindsided, calling the operation a scam.

    Today, Wijnberg reflects that he should have controlled the messaging better, and not promised to hire and operate from New York until he was certain that he could. He also wonders why it matters.

    “It’s not saying people who think it matters are wrong,” he explains. “But if the whole idea of this kind of geography and why it’s there is a construct, and you’re trying to think about transcending it, the very notion of Where are you based? is secondary. The whole point is not to be based anywhere.”

    Still: “The view from everywhere—the natural opposite—is just as real,” Wijnberg concedes. “You can’t be everywhere. You have to be somewhere.”

    And that’s the rub: for all of nationalism’s ills, it does instill in its subjects what Anderson calls a “deep, horizontal comradeship” that, while imagined, blossoms thanks to a confluence of forces. It can’t be replicated supranationally overnight. The challenge for a cosmopolitan journalism, then, is to dream up new forms of belonging that look forward, not backward—without discarding the imagined communities we have.

    That’s hard; so hard that it more frequently provokes a retrenchment, not an expansion, of solidarity. But it’s not impossible. And our collective futures almost certainly depend on it.

    https://www.cjr.org/special_report/view-from-nowhere.php
    #journalisme #nationalisme #Etat-nation #communauté_nationale #communauté_internationale #frontières #presse #médias

  • How New York could respond to the taxi medallion lending crisis | CSNY
    https://www.cityandstateny.com/articles/policy/infrastructure/how-new-york-could-respond-to-taxi-medallion-lending-crisis.html

    Experts and lawmakers weigh in on easing the pain of burdened medallion owners and preventing predatory lending in the future.
    By ANNIE MCDONOUGH
    MAY 22, 2019

    After a two-part New York Times investigation into predatory lending practices for taxi medallions delineated how industry leaders and government agencies participated in, encouraged or ignored risky lending, calls for action sprang forth – sometimes from the very same officials or agencies that had been asleep at the switch.

    Various deceptive or exploitative lending practices contributed to the rise and precipitous fall of taxi medallions in New York City. Medallions worth $200,000 in 2002 rose to more than $1 million in 2014, before crashing to less than $200,000. The bubble was inflated by loans made without down payments, requirements that loans had to be paid back in three years or extended with inflated interest rates, and interest-only loans that required borrowers to forfeit legal rights and give up much of their income. Borrowers – typically low-income, immigrant drivers – were left in the lurch when the bubble burst, an event that the taxi industry has long blamed primarily on the rise of app-based ride hail services like Uber and Lyft. While the rise of app-based ride hail did contribute to the now-ailing taxi industry, the revelations in the Times show government officials – including the Taxi and Limousine Commission which acted as a “cheerleader” for medallion sales – ignored the warning signs.

    Since Sunday, when the first Times story was published, New York Attorney General Letitia James has announced an inquiry into the business and lending practices that “may have created” the crisis, New York City Mayor Bill de Blasio announced a joint probe by the TLC, Department of Finance and Department of Consumer Affairs into the brokers who helped arrange the loans, Sen. Chuck Schumer called for an investigation into the credit unions involved in the lending, and members of the New York City Council and state Legislature, and New York City Comptroller Scott Stringer, have called for hearings and legislation to resolve the issue.

    The various proposals raised thus far are unlikely to fully address the damage caused to many medallion owners, some experts say. The Times investigation found that since 2016, more than 950 taxi drivers have filed for bankruptcy, with thousands more still suffering under the crippling loans. This is combined with a string of taxi and other professional drivers who have committed suicide in the past year and a half.

    Some of the solutions offered have focused on preventing the kind of reckless lending practices exhibited for taxi medallions. Stringer called on state lawmakers to close a loophole that allows lenders to classify their loans as business deals – as opposed to consumer loans, which have more protections for borrowers. A bill introduced last week by state Sen. Jessica Ramos would also establish a program to assist medallion owners who are unable to obtain financing, refinancing or restructuring of an existing loan through a loan loss reserve. State Sen. James Sanders and Assemblyman Kenneth Zebrowski, who chair the state Legislature’s committees on banks, declined to comment.

    But classifying loans for medallions as consumer loans might not be appropriate, said Bruce Schaller, a transportation expert and former deputy commissioner at the New York City Department of Transportation. “I think the difficult question with the individual drivers is that they are in business, they are planning to make money off of their increase in medallion prices. Should they have the same protections as someone who is taking out a mortgage on a house, who is presumed to be very vulnerable?” he asked. “That may well be the case, but (drivers) are also in a business in a way that the prospective homeowner isn’t.”

    The TLC told the Times that it is the responsibility of bank examiners to control lending practices, while the state Department of Financial Services said that it supervised some of the banks involved, but often deferred to federal inspectors. “The TLC is gravely concerned that unsound lending practices have hurt taxi drivers and has raised these concerns publicly,” Acting Commissioner Bill Heinzen said in an emailed statement. “Banks and credit unions are regulated by federal agencies that have substantial oversight powers that the TLC does not have. The TLC has taken steps within our regulatory power to help owners and drivers by easing regulatory burdens and working with City Council to limit the number of for-hire vehicles on the road. We have pushed banks to restructure loan balances and payment amounts to reflect actual trip revenue.”

    Seth Stein, a spokesman for de Blasio, also mentioned interest in preventing risky lending practices. “We are deeply concerned about predatory lending in the medallion business,” Stein wrote in an email. “While TLC has no direct regulatory oversight over lenders – that is squarely under the purview of federal regulators – we continue to look for every means of helping owners and drivers make ends meet. We’ve discontinued medallion sales, secured a cap on app-based for-hire-vehicles, and we strongly urge federal regulators to do more as well.”

    But remedies at the federal level may not be realistic, according to David King, a professor of urban planning at Arizona State University, with a speciality in transportation and land use planning. “There doesn’t seem to be any appetite for what would be reasonable lending standards. Reasonable standards that would include verifiable collateral or values that were based on something other than made-up dollar amounts,” King said, adding that he doesn’t see those changes being made under the current administration. “The housing bubble of 11 years ago, I think that was a sufficiently national concern that has inspired some movement from Washington. Whereas I think something like an asset bubble in New York, just like an asset bubble in one region, isn’t going to be enough to spur federal legislation.”

    Schaller said that while lending regulation fixes could be beneficial for preventing this kind of crisis in other industries, there’s action that can be taken now by the city to alleviate some pain. “The real question is, if the city now decides that they were part of the fraud, then they should refund the money,” he said. “It’s one thing to close a loophole, it’s another thing to decide that you need to make restitution.”

    City Councilman Mark Levine, who has been working on legislation along those lines for nearly a year, agreed that the city needs to take responsibility. “There has been a lot of attention to the whole industry of lenders and brokers who push these loans on the drivers in ways that were not transparent and really deceived them, and may very well constitute some sort of legal fraud,” he said. “But the city itself also bears responsibility for this, because we were selling medallions with the goal of bringing in revenue to the city and we were promoting them and pumping them up in ways that I think masks the true risks that drivers were taking on. And, most egregiously, we had a round of sales in 2014 when it was abundantly clear that we were headed for a price drop, because by that point app-based competitors had emerged and there were other challenges.”

    Levine’s vision for immediately helping those drivers still suffering under unsustainable loans would involve the city acquiring the loans from lenders who either cannot or will not be flexible with borrowers, and then forgiving the debts. Though the bill hasn’t been introduced yet, the idea is to partially finance the buy-back by placing a surcharge on app-based ride-hail companies like Uber and Lyft. Levine’s office is still working on confirming that the City Council would have the authority to levy that kind of surcharge. If it doesn’t, they would encourage that action be taken in Albany.

    But, as the Times’ investigation into the issue has revealed, much of the damage to drivers and medallion owners has already been done – including to the hundreds of medallion owners who have declared bankruptcy. “If someone paid $800,000 for a medallion loan and paid part of that off, and has had their house repossessed, now Mark Levine is saying, ‘well, we’ll just refund whatever’s left dangling out there,’” Schaller said. “If I were on the losing end of that bargain, I’d say I want my $800,000 back.”

    The idea of a buy-back, Levine admitted, is not a perfect solution, but it’s one he said can help the thousands of medallion owners stuck right now. “It would not address that kind of horrible, horrible hardship,” he said, referring to those owners who have forfeited assets and sustained other losses.

    If there’s any upside to the stories relayed in the Times about medallion owners financially devastated by bad loans and the failing taxi industry, it may be that it’s a call to action – even if it’s coming too late for some. “It’s had a dramatic impact on the interest in the Council about finding solutions,” Levine said of the heavy punch packed by the Times’ investigation. “It gives new impetus to this effort, which is good, because it’s complicated, and it’s going to require a political push to make it happen. The revelations in this article made that more likely.”

    Annie McDonough is a tech and policy reporter at City & State.

    #USA #New_York #Taxi #Betrug #Ausbeutung

  • Inquiries Into Reckless Loans to Taxi Drivers Ordered by State Attorney General and Mayor - The New York Times
    https://www.nytimes.com/2019/05/20/nyregion/nyc-taxi-medallion-loans-attorney-general.html

    May 20, 2019 - The investigations come after The New York Times found that thousands of drivers were crushed under debt they could not repay.

    The New York attorney general’s office said Monday it had opened an inquiry into more than a decade of lending practices that left thousands of immigrant taxi drivers in crushing debt, while Mayor Bill de Blasio ordered a separate investigation into the brokers who helped arrange the loans.

    The efforts marked the government’s first steps toward addressing a crisis that has engulfed the city’s yellow cab industry. They came a day after The New York Times published a two-part investigation revealing that a handful of taxi industry leaders artificially inflated the price of a medallion — the coveted permit that allows a driver to own and operate a cab — and made hundreds of millions of dollars by issuing reckless loans to low-income buyers.

    The investigation also found that regulators at every level of government ignored warning signs, and the city fed the frenzy by selling medallions and promoting them in ads as being “better than the stock market.”

    The price of a medallion rose to more than $1 million before crashing in late 2014, which left borrowers with debt they had little hope of repaying. More than 950 medallion owners have filed for bankruptcy, and thousands more are struggling to stay afloat.

    The findings also drew a quick response from other elected officials. The chairman of the Assembly’s banking committee, Kenneth Zebrowski, a Democrat, said his committee would hold a hearing on the issue; the City Council speaker, Corey Johnson, said he was drafting legislation; and several other officials in New York and Albany called for the government to pressure lenders to soften loan terms.

    The biggest threat to the industry leaders appeared to be the inquiry by the attorney general, Letitia James, which will aim to determine if the lenders engaged in any illegal activity.

    “Our office is beginning an inquiry into the disturbing reports regarding the lending and business practices that may have created the taxi medallion crisis,” an office spokeswoman said in a statement. “These allegations are serious and must be thoroughly scrutinized.”

    Gov. Andrew M. Cuomo said through a spokesman that he supported the inquiry. “If any of these businesses or lenders did something wrong, they deserve to be held fully accountable,” the spokesman said in a statement.

    Lenders did not respond to requests for comment. Previously, they denied wrongdoing, saying regulators had approved all of their practices and some borrowers had made poor decisions and assumed too much debt. Lenders blamed the crisis on the city for allowing ride-hailing companies like Uber and Lyft to enter without regulation, which they said led medallion values to plummet.

    Mr. de Blasio said the city’s investigation will focus on the brokers who arranged the loans for drivers and sometimes lent money themselves.

    “The 45-day review will identify and penalize brokers who have taken advantage of buyers and misled city authorities,” the mayor said in a statement. “The review will set down strict new rules that prevent broker practices that hurt hard-working drivers.”

    Four of the city’s biggest taxi brokers did not respond to requests for comment.

    Bhairavi Desai, founder of the Taxi Workers Alliance, which represents drivers and independent owners, said the city should not get to investigate the business practices because it was complicit in many of them.

    The government has already closed or merged all of the nonprofit credit unions that were involved in the industry, saying they participated in “unsafe and unsound banking practices.” At least one credit union leader, Alan Kaufman, the former chief executive of Melrose Credit Union, a major medallion lender, is facing civil charges.

    The other lenders in the industry include Medallion Financial, a specialty finance company; some major banks, including Capital One and Signature Bank; and several loosely regulated taxi fleet owners and brokers who entered the lending business.

    At City Hall, officials said Monday they were focused on how to help the roughly 4,000 drivers who bought medallions during the bubble, as well as thousands of longtime owners who were encouraged to refinance their loans to take out more money during that period.

    One city councilman, Mark Levine, said he was drafting a bill that would allow the city to buy medallion loans from lenders and then forgive much of the debt owed by the borrowers. He said lenders likely would agree because they are eager to exit the business. But he added that his bill would force lenders to sell at discounted prices.

    “The city made hundreds of millions by pumping up sales of wildly overpriced medallions — as late as 2014 when it was clear that these assets were poised to decline,” said Mr. Levine, a Democrat. “We have an obligation now to find some way to offer relief to the driver-owners whose lives have been ruined.”

    Scott M. Stringer, the city comptroller, proposed a similar solution in a letter to the mayor. He said the city should convene the lenders and pressure them to partially forgive loans.

    “These lenders too often dealt in bad faith with a group of hard-working, unsuspecting workers who deserved much better and have yet to receive any measure of justice,” wrote Mr. Stringer, who added that the state should close a loophole that allowed the lenders to classify their loans as business deals, which have looser regulations.

    Last November, amid a spate of suicides by taxi drivers, including three medallion owners with overwhelming debt, the Council created a task force to study the taxi industry.

    On Monday, a spokesman for the speaker, Mr. Johnson, said that members of the task force would be appointed very soon. He also criticized the Taxi and Limousine Commission, the city agency that sold the medallions.

    “We will explore every tool we have to ensure that moving forward, the T.L.C. protects medallion owners and drivers from predatory actors including lenders, medallion brokers, and fleet managers,” Mr. Johnson said in a statement.

    Another councilman, Ritchie Torres, who heads the Council’s oversight committee, disclosed Monday for the first time that he had been trying to launch his own probe since last year, but had been stymied by the taxi commission. “The T.L.C. hasn’t just been asleep at the wheel, they have been actively stonewalling,” he said.

    A T.L.C. spokesman declined to comment.

    In Albany, several lawmakers also said they were researching potential bills.

    One of them, Assemblywoman Yuh-Line Niou of Manhattan, a member of the committee on banks, said she hoped to pass legislation before the end of the year. She said the state agencies involved in the crisis, including the Department of Financial Services, should be examined.

    “My world has been shaken right now, to be honest,” Ms. Niou said.

    Brian M. Rosenthal is an investigative reporter on the Metro Desk. Previously, he covered state government for the Houston Chronicle and for The Seattle Times. @brianmrosenthal

    #USA #New_York #Taxi #Betrug #Ausbeutung

  • As Thousands of Taxi Drivers Were Trapped in Loans, Top Officials Counted the Money - The New York Times
    https://www.nytimes.com/2019/05/19/nyregion/taxi-medallions.html

    [Read Part 1 of The Times’s investigation: How Reckless Loans Devastated a Generation of Taxi Drivers]

    At a cramped desk on the 22nd floor of a downtown Manhattan office building, Gary Roth spotted a looming disaster.

    An urban planner with two master’s degrees, Mr. Roth had a new job in 2010 analyzing taxi policy for the New York City government. But almost immediately, he noticed something disturbing: The price of a taxi medallion — the permit that lets a driver own a cab — had soared to nearly $700,000 from $200,000. In order to buy medallions, drivers were taking out loans they could not afford.

    Mr. Roth compiled his concerns in a report, and he and several colleagues warned that if the city did not take action, the loans would become unsustainable and the market could collapse.

    They were not the only ones worried about taxi medallions. In Albany, state inspectors gave a presentation to top officials showing that medallion owners were not making enough money to support their loans. And in Washington, D.C., federal examiners repeatedly noted that banks were increasing profits by steering cabbies into risky loans.

    They were all ignored.

    Medallion prices rose above $1 million before crashing in late 2014, wiping out the futures of thousands of immigrant drivers and creating a crisis that has continued to ravage the industry today. Despite years of warning signs, at least seven government agencies did little to stop the collapse, The New York Times found.

    Instead, eager to profit off medallions or blinded by the taxi industry’s political connections, the agencies that were supposed to police the industry helped a small group of bankers and brokers to reshape it into their own moneymaking machine, according to internal records and interviews with more than 50 former government employees.

    For more than a decade, the agencies reduced oversight of the taxi trade, exempted it from regulations, subsidized its operations and promoted its practices, records and interviews showed.

    Their actions turned one of the best-known symbols of New York — its signature yellow cabs — into a financial trap for thousands of immigrant drivers. More than 950 have filed for bankruptcy, according to a Times analysis of court records, and many more struggle to stay afloat.

    Remember the ‘10,000 Hours’ Rule for Success? Forget About It
    “Nobody wanted to upset the industry,” said David Klahr, who from 2007 to 2016 held several management posts at the Taxi and Limousine Commission, the city agency that oversees cabs. “Nobody wanted to kill the golden goose.”

    New York City in particular failed the taxi industry, The Times found. Two former mayors, Rudolph W. Giuliani and Michael R. Bloomberg, placed political allies inside the Taxi and Limousine Commission and directed it to sell medallions to help them balance budgets and fund priorities. Mayor Bill de Blasio continued the policies.

    Under Mr. Bloomberg and Mr. de Blasio, the city made more than $855 million by selling taxi medallions and collecting taxes on private sales, according to the city.

    But during that period, much like in the mortgage lending crisis, a group of industry leaders enriched themselves by artificially inflating medallion prices. They encouraged medallion buyers to borrow as much as possible and ensnared them in interest-only loans and other one-sided deals that often required them to pay hefty fees, forfeit their legal rights and give up most of their monthly incomes.

    When the medallion market collapsed, the government largely abandoned the drivers who bore the brunt of the crisis. Officials did not bail out borrowers or persuade banks to soften loan terms.

    “They sell us medallions, and they knew it wasn’t worth price. They knew,” said Wael Ghobrayal, 42, an Egyptian immigrant who bought a medallion at a city auction for $890,000 and now cannot make his loan payments and support his three children.

    “They lost nothing. I lost everything,” he said.

    The Times conducted hundreds of interviews, reviewed thousands of records and built several databases to unravel the story of the downfall of the taxi industry in New York and across the United States. The investigation unearthed a collapse that was years in the making, aided almost as much by regulators as by taxi tycoons.

    Publicly, government officials have blamed the crisis on competition from ride-hailing firms such as Uber and Lyft.

    In interviews with The Times, they blamed each other.

    The officials who ran the city Taxi and Limousine Commission in the run-up to the crash said it was the job of bank examiners, not the commission, to control lending practices.

    The New York Department of Financial Services said that while it supervised some of the banks involved in the taxi industry, it deferred to federal inspectors in many cases.

    The federal agency that oversaw many of the largest lenders in the industry, the National Credit Union Administration, said those lenders were meeting the needs of borrowers.

    The N.C.U.A. released a March 2019 internal audit that scolded its regulators for not aggressively enforcing rules in medallion lending. But even that audit partially absolved the government. The lenders, it said, all had boards of directors that were supposed to prevent reckless practices.

    And several officials criticized Congress, which two decades ago excepted credit unions in the taxi industry from some rules that applied to other credit unions. After that, the officials said, government agencies had to treat those lenders differently.

    Ultimately, former employees said, the regulatory system was set up to ensure that lenders were financially stable, and medallions were sold. But almost nothing protected the drivers.

    Matthew W. Daus, far right, at a hearing of the New York City Taxi and Limousine Commission in 2004. CreditMarilynn K. Yee/The New York Times
    Matthew W. Daus was an unconventional choice to regulate New York’s taxi industry. He was a lawyer from Brooklyn and a leader of a political club that backed Mr. Giuliani for mayor.

    The Giuliani administration hired him as a lawyer for the Taxi and Limousine Commission before appointing him chairman in 2001, a leadership post he kept after Mr. Bloomberg became mayor in 2002.

    The commission oversaw the drivers and fleets that owned the medallions for the city’s 12,000 cabs. It licensed all participants and decided what cabs could charge, where they could go and which type of vehicle they could use.

    And under Mr. Bloomberg, it also began selling 1,000 new medallions.

    At the time, the mayor said the growing city needed more yellow cabs. But he also was eager for revenue. He had a $3.8 billion hole in his budget.

    The sales put the taxi commission in an unusual position.

    It had a long history of being entangled with the industry. Its first chairman, appointed in 1971, was convicted of a bribery scheme involving an industry lobbyist. Four other leaders since then had worked in the business.

    It often sent staffers to conferences where companies involved in the taxi business paid for liquor, meals and tickets to shows, and at least one past member of its board had run for office in a campaign financed by the industry.

    Still, the agency had never been asked to generate so much money from the business it was supposed to be regulating.

    Former staffers said officials chose to sell medallions with the method they thought would bring in the most revenue: a series of limited auctions that required participants to submit sealed bids above ever-increasing minimums.

    Ahead of the sales, the city placed ads on television and radio, and in newspapers and newsletters, and held seminars promoting the “once-in-a-lifetime opportunity.”

    “Medallions have a long history as a solid investment with steady growth,” Mr. Daus wrote in one newsletter. In addition to guaranteed employment, he wrote, “a medallion is collateral that can assist in home financing, college tuition or even ‘worry-free’ retirement.”

    At the first auctions under Mr. Bloomberg in 2004, bids topped $300,000, surprising experts.

    Some former staffers said in interviews they believed the ad campaign inappropriately inflated prices by implying medallions would make buyers rich, no matter the cost. Seven said they complained.

    The city eventually added a disclaimer to ads, saying past performance did not guarantee future results. But it kept advertising.

    During the same period, the city also posted information on its website that said that medallion prices were, on average, 13 percent higher than they really were, according to a Times data analysis.

    In several interviews, Mr. Daus defended the ad campaigns, saying they reached people who had been unable to break into the tight market. The ads were true at the time, he said. He added he had never heard internal complaints about the ads.

    In all, the city held 16 auctions between 2004 and 2014.

    “People don’t realize how organized it is,” Andrew Murstein, president of Medallion Financial, a lender to medallion buyers, said in a 2011 interview with Tearsheet Podcast. “The City of New York, more or less, is our partner because they want to see prices go as high as possible.”

    Help from a federal agency

    New York City made more than $855 million from taxi medallion sales under Mayor Bill de Blasio and his predecessor, Michael R. Bloomberg.

    For decades, a niche banking system had grown up around the taxi industry, and at its center were about half a dozen nonprofit credit unions that specialized in medallion loans. But as the auctions continued, the families that ran the credit unions began to grow frustrated.

    Around them, they saw other lenders making money by issuing loans that they could not because of the rules governing credit unions. They recognized a business opportunity, and they wanted in.

    They found a receptive audience at the National Credit Union Administration.

    The N.C.U.A. was the small federal agency that regulated the nation’s credit unions. It set the rules, examined their books and insured their accounts.

    Like the city taxi commission, the N.C.U.A. had long had ties to the industry that it regulated. One judge had called it a “rogue federal agency” focused on promoting the industry.

    In 2004, its chairman was Dennis Dollar, a former Mississippi state representative who had previously worked as the chief executive of a credit union. He had just been inducted into the Mississippi Credit Union Hall of Fame, and he had said one of his top priorities was streamlining regulation.

    Dennis Dollar, the former chairman of the National Credit Union Administration, is now a consultant in the industry. 

    Under Mr. Dollar and others, the N.C.U.A. issued waivers that exempted medallion loans from longstanding rules, including a regulation requiring each loan to have a down payment of at least 20 percent. The waivers allowed the lenders to keep up with competitors and to write more profitable loans.

    Mr. Dollar, who left government to become a consultant for credit unions, said the agency was following the lead of Congress, which passed a law in 1998 exempting credit unions specializing in medallion loans from some regulations. The law signaled that those lenders needed leeway, such as the waivers, he said.

    “If we did not do so, the average cabdriver couldn’t get a medallion loan,” Mr. Dollar said.

    The federal law and the N.C.U.A. waivers were not the only benefits the industry received. The federal government also provided many medallion lenders with financial assistance and guaranteed a portion of their taxi loans, assuring that if those loans failed, they would still be partially paid, according to records and interviews.

    As lenders wrote increasingly risky loans, medallion prices neared $500,000 in 2006.

    ‘Snoozing and napping’

    Under Mr. Bloomberg, the New York City Taxi and Limousine Commission began selling 1,000 new medallions.

    Another agency was also supposed to be keeping an eye on lending practices. New York State banking regulators are required to inspect all financial institutions chartered in the state. But after 2008, they were forced to focus their attention on the banks most affected by the global economic meltdown, according to former employees.

    As a result, some industry veterans said, the state stopped examining medallion loans closely.

    “The state banking department would come in, and they’d be doing the exam in one room, and the N.C.U.A. would be in another room,” said Larry Fisher, who was then the medallion lending supervisor at Melrose Credit Union, one of the biggest lenders. “And you could catch the state banking department snoozing and napping and going on the internet and not doing much at all.”

    The state banking department, which is now called the New York Department of Financial Services, disputed that characterization and said it had acted consistently and appropriately.

    Former federal regulators described a similar trend at their agencies after the recession.

    Some former employees of the N.C.U.A., the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency said that as medallion prices climbed, they tried to raise issues with loans and were told not to worry. The Securities and Exchange Commission and the Federal Reserve Board also oversaw some lenders and did not intervene.

    A spokesman for the Federal Reserve said the agency was not a primary regulator of the taxi lending industry. The rest of the agencies declined to comment.

    “It was obvious that the loans were unusual and risky,” said Patrick Collins, a former N.C.U.A. examiner. But, he said, there was a belief inside his agency that the loans would be fine because the industry had been stable for decades.

    Meanwhile, in New York City, the taxi commission reduced oversight.

    For years, it had made medallion purchasers file forms describing how they came up with the money, including details on all loans. It also had required industry participants to submit annual disclosures on their finances, loans and conflicts of interest.

    But officials never analyzed the forms filed by buyers, and in the 2000s, they stopped requiring the annual disclosures altogether.

    “Reviewing these disclosures was an onerous lift for us,” the commission’s communications office said in a recent email.

    By 2008, the price of a medallion rose to $600,000.

    At around the same time, the commission began focusing on new priorities. It started developing the “Taxi of Tomorrow,” a model for future cabs.

    The agency’s main enforcement activities targeted drivers who cheated passengers or discriminated against people of color. “Nobody really scrutinized medallion transfers,” said Charles Tortorici, a former commission lawyer.

    A spokesman for Mr. Bloomberg said in a statement that during the mayor’s tenure, the city improved the industry by installing credit card machines and GPS devices, making fleets more environmentally efficient and creating green taxis for boroughs outside Manhattan.

    “The industry was always its own worst enemy, fighting every reform tooth and nail,” said the spokesman, Marc La Vorgna. “We put our energy and political capital into the reforms that most directly and immediately impacted the riding public.”

    Records show that since 2008, the taxi commission has not taken a single enforcement action against brokers, the powerful players who arrange medallion sales and loans.

    Alex Korenkov, a broker, suggested in an interview that he and other brokers took notice of the city’s hands-off approach.

    “Let’s put it this way,” he said. “If governing body does not care, then free-for-all.”

    By the time that Mr. Roth wrote his report at the Taxi and Limousine Commission in 2010, it was clear that something strange was happening in the medallion market.

    Mr. Daus gave a speech that year that mentioned the unusual lending practices. During the speech, he said banks were letting medallion buyers obtain loans without any down payment. Experts have since said that should have raised red flags. But at the time, Mr. Daus seemed pleased.

    “Some of these folks were offering zero percent down,” he said. “You tell me what bank walks around asking for zero percent down on a loan? It’s just really amazing.”

    In interviews, Mr. Daus acknowledged that the practice was unusual but said the taxi commission had no authority over lending.

    Inside the commission, at least four employees raised concerns about the medallion prices and lending practices, according to the employees, who described their own unease as well as Mr. Roth’s report.

    David S. Yassky, a former city councilman who succeeded Mr. Daus as commission chairman in 2010, said in an interview that he never saw Mr. Roth’s report.

    Mr. Yassky said the medallion prices puzzled him, but he could not determine if they were inflated, in part because people were still eager to buy. Medallions may have been undervalued for decades, and the price spike could have been the market recognizing the true value, he suggested.

    Meera Joshi, who became chairwoman in 2014, said in an interview that she was worried about medallion costs and lending practices but was pushed to prioritize other responsibilities. Dominic Williams, Mr. de Blasio’s chief policy adviser, said the city focused on initiatives such as improving accessibility because no one was complaining about loans.

    Worries about the taxi industry also emerged at the National Credit Union Administration. In late 2011, as the price of some medallions reached $800,000, a group of agency examiners wrote a paper on the risks in the industry, according to a recent report by the agency’s inspector general.

    In 2012, 2013 and 2014, inspectors routinely documented instances of credit unions violating lending rules, the inspector general’s report said.

    David S. Yassky, the former chairman of the New York City Taxi and Limousine Commission.

    The N.C.U.A. chose not to penalize medallion lenders or impose extra oversight. It did not take any wide industry action until April 2014, when it sent a letter reminding the credit unions in the taxi market to act responsibly.

    Former staffers said the agency was still focused on the fallout from the recession.

    A spokesman for the N.C.U.A. disputed that characterization and said the agency conducted appropriate enforcement.

    He added the agency took actions to ensure the credit unions remained solvent, which was its mission. He said Congress allowed the lenders to concentrate heavily on medallion loans, which left them vulnerable when Uber and Lyft arrived.

    At the New York Department of Financial Services, bank examiners noticed risky practices and interest-only loans and repeatedly wrote warnings starting in 2010, according to the state. At least one report expressed concern of a potential market bubble, the state said.

    Eventually, examiners became so concerned that they made a PowerPoint presentation and called a meeting in 2014 to show it to a dozen top officials.

    “Since 2001, individual medallion has risen 455%,” the presentation warned, according to a copy obtained by The Times. The presentation suggested state action, such as sending a letter to the industry or revoking charters from some lenders.

    The state did neither. The department had recently merged with the insurance department, and former employees said it was finding its footing.

    The department superintendent at the time, Benjamin M. Lawsky, a former aide to Gov. Andrew M. Cuomo, said he did not, as a rule, discuss his tenure at the department.

    In an emailed statement, the department denied it struggled after the merger and said it took action to stop the collapse of the medallion market. A department spokesman provided a long list of warnings, suggestions and guidelines that it said examiners had issued to lenders. He said that starting in 2012, the department downgraded some of its own internal ratings of the lenders.

    The list did not include any instances of the department formally penalizing a medallion lender, or making any public statement about the industry before it collapsed.

    Between 2010 and 2014, as officials at every level of government failed to rein in the risky lending practices, records show that roughly 1,500 people bought taxi medallions. Over all, including refinancings of old loans and extensions required by banks, medallion owners signed at least 10,000 loans in that time.

    Several regulators who tried to raise alarms said they believed the government stood aside because of the industry’s connections.

    Many pointed to one company — Medallion Financial, run by the Murstein family. Former Gov. Mario M. Cuomo, the current governor’s father, was a paid member of its board from 1996 until he died in 2015.

    Others noted that Mr. de Blasio has long been close to the industry. When he ran for mayor in 2013, an industry lobbyist, Michael Woloz, was a top fund-raiser, records show. And Evgeny Freidman, a major fleet owner who has admitted to artificially inflating medallion prices, has said he is close to the mayor.

    Some people, including Mr. Dollar, the former N.C.U.A. chairman, said Congress excepted the taxi trade from rules because the industry was supported by former United States Senator Alfonse D’Amato of New York, who was then the chairman of the Senate Banking Committee.

    “The taxi industry is one of the most politically connected industries in the city,” said Fidel Del Valle, who was the chairman of the taxi commission from 1991 to 1994. He later worked as a lawyer for drivers and a consultant to an owner association run by Mr. Freidman. “It’s been that way for decades, and they’ve used that influence to push back on regulation, with a lot of success.”

    A spokesman for Mr. Cuomo said Medallion Financial was not regulated by the state, so the elder Mr. Cuomo’s position on the board was irrelevant. A spokeswoman for Mr. de Blasio said the industry’s connections did not influence the city.

    Mr. Murstein, Mr. Woloz, Mr. Freidman and Mr. D’Amato all declined to comment.

    The aftermath
    “I think city will help me,” Mohammad Hossain, who is in deep debt from a taxi medallion loan, said at his family’s home in the Bronx.

    New York held its final independent medallion auction in February 2014. By then, concerns about medallion prices were common in the news media and government offices, and Uber had established itself. Still, the city sold medallions to more than 150 bidders. (“It’s better than the stock market,” one ad said.)

    Forty percent of the people who bought medallions at that auction have filed for bankruptcy, according to a Times analysis of court records.

    Mohammad Hossain, 47, from Bangladesh, who purchased a medallion for $853,000 at the auction, said he could barely make his monthly payments and was getting squeezed by his lender. “I bought medallion from the city,” he said through tears. “I think city will help me, you know. I assume that.”

    The de Blasio administration’s only major response to the crisis has been to push for a cap on ride-hail cars. The City Council at first rejected a cap in 2015 before approving it last year.

    Taxi industry veterans said the cap did not address the cause of the crisis: the lending practices.

    Richard Weinberg, a taxi commission hearing officer from 1988 to 2002 and a lawyer for drivers since then, said that when the medallion bubble began to burst, the city should have frozen prices, adjusted fares and fees and convinced banks to be flexible with drivers. That could have allowed prices to fall slowly. “That could’ve saved a lot of people,” he said.

    In an interview, Dean Fuleihan, the first deputy mayor, said the city did help taxi owners, including by reducing some fees, taxes and inspection mandates, and by talking to banks about loans. He said that if the City Council had passed the cap in 2015, it would have helped.

    “We do care about those drivers, we care about those families. We attempted throughout this period to take actions,” he said.

    Federal regulators also have not significantly helped medallion owners.

    In 2017 and 2018, the N.C.U.A. closed or merged several credit unions for “unsafe business practices” in medallion lending. It took over many of the loans, but did not soften terms, according to borrowers. Instead, it tried to get money out as quickly as possible.

    The failure of the credit unions has cost the national credit union insurance fund more than $750 million, which will hurt all credit union members.

    In August 2018, the N.C.U.A. closed Melrose in what it said was the biggest credit union liquidation in United States history. The agency barred Melrose’s general counsel from working for credit unions and brought civil charges against its former C.E.O., Alan Kaufman, saying he used company funds to help industry partners in exchange for gifts.

    The general counsel, Mitchell Reiver, declined to answer questions but said he did nothing wrong. Mr. Kaufman said in an interview that the N.C.U.A. made up the charges to distract from its role in the crisis.

    “I’m definitely a scapegoat,” Mr. Kaufman said. “There’s no doubt about it.”

    Glamour, then poverty
    After he struggled to repay his taxi medallion loan, Abel Vela left his family in New York and moved back to Peru, where living costs were cheaper. 

    During the medallion bubble, the city produced a television commercial to promote the permits. In the ad, which aired in 2004, four cabbies stood around a taxi discussing the perks of the job. One said buying a medallion was the best decision he had ever made. They all smiled. Then Mr. Daus appeared on screen to announce an auction.

    Fifteen years later, the cabbies remember the ad with scorn. Three of the four were eventually enticed to refinance their original loans under far riskier terms that left them in heavy debt.

    One of the cabbies, Abel Vela, had to leave his wife and children and return to his home country, Peru, because living costs were lower there. He is now 74 and still working to survive.

    The city aired a commercial in 2004 to promote an upcoming auction of taxi medallions. The ad featured real cab drivers, but three of them eventually took on risky loans and suffered financial blows.
    The only woman in the ad, Marie Applyrs, a Haitian immigrant, fell behind on her loan payments and filed for bankruptcy in November 2017. She lost her cab, and her home. She now lives with her children, switching from home to home every few months.

    “When the ad happened, the taxi was in vogue. I think I still have the tape somewhere. It was glamorous,” she said. “Now, I’m in the poorhouse.”

    Today, the only person from the television commercial still active in the industry is Mr. Daus. He works as a lawyer for lenders.

    [Read Part 1 of The Times’s investigation: How Reckless Loans Devastated a Generation of Taxi Drivers]

    Madeline Rosenberg contributed reporting. Doris Burke contributed research. Produced by Jeffrey Furticella and Meghan Louttit.

    #USA #New_York #Taxi #Betrug #Ausbeutung

  • ‘They Were Conned’: How Reckless Loans Devastated a Generation of Taxi Drivers - The New York Times
    https://www.nytimes.com/2019/05/19/nyregion/nyc-taxis-medallions-suicides.html


    Mohammed Hoque with his three children in their studio apartment in Jamaica, Queens.

    May 19, 2019 - The phone call that ruined Mohammed Hoque’s life came in April 2014 as he began another long day driving a New York City taxi, a job he had held since emigrating from Bangladesh nine years earlier.

    The call came from a prominent businessman who was selling a medallion, the coveted city permit that allows a driver to own a yellow cab instead of working for someone else. If Mr. Hoque gave him $50,000 that day, he promised to arrange a loan for the purchase.

    After years chafing under bosses he hated, Mr. Hoque thought his dreams of wealth and independence were coming true. He emptied his bank account, borrowed from friends and hurried to the man’s office in Astoria, Queens. Mr. Hoque handed over a check and received a stack of papers. He signed his name and left, eager to tell his wife.

    Mr. Hoque made about $30,000 that year. He had no idea, he said later, that he had just signed a contract that required him to pay $1.7 million.

    Over the past year, a spate of suicides by taxi drivers in New York City has highlighted in brutal terms the overwhelming debt and financial plight of medallion owners. All along, officials have blamed the crisis on competition from ride-hailing companies such as Uber and Lyft.

    But a New York Times investigation found much of the devastation can be traced to a handful of powerful industry leaders who steadily and artificially drove up the price of taxi medallions, creating a bubble that eventually burst. Over more than a decade, they channeled thousands of drivers into reckless loans and extracted hundreds of millions of dollars before the market collapsed.

    These business practices generated huge profits for bankers, brokers, lawyers, investors, fleet owners and debt collectors. The leaders of nonprofit credit unions became multimillionaires. Medallion brokers grew rich enough to buy yachts and waterfront properties. One of the most successful bankers hired the rap star Nicki Minaj to perform at a family party.

    But the methods stripped immigrant families of their life savings, crushed drivers under debt they could not repay and engulfed an industry that has long defined New York. More than 950 medallion owners have filed for bankruptcy, according to a Times analysis of court records. Thousands more are barely hanging on.

    The practices were strikingly similar to those behind the housing market crash that led to the 2008 global economic meltdown: Banks and loosely regulated private lenders wrote risky loans and encouraged frequent refinancing; drivers took on debt they could not afford, under terms they often did not understand.

    Some big banks even entered the taxi industry in the aftermath of the housing crash, seeking a new market, with new borrowers.

    The combination of easy money, eager borrowers and the lure of a rare asset helped prices soar far above what medallions were really worth. Some industry leaders fed the frenzy by purposefully overpaying for medallions in order to inflate prices, The Times found.

    Between 2002 and 2014, the price of a medallion rose to more than $1 million from $200,000, even though city records showed that driver incomes barely changed.

    About 4,000 drivers bought medallions in that period, records show. They were excited to buy, but they were enticed by a dubious premise.

    What Actually Happened to New York’s Taxi DriversMay 28, 2019

    After the medallion market collapsed, Mayor Bill de Blasio opted not to fund a bailout, and earlier this year, the City Council speaker, Corey Johnson, shut down the committee overseeing the taxi industry, saying it had completed most of its work.

    Over 10 months, The Times interviewed 450 people, built a database of every medallion sale since 1995 and reviewed thousands of individual loans and other documents, including internal bank records and confidential profit-sharing agreements.

    The investigation found example after example of drivers trapped in exploitative loans, including hundreds who signed interest-only loans that required them to pay exorbitant fees, forfeit their legal rights and give up almost all their monthly income, indefinitely.

    A Pakistani immigrant who thought he was just buying a car ended up with a $780,000 medallion loan that left him unable to pay rent. A Bangladeshi immigrant said he was told to lie about his income on his loan application; he eventually lost his medallion. A Haitian immigrant who worked to exhaustion to make his monthly payments discovered he had been paying only interest and went bankrupt.

    Abdur Rahim, who is from Bangladesh, is one of several cab drivers who allege they were duped into signing exploitative loans. 
    It is unclear if the practices violated any laws. But after reviewing The Times’s findings, experts said the methods were among the worst that have been used since the housing crash.

    “I don’t think I could concoct a more predatory scheme if I tried,” said Roger Bertling, the senior instructor at Harvard Law School’s clinic on predatory lending and consumer protection. “This was modern-day indentured servitude.”

    Lenders developed their techniques in New York but spread them to Chicago, Boston, San Francisco and elsewhere, transforming taxi industries across the United States.

    In interviews, lenders denied wrongdoing. They noted that regulators approved their practices, and said some borrowers made poor decisions and assumed too much debt. They said some drivers were happy to use climbing medallion values as collateral to take out cash, and that those who sold their medallions at the height of the market made money.

    The lenders said they believed medallion values would keep increasing, as they almost always had. No one, they said, could have predicted Uber and Lyft would emerge to undercut the business.

    “People love to blame banks for things that happen because they’re big bad banks,” said Robert Familant, the former head of Progressive Credit Union, a small nonprofit that specialized in medallion loans. “We didn’t do anything, in my opinion, other than try to help small businesspeople become successful.”

    Mr. Familant made about $30 million in salary and deferred payouts during the bubble, including $4.8 million in bonuses and incentives in 2014, the year it burst, according to disclosure forms.

    Meera Joshi, who joined the Taxi and Limousine Commission in 2011 and became chairwoman in 2014, said it was not the city’s job to regulate lending. But she acknowledged that officials saw red flags and could have done something.

    “There were lots of players, and lots of people just watched it happen. So the T.L.C. watched it happen. The lenders watched it happen. The borrowers watched it happen as their investment went up, and it wasn’t until it started falling apart that people started taking action and pointing fingers,” said Ms. Joshi, who left the commission in March. “It was a party. Why stop it?”

    Every day, about 250,000 people hail a New York City yellow taxi. Most probably do not know they are participating in an unconventional economic system about as old as the Empire State Building.

    The city created taxi medallions in 1937. Unlicensed cabs crowded city streets, so officials designed about 12,000 specialized tin plates and made it illegal to operate a taxi without one bolted to the hood of the car. The city sold each medallion for $10.

    People who bought medallions could sell them, just like any other asset. The only restriction: Officials designated roughly half as “independent medallions” and eventually required that those always be owned by whoever was driving that cab.

    Over time, as yellow taxis became symbols of New York, a cutthroat industry grew around them. A few entrepreneurs obtained most of the nonindependent medallions and built fleets that controlled the market. They were family operations largely based in the industrial neighborhoods of Hell’s Kitchen in Manhattan and Long Island City in Queens.

    Allegations of corruption, racism and exploitation dogged the industry. Some fleet bosses were accused of cheating drivers. Some drivers refused to go outside Manhattan or pick up black and Latino passengers. Fleet drivers typically worked 60 hours a week, made less than minimum wage and received no benefits, according to city studies.

    Still, driving could serve as a path to the middle class. Drivers could save to buy an independent medallion, which would increase their earnings and give them an asset they could someday sell for a retirement nest egg.

    Those who borrowed money to buy a medallion typically had to submit a large down payment and repay within five to 10 years.

    The conservative lending strategy produced modest returns. The city did not release new medallions for almost 60 years, and values slowly climbed, hitting $100,000 in 1985 and $200,000 in 1997.

    “It was a safe and stable asset, and it provided a good life for those of us who were lucky enough to buy them,” said Guy Roberts, who began driving in 1979 and eventually bought medallions and formed a fleet. “Not an easy life, but a good life.”

    “And then,” he said, “everything changed.”

    – Before coming to America, Mohammed Hoque lived comfortably in Chittagong, a city on Bangladesh’s southern coast. He was a serious student and a gifted runner, despite a small and stocky frame. His father and grandfather were teachers; he said he surpassed them, becoming an education official with a master’s degree in management. He supervised dozens of schools and traveled on a government-issued motorcycle. In 2004, when he was 33, he married Fouzia Mahabub. -

    That same year, several of his friends signed up for the green card lottery, and their thirst for opportunity was contagious. He applied, and won.

    His wife had an uncle in Jamaica, Queens, so they went there. They found a studio apartment. Mr. Hoque wanted to work in education, but he did not speak enough English. A friend recommended the taxi industry.

    It was an increasingly common move for South Asian immigrants. In 2005, about 40 percent of New York cabbies were born in Bangladesh, India or Pakistan, according to the United States Census Bureau. Over all, just 9 percent were born in the United States.

    Mr. Hoque and his wife emigrated from Bangladesh, and have rented the same apartment in Queens since 2005.

    Mr. Hoque joined Taxifleet Management, a large fleet run by the Weingartens, a Russian immigrant family whose patriarchs called themselves the “Three Wise Men.”

    He worked 5 a.m. to 5 p.m., six days a week. On a good day, he said, he brought home $100. He often felt lonely on the road, and he developed back pain from sitting all day and diabetes, medical records show.

    He could have worked fewer shifts. He also could have moved out of the studio. But he drove as much as feasible and spent as little as possible. He had heard the city would soon be auctioning off new medallions. He was saving to buy one.

    Andrew Murstein, left, with his father, Alvin.CreditChester Higgins Jr./The New York Times
    In the early 2000s, a new generation took power in New York’s cab industry. They were the sons of longtime industry leaders, and they had new ideas for making money.

    Few people represented the shift better than Andrew Murstein.

    Mr. Murstein was the grandson of a Polish immigrant who bought one of the first medallions, built one of the city’s biggest fleets and began informally lending to other buyers in the 1970s. Mr. Murstein attended business school and started his career at Bear Stearns and Salomon Brothers, the investment banks.

    When he joined the taxi business, he has said, he pushed his family to sell off many medallions and to establish a bank to focus on lending. Medallion Financial went public in 1996. Its motto was, “In niches, there are riches.”

    Dozens of industry veterans said Mr. Murstein and his father, Alvin, were among those who helped to move the industry to less conservative lending practices. The industry veterans said the Mursteins, as well as others, started saying medallion values would always rise and used that idea to focus on lending to lower-income drivers, which was riskier but more profitable.

    The strategy began to be used by the industry’s other major lenders — Progressive Credit Union, Melrose Credit Union and Lomto Credit Union, all family-run nonprofits that made essentially all their money from medallion loans, according to financial disclosures.

    “We didn’t want to be the one left behind,” said Monte Silberger, Lomto’s controller and then chief financial officer from 1999 to 2017.

    The lenders began accepting smaller down payments. By 2013, many medallion buyers were not handing over any down payment at all, according to an analysis of buyer applications submitted to the city.

    “It got to a point where we didn’t even check their income or credit score,” Mr. Silberger said. “It didn’t matter.”

    Lenders also encouraged existing borrowers to refinance and take out more money when medallion prices rose, according to interviews with dozens of borrowers and loan officers. There is no comprehensive data, but bank disclosures suggest that thousands of owners refinanced.

    Industry veterans said it became common for owners to refinance to buy a house or to put children through college. “You’d walk into the bank and walk out 30 minutes later with an extra $200,000,” said Lou Bakalar, a broker who arranged loans.

    Yvon Augustin has been living with help from his children ever since he declared bankruptcy and lost his taxi medallion.

    Some pointed to the refinancing to argue that irresponsible borrowers fueled the crisis. “Medallion owners were misusing it,” said Aleksey Medvedovskiy, a fleet owner who also worked as a broker. “They used it as an A.T.M.”

    As lenders loosened standards, they increased returns. Rather than raising interest rates, they made borrowers pay a mix of costs — origination fees, legal fees, financing fees, refinancing fees, filing fees, fees for paying too late and fees for paying too early, according to a Times review of more than 500 loans included in legal cases. Many lenders also made borrowers split their loan and pay a much higher rate on the second loan, documents show.

    Lenders also extended loan lengths. Instead of requiring repayment in five or 10 years, they developed deals that lasted as long as 50 years, locking in decades of interest payments. And some wrote interest-only loans that could continue forever.

    “We couldn’t figure out why the company was doing so many interest-only loans,” said Michelle Pirritano, a Medallion Financial loan analyst from 2007 to 2011. “It was a good revenue stream, but it didn’t really make sense as a loan. I mean, it wasn’t really a loan, because it wasn’t being repaid.”

    Almost every loan reviewed by The Times included a clause that spiked the interest rate to as high as 24 percent if it was not repaid in three years. Lenders included the clause — called a “balloon” — so that borrowers almost always had to extend the loan, possibly at a higher rate than in the original terms, and with additional fees.

    Yvon Augustin was caught in one of those loans. He bought a medallion in 2006, a decade after emigrating from Haiti. He said he paid $2,275 every month — more than half his income, he said — and thought he was paying off the loan. But last year, his bank used the balloon to demand that he repay everything. That is when he learned he had been paying only the interest, he said.

    Mr. Augustin, 69, declared bankruptcy and lost his medallion. He lives off assistance from his children.

    During the global financial crisis, Eugene Haber, a lawyer for the taxi industry, started getting calls from bankers he had never met.

    Mr. Haber had written a template for medallion loans in the 1970s. By 2008, his thick mustache had turned white, and he thought he knew everybody in the industry. Suddenly, new bankers began calling his suite in a Long Island office park. Capital One, Signature Bank, New York Commercial Bank and others wanted to issue medallion loans, he said.

    Some of the banks were looking for new borrowers after the housing market collapsed, Mr. Haber said. “They needed somewhere else to invest,” he said. He said he represented some banks at loan signings but eventually became embittered because he believed banks were knowingly lending to people who could not repay.

    Instead of lending directly, the big banks worked through powerful industry players. They enlisted large fleet owners and brokers — especially Neil Greenbaum, Richard Chipman, Savas Konstantinides, Roman Sapino and Basil Messados — to use the banks’ money to lend to medallion buyers. In return, the owners and brokers received a cut of the monthly payments and sometimes an additional fee.

    The fleet owners and brokers, who technically issued the loans, did not face the same scrutiny as banks.

    “They did loans that were frankly insane,” said Larry Fisher, who from 2003 to 2016 oversaw medallion lending at Melrose Credit Union, one of the biggest lenders originally in the industry. “It contributed to the price increases and put a lot of pressure on the rest of us to keep up.”

    Evgeny Freidman, a fleet owner, has said he purposely overbid for taxi medallions in order to drive up their value.CreditSasha Maslov
    Still, Mr. Fisher said, Melrose followed lending rules. “A lot of people tend to blame others for their own misfortune,” he said. “If they want to blame the lender for the medallion going down the tubes the way it has, I think they’re misplaced.”

    Mr. Konstantinides, a fleet owner and the broker and lender who arranged Mr. Hoque’s loans, said every loan issued by his company abided by federal and state banking guidelines. “I am very sympathetic to the plight of immigrant families who are seeking a better life in this country and in this city,” said Mr. Konstantinides, who added that he was also an immigrant.

    Walter Rabin, who led Capital One’s medallion lending division between 2007 and 2012 and has led Signature Bank’s medallion lending division since, said he was one of the industry’s most conservative lenders. He said he could not speak for the brokers and fleet owners with whom he worked.

    Mr. Rabin and other Signature executives denied fault for the market collapse and blamed the city for allowing ride-hail companies to enter with little regulation. “It’s the City of New York that took the biggest advantage of the drivers,” said Joseph J. DePaolo, the president and chief executive of Signature. “It’s not the banks.”

    New York Commercial Bank said in a statement that it began issuing medallion loans before the housing crisis and that they were a very small part of its business. The bank did not engage in risky lending practices, a spokesman said.

    Mr. Messados said in an interview that he disagreed with interest-only loans and other one-sided terms. But he said he was caught between banks developing the loans and drivers clamoring for them. “They were insisting on this,” he said. “What are you supposed to do? Say, ‘I’m not doing the sale?’”

    Several lenders challenged the idea that borrowers were unsophisticated. They said that some got better deals by negotiating with multiple lenders at once.

    Mr. Greenbaum, Mr. Chipman and Mr. Sapino declined to comment, as did Capital One.

    Some fleet owners worked to manipulate prices. In the most prominent example, Evgeny Freidman, a brash Russian immigrant who owned so many medallions that some called him “The Taxi King,” said he purposefully overpaid for medallions sold at city auctions. He reasoned that the higher prices would become the industry standard, making the medallions he already owned worth more. Mr. Freidman, who was partners with Michael Cohen, President Trump’s former lawyer, disclosed the plan in a 2012 speech at Yeshiva University. He recently pleaded guilty to felony tax fraud. He declined to comment.

    As medallion prices kept increasing, the industry became strained. Drivers had to work longer hours to make monthly payments. Eventually, loan records show, many drivers had to use almost all their income on payments.

    “The prices got to be ridiculous,” said Vincent Sapone, the retired manager of the League of Mutual Taxi Owners, an owner association. “When it got close to $1 million, nobody was going to pay that amount of money, unless they came from another country. Nobody from Brooklyn was going to pay that.”

    Some drivers have alleged in court that lenders tricked them into signing loans.

    Muhammad Ashraf, who is not fluent in English, said he thought he was getting a loan to purchase a car but ended up in debt to buy a taxi medallion instead.

    Muhammad Ashraf, a Pakistani immigrant, alleged that a broker, Heath Candero, duped him into a $780,000 interest-only loan. He said in an interview in Urdu that he could not speak English fluently and thought he was just signing a loan to buy a car. He said he found out about the loan when his bank sued him for not fully repaying. The bank eventually decided not to pursue a case against Mr. Ashraf. He also filed a lawsuit against Mr. Candero. That case was dismissed. A lawyer for Mr. Candero declined to comment.

    Abdur Rahim, a Bangladeshi immigrant, alleged that his lender, Bay Ridge Credit Union, inserted hidden fees. In an interview, he added he was told to lie on his loan application. The application, reviewed by The Times, said he made $128,389, but he said his tax return showed he made about $25,000. In court, Bay Ridge has denied there were hidden fees and said Mr. Rahim was “confusing the predatory-lending statute with a mere bad investment.” The credit union declined to comment.

    Several employees of lenders said they were pushed to write loans, encouraged by bonuses and perks such as tickets to sporting events and free trips to the Bahamas.

    They also said drivers almost never had lawyers at loan closings. Borrowers instead trusted their broker to represent them, even though, unbeknown to them, the broker was often getting paid by the bank.

    Stan Zurbin, who between 2009 and 2012 did consulting work for a lender that issued medallion loans, said that as prices rose, lenders in the industry increasingly lent to immigrants.

    “They didn’t have 750 credit scores, let’s just say,” he said. “A lot of them had just come into the country. A lot of them just had no idea what they were signing.”

    The $1 million medallion
    Video
    Mrs. Hoque did not want her husband to buy a medallion. She wanted to use their savings to buy a house. They had their first child in 2008, and they planned to have more. They needed to leave the studio apartment, and she thought a home would be a safer investment.

    But Mr. Hoque could not shake the idea, especially after several friends bought medallions at the city’s February 2014 auction.

    One friend introduced him to a man called “Big Savas.” It was Mr. Konstantinides, a fleet owner who also had a brokerage and a lending company, Mega Funding.

    The call came a few weeks later. A medallion owner had died, and the family was selling for $1 million.

    Mr. Hoque said he later learned the $50,000 he paid up front was just for taxes. Mega eventually requested twice that amount for fees and a down payment, records show. Mr. Hoque said he maxed out credit cards and borrowed from a dozen friends and relatives.

    Fees and interest would bring the total repayment to more than $1.7 million, documents show. It was split into two loans, both issued by Mega with New York Commercial Bank. The loans made him pay $5,000 a month — most of the $6,400 he could earn as a medallion owner.

    Mohammed Hoque’s Medallion Loans Consumed Most of His Taxi Revenue
    After paying his two medallion loans and business costs, Mr. Hoque had about $1,400 left over each month to pay the rent on his studio apartment in Queens and cover his living expenses.

    Estimated monthly revenue $11,845

    Gas $1,500

    Income after expenses $1,400

    Vehicle maintenance $1,300

    Medallion loan 1 $4,114

    Insurance $1,200

    Car loan $650

    Credit card fees $400

    Medallion loan 2 $881

    Other work-related expenses $400

    By the time the deal closed in July 2014, Mr. Hoque had heard of a new company called Uber. He wondered if it would hurt the business, but nobody seemed to be worried.

    As Mr. Hoque drove to the Taxi and Limousine Commission’s downtown office for final approval of the purchase, he fantasized about becoming rich, buying a big house and bringing his siblings to America. After a commission official reviewed his application and loan records, he said he was ushered into the elegant “Taxi of Tomorrow” room. An official pointed a camera. Mr. Hoque smiled.

    “These are little cash cows running around the city spitting out money,” Mr. Murstein said, beaming in a navy suit and pink tie.

    He did not mention he was quietly leaving the business, a move that would benefit him when the market collapsed.

    By the time of the appearance, Medallion Financial had been cutting the number of medallion loans on its books for years, according to disclosures it filed with the Securities and Exchange Commission. Mr. Murstein later said the company started exiting the business and focusing on other ventures before 2010.

    Mr. Murstein declined numerous interview requests. He also declined to answer some written questions, including why he promoted medallions while exiting the business. In emails and through a spokesman, he acknowledged that Medallion Financial reduced down payments but said it rarely issued interest-only loans or charged borrowers for repaying loans too early.

    “Many times, we did not match what our competitors were willing to do and in retrospect, thankfully, we lost the business,” he wrote to The Times.

    Interviews with three former staffers, and a Times review of loan documents that were filed as part of lawsuits brought by Medallion Financial against borrowers, indicate the company issued many interest-only loans and routinely included a provision allowing it to charge borrowers for repaying loans too early.

    Other lenders also left the taxi industry or took precautions long before the market collapsed.

    The credit unions specializing in the industry kept making new loans. But between 2010 and 2014, they sold the loans to other financial institutions more often than in the previous five years, disclosure forms show. Progressive Credit Union, run by Mr. Familant, sold loans off almost twice as often, the forms show. By 2012, that credit union was selling the majority of the loans it issued.

    In a statement, Mr. Familant said the selling of loans was a standard banking practice that did not indicate a lack of confidence in the market.

    Several banks used something called a confession of judgment. It was an obscure document in which the borrower admitted defaulting on the loan — even before taking out any money at all — and authorized the bank to do whatever it wanted to collect.

    Larry Fisher was the medallion lending supervisor at Melrose Credit Union, one of the biggest lenders originally in the industry, from 2003 to 2016.
    Congress has banned that practice in consumer loans, but not in business loans, which is how lenders classified medallion deals. Many states have barred it in business loans, too, but New York is not among them.

    Even as some lenders quietly braced for the market to fall, prices kept rising, and profits kept growing.

    By 2014, many of the people who helped create the bubble had made millions of dollars and invested it elsewhere.

    Medallion Financial started focusing on lending to R.V. buyers and bought a professional lacrosse team and a Nascar team, painting the car to look like a taxi. Mr. Murstein and his father made more than $42 million between 2002 and 2014, disclosures show. In 2015, Ms. Minaj, the rap star, performed at his son’s bar mitzvah.

    The Melrose C.E.O., Alan Kaufman, had the highest base salary of any large state-chartered credit union leader in America in 2013 and 2015, records show. His medallion lending supervisor, Mr. Fisher, also made millions.

    It is harder to tell how much fleet owners and brokers made, but in recent years news articles have featured some of them with new boats and houses.

    Mr. Messados’s bank records, filed in a legal case, show that by 2013, he had more than $50 million in non-taxi assets, including three homes and a yacht.

    The bubble bursts

    At least eight drivers have committed suicide, including three medallion owners with overwhelming loans.
    The medallion bubble burst in late 2014. Uber and Lyft may have hastened the crisis, but virtually all of the hundreds of industry veterans interviewed for this article, including many lenders, said inflated prices and risky lending practices would have caused a collapse even if ride-hailing had never been invented.

    At the market’s height, medallion buyers were typically earning about $5,000 a month and paying about $4,500 to their loans, according to an analysis by The Times of city data and loan documents. Many owners could make their payments only by refinancing when medallion values increased, which was unsustainable, some loan officers said.

    City data shows that since Uber entered New York in 2011, yellow cab revenue has decreased by about 10 percent per cab, a significant bite for low-earning drivers but a small drop compared with medallion values, which initially rose and then fell by 90 percent.

    As values fell, borrowers asked for breaks. But many lenders went the opposite direction. They decided to leave the business and called in their loans.

    They used the confessions to get hundreds of judgments that would allow them to take money from bank accounts, court records show. Some tried to get borrowers to give up homes or a relative’s assets. Others seized medallions and quickly resold them for profit, while still charging the original borrowers fees and extra interest. Several drivers have alleged in court that their lenders ordered them to buy life insurance.

    Many lenders hired a debt collector, Anthony Medina, to seize medallions from borrowers who missed payments.

    The scars left on cabs after medallions were removed.

    Mr. Medina left notes telling borrowers they had to give the lender “relief” to get their medallions back. The notes, which were reviewed by The Times, said the seizure was “authorized by vehicle apprehension unit.” Some drivers said Mr. Medina suggested he was a police officer and made them meet him at a park at night and pay $550 extra in cash.

    One man, Jean Demosthenes, a 64-year-old Haitian immigrant who could not speak English, said in an interview in Haitian Creole that Mr. Medina cornered him in Midtown, displayed a gun and took his car.

    In an interview, Mr. Medina denied threatening anyone with a gun. He said he requested cash because drivers who had defaulted could not be trusted to write good checks. He said he met drivers at parks and referred to himself as the vehicle apprehension unit because he wanted to hide his identity out of fear he could be targeted by borrowers.

    “You’re taking words from people that are deadbeats and delinquent people. Of course, they don’t want to see me,” he said. “I’m not the bad guy. I’m just the messenger from the bank.”

    Some lenders, especially Signature Bank, have let borrowers out of their loans for one-time payments of about $250,000. But to get that money, drivers have had to find new loans. Mr. Greenbaum, a fleet owner, has provided many of those loans, sometimes at interest rates of up to 15 percent, loan documents and interviews showed.

    New York Commercial Bank said in its statement it also had modified some loans.

    Other drivers lost everything. Most of the more than 950 owners who declared bankruptcy had to forfeit their medallions. Records indicate many were bought by hedge funds hoping for prices to rise. For now, cabs sit unused.

    Jean Demosthenes said his medallion was repossessed by a man with a gun. The man denied that he was armed.

    Bhairavi Desai, founder of the Taxi Workers Alliance, which represents drivers and independent owners, has asked the city to bail out owners or refund auction purchasers. Others have urged the city to pressure banks to forgive loans or soften terms.

    After reviewing The Times’s findings, Deepak Gupta, a former top official at the United States Consumer Financial Protection Bureau, said the New York Attorney General’s Office should investigate lenders.

    Mr. Gupta also said the state should close the loophole that let lenders classify medallion deals as business loans, even though borrowers had to guarantee them with everything they owned. Consumer loans have far more disclosure rules and protections.

    “These practices were indisputably predatory and would be illegal if they were considered consumer loans, rather than business loans,” he said.

    Last year, amid eight known suicides of drivers, including three medallion owners with overwhelming loans, the city passed a temporary cap on ride-hailing cars, created a task force to study the industry and directed the city taxi commission to do its own analysis of the debt crisis.

    Earlier this year, the Council eliminated the committee overseeing the industry after its chairman, Councilman Rubén Díaz Sr. of the Bronx, said the Council was “controlled by the homosexual community.” The speaker, Mr. Johnson, said, “The vast majority of the legislative work that we have been looking at has already been completed.”

    In a statement, a council spokesman said the committee’s duties had been transferred to the Committee on Transportation. “The Council is working to do as much as it can legislatively to help all drivers,” the spokesman said.

    As of last week, no one had been appointed to the task force.

    On the last day of 2018, Mr. and Mrs. Hoque brought their third child home from the hospital.

    Mr. Hoque cleared space for the boy’s crib, pushing aside his plastic bags of T-shirts and the fan that cooled the studio. He looked around. He could not believe he was still living in the same room.

    His loan had quickly faltered. He could not make the payments and afford rent, and his medallion was seized. Records show he paid more than $12,000 to Mega, and he said he paid another $550 to Mr. Medina to get it back. He borrowed from friends, promising it would not happen again. Then it happened four more times, he said.

    Mr. Konstantinides, the broker, said in his statement that he met with Mr. Hoque many times and twice modified one of his loans in order to lower his monthly payments. He also said he gave Mr. Hoque extra time to make some payments.

    In all, between the initial fees, monthly payments and penalties after the seizures, Mr. Hoque had paid about $400,000 into the medallion by the beginning of this year.

    But he still owed $915,000 more, plus interest, and he did not know what to do. Bankruptcy would cost money, ruin his credit and remove his only income source. And it would mean a shameful end to years of hard work. He believed his only choice was to keep working and to keep paying.

    His cab was supposed to be his ticket to money and freedom, but instead it seemed like a prison cell. Every day, he got in before the sun rose and stayed until the sky began to darken. Mr. Hoque, now 48, tried not to think about home, about what he had given up and what he had dreamed about.

    “It’s an unhuman life,” he said. “I drive and drive and drive. But I don’t know what my destination is.”

    [Read Part 2 of The Times’s investigation: As Thousands of Taxi Drivers Were Trapped in Loans, Top Officials Counted the Money]

    Reporting was contributed by Emma G. Fitzsimmons, Suzanne Hillinger, Derek M. Norman, Elisha Brown, Lindsey Rogers Cook, Pierre-Antoine Louis and Sameen Amin. Doris Burke and Susan Beachy contributed research. Produced by Jeffrey Furticella and Meghan Louttit.

    Follow Brian M. Rosenthal on Twitter at @brianmrosenthal

    #USA #New_York #Taxi #Betrug #Ausbeutung

  • Suffering unseen: The dark truth behind wildlife tourism
    https://www.nationalgeographic.com/magazine/2019/06/global-wildlife-tourism-social-media-causes-animal-suffering

    I’ve come back to check on a baby. Just after dusk I’m in a car lumbering down a muddy road in the rain, past rows of shackled elephants, their trunks swaying. I was here five hours before, when the sun was high and hot and tourists were on elephants’ backs.

    Walking now, I can barely see the path in the glow of my phone’s flashlight. When the wooden fence post of the stall stops me short, I point my light down and follow a current of rainwater across the concrete floor until it washes up against three large, gray feet. A fourth foot hovers above the surface, tethered tightly by a short chain and choked by a ring of metal spikes. When the elephant tires and puts her foot down, the spikes press deeper into her ankle.

    Meena is four years and two months old, still a toddler as elephants go. Khammon Kongkhaw, her mahout, or caretaker, told me earlier that Meena wears the spiked chain because she tends to kick. Kongkhaw has been responsible for Meena here at Maetaman Elephant Adventure, near Chiang Mai, in northern Thailand, since she was 11 months old. He said he keeps her on the spiked shackle only during the day and takes it off at night. But it’s night now.

    I ask Jin Laoshen, the Maetaman staffer accompanying me on this nighttime visit, why her chain is still on. He says he doesn’t know.

    Maetaman is one of many animal attractions in and around tourist-swarmed Chiang Mai. People spill out of tour buses and clamber onto the trunks of elephants that, at the prodding of their mahouts’ bullhooks (long poles with a sharp metal hook), hoist them in the air while cameras snap. Visitors thrust bananas toward elephants’ trunks. They watch as mahouts goad their elephants—some of the most intelligent animals on the planet—to throw darts or kick oversize soccer balls while music blares.

    Meena is one of Maetaman’s 10 show elephants. To be precise, she’s a painter. Twice a day, in front of throngs of chattering tourists, Kongkhaw puts a paintbrush in the tip of her trunk and presses a steel nail to her face to direct her brushstrokes as she drags primary colors across paper. Often he guides her to paint a wild elephant in the savanna. Her paintings are then sold to tourists.

    Meena’s life is set to follow the same trajectory as many of the roughly 3,800 captive elephants in Thailand and thousands more throughout Southeast Asia. She’ll perform in shows until she’s about 10. After that, she’ll become a riding elephant. Tourists will sit on a bench strapped to her back, and she’ll give several rides a day. When Meena is too old or sick to give rides—maybe at 55, maybe at 75—she’ll die. If she’s lucky, she’ll get a few years of retirement. She’ll spend most of her life on a chain in a stall.

    Wildlife attractions such as Maetaman lure people from around the world to be with animals like Meena, and they make up a lucrative segment of the booming global travel industry. Twice as many trips are being taken abroad as 15 years ago, a jump driven partly by Chinese tourists, who spend far more on international travel than any other nationality.

    Wildlife tourism isn’t new, but social media is setting the industry ablaze, turning encounters with exotic animals into photo-driven bucket-list toppers. Activities once publicized mostly in guidebooks now are shared instantly with multitudes of people by selfie-taking backpackers, tour-bus travelers, and social media “influencers” through a tap on their phone screens. Nearly all millennials (23- to 38-year-olds) use social media while traveling. Their selfies—of swims with dolphins, encounters with tigers, rides on elephants, and more—are viral advertising for attractions that tout up-close experiences with animals.

    For all the visibility social media provides, it doesn’t show what happens beyond the view of the camera lens. People who feel joy and exhilaration from getting close to wild animals usually are unaware that many of the animals at such attractions live a lot like Meena, or worse.

    Photographer Kirsten Luce and I set out to look behind the curtain of the thriving wildlife tourism industry, to see how animals at various attractions—including some that emphasize their humane care of animals—are treated once the selfie-taking crowds have gone.

    After leaving Maetaman, we take a five-minute car ride up a winding hill to a property announced by a wooden plaque as “Elephant EcoValley: where elephants are in good hands.” There are no elephant rides here. No paint shows or other performances. Visitors can stroll through an open-air museum and learn about Thailand’s national animal. They can make herbal treats for the elephants and paper from elephant dung. They can watch elephants in a grassy, tree-ringed field.

    EcoValley’s guest book is filled with praise from Australians, Danes, Americans—tourists who often shun elephant camps such as Maetaman because the rides and shows make them uneasy. Here, they can see unchained elephants and leave feeling good about supporting what they believe is an ethical establishment. What many don’t know is that EcoValley’s seemingly carefree elephants are brought here for the day from nearby Maetaman—and that the two attractions are actually a single business.

    Meena was brought here once, but she tried to run into the forest. Another young elephant, Mei, comes sometimes, but today she’s at Maetaman, playing the harmonica in the shows. When she’s not doing that, or spending the day at EcoValley, she’s chained near Meena in one of Maetaman’s elephant stalls.

    Meena Kalamapijit owns Maetaman as well as EcoValley, which she opened in November 2017 to cater to Westerners. She says her 56 elephants are well cared for and that giving rides and performing allow them to have necessary exercise. And, she says, Meena the elephant’s behavior has gotten better since her mahout started using the spiked chain.
    Read MoreWildlife Watch
    Why we’re shining a light on wildlife tourism
    Poaching is sending the shy, elusive pangolin to its doom
    How to do wildlife tourism right

    We sit with Kalamapijit on a balcony outside her office, and she explains that when Westerners, especially Americans, stopped coming to Maetaman, she eliminated one of the daily shows to allot time for visitors to watch elephants bathe in the river that runs through the camp.

    “Westerners enjoy bathing because it looks happy and natural,” she says. “But a Chinese tour agency called me and said, ‘Why are you cutting the show? Our customers love to see it, and they don’t care about bathing at all.’ ” Providing separate options is good for business, Kalamapijit says.

    Around the world Kirsten and I watched tourists watching captive animals. In Thailand we also saw American men bear-hug tigers in Chiang Mai and Chinese brides in wedding gowns ride young elephants in the aqua surf on the island of Phuket. We watched polar bears in wire muzzles ballroom dancing across the ice under a big top in Russia and teenage boys on the Amazon River snapping selfies with baby sloths.

    Most tourists who enjoy these encounters don’t know that the adult tigers may be declawed, drugged, or both. Or that there are always cubs for tourists to snuggle with because the cats are speed bred and the cubs are taken from their mothers just days after birth. Or that the elephants give rides and perform tricks without harming people only because they’ve been “broken” as babies and taught to fear the bullhook. Or that the Amazonian sloths taken illegally from the jungle often die within weeks of being put in captivity.

    As we traveled to performance pits and holding pens on three continents and in the Hawaiian Islands, asking questions about how animals are treated and getting answers that didn’t always add up, it became clear how methodically and systematically animal suffering is concealed.

    The wildlife tourism industry caters to people’s love of animals but often seeks to maximize profits by exploiting animals from birth to death. The industry’s economy depends largely on people believing that the animals they’re paying to watch or ride or feed are having fun too.

    It succeeds partly because tourists—in unfamiliar settings and eager to have a positive experience—typically don’t consider the possibility that they’re helping to hurt animals. Social media adds to the confusion: Oblivious endorsements from friends and trendsetters legitimize attractions before a traveler ever gets near an animal.

    There has been some recognition of social media’s role in the problem. In December 2017, after a National Geographic investigative report on harmful wildlife tourism in Amazonian Brazil and Peru, Instagram introduced a feature: Users who click or search one of dozens of hashtags, such as #slothselfie and #tigercubselfie, now get a pop-up warning that the content they’re viewing may be harmful to animals.

    Everyone finds Olga Barantseva on Instagram. “Photographer from Russia. Photographing dreams,” her bio reads. She meets clients for woodland photo shoots with captive wild animals just outside Moscow.

    For her 18th birthday, Sasha Belova treated herself to a session with Barantseva—and a pack of wolves. “It was my dream,” she says as she fidgets with her hair, which had been styled that morning. “Wolves are wild and dangerous.” The wolves are kept in small cages at a petting zoo when not participating in photo shoots.

    The Kravtsov family hired Barantseva to take their first professional family photos—all five family members, shivering and smiling in the birch forest, joined by a bear named Stepan.

    Barantseva has been photographing people and wild animals together for six years. She “woke up as a star,” she says, in 2015, when a couple of international media outlets found her online. Her audience has exploded to more than 80,000 followers worldwide. “I want to show harmony between people and animals,” she says.

    On a raw fall day, under a crown of golden birch leaves on a hill that overlooks a frigid lake, two-and-a-half-year-old Alexander Levin, dressed in a hooded bumblebee sweater, timidly holds Stepan’s paw.

    The bear’s owners, Yury and Svetlana Panteleenko, ply their star with food—tuna fish mixed with oatmeal—to get him to approach the boy. Snap: It looks like a tender friendship. The owners toss grapes to Stepan to get him to open his mouth wide. Snap: The bear looks as if he’s smiling.

    The Panteleenkos constantly move Stepan, adjusting his paws, feeding him, and positioning Alexander as Barantseva, pink-haired, bundled in jeans and a parka, captures each moment. Snap: A photo goes to her Instagram feed. A boy and a bear in golden Russian woods—a picture straight out of a fairy tale. It’s a contemporary twist on a long-standing Russian tradition of exploiting bears for entertainment.

    Another day in the same forest, Kirsten and I join 12 young women who have nearly identical Instagram accounts replete with dreamy photos of models caressing owls and wolves and foxes. Armed with fancy cameras but as yet modest numbers of followers, they all want the audience Barantseva has. Each has paid the Panteleenkos $760 to take identical shots of models with the ultimate prize: a bear in the woods.

    Stepan is 26 years old, elderly for a brown bear, and can hardly walk. The Panteleenkos say they bought him from a small zoo when he was three months old. They say the bear’s work—a constant stream of photo shoots and movies—provides money to keep him fed.

    A video on Svetlana Panteleenko’s Instagram account proclaims: “Love along with some great food can make anyone a teddy :-)”

    And just like that, social media takes a single instance of local animal tourism and broadcasts it to the world.

    When the documentary film Blackfish was released in 2013, it drew a swift and decisive reaction from the American public. Through the story of Tilikum, a distressed killer whale at SeaWorld in Orlando, Florida, the film detailed the miserable life orcas can face in captivity. Hundreds of thousands of outraged viewers signed petitions. Companies with partnership deals, such as Southwest Airlines, severed ties with SeaWorld. Attendance at SeaWorld’s water parks slipped; its stock nose-dived.

    James Regan says what he saw in Blackfish upset him. Regan, honeymooning in Hawaii with his wife, Katie, is from England, where the country’s last marine mammal park closed permanently in 1993. I meet him at Dolphin Quest Oahu, an upscale swim-with-dolphins business on the grounds of the beachfront Kahala Hotel & Resort, just east of Honolulu. The Regans paid $225 each to swim for 30 minutes in a small group with a bottlenose dolphin. One of two Dolphin Quest locations in Hawaii, the facility houses six dolphins.

    Bottlenose dolphins are the backbone of an industry that spans the globe. Swim-with-dolphins operations rely on captive-bred and wild-caught dolphins that live—and interact with tourists—in pools. The popularity of these photo-friendly attractions reflects the disconnect around dolphin experiences: People in the West increasingly shun shows that feature animals performing tricks, but many see swimming with captive dolphins as a vacation rite of passage.

    Katie Regan has wanted to swim with dolphins since she was a child. Her husband laughs and says of Dolphin Quest, “They paint a lovely picture. When you’re in America, everyone is smiling.” But he appreciates that the facility is at their hotel, so they can watch the dolphins being fed and cared for. He brings up Blackfish again.

    Katie protests: “Stop making my dream a horrible thing!”

    Rae Stone, president of Dolphin Quest and a marine mammal veterinarian, says the company donates money to conservation projects and educates visitors about perils that marine mammals face in the wild. By paying for this entertainment, she says, visitors are helping captive dolphins’ wild cousins.

    Stone notes that Dolphin Quest is certified “humane” by American Humane, an animal welfare nonprofit. (The Walt Disney Company, National Geographic’s majority owner, offers dolphin encounters on some vacation excursions and at an attraction in Epcot, one of its Orlando parks. Disney says it follows the animal welfare standards of the Association of Zoos & Aquariums, a nonprofit that accredits more than 230 facilities worldwide.)

    It’s a vigorous debate: whether even places with high standards, veterinarians on staff, and features such as pools filled with filtered ocean water can be truly humane for marine mammals.

    Dolphin Quest’s Stone says yes.

    Critics, including the Humane Society of the United States, which does not endorse keeping dolphins in captivity, say no. They argue that these animals have evolved to swim great distances and live in complex social groups—conditions that can’t be replicated in the confines of a pool. This helps explain why the National Aquarium, in Baltimore, announced in 2016 that its dolphins will be retired to a seaside sanctuary by 2020.

    Some U.S. attractions breed their own dolphins because the nation has restricted dolphin catching in the wild since 1972. But elsewhere, dolphins are still being taken from the wild and turned into performers.

    In China, which has no national laws on captive-animal welfare, dolphinariums with wild-caught animals are a booming business: There are now 78 marine mammal parks, and 26 more are under construction.

    To have the once-in-a-lifetime chance to see rare Black Sea dolphins, people in the landlocked town of Kaluga, a hundred miles from Moscow, don’t have to leave their city. In the parking lot of the Torgoviy Kvartal shopping mall, next to a hardware store, is a white inflatable pop-up aquarium: the Moscow Traveling Dolphinarium. It looks like a children’s bouncy castle that’s been drained of its color.

    Inside the puffy dome, parents buy their kids dolphin-shaped trinkets: fuzzy dolls and Mylar balloons, paper dolphin hats, and drinks in plastic dolphin tumblers. Families take their seats around a small pool. The venue is so intimate that even the cheapest seats, at nine dollars apiece, are within splashing distance.

    “My kids are jumping for joy,” says a woman named Anya, motioning toward her two giddy boys, bouncing in their seats.

    In the middle of the jubilant atmosphere, in water that seems much too shallow and much too murky, two dolphins swim listlessly in circles.

    Russia is one of only a few countries (Indonesia is another) where traveling oceanariums exist. Dolphins and beluga whales, which need to be immersed in water to stay alive, are put in tubs on trucks and carted from city to city in a loop that usually ends when they die. These traveling shows are aboveboard: Russia has no laws that regulate how marine mammals should be treated in captivity.

    The shows are the domestic arm of a brisk Russian global trade in dolphins and small whales. Black Sea bottlenose dolphins can’t be caught legally without a permit, but Russian fishermen can catch belugas and orcas under legal quotas in the name of science and education. Some belugas are sold legally to aquariums around the country. Russia now allows only a dozen or so orcas to be caught each year for scientific and educational purposes, and since April 2018, the government has cracked down on exporting them. But government investigators believe that Russian orcas—which can sell for millions—are being caught illegally for export to China.

    Captive orcas, which can grow to 20 feet long and more than 10,000 pounds, are too big for the traveling shows that typically feature dolphins and belugas. When I contacted the owners of the Moscow Traveling Dolphinarium and another operation, the White Whale Show, in separate telephone calls to ask where their dolphins and belugas come from, both men, Sergey Kuznetsov and Oleg Belesikov, hung up on me.

    Russia’s dozen or so traveling oceanariums are touted as a way to bring native wild animals to people who might never see the ocean.

    “Who else if not us?” says Mikhail Olyoshin, a staffer at one traveling oceanarium. And on this day in Kaluga, as the dolphins perform tricks to American pop songs and lie on platforms for several minutes for photo ops, parents and children express the same sentiment: Imagine, dolphins, up close, in my hometown. The ocean on delivery.

    Owners and operators of wildlife tourism attractions, from high-end facilities such as Dolphin Quest in Hawaii to low-end monkey shows in Thailand, say their animals live longer in captivity than wild counterparts because they’re safe from predators and environmental hazards. Show operators proudly emphasize that the animals under their care are with them for life. They’re family.

    Alla Azovtseva, a longtime dolphin trainer in Russia, shakes her head.

    “I don’t see any sense in this work. My conscience bites me. I look at my animals and want to cry,” says Azovtseva, who drives a red van with dolphins airbrushed on the side. At the moment, she’s training pilot whales to perform tricks at Moscow’s Moskvarium, one of Europe’s largest aquariums (not connected to the traveling dolphin shows). On her day off, we meet at a café near Red Square.

    She says she fell in love with dolphins in the late 1980s when she read a book by John Lilly, the American neuroscientist who broke open our understanding of the animals’ intelligence. She has spent 30 years training marine mammals to do tricks. But along the way she’s grown heartsick from forcing highly intelligent, social creatures to live isolated, barren lives in small tanks.

    “I would compare the dolphin situation with making a physicist sweep the street,” she says. “When they’re not engaged in performance or training, they just hang in the water facing down. It’s the deepest depression.”

    What people don’t know about many aquarium shows in Russia, Azovtseva says, is that the animals often die soon after being put in captivity, especially those in traveling shows. And Azovtseva—making clear she’s referring to the industry at large in Russia and not the Moskvarium—says she knows many aquariums quietly and illegally replace their animals with new ones.

    It’s been illegal to catch Black Sea dolphins in the wild for entertainment purposes since 2003, but according to Azovtseva, aquarium owners who want to increase their dolphin numbers quickly and cheaply buy dolphins poached there. Because these dolphins are acquired illegally, they’re missing the microchips that captive cetaceans in Russia are usually tagged with as a form of required identification.

    Some aquariums get around that, she says, by cutting out dead dolphins’ microchips and implanting them into replacement dolphins.

    “People are people,” Azovtseva says. “Once they see an opportunity, they exploit.” She says she can’t go on doing her work in the industry and that she’s decided to speak out because she wants people to know the truth about the origins and treatment of many of the marine mammals they love watching. We exchange a look—we both know what her words likely mean for her livelihood.

    “I don’t care if I’m fired,” she says defiantly. “When a person has nothing to lose, she becomes really brave.”

    I’m sitting on the edge of an infinity pool on the hilly Thai side of Thailand’s border with Myanmar, at a resort where rooms average more than a thousand dollars a night.

    Out past the pool, elephants roam in a lush valley. Sitting next to me is 20-year-old Stephanie van Houten. She’s Dutch and French, Tokyo born and raised, and a student at the University of Michigan. Her cosmopolitan background and pretty face make for a perfect cocktail of aspiration—she’s exactly the kind of Instagrammer who makes it as an influencer. That is, someone who has a large enough following to attract sponsors to underwrite posts and, in turn, travel, wardrobes, and bank accounts. In 2018, brands—fashion, travel, tech, and more—spent an estimated $1.6 billion on social media advertising by influencers.

    Van Houten has been here, at the Anantara Golden Triangle Elephant Camp & Resort, before. This time, in a fairly standard influencer-brand arrangement, she’ll have a picnic with elephants and post about it to her growing legion of more than 25,000 Instagram followers. In exchange, she gets hundreds of dollars off the nightly rate.

    At Anantara the fields are green, and during the day at least, many of the resort’s 22 elephants are tethered on ropes more than a hundred feet long so they can move around and socialize. Nevertheless, they’re expected to let guests touch them and do yoga beside them.

    After van Houten’s elephant picnic, I watch her edit the day’s hundreds of photos. She selects an image with her favorite elephant, Bo. She likes it, she says, because she felt a connection with Bo and thinks that will come across. She posts it at 9:30 p.m.—the time she estimates the largest number of her followers will be online. She includes a long caption, summing it up as “my love story with this incredible creature,” and the hashtag #stopelephantriding. Immediately, likes from followers stream in—more than a thousand, as well as comments with heart-eyed emoji.

    Anantara is out of reach for anyone but the wealthy—or prominent influencers. Anyone else seeking a similar experience might do a Google search for, say, “Thailand elephant sanctuary.”

    As tourist demand for ethical experiences with animals has grown, affordable establishments, often calling themselves “sanctuaries,” have cropped up purporting to offer humane, up-close elephant encounters. Bathing with elephants—tourists give them a mud bath, splash them in a river, or both—has become very popular. Many facilities portray baths as a benign alternative to elephant riding and performances. But elephants getting baths, like those that give rides and do tricks, will have been broken to some extent to make them obedient. And as long as bathing remains popular, places that offer it will need obedient elephants to keep their businesses going. 


    In Ban Ta Klang, a tiny town in eastern Thailand, modest homes dot the crimson earth. In front of each is a wide, bamboo platform for sitting, sleeping, and watching television.

    But the first thing I notice is the elephants. Some homes have one, others as many as five. Elephants stand under tarps or sheet metal roofs or trees. Some are together, mothers and babies, but most are alone. Nearly all the elephants wear ankle chains or hobbles—cuffs binding their front legs together. Dogs and chickens weave among the elephants’ legs, sending up puffs of red dust.

    Ban Ta Klang—known as Elephant Village—is ground zero in Thailand for training and trading captive elephants.

    “House elephants,” Sri Somboon says, gesturing as he turns down his TV. Next to his outdoor platform, a two-month-old baby elephant runs around his mother. Somboon points across the road to the third elephant in his charge, a three-year-old male tethered to a tree. He’s wrenching his head back and forth and thrashing his trunk around. It looks as if he’s going out of his mind.

    He’s in the middle of his training, Somboon says, and is getting good at painting. He’s already been sold, and when his training is finished, he’ll start working at a tourist camp down south.

    Ban Ta Klang and the surrounding area, part of Surin Province, claim to be the source of more than half of Thailand’s 3,800 captive elephants. Long before the flood of tourists, it was the center of the elephant trade; the animals were caught in the wild and tamed for use transporting logs. Now, every November, hundreds of elephants from here are displayed, bought, and sold in the province’s main town, Surin.

    One evening I sit with Jakkrawan Homhual and Wanchai Sala-ngam. Both 33, they’ve been best friends since childhood. About half the people in Ban Ta Klang who care for elephants, including Homhual, don’t own them. They’re paid a modest salary by a rich owner to breed and train baby elephants for entertainment. As night falls, thousands of termites swarm us, attracted to the single bulb hanging above the bamboo platform. Our conversation turns to elephant training.

    Phajaan is the traditional—and brutal—days- or weeks-long process of breaking a young elephant’s spirit. It has long been used in Thailand and throughout Southeast Asia to tame wild elephants, which still account for many of the country’s captives. Under phajaan, elephants are bound with ropes, confined in tight wooden structures, starved, and beaten repeatedly with bullhooks, nails, and hammers until their will is crushed. The extent to which phajaan persists in its harshest form is unclear. Since 2012, the government has been cracking down on the illegal import of elephants taken from the forests of neighboring Myanmar, Thailand’s main source of wild-caught animals.

    I ask the men how baby elephants born in captivity are broken and trained.

    When a baby is about two years old, they say, mahouts tie its mother to a tree and slowly drag the baby away. Once separated, the baby is confined. Using a bullhook on its ear, they teach the baby to move: left, right, turn, stop. To teach an elephant to sit, Sala-ngam says, “we tie up the front legs. One mahout will use a bullhook at the back. The other will pull a rope on the front legs.” He adds: “To train the elephant, you need to use the bullhook so the elephant will know.”

    Humans identify suffering in other humans by universal signs: People sob, wince, cry out, put voice to their hurt. Animals have no universal language for pain. Many animals don’t have tear ducts. More creatures still—prey animals, for example—instinctively mask symptoms of pain, lest they appear weak to predators. Recognizing that a nonhuman animal is in pain is difficult, often impossible.

    But we know that animals feel pain. All mammals have a similar neuroanatomy. Birds, reptiles, and amphibians all have pain receptors. As recently as a decade ago, scientists had collected more evidence that fish feel pain than they had for neonatal infants. A four-year-old human child with spikes pressing into his flesh would express pain by screaming. A four-year-old elephant just stands there in the rain, her leg jerking in the air.

    Of all the silently suffering animals I saw in pools and pens around the world, two in particular haunt me: an elephant and a tiger.

    They lived in the same facility, Samut Prakan Crocodile Farm and Zoo, about 15 miles south of Bangkok. The elephant, Gluay Hom, four years old, was kept under a stadium. The aging tiger, Khai Khem, 22, spent his days on a short chain in a photo studio. Both had irrefutable signs of suffering: The emaciated elephant had a bent, swollen leg hanging in the air and a large, bleeding sore at his temple. His eyes were rolled back in his head. The tiger had a dental abscess so severe that the infection was eating through the bottom of his jaw.

    When I contacted the owner of the facility, Uthen Youngprapakorn, to ask about these animals, he said the fact that they hadn’t died proved that the facility was caring for them properly. He then threatened a lawsuit.

    Six months after Kirsten and I returned from Thailand, we asked Ryn Jirenuwat, our Bangkok-based Thai interpreter, to check on Gluay Hom and Khai Khem. She went to Samut Prakan and watched them for hours, sending photos and video. Gluay Hom was still alive, still standing in the same stall, leg still bent at an unnatural angle. The elephants next to him were skin and bones. Khai Khem was still chained by his neck to a hook in the floor. He just stays in his dark corner, Jirenuwat texted, and when he hears people coming, he twists on his chain and turns his back to them.

    “Like he just wants to be swallowed by the wall.”

    #tourisme #nos_ennemis_les_bêtes

  • China Restarts Purchases of Iranian Oil, Bucking Trump’s Sanctions — Bourse & Bazaar
    https://www.bourseandbazaar.com/articles/2019/5/17/china-restarts-purchases-of-iranian-oil-bucking-trumps-sanctions

    PACIFIC BRAVO is currently reporting its destination as Indonesia, but the tanker was recently acquired by Bank of Kunlun, a financial institution that is owned by the Chinese state oil company CNPC. TankerTrackers.com believes China is the ultimate destination for the oil on board.

    PACIFIC BRAVO is the first major tanker to load Iranian crude after the Trump administration revoked waivers permitting the purchases by eight of Iran’s oil customers. The revocation of the waivers, which sent shockwaves through the global oil market, was a major escalation of Trump’s “maximum pressure” campaign on Iran.

    The purchase of Iranian oil in the absence of a waiver exposes the companies involved in the transaction—including the tanker operator, refinery customer, and bank—to possible designation by the U.S. Treasury Department, threatening the links these companies may maintain with the U.S. financial system.

    Bank of Kunlun has long been the financial institution at heart of China-Iran bilateral trade—a role for which the company was sanctioned during the Obama administration. Despite already being designated, Bank of Kunlun ceased its Iran-related activities in early May when the oil waivers were revoked. PACIFIC BRAVO’s moves point to a change in policy.

    China-Iran trade slowed dramatically after the reimposition of U.S. secondary sanctions in November, suggesting the Chinese government had chosen to subordinate its economic relations with Iran to the much more important issue of its ongoing trade negotiations with the United States. But these negotiations have since broken down. This week, President Trump announced plans to impose tariffs on a further $300 billion in Chinese imports in addition to punitive measures against Chinese telecommunications giant Huawei, which has been targeted in part for its alleged violations of Iran sanctions.

    #iran #chine #pétrole #sanctions

  • Iran circles wagons as Trump’s B Team beats war drum
    Posted on May 9, 2019 by M. K. BHADRAKUMAR - Indian Punchline
    https://indianpunchline.com/iran-circles-wagons-as-trumps-b-team-beats-war-drum

    If there can be a lethal game of Russian roulette in international politics, this is it — what just began on May 8, the first anniversary of the United States’ withdrawal from the Iran nuclear deal of July 2015.

    Iran exercised “strategic patience” for one full year, as President Hassan Rouhani noted, upon the request from the five remaining signatories of the nuclear deal — Britain, France, Germany, Russia and China. That period has run out.

    Not only have the five powers failed to persuade the Trump administration to retract from its decision, but Washington has gone on a warpath of sanctions and deployment of a formidable strike group to the Persian Gulf.

    On the other hand, the five big powers couldn’t ensure that Iran got the full benefits out of the nuclear deal as envisaged under the nuclear deal, despite its full compliance with the terms of the deal, which has been acknowledged repeatedly by the International Atomic Energy Agency. Only Russia and China observed the commitments given to Iran as signatories, while the three European powers merely paid lip service.

    Against this sombre backdrop, Rouhani announced on Wednesday that if the remaining signatories fail to provide Iran with the merits stated under the deal in the next 60 days, Tehran will stop complying with its nuclear undertakings in consequent phases. For a start, Iran will cease to observe the capping on the volume of enriched uranium and heavy water reserves that it is permitted to hold.

    After 60 days, if Iran’s grievances are not still addressed, it will no longer observe the restrictions on the 3.6 percent level of uranium enrichment and will resume work on its heavy water reactor at Arak. Iran has underlined that it is not withdrawing from the nuclear deal but is only taking reciprocal measures as provided under articles 26 and 32 of the agreement regarding the eventuality of one or more of the six powers failing to observe the treaty. Rouhani has specified Iran’s concerns particularly in the oil industry and the banking sector, which Washington has targeted with sanctions.

    Rouhani said that after 120 days from now, even if Iran starts enriching uranium beyond the 3.6 level and resumes work in Arak, it will give yet another 60 days for negotiations before taking additional unspecified (which could be by the yearend). Meanwhile, Iran will react strongly against any move by the western powers to approach the UN Security Council for reimposition of the old UN sanctions. (...)

    #Iran

  • China working on data privacy law but enforcement is a stumbling block | South China Morning Post
    https://www.scmp.com/news/china/politics/article/3008844/china-working-data-privacy-law-enforcement-stumbling-block

    En Chine des scientifiques s’inquiètent de la collection de données sans limites et des abus possibles par le gouvernment et des acteurs privés. Au niveau politique on essaye d’introduire des lois protégeant les données et la vie privée. D’après l’article les véritables problèmes se poseront lors de l’implémentation d’une nouvelle législation en la matière.

    Echo Xie 5 May, 2019 - Biometric data in particular needs to be protected from abuse from the state and businesses, analysts say
    Country is expected to have 626 million surveillance cameras fitted with facial recognition software by 2020

    In what is seen as a major step to protect citizens’ personal information, especially their biometric data, from abuse, China’s legislators are drafting a new law to safeguard data privacy, according to industry observers – but enforcement remains a major concern.

    “China’s private data protection law will be released and implemented soon, because of the fast development of technology, and the huge demand in society,” Zeng Liaoyuan, associate professor at the University of Electronic Science and Technology of China, said in an interview .

    Technology is rapidly changing life in China but relevant regulations had yet to catch up, Zeng said.

    Artificial intelligence and its many applications constitute a major component of China’s national plan. In 2017, the “Next Generation Artificial Intelligence Development Plan” called for the country to become the world leader in AI innovation by 2030.

    Biometrics authentication is used in computer science as an identification or access control. It includes fingerprinting, face recognition, DNA, iris recognition, palm prints and other methods.

    In particular, the use of biometric data has grown exponentially in key areas: scanning users’ fingerprints or face to pay bills, to apply for social security qualification and even to repay loans. But the lack of an overarching law lets companies gain access to vast quantities of an individual’s personal data, a practice that has raised privacy concerns.

    During the “two sessions” last month, National People’s Congress spokesman Zhang Yesui said the authorities had hastened the drafting of a law to protect personal data, but did not say when it would be completed or enacted.

    One important focus, analysts say, is ensuring that the state does not abuse its power when collecting and using private data, considering the mass surveillance systems installed in China.

    “This is a big problem in China,” said Liu Deliang, a law professor at Beijing Normal University. “Because it’s about regulating the government’s abuse of power, so it’s not only a law issue but a constitutional issue.”

    The Chinese government is a major collector and user of privacy data. According to IHS Markit, a London-based market research firm, China had 176 million surveillance cameras in operation in 2016 and the number was set to reach 626 million by 2020.

    In any proposed law, the misuse of data should be clearly defined and even the government should bear legal responsibility for its misuse, Liu said.

    “We can have legislation to prevent the government from misusing private data but the hard thing is how to enforce it.”

    Especially crucial, legal experts say, is privacy protection for biometric data.

    “Compared with other private data, biometrics has its uniqueness. It could post long-term risk and seriousness of consequence,” said Wu Shenkuo, an associate law professor at Beijing Normal University.

    “Therefore, we need to pay more attention to the scope and limitations of collecting and using biometrics.”

    Yi Tong, a lawmaker from Beijing, filed a proposal concerning biometrics legislation at the National People’s Congress session last month.

    “Once private biometric data is leaked, it’s a lifetime leak and it will put the users’ private data security into greater uncertainty, which might lead to a series of risks,” the proposal said.

    Yi suggested clarifying the boundary between state power and private rights, and strengthening the management of companies.

    In terms of governance, Wu said China should specify the qualifications entities must have before they can collect, use and process private biometric data. He also said the law should identify which regulatory agencies would certify companies’ information.

    There was a need to restrict government behaviour when collecting private data, he said, and suggested some form of compensation for those whose data was misused.

    “Private data collection at the government level might involve the need for the public interest,” he said. “In this case, in addition to ensuring the legal procedure, the damage to personal interests should be compensated.”

    Still, data leaks, or overcollecting, is common in China.

    A survey released by the China Consumers Association in August showed that more than 85 per cent of respondents had suffered some sort of data leak, such as their cellphone numbers being sold to spammers or their bank accounts being stolen.

    Another report by the association in November found that of the 100 apps it investigated, 91 had problems with overcollecting private data.

    One of them, MeituPic, an image editing software program, was criticised for collecting too much biometric data.

    The report also cited Ant Financial Services, the operator of the Alipay online payments service, for the way it collects private data, which it said was incompatible with the national standard. Ant Financial is an affiliate of Alibaba Group, which owns the South China Morning Post.

    In January last year, Ant Financial had to apologise publicly for automatically signing up users for a social credit programme without obtaining their consent.

    “When a company asks for a user’s private data, it’s unscrupulous, because we don’t have a law to limit their behaviour,” Zeng said.

    “Also it’s about business competition. Every company wants to hold its customers, and one way is to collect their information as much as possible.”

    Tencent and Alibaba, China’s two largest internet companies, did not respond to requests for comment about the pending legislation.

    #Chine #droit #vie_privée #surveillance #politique

  • The Power Elite
    https://www1.udel.edu/htr/Psc105/Texts/power.html

    Thomas Dye, a political scientist, and his students have been studying the upper echelons of leadership in America since 1972. These “top positions” encompassed the posts with the authority to run programs and activities of major political, economic, legal, educational, cultural, scientific, and civic institutions. The occupants of these offices, Dye’s investigators found, control half of the nation’s industrial, communications, transportation, and banking assets, and two-thirds of all insurance assets. In addition, they direct about 40 percent of the resources of private foundations and 50 percent of university endowments. Furthermore, less than 250 people hold the most influential posts in the executive, legislative, and judicial branches of the federal government, while approximately 200 men and women run the three major television networks and most of the national newspaper chains.

    Facts like these, which have been duplicated in countless other studies, suggest to many observers that power in the United States is concentrated in the hands of a single power elite. Scores of versions of this idea exist, probably one for each person who holds it, but they all interpret government and politics very differently than pluralists. Instead of seeing hundreds of competing groups hammering out policy, the elite model perceives a pyramid of power. At the top, a tiny elite makes all of the most important decisions for everyone below. A relatively small middle level consists of the types of individuals one normally thinks of when discussing American government: senators, representatives, mayors, governors, judges, lobbyists, and party leaders. The masses occupy the bottom. They are the average men and women in the country who are powerless to hold the top level accountable.

    The power elite theory, in short, claims that a single elite, not a multiplicity of competing groups, decides the life-and-death issues for the nation as a whole, leaving relatively minor matters for the middle level and almost nothing for the common person. It thus paints a dark picture. Whereas pluralists are somewhat content with what they believe is a fair, if admittedly imperfect, system, the power elite school decries the grossly unequal and unjust distribution of power it finds everywhere.

    People living in a country that prides itself on democracy, that is surrounded by the trappings of free government, and that constantly witnesses the comings and goings of elected officials may find the idea of a power elite farfetched. Yet many very intelligent social scientists accept it and present compelling reasons for believing it to be true. Thus, before dismissing it out of hand, one ought to listen to their arguments.

    #politique #théorie_politique #USA #États_Unis #gouvernement #idéologie #impérialisme

  • Les ponts vivants du Meghalaya : voyage entre eau et brume | National Geographic
    https://www.nationalgeographic.fr/voyage/les-ponts-vivants-du-meghalaya-voyage-entre-eau-et-brume
    https://www.nationalgeographic.fr/sites/france/files/styles/desktop/public/school-boys-living-root-bridge-meghalaya-india.jpg?itok=LnbFCJl3

    Bien avant l’apparition des matériaux de construction modernes, les Khasi ont mis au point une méthode très ingénieuse pour traverser les cours d’eau tumultueux et relier les villages isolés : les ponts de racine vivants, connus localement sous le nom de jing kieng jri.

    Afin de créer une fondation solide, des arbres sont plantés de chaque côté de la berge. Ensuite, pendant 15 à 30 ans, les Khasi tissent délicatement les racines des Ficus elastica sur un échafaudage en bambou temporaire pour relier les deux côtés. Grâce à l’humidité, au passage de piétons et au temps, le sol se tasse et l’enchevêtrement de racines s’épaissit et se renforce. Les ponts complètement développés au-dessus des rivières et des gorges profondes peuvent mesurer entre 4,5 et 76 mètres de long et supporter de lourdes charges pouvant aller jusqu’au poids de 35 individus.

    Contrairement aux matériaux de construction modernes comme le béton et l’acier, ces structures sont généralement plus résistantes avec l’âge et peuvent exister pendant plusieurs siècles. Elles résistent aussi régulièrement aux crues soudaines et aux violentes tempêtes qui sont légion dans la région. Les ponts constituent aussi un moyen durable et peu coûteux de relier les villages reculés dans les montagnes sur ce terrain escarpé. L’origine exacte de cette pratique dans la région est inconnue, mais la première trace écrite de l’existence de ces ponts remonte à plus d’une centaine d’années.

    #génial #faire_avec_la_nature #pont #arbre #racines #Inde

    • #beau
      The Amazing Living Bridges of Meghalaya
      https://drishtikone.com/2012/12/how-generations-of-indian-tribals-build-living-bridges-across-rivers-fr

      The development and upkeep of bridges is a community affair. Initially, a length of bamboo is secured across a river divide and a banyan plant, Ficus benghalensis is planted on each bank. Over the months and years, the roots and branches of the rapidly growing Ficus are trained along the bamboo until they meet in the middle and eventually supersede its support. At later stages in the evolution of the bridge, stones are inserted into the gaps and eventually become engulfed by the plant forming the beautiful walkways. Later still, the bridges are improved upon with the addition of hand rails and steps.

      Cherrapunji is credited with being the wettest place on earth, and The War-Khasis, a tribe in Meghalaya, long ago noticed this tree and saw in its powerful roots an opportunity to easily cross the area’s many rivers. Now, whenever and wherever the need arises, they simply grow their bridges.

      The root bridges, some of which are over a hundred feet long, take ten to fifteen years to become fully functional, but they’re extraordinarily strong – strong enough that some of them can support the weight of fifty or more people at a time.

      Because they are alive and still growing, the bridges actually gain strength over time – and some of the ancient root bridges used daily by the people of the villages around Cherrapunji may be well over five hundred years old.

  • #imf Poll Shows Real Demand For #crypto Payment Solutions
    https://hackernoon.com/imf-poll-shows-real-demand-for-crypto-payment-solutions-9bdfc21a25e6?sou

    On April 10th, IMF launched a tweet poll asking “How do you think you will be paying for lunch in 5 years?”. The choices include cash, cryptocurrency, a mobile phone, and bank card. The choice of Cryptocurrency received 56% of the 37,000 votes and the next choice was via mobile phone with 27%. Therefore, could IMF’s poll serve as a clue to what lies in the future: Mass Adoption of Cryptocurrencies? The potential of Crypto #payments being the main method of payments is very real.body[data-twttr-rendered="true"] background-color: transparent;.twitter-tweet margin: auto !important;We would like to hear from you. ⬇ How do you think you will be paying for lunch in 5 years? #IMFmeetings #DigitalPayments — @IMFNewsfunction notifyResize(height) height = height ? height : (...)

    #bitcoin #moneyfi

  • From Warm Intro to $107M: Qwil’s Step-By-Step Fundraising Journey
    https://hackernoon.com/from-warm-intro-to-107m-qwils-step-by-step-fundraising-journey-412315450

    It’s a near-universal pain point for freelancers: the unpredictable cash flow cycle. It’s common to wait 30-plus days to be paid after completing a job, and sometimes, it’s just too long.Qwil, says its co-founder and CEO, Johnny Reinsch, was born out of his own experience as an independent contractor with a high-value client that paid him late. “I was about to overdraw my bank account the day before my payment was due,” he says. “I tracked down the finance person and got the money just in time, but I was like, ‘why does it have to work this way?’”As a self-described “recovering M&A lawyer” and a former exec at bitcoin wallet Xapo, he knew that it didn’t.Enter Qwil — a fintech company with a mission to “empower freelancers with instant, convenient access to credit.” For businesses, it’s a way to (...)

    #entrepreneurship #founders #startup #loans #venture-capital

  • 7 Successful Applications of #ai & Machine Learning in the #travel #industry
    https://hackernoon.com/successful-implications-of-ai-machine-learning-in-travel-industry-3040f3

    Owing to our increased dependency on gadgets, people today are more likely to plan trips via smart apps. They can actually spend many hours glued to the screen — finding the best place, best price, and the best itinerary. This is where Artificial Intelligence & Machine Learning come into play. This can generate super-personalized suggestions to prospective travelers, by analyzing large datasets.It is apparent that outside of chatbots, the field of AI and machine learning in the travel and tourism industry is still in its infancy. Much of the impact of artificial intelligence on the travel and tourism industry focuses on customer service and engagement.Compared to sectors such as banking, healthcare, and e-commerce, it’s clear that the travel and tourism industry does not have a very (...)

    #artificial-intelligence #machine-learning

  • Record High #Remittances Sent Globally in #2018

    Remittances to low- and middle-income countries reached a record high in 2018, according to the World Bank’s latest Migration and Development Brief.

    The Bank estimates that officially recorded annual remittance flows to low- and middle-income countries reached $529 billion in 2018, an increase of 9.6 percent over the previous record high of $483 billion in 2017. Global remittances, which include flows to high-income countries, reached $689 billion in 2018, up from $633 billion in 2017.

    Regionally, growth in remittance inflows ranged from almost 7 percent in East Asia and the Pacific to 12 percent in South Asia. The overall increase was driven by a stronger economy and employment situation in the United States and a rebound in outward flows from some Gulf Cooperation Council (GCC) countries and the Russian Federation. Excluding China, remittances to low- and middle-income countries ($462 billion) were significantly larger than foreign direct investment flows in 2018 ($344 billion).

    Among countries, the top remittance recipients were India with $79 billion, followed by China ($67 billion), Mexico ($36 billion), the Philippines ($34 billion), and Egypt ($29 billion).

    In 2019, remittance flows to low- and middle-income countries are expected to reach $550 billion, to become their largest source of external financing.

    The global average cost of sending $200 remained high, at around 7 percent in the first quarter of 2019, according to the World Bank’s Remittance Prices Worldwide database. Reducing remittance costs to 3 percent by 2030 is a global target under Sustainable Development Goal (SDG) 10.7. Remittance costs across many African corridors and small islands in the Pacific remain above 10 percent.

    Banks were the most expensive remittance channels, charging an average fee of 11 percent in the first quarter of 2019. Post offices were the next most expensive, at over 7 percent. Remittance fees tend to include a premium where national post offices have an exclusive partnership with a money transfer operator. This premium was on average 1.5 percent worldwide and as high as 4 percent in some countries in the last quarter of 2018.

    On ways to lower remittance costs, Dilip Ratha, lead author of the Brief and head of KNOMAD, said, “Remittances are on track to become the largest source of external financing in developing countries. The high costs of money transfers reduce the benefits of migration. Renegotiating exclusive partnerships and letting new players operate through national post offices, banks, and telecommunications companies will increase competition and lower remittance prices.”

    The Brief notes that banks’ ongoing de-risking practices, which have involved the closure of the bank accounts of some remittance service providers, are driving up remittance costs.

    The Brief also reports progress toward the SDG target of reducing the recruitment costs paid by migrant workers, which tend to be high, especially for lower-skilled migrants.

    “Millions of low-skilled migrant workers are vulnerable to recruitment malpractices, including exorbitant recruitment costs. We need to boost efforts to create jobs in developing countries and to monitor and reduce recruitment costs paid by these workers,” said Michal Rutkowski, Senior Director of the Social Protection and Jobs Global Practice at the World Bank. The World Bank and the International Labour Organization are collaborating to develop indicators for worker-paid recruitment costs, to support the SDG of promoting safe, orderly, and regular migration.

    Regional Remittance Trends

    Remittances to the East Asia and Pacific region grew almost 7 percent to $143 billion in 2018, faster than the 5 percent growth in 2017. Remittances to the Philippines rose to $34 billion, but growth in remittances was slower due to a drop in private transfers from the GCC countries. Flows to Indonesia increased by 25 percent in 2018, after a muted performance in 2017.

    After posting 22 percent growth in 2017, remittances to Europe and Central Asia grew an estimated 11 percent to $59 billion in 2018. Continued growth in economic activity increased outbound remittances from Poland, Russia, Spain, and the United States, major sources of remittances to the region. Smaller remittance-dependent countries in the region, such as the Kyrgyz Republic, Tajikistan, and Uzbekistan, benefited from the sustained rebound of economic activity in Russia. Ukraine, the region’s largest remittance recipient, received a new record of more than $14 billion in 2018, up about 19 percent over 2017. This surge in Ukraine also reflects a revised methodology for estimating incoming remittances, as well as growth in neighboring countries’ demand for migrant workers.

    Remittances flows into Latin America and the Caribbean grew 10 percent to $88 billion in 2018, supported by the strong U.S. economy. Mexico continued to receive the most remittances in the region, posting about $36 billion in 2018, up 11 percent over the previous year. Colombia and Ecuador, which have migrants in Spain, posted 16 percent and 8 percent growth, respectively. Three other countries in the region posted double-digit growth: Guatemala (13 percent) as well as Dominican Republic and Honduras (both 10 percent), reflecting robust outbound remittances from the United States.

    Remittances to the Middle East and North Africa grew 9 percent to $62 billion in 2018. The growth was driven by Egypt’s rapid remittance growth of around 17 percent. Beyond 2018, the growth of remittances to the region is expected to continue, albeit at a slower pace of around 3 percent in 2019 due to moderating growth in the Euro Area.

    Remittances to South Asia grew 12 percent to $131 billion in 2018, outpacing the 6 percent growth in 2017. The upsurge was driven by stronger economic conditions in the United States and a pick-up in oil prices, which had a positive impact on outward remittances from some GCC countries. Remittances grew by more than 14 percent in India, where a flooding disaster in Kerala likely boosted the financial help that migrants sent to families. In Pakistan, remittance growth was moderate (7 percent), due to significant declines in inflows from Saudi Arabia, its largest remittance source. In Bangladesh, remittances showed a brisk uptick in 2018 (15 percent).

    Remittances to Sub-Saharan Africa grew almost 10 percent to $46 billion in 2018, supported by strong economic conditions in high-income economies. Looking at remittances as a share of GDP, Comoros has the largest share, followed by the Gambia , Lesotho, Cabo Verde, Liberia, Zimbabwe, Senegal, Togo, Ghana, and Nigeria.

    The Migration and Development Brief and the latest migration and remittances data are available at www.knomad.org. Interact with migration experts at http://blogs.worldbank.org/peoplemove

    http://www.worldbank.org/en/news/press-release/2019/04/08/record-high-remittances-sent-globally-in-2018?cid=ECR_TT_worldbank_EN_EXT
    #remittances #statistiques #chiffres #migrations #diaspora

    #Rapport ici :


    https://www.knomad.org/sites/default/files/2019-04/MigrationandDevelopmentBrief_31_0.pdf

    ping @reka

    • Immigrati, boom di rimesse: più di 6 miliardi all’estero. Lo strano caso dei cinesi «spariti»

      Bangladesh, Romania, Filippine: ecco il podio delle rimesse degli immigrati che vivono e lavorano in Italia. Il trend è in forte aumento: nel 2018 sono stati inviati all’estero 6,2 miliardi di euro, con una crescita annua del 20, 7 per cento.
      A registrarlo è uno studio della Fondazione Leone Moressa su dati Banca d’Italia, dopo il crollo del 2013 e alcuni anni di sostanziale stabilizzazione, oggi il volume di rimesse rappresenta lo 0,35% del Pil.

      Il primato del Bangladesh
      Per la prima volta, nel 2018 il Bangladesh è il primo Paese di destinazione delle rimesse, con oltre 730 milioni di euro complessivi (11,8% delle rimesse totali).
      Il Bangladesh nell’ultimo anno ha registrato un +35,7%, mentre negli ultimi sei anni ha più che triplicato il volume.

      Il secondo Paese di destinazione è la Romania, con un andamento stabile: +0,3% nell’ultimo anno e -14,3% negli ultimi sei.
      Da notare come tra i primi sei Paesi ben quattro siano asiatici: oltre al Bangladesh, anche Filippine, Pakistan e India. Proprio i Paesi dell’Asia meridionale sono quelli che negli ultimi anni hanno registrato il maggiore incremento di rimesse inviate. Il Pakistan ha registrato un aumento del +73,9% nell’ultimo anno. Anche India e Sri Lanka sono in forte espansione.

      Praticamente scomparsa la Cina, che fino a pochi anni fa rappresentava il primo Paese di destinazione e oggi non è nemmeno tra i primi 15 Paesi per destinazione delle rimesse.
      Mediamente, ciascun immigrato in Italia ha inviato in patria poco più di 1.200 euro nel corso del 2018 (circa 100 euro al mese). Valore che scende sotto la media per le due nazionalità più numerose: Romania (50,29 euro mensili) e Marocco (66,14 euro). Tra le comunità più numerose il valore più alto è quello del Bangladesh: ciascun cittadino ha inviato oltre 460 euro al mese. Anche i senegalesi hanno inviato mediamente oltre 300 euro mensili.

      https://www.ilsole24ore.com/art/notizie/2019-04-17/immigrati-boom-rimesse-piu-6-miliardi-all-estero-strano-caso-cinesi-spa
      #Italie #Chine #Bangladesh #Roumanie #Philippines

  • Robert Reich: Here’s everything you need to know about the new economy – Alternet.org
    https://www.alternet.org/2019/04/robert-reich-heres-everything-you-need-to-know-about-the-new-economy

    The biggest economic story of our times isn’t about supply and demand. It’s about institutions and politics. It’s about power.

    The median annual earnings of full-time wage and salaried workers in 1979, in today’s dollars, was $43,680. The median earnings in 2018 was $45,708. If between 1979 and 2018, the American economy almost tripled in size, so where did the gains go? Most went to the top.

    Now this is broadly known, but there is less certainty about why.

    1. The Conventional View

    Conventional wisdom attributes the widening economic divide to globalization and technological change – the “inevitable” result of the invisible hand of the so-called “free market.”

    Simply put, as the American economy merged with the rest of the globe, American workers had to compete with foreign workers willing to toil for a fraction of American wages. And as technology advanced, American workers also had to compete with software and robots that were cheaper to employ than Americans.

    So, according to this conventional view, the only realistic way to raise the wages of most Americans is to give them more and better education and job training, so they can become more competitive. They can thereby overcome the so-called “skills gap” that keeps them from taking the jobs of the future – jobs and opportunities generated by new technologies.

    2. A Deeper View of the American Political Economy

    The conventional story isn’t completely wrong, and education and training are important. But the conventional view leaves out some of the largest and most important changes, and therefore overlooks the most important solutions.

    To understand what really happened, it’s critical to understand that there is no “free market” in nature. The term “free market” suggests outcomes are objectively fair and that any “intervention” in the free market is somehow “unnatural.” But in reality, markets cannot exist without people constructing them. Markets depend on rules, and rules come out of legislatures, executive agencies, and courts. The biggest political change over the last four decades is the overwhelming dominance of big money in politics – influencing what those rules are to be.

    3. The Decline of Countervailing Power

    Now, go back to the first three decades after World War II – a period that coupled the greatest economic expansion the world has ever seen with the creation of the largest middle class the world has ever witnessed. The great economic thinker John Kenneth Galbraith asked at the time: Why is capitalism working so well for so many?

    His answer was as surprising as it was obvious: American capitalism contained hidden pools of what he called “countervailing power” that offset the power of large corporations, Wall Street, and the wealthy: labor unions, state and local banks, farm cooperatives, and small retail chains, for example. All of these sources of countervailing power had been fostered by the New Deal. They balanced the American economic system.

    But since the late 1970s, these sources of countervailing power have been decimated, leading to an unbalanced system and producing widening economic inequality and stagnating wages. The result has become a vicious cycle in which big money – emanating from big corporations, Wall Street, and the wealthy – determine the rules of the economic game, and those rules generate more money at the top.

    Consider, for example, the ever-expanding tax cuts or loopholes for large corporations, the financial sector, and the wealthy. Contrast them with increases in payroll taxes for average workers.

    Or look at the bank and corporate bailouts but little or no help for homeowners caught in the downdraft of the Great Recession.

    Finally, look at the increasing barriers to labor unions, such as the proliferation of so-called “right-to-work” laws and the simultaneous erosion of antitrust and the emergence of large concentrations of corporate power.

    The public knows the game is rigged, which is why almost all the political energy is now anti-establishment. This is a big reason why Trump won the 2016 election. Authoritarian populists through history have used anger and directed it at racial and ethnic minorities and foreigners.

    It’s also a big reason why the only alternative to authoritarian populism is progressive populism – countervailing the moneyed interests with a democracy that reorganizes the market to benefit the many rather than a small group at the top.

    How do we build a new countervailing power and move toward a new progressive economics?

    4. Economics and Political Power

    The choice isn’t between a free market and government. The question is who has the power to organize the market, and for whom.

    Stagnant wages, job insecurity, widening inequality, and mounting wealth at the top are the result of political choices. The system is rigged and must be un-rigged.

    Conventional economics posits that the most important goals are efficiency and economic growth. But policies can be “efficient” by making the rich even wealthier as long as no one else is worse off – and that won’t remedy what’s happened. Economic growth is meaningless if the gains from growth keep going to the top and nothing trickles down.

    Stop assuming that all that’s needed is better education and job training. Sure, Americans need access to better schools and skills, but the basic problem isn’t simply a “skills gap.” It’s a market that’s organized to push more income and wealth toward the top, rather than distribute it broadly.

    Stop aiming to “redistribute” from richer to poorer after the market has distributed income. Instead, change the organization of the market so that a fair pre-distribution occurs inside it.

    Stop thinking that the goal is only to create more jobs. America’s real jobs crisis is a scarcity of good jobs.

    The American economy cannot generate widespread prosperity without a large and growing middle class whose spending fuels the economy.

    5. Building a Multi-racial, Multi-ethnic, Coalition of the Middle Class, Working Class, and Poor.

    Don’t let the moneyed interests divide and conquer along racial and gender lines. Racism and sexism are very real issues within our economic system, and they are often exploited to keep us from realizing the power we can have when we stand together. All are disempowered by the moneyed interests, and all have a stake in rebuilding countervailing power.

    6. Offering a Compelling Set of Ideas about What Should be Done with Countervailing Power.

    For example:

    — A guaranteed basic income so no one is impoverished,

    — A guaranteed job so everyone can get ahead,

    — A progressive wealth tax to pay for these and other basics,

    — Stronger unions so workers have more bargaining power,

    — New forms of corporate organization so workers have more voice,

    – A Green New Deal so workers can get better jobs while fighting climate change.

    — Reinvigorated antitrust so concentrations of economic power are broken up,

    — Election finance reforms to get big money out of politics and end the revolving door,

    — Voting reforms so votes cannot be suppressed.

    7. Building the leadership for this new countervailing power.

    You can help lead the way. You can be a leader of this movement. How?

    For one, you can run for office – in your community, say, city council or school board. Or run for state office. Or even national office.

    Don’t be intimidated by politics. We need good people to run. And don’t worry that you’ll be beholden to a handful of rich donors. These days, smaller donors are more active than ever.

    So, what’s the secret? Tell it like it is and be yourself. And then, as I’ve said, talk about economics in terms of political power and understand the 7 principles. Build countervailing power through a multi-racial, multi-ethnic coalition. And offer a compelling set of ideas about what can and should be done.

    But you don’t need to hold formal office to be a leader.

    You can be a leader by organizing and mobilizing people: Your co-workers – to form a union. Your friends and neighbors – to push for better roads and schools, and fairer local taxes. People at your church or synagogue or mosque – to demand better treatment of the poor, the elderly, children, immigrants. You can link your group up with other groups pursuing similar ends, and create a movement. That’s how we got the Civil Rights and Voting Rights Acts. How we got marriage equality. It’s how we get good people elected.

    The key to organizing and mobilizing is creating a leadership team, and then reaching out systematically to others, giving them tasks and responsibilities, starting small and gaining a few victories so people can feel their power, and then growing from there.

    You’ll need to be patient and steadfast. Keep people together and focused. And be careful not to burn out. Organizing and mobilizing is hard, but once organized and mobilized, there’s no end to what people can accomplish.

    You can also be a leader by uncovering critical information, fighting lies, spreading the truth. Core responsibilities of leadership are revealing the facts about widening inequalities of income, wealth, and political power – and uncovering their consequences.

    A century ago they were called “muckrakers.” More recently, investigative reporters. I’m talking about courageous journalists who speak truth to power.

    But this form of leadership isn’t limited to reporters. It includes whistleblowers, who alert the public to abuses of power. And here courage is also required because when you blow the whistle on the powerful, the powerful sometimes strike back.

    This form of leadership also includes researchers, who dig up new sources of data and analyze them in ways that enlighten and motivate.

    In other words, there isn’t just one path to leadership. Whether you seek formal authority by running and gaining public office, or you organize and mobilize people into being effective advocates, or you discover and spread the truth – you are creating and developing countervailing power to spread the gains of the economy and strengthen our democracy.

    These are worthy and noble objectives. They are worth your time. They can be worth a lifetime.

    #Robert_Reich #Politique_USA #Economie #Indignez_vous

  • Why Tax Reporting For Cryptocurrencies Is So Stressful?
    https://hackernoon.com/why-tax-reporting-for-cryptocurrencies-is-so-stressful-f5cbf78b3d86?sour

    Why is Tax Reporting For Cryptocurrencies so Stressful?The evolution of cryptocurrencies — the virtual “coins,” was supposed to disrupt the very concept of money itself. But it didn’t go as planned.With no physical manifestation, no central bank, and no government regulation, cryptocurrencies provided a perfect spot for some investors to dodge tax authorities.Crypto Is No Longer “Bogus”Bitcoin, the most popular cryptocurrency, and other “privacy coins”, such as Monero and Zcash, used to rule the dark web — the shady part of the Internet where weapons, pornography, and gambling are easily available. But this is slowly changing.Gone are the days when the government considered cryptocurrency as a “bogus” economy.Today, government regulations are now playing a vital role in legitimizing cryptocurrencies (...)

    #taxes #bitcoin #cryptotaxtrader #crypto #blockchain

  • Why Managing Crypto Assets Is Different From Fiat
    https://hackernoon.com/why-managing-crypto-assets-is-different-from-fiat-85a2c5d33bab?source=rs

    The skills required to be a successful CFO in traditional finance are certainly important, but successful crypto CFOs have an entirely new set of skills to develop.While there is some overlap between traditional CFO skills and those needed for crypto companies, the simple truth is that blockchain technology is too transformative for CFOs to not update their knowledge.Here are seven ways that managing crypto assets differs from managing fiat:Transactions are more difficult to trackFiat: Understanding exactly who sent or received a transaction is simple. The beneficiary and bank are clearly identified. If a transaction for $10,000 was sent to ABC Construction, it’s automatically labelled by the bank and there’s no guesswork required.Crypto: Imagine if instead of seeing “ABC Construction,” (...)

    #bitcoin

  • #blockchain : Disruptions And Opportunities
    https://hackernoon.com/blockchain-disruptions-and-opportunities-cf97e16ca95f?source=rss----3a81

    There has been a resounding expectation by a lot of experts in the crypto community about the opportunities and gains that blockchain adoption could yield in the near future. In this post, we are going to take a look at what has changed so far in industries that have adopted it.Although it has disrupted nearly all major industries, there are five of them where this process was the most successful by this date. These are supply chain management, healthcare, banking, voting systems, and cybersecurity.Supply Chain ManagementSupply chain management for retail, logistics, and e-tail sectors has always appeared to be a more likely candidate for blockchain #disruption from the get-go. This could be because of the many parties that are involved in the chain of supply — manufacturer, exporter, (...)

    #blockchain-opportunities #infographics #blockchain-technology

  • Will #blockchain Replace Credit Cards by 2022?
    https://hackernoon.com/will-blockchain-replace-credit-cards-by-2022-36742354cb4f?source=rss----

    The possibilities for blockchain payment systems are far-reaching these days. It is now possible that Blockchain could replace credit cards in the near future. So, is it going to happen by 2022?Yes, it may happen that soon!A decade back, digital cards (debit & credit) came in the banking industry and did some changes. Honestly, it made our life easier.However, now with the help of blockchain, it is even easier and cost-effective. It uses the encrypted distributed ledgers that can work with or without banks and clearing houses.If things go as per prediction, the market is going to be ten times bigger.Yes, 10 TIMES!Adoption Of Blockchain Payment SystemsSee how the banking industry is rapidly adopting blockchain in payment transactions.According to reports, 69% of banks and financial (...)

    #blockchain-technology #bitcoin #credit-cards #blockchain-startup

  • Les #gilets_jaunes vus de New York...

    Low Visibility

    Driving was already expensive in France when in January 2018 the government of President Emmanuel Macron imposed a tax that raised the price of diesel fuel by 7.6 centimes per liter and of gasoline by 3.8 centimes (about 9 and 4 cents, respectively); further increases were planned for January 2019. The taxes were an attempt to cut carbon emissions and honor the president’s lofty promise to “Make Our Planet Great Again.”

    Priscillia Ludosky, then a thirty-two-year-old bank employee from the Seine-et-Marne department outside Paris, had no choice but to drive into the city for work every day, and the cost of her commute was mounting. “When you pay regularly for something, it really adds up fast, and the increase was enormous,” she told me recently. “There are lots of things I don’t like. But on that I pushed.” In late May 2018, she created a petition on Change.org entitled Pour une Baisse des Prix du Carburant à la Pompe! (For a reduction of fuel prices at the pump!)

    Over the summer Ludosky’s petition—which acknowledged the “entirely honorable” aim of reducing pollution while offering six alternative policy suggestions, including subsidizing electric cars and encouraging employers to allow remote work—got little attention. In the fall she tried again, convincing a radio host in Seine-et-Marne to interview her if the petition garnered 1,500 signatures. She posted that challenge on her Facebook page, and the signatures arrived in less than twenty-four hours. A local news site then shared the petition on its own Facebook page, and it went viral, eventually being signed by over 1.2 million people.

    Éric Drouet, a thirty-three-year-old truck driver and anti-Macron militant also from Seine-et-Marne, created a Facebook event for a nationwide blockade of roads on November 17 to protest the high fuel prices. Around the same time, a fifty-one-year-old self-employed hypnotherapist named Jacline Mouraud recorded herself addressing Macron for four minutes and thirty-eight seconds and posted the video on Facebook. “You have persecuted drivers since the day you took office,” she said. “This will continue for how long?” Mouraud’s invective was viewed over six million times, and the gilets jaunes—the yellow vests, named for the high-visibility vests that French drivers are required to keep in their cars and to wear in case of emergency—were born.

    Even in a country where protest is a cherished ritual of public life, the violence and vitriol of the gilets jaunes movement have stunned the government. Almost immediately it outgrew the issue of the carbon taxes and the financial burden on car-reliant French people outside major cities. In a series of Saturday demonstrations that began in mid-November and have continued for three months, a previously dormant anger has erupted. Demonstrators have beaten police officers, thrown acid in the faces of journalists, and threatened the lives of government officials. There has been violence on both sides, and the European Parliament has condemned French authorities for using “flash-ball guns” against protesters, maiming and even blinding more than a few in the crowds. But the gilets jaunes have a flair for cinematic destruction. In late November they damaged parts of the Arc de Triomphe in Paris; in early January they commandeered a forklift and rammed through the heavy doors of the ministry of state—the only time in the history of the Fifth Republic that a sitting minister had to be evacuated from a government building.

    The gilets jaunes are more than a protest. This is a modern-day jacquerie, an emotional wildfire stoked in the provinces and directed against Paris and, most of all, the elite. French history since 1789 can be seen as a sequence of anti-elite movements, yet the gilets jaunes have no real precedent. Unlike the Paris Commune of 1871, this is a proletarian struggle devoid of utopian aspirations. Unlike the Poujadist movement of the mid-1950s—a confederation of shopkeepers likewise opposed to the “Americanization” of a “thieving and inhuman” state and similarly attracted to anti-Semitic conspiracy theories—the gilets jaunes include shopkeepers seemingly content to destroy shop windows. There is an aspect of carnival here: a delight in the subversion of norms, a deliberate embrace of the grotesque.

    Many have said that the gilets jaunes are merely another “populist movement,” although the term is now so broad that it is nearly meaningless. Comparisons have been made to the Britain of Brexit, the United States of Donald Trump, and especially the Italy of Cinque Stelle. But the crucial difference is that the gilets jaunes are apolitical, and militantly so. They have no official platform, no leadership hierarchy, and no reliable communications. Everyone can speak for the movement, and yet no one can. When a small faction within it fielded a list of candidates for the upcoming European parliamentary elections in May, their sharpest opposition came from within: to many gilets jaunes, the ten who had put their names forward—among them a nurse, a truck driver, and an accountant—were traitors to the cause, having dared to replicate the elite that the rest of the movement disdains.

    Concessions from the government have had little effect. Under mounting pressure, Macron was forced to abandon the carbon tax planned for 2019 in a solemn televised address in mid-December. He also launched the so-called grand débat, a three-month tour of rural France designed to give him a better grasp of the concerns of ordinary people. In some of these sessions, Macron has endured more than six hours of bitter criticisms from angry provincial mayors. But these gestures have quelled neither the protests nor the anger of those who remain in the movement. Performance is the point. During the early “acts,” as the weekly demonstrations are known, members refused to meet with French prime minister Édouard Philippe, on the grounds that he would not allow the encounter to be televised, and that sentiment has persisted. Perhaps the most telling thing about the gilets jaunes is the vest they wear: a symbol of car ownership, but more fundamentally a material demand to be seen.

    Inequality in France is less extreme than in the United States and Britain, but it is increasing. Among wealthy Western countries, the postwar French state—l’État-providence—is something of a marvel. France’s health and education systems remain almost entirely free while ranking among the best in the world. In 2017 the country’s ratio of tax revenue to gross domestic product was 46.2 percent, according to statistics from the Organization for Economic Co-operation and Development (OECD)—the highest redistribution level of any OECD country and a ratio that allows the state to fight poverty through a generous social protection system. Of that 46.2 percent, the French government allocated approximately 28 percent for social services.

    “The French social model is so integrated that it almost seems a natural, preexisting condition,” Alexis Spire, a sociologist of inequality at the École des Hautes Études en Sciences Sociales, told me recently. A number of the gilets jaunes I met said that despite the taxes they pay, they do not feel they benefit from any social services, since they live far from urban centers. But anyone who has ever received housing assistance, a free prescription, or sixteen weeks of paid maternity leave has benefited from the social protection system. The effect of redistribution is often invisible.

    And yet the rich in France have gotten much richer. Between 1983 and 2015, the vast majority of incomes in France rose by less than one percent per year, while the richest one percent of the population saw their incomes rise by 100 percent after taxes. According to World Bank statistics, the richest 20 percent now earns nearly five times as much as the bottom 20 percent. This represents a stark shift from the Trente Glorieuses, France’s thirty-year economic boom after World War II. As the economist Thomas Piketty has pointed out, between 1950 and 1983, most French incomes rose steadily by approximately 4 percent per year; the nation’s top incomes rose by only one percent.

    What has become painfully visible, however, is the extent of the country’s geographical fractures. Paris has always been the undisputed center of politics, culture, and commerce, but France was once also a country that cherished and protected its vibrant provincial life. This was la France profonde, a clichéd but genuinely existing France of tranquil stone villages and local boulangeries with lines around the block on Sundays. “Douce France, cher pays de mon enfance,” goes the beloved song by the crooner Charles Trenet. “Mon village, au clocher aux maisons sages.” These days, the maisons sages are vacant, and the country boulangeries are closed.

    The story is familiar: the arrival of large multinational megastores on the outskirts of provincial French towns and cities has threatened, and in many cases asphyxiated, local businesses.1 In the once-bustling centers of towns like Avignon, Agen, Calais, and Périgueux, there is now an eerie quiet: windows are often boarded up, and fewer and fewer people are to be found. This is the world evoked with a melancholy beauty in Nicolas Mathieu’s novel Leurs enfants après eux, which won the Prix Goncourt, France’s most prestigious literary prize, in 2018.

    The expansion since the 1980s of France’s high-speed rail network has meant that the country’s major cities are all well connected to Paris. But there are many small towns where the future never arrived, where abandoned nineteenth-century train stations are now merely places for teenagers to make out, monuments of the way things used to be. In these towns, cars are the only way people can get to work. I met a fifty-five-year-old truck and taxi driver named Marco Pavan in the Franche-Comté in late November. What he told me then—about how carbon taxes can seem like sneers from the Parisian elite—has stayed with me. “Ask a Parisian—for him none of this is an issue, because he doesn’t need a car,” Pavan said. “There’s no bus or train to take us anywhere. We have to have a car.” I cited that remark in a Washington Post story I filed from Besançon; in the online comments section, many attacked the movement for what they saw as a backward anti-environmentalism—missing his point.

    Few have written as extensively as the French geographer Christophe Guilluy on la France périphérique, a term he popularized that refers both to the people and the regions left behind by an increasingly globalized economy. Since 2010, when he published Fractures françaises, Guilluy has been investigating the myths and realities of what he calls “the trompe l’oeil of a peaceful, moderate, and consensual society.” He is one of a number of left-wing French intellectuals—among them the novelist Michel Houellebecq, the historian Georges Bensoussan, and the essayist Michel Onfray—who in recent years have argued that their beloved patrie has drifted into inexorable decline, a classic critique of the French right since 1789. But Guilluy’s decline narrative is different: he is not as concerned as the others with Islamist extremism or “decadence” broadly conceived. For him, France’s decline is structural, the result of having become a place where “the social question disappears.”

    Guilluy, born in Montreuil in 1964, is something of a rarity among well-known French intellectuals: he is a product of the Paris suburbs, not of France’s storied grandes écoles. And it is clear that much of his critique is personal. As a child, Guilluy, whose family then lived in the working-class Paris neighborhood of Belleville, was forcibly relocated for a brief period to the heavily immigrant suburb of La Courneuve when their building was slated to be demolished in the midst of Paris’s urban transformation. “I saw gentrification firsthand,” he told Le Figaro in 2017. “For the natives—the natives being just as much the white worker as the young immigrant—what provoked the most problems was not the arrival of Magrebis, but that of the bobos.”

    This has long been Guilluy’s battle cry, and he has focused his intellectual energy on attacking what he sees as the hypocrisy of the bobos, or bourgeois bohemians. His public debut was a short 2001 column in Libération applying that term, coined by the columnist David Brooks, to French social life. What was happening in major urban centers across the country, he wrote then, was a “ghettoization by the top of society” that excluded people like his own family.

    Guilluy crystallized that argument in a 2014 book that won him the ear of the Élysée Palace and regular appearances on French radio. This was La France périphérique: comment on a sacrifié les classes populaires, in which he contended that since the mid-1980s, France’s working classes have been pushed out of the major cities to rural communities—a situation that was a ticking time bomb—partly as a result of rising prices. He advanced that view further in 2016 with La Crépuscule de la France d’en haut—now translated into English as Twilight of the Elites: Prosperity, the Periphery, and the Future of France—a pithy screed against France’s bobo elite and what he sees as its shameless embrace of a “neoliberal,” “Americanized society” and a hollow, feel-good creed of multicultural tolerance. In 2018, one month before the rise of the gilets jaunes, he published No Society, whose title comes from Margaret Thatcher’s 1987 comment that “there is no such thing as society.”

    In Guilluy’s view, an immigrant working class has taken the place of the “native” working class in the banlieues on the outskirts of major cities. This native class, he argues, has been scattered throughout the country and become an “unnoticed presence” that France’s elite has “made to disappear from public consciousness” in order to consolidate its grip on power. Cities are now the exclusive preserve of the elites and their servants, and what Guilluy means by “no society” is that the visible signs of class conflict in urban daily life have vanished. This is his trompe l’oeil: rich, insulated Parisians have convinced themselves that everything is fine, while those who might say otherwise are nowhere near. “The simmering discontent of rural France has never really been taken seriously,” he writes in Twilight of the Elites.

    Since November, much of the French press has declared that Guilluy essentially predicted the rise of the gilets jaunes. They seem, after all, a fulfillment of his prophecy about “the betrayal of the people” by the elites, even if he is always elusive about who exactly “the people” are. While critiques from the movement have remained a confused cloud of social media invective, Guilluy has served as its de facto interpreter.

    No Society puts into words what many in the gilets jaunes have either struggled or refused to articulate. This is the hazy middle ground between warning and threat: “The populist wave coursing through the western world is only the visible part of a soft power emanating from the working classes that will force the elites to rejoin the real movement of society or else to disappear.”

    For now, however, there is just one member of the elite whom the gilets jaunes wish would disappear, and calls for his violent overthrow continue even as the movement’s momentum subsides.

    An intense and deeply personal hatred of Macron is the only unifying cry among the gilets jaunes. Eighteen months before the uprising began, this was the man who captured the world’s imagination and who, after populist victories in Britain and the United States, had promised a French “Third Way.” Yet the Macronian romance is already over, both at home and abroad.

    To some extent, the French always turn against their presidents, but the anger Macron elicits is unique. This is less because of any particular policy than because of his demeanor and, most of all, his language. “Mr. Macron always refused to respond to us,” Muriel Gautherin, fifty-three, a podiatrist who lives in the Paris suburbs, told me at a December march on the Champs-Élysées. “It’s he who insults us, and he who should respond.” When I asked her what she found most distasteful about the French president, her answer was simple: “His words.”

    She has a point. Among Macron’s earliest actions as president was to shave five euros off the monthly stipends of France’s Aide personalisée au logement (APL), the country’s housing assistance program. Around the same time, he slashed France’s wealth tax on those with a net worth of at least €1.3 million—a holdover from the Mitterand era.

    Macron came to office with a record of unrelentingly insulting the poor. In 2014, when he was France’s economic minister, he responded to the firing of nine hundred employees (most of them women) from a Breton slaughterhouse by noting that some were “mostly illiterate.” In 2016 he was caught on camera in a heated dispute with a labor activist in the Hérault. When the activist gestured to Macron’s €1,600 suit as a symbol of his privilege, the minister said, “The best way to afford a suit is to work.” In 2018 he told a young, unemployed gardener that he could find a new job if he merely “crossed the street.”

    Yet nothing quite compares to the statement Macron made in inaugurating Station F, a startup incubator in the thirteenth arrondissement of Paris, housed in a converted rail depot. It is a cavernous consulate for Silicon Valley, a soaring glass campus open to all those with “big ideas” who can also pay €195 a month for a desk and can fill out an application in fluent English. (“We won’t consider any other language,” the organization’s website says.) Google, Amazon, and Microsoft all have offices in it, and in a city of terrible coffee, the espresso is predictably fabulous. In June 2017 Macron delivered a speech there. “A train station,” he said, referring to the structure’s origins, “it’s a place where we encounter those who are succeeding and those who are nothing.”

    This was the moment when a large percentage of the French public learned that in the eyes of their president, they had no value. “Ceux qui ne sont rien” is a phrase that has lingered and festered. To don the yellow vest is thus to declare not only that one has value but also that one exists.

    On the whole, the gilets jaunes are not the poorest members of French society, which is not surprising. As Tocqueville remarked, revolutions are fueled not by those who suffer the most, but by those whose economic status has been improving and who then experience a sudden and unexpected fall. So it seems with the gilets jaunes: most live above the poverty line but come from the precarious ranks of the lower middle class, a group that aspires to middle-class stability and seeks to secure it through palliative consumption: certain clothing brands, the latest iPhone, the newest television.

    In mid-December Le Monde profiled a young couple in the movement from Sens in north-central France, identified only as Arnaud and Jessica. Both twenty-six, they and their four children live in a housing project on the €2,700 per month that Arnaud earns as a truck driver, including more than €1,000 in government assistance. According to statistics from France’s Institut national de la statistique et des études économiques (Insée), this income places them right at the poverty line for a family of this size, and possibly even slightly below it. But the expenses Arnaud and Jessica told Le Monde they struggled to pay included karate lessons for their oldest son and pet supplies for their dog. Jessica, who does not work, told Le Monde, “Children are so mean to each other if they wear lesser brands. I don’t want their friends to make fun of them.” She said she had traveled to Paris for gilet jaune protests on three separate weekends—journeys that presumably cost her money.

    Readers of Le Monde—many of them educated, affluent, and pro-Macron—were quick to attack Arnaud and Jessica. But the sniping missed their point, which was that they felt a seemingly inescapable sense of humiliation, fearing ridicule everywhere from the Élysée Palace to their children’s school. They were explaining something profound about the gilets jaunes: the degree to which the movement is fueled by unfulfilled expectations. For many demonstrators, life is simply not as they believed it would be, or as they feel they deserve. There is an aspect of entitlement to the gilets jaunes, who are also protesting what the French call déclassement, the increasing elusiveness of the middle-class dream in a society in which economic growth has not kept pace with population increase. This entitlement appears to have alienated the gilets jaunes from immigrants and people of color, who are largely absent from their ranks and whose condition is often materially worse.2 “It’s not people who don’t have hope anymore, who don’t have a place to live, or who don’t have a job,” Rokhaya Diallo, a French activist for racial equality, told me recently, describing the movement. “It’s just that status they’re trying to preserve.”

    The gilets jaunes have no substantive ideas: resentment does not an ideology make. They remain a combustible vacuum, and extremist agitators on the far right and the far left have sought to capitalize on their anger. Both Marine Le Pen of the recently renamed Rassemblement National and Jean-Luc Mélenchon of the left-wing La France Insoumise have tried hard to channel the movement’s grassroots energy into their own political parties, but the gilets jaunes have so far resisted these entreaties. The gilets jaunes also found themselves at the center of a diplomatic spat: in early February Italy’s deputy prime minister, Luigi Di Maio, met with two of their members on the outskirts of Paris in a jab at Macron. Two days later, France withdrew its ambassador to Rome for the first time since 1940, but the gilets jaunes have not attempted to exploit this attention for their own political gain. Instead there was infighting—a Twitter war over who had the right to represent the cause abroad and who did not.

    The intellectual void at the heart of an amorphous movement can easily fill with the hatred of an “other.” That may already be happening to the gilets jaunes. Although a careful analysis by Le Monde concluded that race and immigration were not major concerns in the two hundred most frequently shared messages on gilet jaune Facebook pages between the beginning of the movement and January 22, a number of gilets jaunes have been recorded on camera making anti-Semitic gestures, insulting a Holocaust survivor on the Paris metro, and saying that journalists “work for the Jews.” Importantly, the gilets jaunes have never collectively denounced any of these anti-Semitic incidents—a silence perhaps inevitable for a movement that eschews organization of any kind. Likewise, a thorough study conducted by the Paris-based Fondation Jean Jaurès has shown the extent to which conspiracy theories are popular in the movement: 59 percent of those surveyed who had participated in a gilet jaune demonstration said they believed that France’s political elites were encouraging immigration in order to replace them, and 50 percent said they believed in a global “Zionist” conspiracy.

    Members of the movement are often quick to point out that the gilets jaunes are not motivated by identity politics, and yet anyone who has visited one of their demonstrations is confronted with an undeniable reality. Far too much attention has been paid to the symbolism of the yellow vests and far too little to the fact that the vast majority of those who wear them are lower-middle-class whites. In what is perhaps the most ethnically diverse society in Western Europe, can the gilets jaunes truly be said to represent “the people,” as the members of the movement often claim? Priscillia Ludosky, arguably the first gilet jaune, is a black woman. “It’s complicated, that question,” she told me. “I have no response.”

    The gilets jaunes are also distinctly a minority of the French population: in a country of 67 million, as many as 282,000 have demonstrated on a single day, and that figure has consistently fallen with each passing week, down to 41,500 during “Act 14” of the protest on February 16. On two different weekends in November and December, other marches in Paris—one for women’s rights, the other against climate change—drew far bigger crowds than the gilets jaunes did. But the concerns of this minority are treated as universal by politicians, the press, and even the movement’s sharpest critics. Especially after Trump and Brexit, lower-middle-class and working-class whites command public attention even when they have no clear message.

    French citizens of color have been protesting social inequality for years without receiving any such respect. In 2005 the killing of two minority youths by French police in the Paris suburb of Clichy-sous-Bois ignited a string of violent uprisings against police brutality, but the government declared an official state of emergency instead of launching a grand débat. In 2009, the overseas departments of Guadeloupe and Martinique saw a huge strike against the high cost of living—a forty-four-day uprising that also targeted fuel prices and demanded an increase to the minimum wage. In 2017 an almost identical protest occurred in French Guiana, another French overseas department, where residents demonstrated against household goods that were as much as 12 percent more expensive than they were in mainland France, despite a lower minimum wage. The French government was slow to respond in both of these instances, while the concerns of the gilets jaunes have resulted in a personal apology from the president and a slew of concessions.

    Guilluy, whose analysis of la France périphérique ultimately fails to grapple significantly with France’s decidedly peripheral overseas territories, does not shy away from the question of identity. He sees a racial element to the frustrations of la France périphérique, but he does not see this as a problem. Some of the most frustrating moments in his work come when he acknowledges but refuses to interrogate white working-class behavior that seems to be racially motivated. “Public housing in outlying communities is now a last resort for workers hoping to be able to go on living near the major cities,” he writes in Twilight of the Elites, describing the recent astronomic rise in France’s urban real estate prices. “These projects, mostly occupied by immigrant renters, are avoided by white French-born workers. Barring some utterly unforeseeable turn of events, their expulsion from the largest urban centers will be irreversible.” It would not diminish Guilluy’s broader point about la France périphérique if he acknowledged that victims of structural changes can also be intolerant.

    Guilluy also regularly recycles anxieties over immigration, often from controversial theorists such as Michèle Tribalat, who is associated with the idea of le grand remplacement, the alleged “great replacement” of France’s white population by immigrants from North and Sub-Saharan Africa. In making his case about “the demographic revolution in process,” Guilluy has been accused of inflating his statistics. France, he wrote in Fractures françaises, “welcomes a little less than 200,000 legal foreigners every year.” But these claims were attacked by Patrick Weil, a leading French historian of immigration, who noted in his book Le sens de la République (2015) that Guilluy failed to consider that a large number of those 200,000 are temporary workers, students who come and go, and others of “irregular” status. Guilluy has not responded to these criticisms, and in any case his rhetoric has since grown more radical. In No Society he writes, “Multiculturalism is, intrinsically, a feeble ideology that divides and weakens.”

    Whether the gilets jaunes will eventually come to agree with him is a crucial question. Like Guilluy, they are responding to real social conditions. But if, following Guilluy’s lead, they ultimately resort to the language of race and ethnicity to explain their suffering, they will have chosen to become a different movement altogether, one in which addressing inequality was never quite the point. In some ways, they have already crossed that line.

    On the afternoon of Saturday, February 16, the prominent French intellectual Alain Finkielkraut got out of a taxi on the Boulevard Montparnasse. A crowd of gilets jaunes noticed him and began hurling anti-Semitic insults. The scene, recorded on video, was chilling: in the center of Paris, under a cloudless sky, a mob of visibly angry men surrounded a man they knew to be Jewish, called him a “dirty Zionist,” and told him, “go back to Tel Aviv.”

    Finkielkraut’s parents were Polish refugees from the Holocaust. He was born in Paris in 1949 and has become a fixture in French cultural life, a prolific author, a host of a popular weekly broadcast on France Culture, and a member of the Académie Française, the country’s most elite literary institution. In the words of Macron, who immediately responded to the attack, he “is not only an eminent man of letters but the symbol of what the Republic affords us all.” The irony is that Finkielkraut—another former leftist who believes that France has plunged into inexorable decline and ignored the dangers of multiculturalism—was one of the only Parisian intellectuals who had supported the gilets jaunes from the beginning.

    I spoke to Finkielkraut after the attack, and he explained that the gilets jaunes had seemed to him the evidence of something authentic. “I saw an invisible France, neglected and forgotten,” he said. “Wearing fluorescent yellow vests in order to be visible—of being a ‘somewhere’ as opposed to an ‘anywhere,’ as Goodhart has said—seemed to me an absolutely legitimate critique.” The British journalist David Goodhart, popular these days in French right-wing circles, is the author of The Road to Somewhere (2017), which sees populist anger as the inevitable response to the widening gulf between those “rooted” in a particular place and cosmopolitans at home anywhere. “France is not a ‘start-up nation,’” Finkielkraut told me. “It can’t be reduced to that.”

    Finkielkraut said that the attack was a sign that the reasonable critiques orginally made by the gilets jaunes had vanished, and that they had no real future. “I think the movement is in the process of degradation. It’s no longer a social movement but a sect that has closed in on itself, whose discourse is no longer rational.”

    Although the Paris prosecutor has opened an investigation into his attackers, Finkielkraut has not pressed charges. He told me that the episode, as violent as it was, did not necessarily suggest that all those who had worn yellow vests in recent months were anti-Semites or extremists. “Those who insulted me were not the nurses, the shopkeepers, or the small business owners,” he said, noting that he doubted he would have experienced the same prejudice at the roundabouts, the traffic circles across the country where gilets jaunes protesters gathered every Saturday. In a sense, these were the essence of the movement, which was an inchoate mobilization against many things, but perhaps none so much as loneliness. The roundabouts quickly became impromptu piazzas and a means, however small, of reclaiming a spirit of community that disappeared long ago in so many French towns and villages.

    In Paris, where the remaining gilets jaunes have now focused most of their energy, the weekly protests have become little more than a despicable theater filled with scenes like the attack on Finkielkraut. There is no convincing evidence that those still wearing yellow vests are troubled by the presence of bigotry in their ranks. What is more, many gilets jaunes now seem to believe that pointing out such prejudice is somehow to become part of a government-backed conspiracy to turn public opinion against them.

    Consider, for instance, a February 19 communiqué released in response to the attack on Finkielkraut from La France en Colère, one of the movement’s main online bulletins. “For many days, the government and its friends in the national media seem to have found a new technique for destabilizing public opinion and discrediting the Gilets Jaunes movement,” it begins. “We denounce the accusations and the manipulations put in place by this government adept at fake news.” But this is all the communiqué denounces; it does not address the anti-Semitic violence to which Finkielkraut was subjected, nor does it apologize to a national figure who had defended the movement when few others of his prominence dared to do the same.

    A month after our last conversation, I called Priscillia Ludosky back, to see if she had any reaction to the recent turn of events in the movement her petition had launched. She was only interested in discussing what she called the French government’s “systematic abuse to manipulate public opinion.” She also believes that a government-media conspiracy will stop at nothing to smear the cause. “If there was one person who ever said something homophobic, it was on the front page of every newspaper,” she told me.

    In the days after the attack, Finkielkraut lamented not so much the grim details of what had happened but the squandered potential of a moment that has increasingly descended into paranoid feverishness. As he told me: “This was a beautiful opportunity to reflect on who we are that’s been completely ruined.”

    https://www.nybooks.com/articles/2019/03/21/low-visibility-france-gilet-jaunes

  • The Great Gambia Heist
    https://www.occrp.org/en/greatgambiaheist

    In a series of stories, OCCRP exposes for the first time how Jammeh and his associates plundered nearly US$1 billion of timber resources and Gambia’s public funds. Tens of thousands of documents — including government correspondence, contracts, bank records, internal investigations, and legal documents — lay bare the true scale of the theft. Source: OCCRP

  • Your old bank’s best chance is to go quantum
    https://hackernoon.com/your-old-banks-best-chance-is-to-go-quantum-5b1173f9402f?source=rss----3

    Your Old Bank’s Best Chance lies in going QuantumPeaking into a possible next-gen financial services phenomenon and how blindly adapting to DLTs without proofing them may be a fiascoCutting corners leveraged businesses since the beginning of trade. He who offers it cheaper and faster leverages on its own efficiency to overcome its competitors.The surge of decentralized technologies have done just that.Whenever there is a tight turn, whoever is on the road may either slow down to keep on a regulated drive or opt out for a faster way by cutting the corner of the curve.The illusion of a long straight line disarmed traditional industries, namely finance, rather incompetent, unprepared and disbelieving in recent developments, as if the democratization of access to money and its management was (...)

    #finance-and-banking #blockchain #fintech #disruption #future

  • The Top 10 Things Entrepreneurs Need To Know About Qualifying for a #mortgage
    https://hackernoon.com/the-top-ten-things-entrepreneurs-need-to-know-about-qualifying-for-a-mor

    So in keeping with my mission to help people buy homes, I put together this little list on what you need to know if you’re an entrepreneur who wants to buy a home.The ability to qualify for a mortgage is based on 3 things: your income, your assets and your credit.2. You make your money when you buy the house, not when you sell.3. You need to be in business for at least 2 consecutive years, and your income is averaged over the last 2 years to qualify. So you need to have 2 years of positive income. The average of the two years net profit is what the bank thinks you make.4. Your credit should be at least a 620 if you want to get a mortgage in today’s lending environment. Though you can possibly get a mortgage with a lower score, 620 is the ideal minimum standard.5. You can get the seller to (...)

    #entrepreneurship #real-estate

  • 3 Promising cryptocurrencies under $5 to invest in for 2019–2020
    https://hackernoon.com/3-promising-cryptocurrencies-under-5-to-invest-in-for-2019-2020-36b72fa3

    From cross-blockchain transfers to a banking competitor #cryptocurrency that targets over 2 billion usersWhen investing in cryptocurrency, one overlooked but important factor to look out for is utility.Forget the flashy ICO adverts and look instead at how a cryptocurrency will be used. A high utility provides the following benefits to a cryptocurrency:Improves liquidityA cryptocurrency that is constantly being used, transferred and traded allows for investors to easily buy and sell said cryptocurrency. A cryptocurrency with a high marketcap may make you wealthy (on paper) but if it is not being traded enough, who will buy it off you?Drives demandA cryptocurrency with a legitimate use is a cryptocurrency that is needed and sought out by users who can benefit from it’s utility. It is also (...)

    #cryptocurrency-investment #cheap-crypto-coins #blockchain #altcoins