I am pleased to announce that my book: “The Education and Deconstruction of Mr. Bloomberg, How the Mayor’s Education and Real Estate Development Policies Affected New Yorkers 2002-2009 Inclusive” is available through the following online channels: http://www.amazon.com/s/ref=nb_sb_noss_1?url=search-alias%3Dstripbooks&field-keywords=the+education+and+deconstruction+of+mr+bloomberg http://booksamillion.com/search?id=5606815363948&query=the+education+and+deconstruction+of+mr+bloomberg&where=book_title&search.x=48&search.y=14 https://www.alibris.com/booksearch?keyword=the+education+and+deconstruction+of+mr+bloomberg&mtype=B&hs.x=26&hs.y=13 http://www.fishpond.co.nz/c/Books/q/the+education+and+deconstruction+of+mr+bloomberg?rid=1694205135 http://www.thenile.com.au/books/Sally-A-Friedman/The-Education-and-Deconstruction-of-Mr-Bloomberg/9781450099035/ http://www.shopireland.ie/books/search/the%20education%20and%20deconstruction%20of%20mr%20bloomberg/ http://www.wantitall.co.za/Books/THE-EDUCATION-AND-DECONSTRUCTION-OF-MR-BLOOMBERG__1450099033 http://www.ebooknetworking.net/books_detail-1450099033.html http://www.bookdepository.com/search?searchTerm=the+education+and+deconstruction+of+mr+bloomberg&search=Find+book http://www.uread.com/book/education-deconstruction-mr-bloomberg-sally/9781450099035 https://play.google.com/store/search?q=the+education+and+deconstruction+of+mr.+bloomberg http://www.booktopia.com.au/search.ep?keywords=the+education+and+deconstruction+of+mr+bloomberg&productType=917504 http://www.betterworldbooks.com/the-education-and-deconstruction-of-mr-bloomberg-H0.aspx?SearchTerm=the+education+and+deconstruction+of+mr+bloomberg http://www.northtownbooks.com/search/apachesolr_search/the%20education%20and%20deconstruction%20of%20mr%20bloomberg http://www.tatteredcover.com/book/9781450099028 http://www.textbookx.com/book/The-Education-and-Deconstruction-of-Mr-Bloomberg/9781450099028/ http://www.commongoodbooks.com/book/9781450099028 http://www.chegg.com/textbooks/the-education-and-deconstruction-of-mr-bloomberg-1st-edition-9781450099028-1450099025 http://www.bol.com/nl/p/the-education-and-deconstruction-of-mr-bloomberg/1001004011058757/ http://www.regulatorbookshop.com/book/9781450099028 http://www.wildrumpusbooks.com/search/site/Sally%20a%20friedman http://www.kinokuniya.co.jp/f/dsg-02-9781450099035 http://www.angusrobertson.com.au/books/the-education-and-deconstruction-of-mr-bloomberg-sally-a-friedman/p/9781450099028
The Book of the Week is “Whittaker Chambers” by Sam Tanenhaus, published in 1997. This large volume described a situation that lends itself to the hypothetical board game “Survival Roulette: Alleged Commie Edition” (See “Blind Ambition” post).
Alger Hiss and Whittaker Chambers were just two of thousands of people starting in the late 1940’s who were losers of this game. The winners actually won only temporarily: Joe McCarthy, Richard Nixon and other bullies.
The board’s spaces could describe wiretapped conversations of such evil Commie fronts as the Boy Scouts, and dossiers acquired through the Freedom of Information Act in which every word of every page has been redacted (blacked out) except the names of the 205 guilty State Department officials.
Of course, there could be spaces such as “Go to the Electric Chair” and “IRS Audit.” A “Commie Chest” (rather than Community Chest) card, for instance, could say “Collect $1 in a libel suit while your attorneys collect $50,000.” By the way, any player wearing a red necktie is a Commie.
Chambers, born in 1901 in Brooklyn, was accepted to Columbia University in 1920 through, at that time, simply passing an intelligence test rather than taking entrance examinations. He was fluent in several languages and was a skilled writer. As a commuter from Lynbrook in Long Island, New York, he paid only the school’s annual tuition of $256. The following year, living on campus, he also paid room and board of $400.
As a sophomore and rebellious intellectual, Chambers penned an offensive, blasphemous piece for one of a few campus publications for which he wrote. Fierce critics forced him to take a leave of absence from the school.
In the next several years, he traveled around Europe, came home, held short-term odd jobs he obtained through friends, returned to school, rode the rails out West, etc. in an effort to find himself; also in an attempt to escape his dysfunctional family. According to the author, Chambers suppressed his homosexual urges by having affairs with women.
In the course of his voracious reading– a lifelong passion– Chambers discovered a speech of Vladimir Lenin called The Soviets at Work. In it, Lenin advocated violent authoritarianism. Curious factoid: a line in the speech is reminiscent of a line in the Elton John song “Yellow Brick Road” paraphrased: “… where the dogs of society howl… I’m going back to my plow…”
Anyway, in February 1925, Chambers joined the Workers Party of America, a then-illegal political party that espoused Communist ideals. Its American members numbered about sixteen thousand. He also joined the International Workers of the World.
In the spring of 1927, Chambers was found to have stolen tens of books from Columbia University’s libraries and various other libraries. He was proud rather than ashamed. He wrote articles for The Daily Worker and other Communist publications, got a short story published in The New Masses, that was turned into a play performed internationally.
Some Americans became Communists because they felt that capitalism was the cause of the Great Depression— with its breadlines, labor unrest, suicides, protests, etc. In spring 1932, Chambers joined the OGPU– the Soviet agency that eliminated anyone who expressed the least negative thoughts about Comrade Stalin or his ilk.
Chambers was a valuable addition, as he had experience in bureaucracy, was fluent in German and Russian and literate in the Classics. The American chapter of the Party forced him to become a secret agent man.
But it was fun to play adolescent-boy spy games. And the pay was really good. He played well with others. He and his comrades got secret messages in invisible ink and microfilm from the Germans in their safe house on Gay Street in Greenwich Village. They spied on businesses and the military. He helped steal blueprints for weapons to be built by military contractors, and sent them to the Soviets.
In summer 1934, Chambers was relocated by the Soviets to Washington, D.C. to become a New-Deal advocate for sharecroppers and tenant farmers, who were opposing landowners and big growers in the agricultural industry.
Then Chambers started assisting with generating false passports to be used by his comrades. The initial step was to comprehensively extract information (such as birth dates and names) from the archives of obituaries of babies, in the research branch of the New York Public Library (yes, the one with the lion statues in front).
A birth certificate was then the only proof of citizenship that was required to obtain an American passport, which allowed the easiest travel. The above information (reflecting the then-age and gender of the agent who traveled internationally) would be used to apply for a fraudulent birth certificate, which could then be used to obtain a fraudulent passport.
The Party headquarters was in the U.S.S.R., though, and was the ultimate boss. It could shut down a cell if it saw little productivity. For example, an agent was reassigned to Riga (equivalent to Siberia). But before the transfer, the agent did win the handball championship at a YMCA in the closed Tokyo cell.
Across the United States, there were plenty of organizations posing as Communist fronts, such as a literary agency in San Francisco, the Unemployed Council in Queens county in New York State, and the Federation of Architects, Engineers, Chemists and Technicians. Chambers used a series of aliases for himself, his wife and daughter with each new assignment.
Changes were always afoot. In the mid-1930’s, the OGPU became the NKVD. Chambers’ boss was purged by Stalin. His highly-strung new boss reflected the Soviet mentality of proactively engaging in an act of generosity to butter up his new office in Washington, D.C. He therefore gave it a large cash gift that was used to purchase Oriental rugs to be given to the top operatives there.
In December 1936, the Soviets considered Germany, Italy and Japan their fascist enemies. The United States, France and England were passively standing on the sidelines. Chambers’ new mission was to, with the help of comrades, procure stolen original State Department documents, take photos of them, and return them, turn the photos into microfilm, and send it to Moscow. Although the documents usually didn’t contain anything world-shaking.
Nevertheless, circumstances were getting dangerous for Chambers. He was considering withdrawing from the Party, but then he and his family would have to disappear. He didn’t want to end up like Ignace Reiss, a “…well dressed corpse, perforated with bullet holes.” In spring 1938, he took the plunge and went into hiding. About a year later, he was able to get a job through a friend at Time, Inc.
Chambers knew the NKVD could kill him or harm his family at any time. Besides that, he could be convicted and imprisoned for treason, and he couldn’t afford to flee. So in September 1939, he turned state’s evidence instead. He named names of Treasury Department and State Department members and discussed the U.S. military’s Communist spy ring.
Into the 1940’s, Chambers continued to work around the clock at Time, Inc., where he received an obscenely high salary for his new rabidly anti-Communist editorial bent. His intuitions were correct, however. He knew that the Soviets had designs on world domination.
In August 1948, Chambers was subpoenaed to appear before the House Un-American Activities Committee (HUAC). Reputable officials and journalists were angry that in a public hearing, Chambers claimed that Alger Hiss, a high-level State Department official had been a Communist in the 1930’s. Hiss’s integrity had been irreproachable up to that point. The then-freshman Congressman Richard Nixon (R., CA) was the only member of the Committee who insisted on continuing the case against Hiss.
Initially, Chambers couldn’t name anything Hiss had done that was illegal. For, Party membership hadn’t been illegal in the previous decade. Neither had paying Party dues, nor meeting with other Communists.
However, with circumstantial evidence that Chambers produced in his own sweet time, he was able to convince the authorities that Hiss had lied under oath. Another crime that Hiss might have been punished for, was espionage. Fortunately for Hiss and Chambers, the three year statute of limitations on that had expired.
Political accusers always seem to scream about risks to national security!!! But it has become a cliche that more often than not, documents have been labeled top-secret, not to become declassified for decades– in order to cover up government’s bad, embarrassing behavior, NOT because American lives are at risk.
For approximately the last seventy years, on and off, vicious political vengeance has been the norm– best interests of the country be damned. However, the punishments haven’t fit the crimes. The most guilty and least punished perpetrators have acted in ways that have resulted in needless deaths and ruined lives.
Who knows what else Hiss did– making love to an intern in the Old Executive Office Building? He did get caught lying under oath.
Based on lies, the most guilty perpetrators have led the United States to attack other countries and smeared their political opponents for their own selfish political and financial ends. At least they didn’t get caught lying under oath.
Anyway, as is common with these kinds of situations, different government agencies are fighting to grab glory for bringing the perpetrators to justice. In the Hiss case, it was the Justice Department, the U.S. Attorney’s Office for the Southern District of New York, and HUAC.
Individuals such as Nixon and Robert Stripling, the chief investigator of HUAC, were also jockeying for power and bragging rights. Then-Supreme Court justice Felix Frankfurter testified on behalf of Hiss, an unprecedented move, and possible conflict.
Read the book to learn why Chambers wasn’t also tried for lying under oath, even though he was the biggest liar in the world; every ugly detail of the Hiss case, and much more about Chambers’ life.
I am pleased to announce that my book: “The Education and Deconstruction of Mr. Bloomberg, How the Mayor’s Education and Real Estate Development Policies Affected New Yorkers 2002-2009 Inclusive” is available through the following online channels:
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The Book of the Week is “Highly Confident, The Crime and Punishment of Michael Milken” by Jesse Kornbluth, published in 1992. This volume described a situation that lends itself to the hypothetical board game “Survival Roulette: Wall Street Edition” (See “Blind Ambition” post).
There have been countless ultimate winners of this game through the decades: all the people never caught for securities-industry crimes. A million lawbreakers a day go unpunished. That doesn’t mean the crimes didn’t happen.
However, the most famous hypothetical losers of the game in this book were Ivan Boesky (an independent bond trader in New York) and Michael Milken (bond-trading executive at Drexel Burnham Lambert in Los Angeles). Other losers could include Dennis Kozlowski, Bernie Ebbers, Kenneth Lay, Steve Jobs and Richard Scrushy.
The board spaces could include Go To Jail (of course), and describe the financial crimes of: insider trading, Free Parking (or “stock parking”), disclosure failures, material misstatements, accounting irregularities, re-pricing stock options, and fraudulent conveyance, but also specific actions of conscience-salving philanthropy in which Milken engaged– such as throwing money at cancer research, and volunteering to teach math to nine and ten year-olds.
In August 1986, the U.S. Attorney’s Office of the Southern District of New York began an investigation into Securities and Exchange Commission (SEC) violations in the bond industry. By October 1986, the head federal prosecutor there, Rudolph Giuliani, was taping phone calls between Boesky and Milken. This, because Boesky had immediately accepted a plea deal to turn state’s evidence in exchange for a slap-on-the-wrist, country-club jail sentence. Boesky was one of the game’s lesser losers, to be sure. He was the king of lying, cheating and stealing.
Milken was a creative workaholic math genius whose meteoric career-rise allowed him to head an entire bond-research department in his mid-twenties. But he had zero ability for honest introspection.
Milken was a master at controlling his environment and other people, but he deceived himself about his “breaking the rules of the game” in his industry. He thought he was helping people all the time, but didn’t see how others were indirectly hurt by his actions. This kind of hubris syndrome is not uncommon in alpha males.
In 1978, Milken initiated the push to have Drexel underwrite junk-bond deals that financed hostile corporate takeovers. This wasn’t illegal in itself, but Boesky persistently badgered Milken until, by the early 1980’s, the latter was eventually manipulated into breaking the law.
Milken had a history of selfless philanthropy, yet his business actions gave rise to obscenely high fees made by his employer, an obscenely high income for himself, and crushing debt load for his clients. This led to extremely adverse financial and social consequences for thousands upon thousands of laid-off American employees of merged companies, subjected to disrupted lives and untold stresses.
The mood of the securities industry could be described thusly: “… with the election of Ronald Reagan… All that mattered was an ability to make money — without concern for risk, without regard for regulation.”
The investigation and resulting plea deals had the law enforcement agencies patting themselves on the back for convincing the perpetrators (other than Milken and Boesky) to implicate others, but the immunity deals the perpetrators got were a joke, considering that they themselves had serious credibility problems, and serious violations. It was a kangaroo court.
Nonetheless, the following parties launched investigations: Drexel and its attorneys, Milken and his attorneys, the U.S. Attorney’s Office, and the SEC. Those last two, of course, engaged in fierce rivalry. By September 1991, there was an orgy of litigation against Milken. The roll call involved fifty-eight lawyers (!)
Around the same time, Wedtech was another 1980’s scandal borne of out-of-control greed. In that case, a personal injury attorney generated billing documents that purported to show charges for legal services, that were actually for lobbying. Wedtech’s executives bribed politicians for the purpose of influence peddling, and swindled shareholders. This kind of crime is not uncommon.
Along these lines, if, for instance, a real-estate mogul declared business bankruptcy repeatedly throughout his business career, why did investors trust him with their money again and again and again and again and again?? Perhaps there was influence peddling. The politicians were his puppets who eventually passed legislation favorable to them all. It was worth it to them to risk losing all their chump-change investment to get access to future (much more) profitable contacts and politicians who did their will.
Anyway, Milken hired a team of lawyers who were the cream of the crop of Northeastern elitists. Yet, unfortunately for him, the media and law enforcement made him the poster-boy / scapegoat for the greed of the 1980’s.
Ben Stein, a wannabe Hollywood writer, was, according to the author, an individual who fueled public outrage against Milken. He was unwisely hired to write articles for Barron’s (a major Wall Street publication) after Milken was indicted. The nature of his utterances in print were “Shocking, unsubstantiated, never-proven assertions made with absolute certainty.” Stein claimed his taking of the drug Halcion caused him to produce such libelous garbage.
Strangely enough, insider trading wasn’t what Milken was jailed for, but rather, a minor disclosure failure. The judge in his case was ridiculously misguided, considering that the court calculated the dollar value of damages Milken caused was a mere $318,000. But the court saw that the revenues generated by him and his firm were in the hundreds of millions of dollars. So the court fined him $600,000,000.
Read the book to learn of Milken’s prison sentence and numerous other details of the whole tabloid-crazy affair.
The Book of the Week is “Blind Ambition, The White House Years” by John Dean, published in 1976.
Investigations of politicians accused of wrongdoing at the highest level of the U.S. government, are complicated, because officials must at least make a pretense of complying with due process.
There is document gathering and analysis, subpoenas that compel witnesses to testify, endless debates on various interpretations of various sources of laws pertaining to the federal government, etc.; not to mention the most important aspect of the whole kit and caboodle: public relations! Plus, nowadays, the media and social media keep the constant barrage of inane comments coming.
In fact, there ought to be a board game, “Survival Roulette” that tests players’ ability to weasel out of legal trouble through shaping public opinion using claques, flacks, sycophants and attorneys.
Of course, Survival Roulette could be tailored to the Nixon White House; it could be the Politician Edition. The game could be structured like Monopoly, with players rolling dice and moving pieces onto spaces that describe financial crimes, illegal-surveillance crimes and damage-control speeches. The most famous space could be “Go To Jail” and there could also be “Cash In Political Favors.” The ultimate winner could be Rich Little.
In the Tabloid Celebrity Edition, the object of the game is to become the ultimate winner, Marc Rich. Other players (the losers) end up as other notorious figures who face different punishment scenarios: Jimmy Hoffa, Jeffrey Epstein, O.J., Bernie Madoff, Bill Cosby and Martha Stewart. The board spaces could describe financial crimes, sex crimes, violent crimes, and social media postings.
The Teenage Edition could feature more recent celebrities– simply spreading vicious rumors about them, rather than confirmed offenses– like in the case of Dakota Fanning.
In Survival Roulette: Politician Edition, John Dean could be one of the worse losers. He was one of various attorneys and consultants who: a) aided and abetted President Richard Nixon’s nefarious attempts to wreak vengeance on his political enemies (whom Nixon believed were revolutionaries and anarchists who used dirty tricks on him in the 1968 presidential election) and b) help Nixon keep his job as president (which Nixon believed was to play God).
In the summer of 1970, Dean’s career took a leap from the Justice Department up to the President’s side, as one of his legal advisors. He thought of his new department as a law firm, so he solicited legal work in all practice areas to make it grow; it did, to five people.
Dean quickly began to feel uneasy about his new position, even though it carried luxurious perks. The White House was fraught with politically incorrect goings-on. There was friction with various federal agencies, such as the FBI.
The FBI was dominated by J. Edgar Hoover, whom it was thought, possessed the means to blackmail the administration. He supposedly had evidence that the president had ordered the secret wiretapping of both the media and leakers on his staff.
As became well known, such wiretapping turned out to be the tip of the iceberg. Nixon recorded himself— every conversation he ever had in the White House! He had listening devices planted to spy on protestors against the Vietnam War, and his other political enemies, which appeared to be almost infinite in number.
Nowadays, the equivalent would be a “loose cannon” with hubris syndrome, addicted to: Tweeting / posting on Facebook but keeping a private profile / texting and emailing, who didn’t destroy his electronic devices.
In July 1971, Dean encountered his first major ethical conflict. He felt obligated to appeal to presidential aide John Ehrlichman to restrain Special Counsel Chuck Colson from orchestrating a break-in to steal Pentagon-Papers documents at the offices of the Brookings Institution. Nonetheless, Dean did sic the IRS on Brookings, and suggested that its contracts with the Nixon administration be cancelled.
Dean got so caught up in the excitement of helping the president get reelected in 1972 that he proposed expanding the collection of intelligence, which was already sizable. Yet he was also disturbed by reelection-committee director G. Gordon Liddy’s crazy plots to steal the 1972 election via burglary, spying, kidnapping, etc.
Dean attempted to remain willfully ignorant of Liddy’s actions thereafter so that he would have the defense of plausible denial in the future. However, after the Watergate break-in June 1972, he rationalized that he was protected by the attorney-client relationship and executive privilege.
One meta-illegality of the coverup of the administration’s various, serious crimes involved the distribution of hush money to hundreds of people who knew too much. By the late summer of 1972, seven individuals were found to have committed the Watergate break-in. Nixon basically said in his communications to the world that those perpetrators were the only ones responsible for that incident, which he claimed was an isolated one. Of course it wasn’t.
The president’s men held their breaths and crossed their fingers counting down to re-election day, as the White House was still the target of inquiries, and a party to legal skirmishes with the FBI, Department of Justice, Congress, the General Accounting Office and journalists. Immediately after election day, Nixon ordered a Stalin-style purge (merely job termination, actually) of all sub-Cabinet officers he had previously appointed.
As the palace intrigue continued into late 1972, Dean, through his own research, learned that he himself could be criminally liable for obstruction of justice. He would inevitably be forced to choose between betraying his colleagues (who hadn’t been all that friendly to him) or perjuring himself to save others insofar as it helped save his own hide.
A true “prisoner’s dilemma” existed among the several indicted bad actors. No one would receive immunity for tattling on the others, but no one knew of any deals made with prosecutors except their own.
Dean wrote of early spring of 1973: “He [Nixon] is posturing himself, I thought– always placing his own role in an innocuous perspective and seeking my agreement… The White House was taking advantage of its power, and betting that millions of people did not wish to believe a man who called the president a liar.”
Read the book to learn the details.
The Bonus Book of the Week is “City Room” by Arthur Gelb, published in 2003. This large volume presented the highlights of the author’s 45-year New York Times career. There were two short passages that might cause confusion for the reader: when the author discussed health department and city infrastructure programs in 1947 or 1948, and also, “After covering Colombo’s murder during a rally in Columbus Circle on Columbus Day, June 28, 1971…”
In 1933, president Franklin Roosevelt insisted that the White House press corps get his permission to quote him directly. The journalists accepted that condition with nary a protest. Having grown up in East Harlem and the Bronx, New York City, Gelb began his career as a copy boy at the Times in May 1944. At the newspaper, writers and editors were always at odds over editorial control. Subjectively, the copy of each was ruined or improved by his counterpart.
In August 1956, the author described how he solicited enough money to keep Joseph Papp’s non-profit, Shakespearean theater organization alive by reviewing a partially rained-out production of the Taming of the Shrew. The following year, the Shakespeare Workshop won its lawsuit against New York City parks commissioner Robert Moses, obtaining a permit to have free shows in Central Park.
In 1966, the Times reported on the classic problems of education in the city. Mayor John Lindsay controlled the nine-member school board. Minority parents and civil rights groups thought he was indifferent to educating their children, as “… 85% of minority students in the city read far below grade level… The teachers’ union was perceived by some in the community as virtually a Jewish institution and racist as well.”
In spring 1970, a former law-enforcement official hired by the Times took six months to write a three-part series on extensive corruption in the New York City police department. It took that long to collect and verify all the information in the articles. “… we had numerous sources and stacks of documents and tape-recorded conversations corroborated what we had published.”
And the journalist assigned the series, David Burnham, declined to write a book on the whole sordid affair, “… ethical to the bone, [he] did not feel he should profit from having performed a public service.” Mayor Lindsay was furious that the Times exposed his poor record on corruption; he tried to pressure the paper not to print it.
In spring 1971, it took almost three months for numerous Times employees working around the clock, to prepare the Pentagon Papers for publication. Newspaper executive A.M. Rosenthal was pleasantly shocked that they were able to keep the project secret for that long!
There ensued prolonged, torturous and tortuous legal wrangling over how much the public has a right to know about the government’s nefarious activities. The U.S. Supreme Court eventually ruled in favor of free speech.
In a nutshell: old-school journalism used to be comprised of an alcohol-lubricated male-dominated field of workaholics, some of whom were investigative reporters– critical thinkers who asked intelligent, probing questions (like, ‘How’s the building of “the wall” coming along?’).
If this was fifty years ago, the Times would have a reporter personally go to “the wall” and have someone write a human-interest story about what they saw and heard. With their own eyes and ears. Maybe even a detailed, two-part series. And follow up every month or so.
Not now. Can’t afford to send anyone anywhere anymore to get a firsthand account, to write any fact-filled article, rather than an opinion-filled one. Neither can any other media outlet. This, for a host of reasons that have been accumulating for decades. Everywhere Americans try to get honest, factual information– TV (including cable), radio, newspapers, magazines, internet, rallies and political (junk) mail– they can’t. Trust is at an all-time low.
For years, readers, listeners and viewers have read, seen and heard contradictory stories, and video and audio clips. Sometimes fanciful ones. Additionally, quotes have been taken out of context, words have been deleted, and the rest, spliced together. Which ones? Only the editors know. Sure, some websites do fact-checking, but the audience gravitates toward the sites simply to confirm their beliefs, not really to get the truth.
Now it’s all unctuous political hacks with fertile imaginations, whose goal is to get a candidate elected, reelected or to cut down political enemies– not to educate the populace. Such nonsense comes from both sides of the aisle.
As is well known, one slogan of the 1992 presidential campaign was “It’s the economy, stupid.” The 2020 election might well say, “It’s the media, stupid.” Wait. That should be rephrased: “It’s the stupid media.”
Eventually, dissatisfaction with this sorry state of affairs will reach critical mass. There will be sufficient backlash to reverse the trend. Because the audience will stop paying attention until influential parties inspire value in honesty and fact-checking again.
Anyway, read the book to learn about the adventures of Gelb and his colleagues.
The Book of the Week is “King of the Club” by Charles Gasparino, published in 2007.
The subject of this book “… was suffering from the downside of loyalty; he spent so much time surrounding himself with people he could trust that he forgot he also needed smart people who could get a job done in times of crisis, and he was now facing… the greatest crisis of his career.”
Sounds familiar. It was actually “Richard Grasso and the Survival of the New York Stock Exchange.” When he was fifteen years old, Grasso began trading stocks in an account held in his mother’s name, getting stock tips from his drug-store-owner-employer.
The author was rather vague about Grasso’s two years of military service which allegedly began in the mid 1960’s, spent: “…in Fort Meade, Maryland, though he did make periodic trips to Vietnam.” Apparently, Grasso’s eyesight was good enough to get him drafted by the U.S. Army, but not good enough to get him hired by the New York City Police Department, his first-choice employer after the military.
Grasso therefore began work as a back-office Wall-Street clerk at the New York Stock Exchange (NYSE) in early 1968. The author failed to mention whether Grasso was told to put his stocks in a blind trust, or whether his new employer had a “don’t ask, don’t tell” policy.
Grasso meteorically moved up through the ranks. He was innovative in executing new marketing initiatives for the exchange. He also poached companies that were listed on either the American Stock Exchange or the NASDAQ– that provided fierce competition to the NYSE. All three were stock markets of corporate entities that wanted to sell their shares far and wide. But the companies could be listed in only one place. Grasso convinced them that the NYSE was the best place to list.
By 1980, Grasso controlled NYSE listings, its trading floor and almost all its trading operations. In the mid-1980’s, the chair of NASDAQ, Bernie Madoff, claimed his market’s trading was more fair for investors because it executed trades electronically, thus multiple players were interacting continuously while setting impartial prices. The argument went that electronic trading made the market more “efficient”– as no buyers or sellers had significantly better pricing information than others on which to trade, theoretically.
In 1990, Grasso stepped up to the second-most powerful position at the NYSE. He was in charge of the exchange listees and, at the same time, in charge of regulating them. He did the legwork of bringing new business to the exchange. His boss, the chairman, did the public relations work of delivering speeches globally and persuading the federal government to keep conditions favorable for the exchange.
Several of the NYSE’s board of directors were Wall Street executives who passively continued to keep the status quo– lavishly rewarding Grasso monetarily for his undivided attention to lavishly lining their pockets year after year when times were good.
There was honor among thieves, as Grasso’s henchmen turned a blind eye to the various forms of illegal activity that allowed them to make obscene amounts of money on the trading floor. Until there wasn’t honor among thieves– as conditions changed.
From a not-for-profit-organization-legal-standpoint, most of the parties and individuals involved were engaging in various highly unethical activities, at best; conflicts of interest abounded as participants in the exchange network cooperated in a way that maximized profits for everyone until, as usual, some individuals got too greedy.
Being head of the New York Stock Exchange is not unlike leading the U.S. government. The marriage of politics and commerce is always fraught with conflicts of interest. Some are avoidable. It’s a shame that politics in particular tends to attract dishonest attention whores with hubris syndrome whose ethics are in the basement. Of course, they usually use the “everybody does it” excuse and change the subject if they can.
But there ought to be equal justice under the law for any of the accused– after an investigation of where the evidence leads— with NO jumping to conclusions, assumptions or biases prior to a thorough review of all evidence, if any. Along these lines, one would do well to ignore the superlative-laden, repetitive, sensationalist drivel emanating from the teleprompter box, um, er– idiot box.
Anyway, starting in the late 1990’s, unbridled greed led to a bunch of scandals. There was Long Term Capital Management, Enron, WorldCom, the dot-com crash, various major SEC violations committed by big-name brokerages; not to mention 9/11’s impact on the financial markets. All on Grasso’s watch. Yet, his pay kept soaring, anyway. It wasn’t pay-for-performance anymore.
Finally, Grasso got the same treatment, figuratively speaking, as other major historical figures. One week he was flying high and the next, kicked to the curb. Grasso was suffering from a bad case of hubris syndrome. In early September 2003, herd mentality / groupthink seized the board; jealousy (possibly subconscious) of his pay package reached critical mass.
Read the book to learn of the usual occurrences in such a situation (investigation, litigation, political machination and myth propagation) that led to the changing of more things, and more of same.
The Book of the Week is “Undercover, The Secret Lives of a Federal Agent” by Donald Goddard, published in 1988. This was the biography of a New York City undercover drug agent allegedly named Michael Levine.
Born in December 1939 in the Bronx (in New York City) among blacks and Latinos, Levine’s childhood was fraught with fighting and underage drinking. At eighteen years old, he applied to join the Air Force but pursuant to his aptitude test results, was assigned to the Air Police. He, helped only by a German shepherd, ended up guarding American nuclear weaponry in a rural area near the Canadian border. He enjoyed the work, but after a year, got into a fight sparked by racial tension.
In the next several years, he found that intelligence work was his calling. That was the way to put his acting talent and street-Spanish language skills to use for good, to combat evil. He did time at the IRS Intelligence Division, and then the Alcohol, Tobacco and Firearms (ATF) agency, part of the Treasury Department of the federal government.
Sometimes as many as four other government entities (FBI, CIA, IRS, NYPD) were supposed to cooperate to surveil a mafia don in the neighborhood of Little Italy in Manhattan (New York City). The undercover work became a joke because the don knew he was being tailed, and the don’s driver told the spies where he would be going. Working morning, noon and night, Levine frequently got his man, arresting all walks of life of the criminal underworld– possessors of unlicensed guns, drugs, stolen driver’s licenses and credit cards– taking on five or six cases at a time.
From the ATF, Levine was promoted to customs inspector, under the auspices of the State Department, where he got more power than ever. He was able to execute searches without a warrant, and operate internationally. In 1973, he survived the consolidation of entities of law enforcement of cocaine, heroin, hash, marijuana, etc.– into one Drug Enforcement Administration.
Levine’s favorite place to work was on the street. He wasn’t meant to be a paper-pushing bureaucrat in an office. One kind of case he worked might involve a “buy-bust” on the Lower East Side (of Manhattan) in which the informer was an “orange-haired Cuban bisexual who lived with the female Jewish butcher” that resulted in the arrest of three Mexicans who possessed a full kilo of heroin.
Levine acquired more than two decades of experience masquerading as an insider in the New York City drug scene. He witnessed all aspects of it, handling thousands of cases, working harder, and more hours than most other law enforcement personnel. He testified in court as an expert witness countless times. Therefore, he felt he knew the least bad solution to the ever-increasing societal problems stemming from the abuse of drugs.
Levine said the drug users were the problem– they were the ones generating demand for the product. If they disappeared, so would the problems because the sellers would go out of business. He pointed out that the “… dealers weigh the risks against the money they make. They don’t respond to fear of the law.” The users would.
Levine recommended that there be strong deterrents: hard prison time for illegal-drug possession and illegal-drug intoxication of the slightest amounts.
At first glance, that recommendation seems logical. Of course, Levine’s career would get a gigantic boost in the event of such a trend. For, Levine described his undercover work thusly: “We’re paid to lock people up, that’s all. What happens to ’em after that has got nothing to do with us. It’s up to them, their attorneys, our attorneys, public opinion, politics, the media… Juries convict people, not agents… But that’s not to say you won’t face real dilemmas about guilt and justice.”
HOWEVER, considering the consequences, one begins to think, “Oh, that’ll end well.” Harsher punishments would create as many problems as they would solve. The trouble was that many of the users were also dealers. So if the users/dealers were the sole source of income for their families, and the users got locked up for a long time, what happened to their families?
The jails would become overcrowded, and there would have to be a massive hiring effort to build more prisons, and catch, process, judge, guard and legally represent the additional soon-to-be prisoners, not to mention the legal can of worms that drug-testing would open up.
Not only that, such a major change in the legal system would highlight the two-tier justice system in this country. Poor people of all ethnicities possessing drugs would be imprisoned. As always, the troubles of those people (most of whom began their lives in unlucky situations) would be compounded. Just ask any public defender– whose caseload would increase, but his or her budget wouldn’t.
This, while the rich people (such as those in the Hamptons– the summer-vacation region on Long Island in New York State), would skate. Those inheritors of wealth and privilege could afford to hire high-priced attorneys. They would squelch the bad publicity that would result from their indiscretions by paying people to shut up and go away with non-disclosure agreements. Their families might have been just as dysfunctional as those of the poor, but the public would never hear about any of that.
As is well known, addicts hurt themselves and their families, but are usually not a danger to society at large, unless they get behind the wheel of a car, or operate heavy machinery. Or get into a gunfight over a drug deal gone bad. However, as an aside– there ought to be NO inherent unfairness in imposing very harsh penalties on possessors of firearms that were acquired ILLEGALLY. Applying the “broken windows theory” of crime to such possessors would likely prevent countless violent crimes.
For, the kinds of people who get hold of guns when they shouldn’t, are the kinds who use them in not-so-nice ways. So it would seem that they would be much more dangerous to society at large, than addicts.
In recent decades, there has been a media trend to report on human interest stories of mass-shooting victims so as to not glorify the shooters. But the news cycle on them ends, and celebrity non-stories, hysterically reported, grab the headlines again.
There’s no follow-up– NO reporting of punishment, if any, for the shooters subsequent to their pleas or trials, if they weren’t killed at the scene of the crime. Perhaps if the media showed (with harsher, new laws) the serious punishments resulting from the shooters’ actions again and again, there would be less tolerance in society for illegal firearms. This might be a start.
Anyway, read the book to learn the details of Levine’s life.
The Bonus Book of the Week is “A Good American Family, The Red Scare and My Father” by David Maraniss, published in 2019.
Born in 1918 in Boston, the author’s father grew up in Brooklyn. He was outed as a Communist by a female member of the FBI. She joined the Communist Party USA in order to spy on it, then for nine years, was paid big bucks to tattle on its members.
In March 1952, the elder Maraniss was subpoenaed to appear at a House Un-American Activities Committee hearing in Detroit. At that time, he was summarily fired from his job as a re-write man at the Detroit Times; ironically, a rabidly anti-Communist newspaper owned by Hearst.
A high-level federal judge in New York State, Learned Hand, provided the legal grounds on which the investigations into Communists rested in the 1950’s. Suppression of free speech was justified by the extent and probability of its leading to evil. “The worse the evil and the greater the probability, the more free speech could be curtailed.”
The ironies and consequences resulting from the above reasoning led to a dark period in American history. The take-away from the Red Scare was that the accusers led by Joe McCarthy, trampled on due process when confronting their prey– those who were allegedly associated with or were allegedly Communists.
One curious little experiment indicated just how effective fear-mongering propaganda can be. One irony is that fear-mongering propaganda is itself considered to be protected free speech!
In early July 1951, a reporter from the Capital Times newspaper in Madison, Wisconsin asked 112 random people in Henry Vilas Park to sign a petition, the text of which contained, “… the preamble to the Declaration of Independence… six of the ten amendments to the Bill of Rights, along with the Fifteenth Amendment granting black men the right to vote.” Only one person willingly signed. Almost one fifth of the people called the reporter a Communist.
Read the book to learn additional details of the tenor of the times in connection with the author’s father’s persuasion and generation, and the fates of his other immediate and extended family members and his accusers.
The First Book of the Week is “How the Post Office Created America” by Winifred Gallagher, published in 2016. This was a detailed account of the history of the delivery of written communications in what is now the United States.
In the 1630’s, a Boston-area tavern doubled as the first post office. Local politicians and rich businessmen collected their Transatlantic written correspondence there; the latter paid for the privilege. The service was “… primarily designed to advance an imperialistic power’s interests, serve a narrow elite, and produce some revenue for the [British] Crown.”
It was in the interest of Great Britain to improve the roads to distribute the mail in the thirteen colonies (which later became the United States), as she was competing with France to rule the colonies.
Postal carriers had to deal with unforgiving land, mountains, rivers and hostile Native Americans in making their appointed rounds. A month might elapse, what with uncertain weather, before mail went from Boston, MA to Richmond, VA. The literate read letters aloud to update their fellow community members of goings-on in places far away.
Ben Franklin was a prominent figure in the mid- to late 1700’s due to his numerous, various contributions to humanity. Between and among the colonies– Canada and Britain– in the mid-1750’s, he served as one of two Postmasters General.
The colonists were demographically and geographically fragmented even after they became Americans. There were Puritans in Massachusetts, Dutch traders in New York, elitist slave owners in the South, and pioneers in the Midwest. But they all agreed that there should be a nationwide free exchange of ideas.
Read the book to learn how mail delivery quickened with more advanced forms of transportation and mail-sorting, what the “Pony Express” really was, and the controversies over: a) postage rates for different regions; b) which entity should authorize mail delivery– the federal or state governments, or private companies; c) whether the Post Office should stray from its core business of delivering only written communications, including newspapers and magazines (rather than electronic, or packages), and more.
In the United States, delivery of written communications evolved into a public-private partnership, as has the distribution of electric power. The two have become interconnected because communications have increasingly required electric power. Government regulates the two because they are the trappings of an industrialized society and massive disruption of them might cause significant economic and social (not to mention political) harm to the nation.
Some Americans are pushing to significantly reduce pollution by sourcing electric power from wind and sun. That activity, which is growing in popularity, was described in the Second Book of the Week– “Superpower, One Man’s Quest to Transform American Energy” by Russell Gold, published in 2019. This was the career biography of Michael Skelly, renewable-energy entrepreneur.
As is well known, what to do about environmental pollution has been a political football for the last few decades. In the late 1970’s, when Minnesota farmers used weaponry and sabotage to protest the building of power towers on their land, a Minnesota state trooper commented, “Whenever there is progress, there is change and change does not benefit everyone. Change is hard for some people to accept.”
In the Obama administration years, the U.S. Energy Department funded a study conducted by the National Renewable Energy Laboratory outside Denver.
Researchers used a supercomputer to analyze hypothetical scenarios in 2026 in which wind and solar power would account for thirty percent of the power generation of the Eastern Interconnection (infrastructure that would transmit energy across states and provinces between eastern New Mexico and Quebec, Canada); electric power would go back and forth, depending on need. The results were promising. Once infrastructure was in place, costs wouldn’t be significantly higher than fossil fuels or nuclear energy.
For, wind and sun are free of charge. Fossil fuels’ prices fluctuate. True, wind and sun aren’t available 24/7, but a giant network spanning thousands of miles would allow energy to be transferred across time zones wherever needed, when wind and sun aren’t available.
Skelly was a doer. He didn’t waste time in “Twitter feuds or policy battles.” In the early 1990’s, after acquiring life experience in the Peace Corps and Harvard business school, he supervised the construction of an unprecedented tourist attraction in Costa Rica: an open-air gondola / tram from which travelers could view flora and fauna from the rain-forest-canopy.
Then Skelly got into wind farms. Building them involves an extremely expensive, years-long series of steps to get cooperation from numerous stakeholders such as investors and local: residents, governments and utilities, not to mention the federal government. The company building the turbines sees nary a penny of revenue until it sells the energy. It must get a slew of regulatory approvals, and fend off angry opposition and lawsuits.
Interesting factoid: by 2007, Texas had surpassed California in renewable energy generation.
Bankruptcy is always hanging over the head of the project initiator. In 2005, Skelly and his fellow executives were able to sell to Goldman Sachs a 90% interest in their company. Getting the investment bank involved enabled them to purchase a few billion dollars’ worth of turbines from Europe. Goldman got a major tax break for building the wind energy project.
Skelly was a conscientious individual. Federal law required a different, later venture of his– Clean Line– to have one public meeting with the locals. Clean Line had fourteen meetings. Skelly spent eight years involved with another project, Plains and Eastern. “It would be a $9.5 billion private investment, generating thousands of manufacturing and construction jobs and using enough steel for four aircraft carriers.”
Read the book to learn all the details of Skelly’s trials and tribulations in supervising renewable-energy projects.