J&J’s Texas Two-Step

The Daily Escape:

Wallowa Lake near Joseph, OR – May 2022 photo by Danny J Goff

From Judd Legum:

“Nearly 40,000 lawsuits have been filed against Johnson & Johnson (J&J), alleging that the company’s baby powder causes cancer. The lawsuits claim that customers became sick with mesothelioma or ovarian cancer after being exposed to asbestos contained in talcum powder.”

In July 2018, a Missouri jury awarded $4.7 billion in damages to 22 women who said they contracted ovarian cancer from J&J baby powder. According to judge Rex Burlison, J&J:

“…knew of the presence of asbestos in products that they knowingly targeted for sale to mothers and babies, knew of the damage their products caused, and misrepresented the safety of these products for decades.”

Obviously J&J appealed, and an appeals court reduced the verdict to $2 billion. J&J wasn’t satisfied and further appealed the verdict, ultimately to the US Supreme Court. In June 2021, however, the Supremes refused to hear the case, letting the $2 billion award stand.

J&J had no interest in bankruptcy, but came up with another strategy to protect most of its assets from the current and any future judgements. In July 2021, the company launched “Project Pluto,” in which J&J would create a new subsidiary, LTL Management, which would “own” the liability for the baby powder litigation. It also would receive about $2 billion in cash. LTL would then declare bankruptcy.

More from Judd Legum:

“J&J is attempting to exploit a 1989 Texas law, deploying a legal maneuver known as the “Texas two-step.” J&J temporarily became a Texas company and then executed a “divisive” merger. The move split J&J into two new companies: one with almost all of the assets and no baby powder liability and another with all of the baby powder liability and few assets.” The latter almost immediately filed for Chapter 11 bankruptcy.

More:

“By filing for bankruptcy, all civil litigation against LTL Management is immediately halted. The claimants no longer have the ability to have their claims heard in court. Instead, if the scheme is successful, all claimants have to split up a limited pool of assets defined by J&J.”

That’s the “Texas Two-Step.” You may remember that in 2021, the NRA had requested to be reincorporated in Texas when it filed for bankruptcy, a move hailed by Texas governor Gregg Abbott. It would also have led to splitting the NRA into two companies, with the liability in the new firm. That effort failed when a Texas judge wouldn’t allow the move without the approval of New York State, something NYS wouldn’t do.

It’s possible in every state to split a company’s assets and liabilities through a spin-off, and spin-offs have often been used to fraudulently transfer assets that might be part of a bankruptcy. The Two-Step exploits a quirk of Texas law, which defines “merger” as including not just two companies merging into one, but also the exact opposite, when a company divides into two or more entities.

Texas and Delaware are the two states that allow for such “divisive” mergers. This type of “merger” avoids what in bankruptcy circles is called a “fraudulent transfer” of assets, assets that should by rights be considered a part of the bankruptcy estate to be divided among the firm’s creditors.

The deemed lack of an asset transfer is what makes the Texas Two-Step unique and interesting to J&J.

The Senate Judiciary Subcommittee on Federal Courts, Oversight, Agency Action, and Federal Rights, led by Sen. Sheldon Whitehouse (D-RI), is looking into the legality of the Texas Two-step:

“It does not make sense for a $450 billion corporation with 38,000 people with potentially lethal injuries to be able to carve off $2 billion…and walk away from the responsibility for what it did.”

We’ll see what becomes of the lawsuits against J&J and the LTL Management company.

More broadly, this shows we need to substantially strengthen the US bankruptcy fraudulent transfer laws. Unfortunately, that’s a political fight between the capitalist wolves and the consumer lambs, with all the best lawyers on the side of the wolves. For example, J&J has retained Neal Katyal, former Acting US Solicitor General under Obama to help with their liability carve-out. Katyal is earning $2,465/hour while working for J&J. Seems reasonable, no?

The wolves know that the legal positioning really matters. They will fight tooth and nail to keep the firm’s money in the firm and out of the hands of the plaintiffs. Even though there are substantially more lambs than wolves, the lambs have neither the resources nor the smarts to protect themselves.

These greedy schemes by America’s biggest firms are designed to dodge financial responsibility. J&J is attempting to cheat cancer patients from getting what the courts have already awarded them.

The management and their attorneys should face prison time for depriving justice to these consumers who won in court.

If we can’t bring Capitalism to heel, it must go.

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Sunday Cartoon Blogging – May 8, 2022

Senate Republican leader Mitch McConnell thinks the leak of the Supreme Court’s draft opinion overturning Roe is a “toxic spectacle”. Chief Justice John Roberts calls it a “betrayal.” And Justice Thomas of Ginni said:

“We can’t be an institution that can be bullied into giving you just the outcomes you want…We are becoming addicted to wanting particular outcomes, not living with the outcomes we don’t like…”

So suck it up American women! They’re sure that the leak is worse for America than their outrageous decision, and nothing you say will change any Republican minds. It is likely to be a long time before this (anticipated) decision is reversed. We will be a nation divided between states where reproductive freedom is guaranteed and states without it.

Major judicial errors in American history have been reversed before. The Constitutional amendment prohibiting alcohol was repealed in 14 years. The Supreme Court opinion upholding laws that criminalized gay sex was overturned after 17 years.

Women have many reasons for choosing abortion that have nothing to do with not wanting to be a parent. They may have medical needs; a fetus may carry genetic defects; the woman may be an underage child or a survivor of rape or incest. Adoption does not erase either the medical effects or the psychic scars that forcing a mother to term might inflict, and that may persist long after pregnancy is over.

And on this Mother’s Day, it is particularly ironic that they call themselves pro-life. Except, of course, for mothers. On to cartoons.

Who should be feeling violated?

Alito changes the rules:

Barrett shows she’s one of the boys:

More of the hypocrisy:

Oh, the places you will go:

Anybody else think Republicans are too controlling?

Mother’s Day 2022:

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Sunday Cartoon Blogging – April 24, 2022

A follow-up to the DeSantis vs. Disney column. Nick Papantonis of Orlando’s WFTV describes the economic consequences of Florida’s decision to take away Disney’s protected tax status.  In a Twitter thread, he says that DeSantis’ actions have given Disney a $163 million/year tax break while passing on to the two counties that hold Disney’s Reedy Creek tax jurisdiction more than $1 billion of municipal debt.

Also, once Reedy Creek goes away as a jurisdiction, Orange and Osceola counties will be responsible for providing all of the services (fire, police, roadwork) that Disney currently provides. And those counties won’t be able to pay for the additional services by raising sales taxes or impact fees.

So, they will have to raise property taxes. By law, they must tax all properties equally (not just Disney) and it’s expected that the county mil rate for property tax computation in Orange County will rise as much as 25% next June.

Florida has just 12 counties where Biden won in 2020. DeSantis has cleverly managed to screw the residents in two of them. Orange was 61-38 for Biden, Osceola was 56-43. The residents, by the way, had no say in DeSantis’ Murder Mickey vote. They will likely have no say in their property taxes going through the roof. But they are likely to see their communities come close to financial ruin.

In a way, the outcome is a perfect encapsulation of the 2022 Republican Party: Take more from Joe Sixpack while the corporations that are ostensibly the target of their moral outrage, walk away with the money. Oh, and screw a few Blue counties. On to cartoons.

Who won? You be the judge:

GOP’s rules seem wrong:

Happy passengers are missing the big picture:

MAGAs should choose their poison carefully:

Our learning disability:

 

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DeSantis vs. Disney

The Daily Escape:

Sea glass, Provincetown, MA – April 2022 photo by Nancy Kaplan

Today we continue discussing the growing Republican culture wars, this time in Florida against Disney. NBC News reported:

“The Florida Senate passed a bill Wednesday that would dissolve the special taxing district that allows the Walt Disney Co. to self-govern in its theme park area.”

Walt Disney World has effectively operated as its own municipal government in central Florida since a 1967 state law established what’s called the Reedy Creek Improvement District, an area encompassing 25,000 acres near Orlando. The law grants Disney a wide range of authority, including the power to issue bonds and provide its own utilities and emergency services, such as fire protection.

That law is in large part what convinced Disney originally to come to Florida. It has since become the state’s largest private employer with 80,000 jobs.

On Wednesday, the Florida senate passed a bill that would dissolve all independent special districts established before 1968, including Reedy Creek. Lawmakers voted 23 to 16 in favor of the bill during a special session of the state Legislature.

This is part of Gov. Ron DeSantis’ (R) and the Republican-controlled  legislature‘s escalating culture war with Disney over the company’s opposition to recently passed legislation in Florida that Disney considers to be anti-gay. Disney’s leadership has criticized the legislation that prevents classroom discussion of gender identity and sexual orientation in kindergarten through the third grade.

Disney later said it would pause making campaign donations in Florida and also said it hoped that the law would either be repealed or struck down by the courts.

Wrongo is old enough to remember when the GOP believed that corporations had free speech and should be pretty much immune from regulation. But it now seems that corporations can be harassed or investigated unless they fall in line with the goals of the Republican culture war.

Targeting Disney only became a thing after the company spoke out about the “don’t say gay” law. Charles Cooke in the National Review notes that:

“Until about a month ago, Walt Disney World’s legal status was not even a blip on the GOP’s radar. No Republicans were calling for it to be revisited….”

Cooke says that Florida’s legislature has had five opportunities over the past 50 years to remove Disney’s sweetheart deal and didn’t. But context is everything. After the DeSantis effort to punish Disney, the legislature piled on, pretending that it’s doing so out of a concern for “good government”.

The fun part is that Disney’s status is not unique. Florida has 1,844 special districts, of which 1,288, like Walt Disney World, are “independent.” Charlie Sykes at the Bulwark offers up examples of a few more of these districts:

  • The Villages (where Governor DeSantis announced his review of Disney’s status)
  • Orlando International Airport
  • The Daytona International Speedway

Wrongo isn’t defending Disney’s right to special treatment, despite he and Ms. Right having a granddaughter who works for Disney in CA.

Wrongo would be fine if Florida took away all special breaks from these large corporations.

The Disney special district is really a form of corporate welfare. And no Republican with serious national ambitions wants to be against corporate welfare. So instead, DeSantis tries punishing Disney as part of his red-hot culture war. If this move was really about good public policy, then Republicans would have done it through their regular legislative process. But that clearly wasn’t their intent.

Overlooked in the anti-Disney hype, was that this bill was attached to other legislation approved by the Florida senate, a Congressional redistricting map that eliminates two predominantly Black Congressional districts and tilts the balance of the Florida delegation even more to the Republicans. Democrats were especially critical of an amendment added Tuesday that requires all lawsuits challenging the redistricting map to be filed in Leon Circuit Court. This is an attempt to sidestep the federal court in Tallahassee where in the past, most election law cases have been challenged and found to be unconstitutional.

The new map is expected to boost Republicans’ current 16-11 Congressional advantage to 20–8. Republicans would likely own roughly 71% of the state’s Congressional seats in a state where Trump won with 51.2% of the vote in 2020. Florida also gained a seat during the most recent census.

The Party claiming to be against “Big Government” is using the government to punish a private company for permissible business decisions. As Heather Cox Richardson says:

“The Walt Disney Company delivers to the state more than $409 million in sales taxes for tickets alone, employs more than 80,000 Florida residents, and supports more than 400,000 more jobs. Today, the Miami Herald reported that repealing the company’s governing authority would raise taxes on families in the area by $2,200 each.”

Anyone else getting really tired of Republicans telling us we can’t say certain words, we can’t read certain books, we can’t teach certain things, or that we can’t talk about certain history? And why are they taking away our freedom to vote?

What’s Conservative about any of that?

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What to Do When You’re Called “Pedophile”

The Daily Escape:

Western Rosebud, Red Rock National conservation area, NV – April 2022 photo by David Frederick

We’ve reached a point in our political discourse where Republicans are tossing around lies about their Democratic opponents, including saying the Democrats are pedophiles. And they’re doing it without fear of reprisal from the establishment Democrats.

One Democrat, Michigan state senator Mallory McMorrow was accused by Lana Theis, a Republican state senate colleague, of being a “groomer” of young children in a recent fundraising appeal. Theis also said McMorrow wanted to teach 8-year-olds that they are responsible for slavery. McMorrow didn’t stay silent after the accusations against her. She gave her Republican accuser a rhetorical bloody nose:

Her speech is inspiring. You should definitely watch it. Here’s a quote:

“I am a straight, white, Christian, married, suburban mom who knows that the very notion that learning about slavery or redlining or systemic racism somehow means that children are being taught to feel bad or hate themselves because they are white is absolute nonsense
No child alive today is responsible for slavery. No one in this room is responsible for slavery. But each and every single one of us bears responsibility for writing the next chapter of history….we are not responsible for the past. We also cannot change the past. We can’t pretend that it didn’t happen or deny people their very right to exist.”

The Dem’s typical “that doesn’t deserve a response” is out of date. It doesn’t work on hateful Republican rhetoric. McMorrow shows us how it’s done.

We need to get used to this, because it’s going to be a main talking point for Republicans through the 2022 mid-terms and beyond. In response, it isn’t enough for Democrats to “just go high”. They need to start attacking Republicans for how weird and abnormal they are.

You probably saw the many humorous takes on Tucker Carlson’s weirdo testicle-tanning video. Really, these guys get to accuse others of sexual problems?

And there’s Rep. Matt Gaetz (R-FL) who may actually soon be a convicted pedophile. You remember Rep. Jim Jordan (R-OH) was implicated in allegations of sexual misconduct against the Ohio State wrestling team’s former team doctor. Or Rep. Lauren Boebert’s (R-CO) then-future husband who was arrested for exposing himself to two young women at a Colorado bowling alley (she was present), and he was later arrested for domestic violence against her while they were dating.

These are the people who are screaming “pedophiles” at Dems.

Wrongo doesn’t often suggest paying attention to James Carville, but on MSNBC over the weekend he said: (brackets by Wrongo)

“[Republicans] have learned over a period of time it doesn’t matter” what they say or do, Carville complained. “[Democrats] are weak and all they’re gonna do is talk bad about each other.”

Carville pointed out how little pushback Democrats made against the pedophilia-obsessed GOP Senators during the Supreme Court Justice confirmation hearings for Ketanji Brown-Jackson.

Charlie Pierce reminds us of how there is a straight line from the McMartin case in 1990 to where we are today. McMartin showed how hysteria over purported sexual abuse of children in schools can grip our society. Despite a complete lack of reputable evidence against the teachers and workers at McMartin Preschool, the McMartin trials took over six years and cost more than $13.5 million without a single guilty verdict resulting from the 208 charges.

Today these accusations are again rampant across the country, only with much more paranoia and way more firearms. America is on the cusp of a revolution, but it’s too early to see exactly what it is coming, or what it will become.

We now live in a world where it’s perfectly acceptable for a politician to demonize those who don’t share their belief system. Someone can take to Twitter or send out a fundraising email and savage a person either to score cheap political points or add a few bucks to their political war chest.

The Republicans are essentially a new Party since its hostile takeover by Trump. Democrats have to look all the way back to FDR for a takeover model. He overthrew the old political order with the New Deal.

We’re seeing a well-organized, well-funded, (and effective in its way), Republican assault on democracy itself: They have willed into existence a Supreme Court supermajority that cares about its social agenda as much as it cares about the “law”. The GOP’s Senate and House ranks are filled with adherents to that same agenda.

Nearly half of America agrees with them because they promise revenge against people they despise. We face a risk in 2024 of Trump winning a filibuster-proof trifecta [House, Senate, White House] with a minority of the national vote.

We can no longer afford to “go high”. Everyone knows the stakes.

What will Democrats do to win?

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Texas Wingnuttery

The Daily Escape:

Easter morning at Lake Tapps, with Mt. Rainer in background, Pierce County, WA – April 2022 photo by Motojw Photography. This picture was cropped by Wrongo to fit the blog’s page. View the original photo here.

Two examples of Texas wingnuttery, and it’s only Tuesday. First, the WaPo has an article showing how Conservative groups are teaming up with politicians to remove books and to change membership of local library boards:

“In early November, an email dropped into the inbox of Judge Ron Cunningham, the silver-haired head chair of the governing body of Llano County in Texas’s picturesque Hill Country. The subject line read ‘Pornographic Filth at the Llano Public Libraries.’”

The author was Bonnie Wallace, a local church volunteer who had attached an Excel spreadsheet with 60 books she found objectionable, including those about transgender teens, sex education and race, including “Between the World and Me,” by author and journalist Ta-Nehisi Coates.

Not long after, the county’s chief librarian sent the list to Suzette Baker, head of one of the library’s three branches:

“She told me to look at pulling the books off the shelf and possibly putting them behind the counter. I told them that was censorship,”

In January, commissioners voted to dissolve the existing library board and created a reconstituted board of mostly political appointees, including many of the citizens who had complained about books. They named Ms. Wallace the vice chair of a new library board stacked with conservative appointees some of whom didn’t even have library cards.

Later, Baker was fired, and Llano joined a growing number of communities across America where conservatives have mounted challenges to books and other content they deem to be inappropriate.

A movement that started by influencing school boards has now expanded to public libraries. They accounted for 37% of book challenges last year, according to the American Library Association. Conservative activists in several states, including Texas, Montana and Louisiana have joined forces with like-minded officials to dissolve libraries’ governing bodies, rewrite or delete censorship protections, and remove books outside of official challenge procedures.

No one is forced to go to a public library. If someone goes to a public library, nobody is forcing that person to read a book while there, or to take a book out of the public library. It’s called a “public” library for a reason. The library serves all of the public, not just a small interest group (or individual) who feels they have the right to decide what all citizens should or shouldn’t read.

The issue is denial of public access.

Second, the NYT reports that a Texas state legislator warned Citigroup that he would introduce a bill to prevent the bank from underwriting municipal bonds in the state unless it rescinded its policy covering travel expenses for employees who go outside their state to seek an abortion. This Texas politician is attempting to dictate a national anti-abortion policy:

“Citigroup stated in a filing on Tuesday that it would provide travel benefits to employees seeking abortions outside their state, “in response to changes in reproductive health care laws in certain states.” Last year, Texas enacted a law that bans abortion after about six weeks of pregnancy. The law took effect in September.”

It’s important to remember Enron, a now-defunct Texas corporation known for its massive accounting fraud, used to threaten banks with withdrawing all of their business if the bank’s analysts gave accurate opinions about Enron’s stock. It appears that remains a model for Republican governance.

Lots of high tech companies have diversity programs and progressive employee policies. Many have extensive operations in Texas. It’s going to take some time but Texas will suffer disinvestment as companies move elsewhere.

Because Texas is becoming Taliban country.

Here’s a long quote from Oliver Cromwell, speaking to the Rump Parliament on April 20, 1653, the day he dissolved it. He could easily be speaking to today’s Republican Party:

“It is high time for me to put an end to your sitting in this place, which you have dishonored by your contempt of all virtue and defiled by your practice of every vice; ye are a factious crew, and enemies to all good government; ye are a pack of mercenary wretches, and would like Esau sell your country for a mess of pottage, and like Judas betray your God for a few pieces of money.

Is there a single virtue now remaining amongst you? Is there one vice you do not possess? Ye have no more religion than my horse; gold is your God; which of you have not barter’d your conscience for bribes? Is there a man amongst you that has the least care for the good of the Commonwealth?

Ye sordid prostitutes have you not defil’d this sacred place, and turn’d the Lord’s temple into a den of thieves, by your immoral principles and wicked practices? Ye are grown intolerably odious to the whole nation; you were deputed here by the people to get grievances redress’d, are yourselves gone! So! Take away that shining bauble there and lock up the doors.

In the name of God, go!”

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Judge Says Jan. 6 Was a “Seditious Conspiracy”

The Daily Escape:

Sandhill Cranes, Monte Vista National Wildlife Refuge, CO – February 2022 photo by Rick Dunnahoo

Most of us had few expectations that the organizers of the Jan. 6 insurrection would face any legal consequences. Indeed, we’ve had almost zero confidence that the truth about what led up to that day would ever be known.

That just changed. Politico reported that:

“Joshua James, one of the 11 Oath Keepers militia affiliates indicted earlier this year on a charge of seditious conspiracy alongside the group’s founder, Stewart Rhodes, on Wednesday became the first person to plead guilty to the sedition-related charge in connection with the storming of the Capitol on Jan. 6, 2021.”

James admitted that he tried to disrupt the peaceful transfer of presidential power and that Oath Keepers leader Stewart Rhodes had a “plan” for accomplishing that disruption. The plea deal statement describes planning that occurred in November 2020 in the DC area and VA:

“On November 14 and 15, 2020, James met with Rhodes and others in the Washington, D.C., metropolitan area and at Caldwell’s Virginia farmhouse and learned about the start of their plans to oppose by force the lawful transfer of presidential power.”

The November planning meetings are important, because they suggest broader coordination with “others” at the Jan. 6 March. Perhaps the most interesting detail of the statement describes a plan to report to White House grounds and secure the perimeter:

“In the weeks leading up to January 6, 2021, Rhodes instructed James and other co-conspirators to be prepared, if called upon, to report to the White House grounds to secure the perimeter and use lethal force if necessary against anyone who tried to remove President Trump from the White House, including the National Guard or other government actors who might be sent to remove President Trump as a result of the Presidential Election.”

This begs the question of who is suicidal enough to plan to meet as an armed group at the White House grounds, unless they believed they were invited there and cleared for entry by Trump. Absent that, they should have expected to be arrested or shot on sight.

We’re looking at a plea of seditious conspiracy. From the WaPo:

“Federal law defines seditious conspiracy as two or more people who “conspire to overthrow, put down, or to destroy by force the Government of the United States,” or act “by force to prevent, hinder, or delay the execution of any law of the United States.”

This means we can now legally describe Jan. 6 as a conspiracy to commit sedition. For those among us who were wondering what Merrick Garland’s DOJ has been doing for the last year, it’s this: January 6 was officially a sedition, at least for Joshua James.

That says things are getting very interesting, particularly when we add to it this from the WaPo:

“The House committee investigating the Jan. 6 attack on the Capitol said on Wednesday that there was enough evidence to conclude that former President Donald J. Trump and some of his allies might have conspired to commit fraud and obstruction by misleading Americans about the outcome of the 2020 election and attempting to overturn the result.”

In a court filing in a civil case in California, the Committee’s lawyers said they had accumulated evidence demonstrating that Trump, the conservative lawyer John Eastman, and others could potentially be charged with criminal violations including obstructing an official proceeding of Congress and conspiracy to defraud the American people by illegally obstructing the counting of Electoral College ballots.

The Committee made the statement in a court filing to force Trump’s lawyer, John Eastman, to turn over documents to the Committee. Eastman is the attorney who advised Trump that Vice President Mike Pence could reject the electoral ballots.

The Committee also released an email written in the middle of the Jan. 6 assault on the Capitol, to Eastman from Greg Jacob, a Pence advisor:

When you read the email above, don’t gloss over this sentence: “I share your concerns about what the Democrats will do once in power.” That shows he is a hard-right partisan. But he closes with the big point:

“…thanks to your bullshit, we are now under siege”.

Short-term, despite the way the media is breathlessly talking about the Select Committee’s court filing, the Joshua James guilty plea is more interesting.

He connects the dots with the Oath Keepers’ leader, Stewart Rhodes. James was also in contact with Roger Stone, which begs the question of what Stone knew about their plans, or more troublingly, what Stone might have directed them to do.

Let’s not get too excited, but it seems that it’s now remotely possible that Trump, Roger Stone, and others will discover that in America, it’s true that no one is above the law.

Cook up some popcorn and watch the show.

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Boeing Documentary Shows Corporate Malfeasance

The Daily Escape:

Mount Liberty, White Mountains, NH – February 2022 photo by AG Evans Photography

Over the weekend, Wrongo and Ms. Right watched the Netflix Boeing documentary: “Downfall: The Case Against Boeing”. You can watch the trailer here. It exposes how Boeing’s management, Wall Street’s influence and the cratering of Boeing’s culture of quality control, resulted in two plane crashes of the 737 MAX, just months after being placed in service.

That two new planes would go down within five months of each other was beyond a chance event in 21st Century airplane manufacturing. Boeing initially blamed the pilots based in Indonesia and Ethiopia for being poorly trained. But it turns out that Boeing knew all along that the 737 MAX had a critical software problem that caused the plane to go into an irreversible nosedive.

The film makes it clear that pilots had just 10 seconds to reverse those faulty software commands before it was too late. It shows that Boeing told the FAA and the airlines that purchased the MAX that no new pilot training was required to fly the new plane, even though pilots knew nothing about the software or the glitch.

Boeing was lying about training to keep the costs of the new aircraft competitive with Airbus. It was a lie that Boeing took months to correct. It also took months for Boeing to admit that they were flying an unsafe plane.

Why did this (and even worse things) occur while Boeing was attempting to bamboozle the Feds, the airlines, crash victims and their families? Money. The film features Michael Stumo, father of Ethiopian Airlines crash victim 24-year-old Samya Stumo. While not mentioned in the film, Ralph Nader is Samya’s uncle. At the time, he published an open letter to Dennis A. Muilenburg, then-CEO of Boeing. Here’s a part of his letter: (brackets by Wrongo)

“Your narrow-body passenger aircraft – namely, the long series of 737’s that began in the nineteen sixties was past its prime. How long could Boeing avoid making the investment needed to produce a “clean-sheet” [new design] aircraft and, instead, in the words of Bloomberg Businessweek “push an aging design beyond its limits?” Answer: As long as Boeing could get away with it and keep necessary pilot training and other costs low…as a sales incentive.”

Nader draws a connection between Boeing’s decision to “push an aging design” and their financial engineering:

“Did you use the $30 billion surplus from 2009 to 2017 to reinvest in R&D, in new narrow-body passenger aircraft? Or did you, instead, essentially burn this surplus with self-serving stock buybacks of $30 billion in that period?”

Nader notes that Boeing was one of the companies that MarketWatch labelled as “Five companies that spent lavishly on stock buybacks while pension funding lagged.” More:

“Incredibly, your buybacks of $9.24 billion in 2017 comprised 109% of annual earnings….in 2018, buybacks of $9 billion constituted 86% of annual earnings….in December 2018, you arranged for your rubberstamp Board of Directors to approve $20 billion more in buybacks.”

Nader shows that Boeing had the capital to invest in developing a new plane. They also had problems with the launch of the 787:

“In the summer of 2011, the 787 Dreamliner wasn’t yet done after billions invested and years of delays. More than 800 airplanes later…each 787 costs less to build than sell, but it’s still running a $23 billion production cost deficit.

The 737 MAX was the answer to Boeing’s prayer. It allowed them to continue their share buybacks while paying for the 787 cost overruns. Abandoning the 737 for a completely new plane would’ve meant walking away from a financial golden goose.

Rep. Peter DeFazio (D-OR) who chaired the House Committee on transportation and infrastructure that investigated Boeing, said:

“My committee’s investigation revealed numerous opportunities for Boeing to correct course during the development of the 737 Max but each time the company failed to do so, instead choosing to take a gamble with the safety of the flying public in hopes it wouldn’t catch up with them in the end…”

Wrongo remains baffled by how Boeing management was given a pass after this gross negligence. They paid the US government $2.5 billion to settle criminal charges that the company defrauded the FAA when it first won approval for the 737 MAX. The deal deferred any criminal charges by the DOJ to January 2024 and will dismiss the case then if there are no more misdeeds by the company.

Perhaps this is another example of a corporate mistake that’s simply too big to be punishable in the US. That means US corporations and their CEOs are immune to accountability. This should have put people into prison, but the CEO got off, and ultimately got a $62.2 million severance for his misdeeds, despite a lot of people dying on his watch.

To curry favor on Wall Street, Boeing reduced salaries. They cut costs deeply in quality assurance and safety programs to give the shareholders more money.

See the movie. Be outraged. Elect more people like Peter DeFazio.

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Sunday Cartoon Blogging – February 13, 2022

Have you given any thought to the inconsistency between how Whoopi Goldberg was treated for her comment about the holocaust, and how Joe Rogan has been treated for his um, body of work? Whoopi was condemned by the left and right. She was appropriately suspended from her position as a host of ABC’s The View. She later apologized for the hurtful inference in her remarks.

With Rogan, after the flap over his COVID misinformation, it came to light that dozens of his episodes were quietly removed from Spotify because they featured Rogan using the N-word. To date, Spotify has yanked more than 100 of his episodes. But Rogan wasn’t suspended or “cancelled” by Spotify. Still, he’s held up on the Right as another victim of leftist cancel culture.

The artists who left Spotify weren’t trying to “cancel” Rogan. They just wouldn’t continue being associated with a platform that promoted him. Both the artists and Spotify are making free-market business decisions that they have every right to make.

That’s an idea that you’d think would be vigorously supported by Conservatives.

The outcry on the Right about “cancel culture” comes at a time when they are working to outlaw Critical Race Theory, overturn elections, enact legislation to deny the vote to millions of Americans, and ban books. It’s clear who’s doing the cancelling in America.

Those who defend Rogan say he’s simply providing a forum. Sure, he interviews kooks and sleazes, but he also interviews some reasonable folks. So he’s presenting “both sides“. The other side of a fact is a lie. And if you put a lie on an equal footing with the truth, you give the lie credibility. This is a cardinal sin that the media have been committing for decades. On to cartoons.

The massive self-deception the Right Wing practices while copying Nazi tactics:

Trump’s monument on the Mall:

RNC censures two of its own, says many of its own are totally fine:

Mitch the turtle takes RNC to task for its censure, also says Trump is wrong:

Russia’s about to bite off more than it can chew:

The end of mask mandates is political signaling. We’ll soon know if this calculated risk works:

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Saturday Soother – February 5, 2022

The Daily Escape:

Paradise Springs, South Kettle Moraine, Eagle, WI – January 2022 photo by Nick Schroeter. The spring water is warm enough that it doesn’t freeze in winter

This week two years ago, Covid began to enter America’s consciousness. It was February 3, 2020 when Trump declared a public health emergency because of the virus. Now, Republicans are again saying “let ‘er rip”. Mother Jones reported that Iowa is taking “done with Covid” to a whole new level. On Thursday, Iowa’s Republican Gov. Kim Reynolds announced a plan to end the state’s Covid disaster declaration and to shut down its case count and vaccination websites later this month.

From the Des Moines Register:

“We cannot continue to suspend duly enacted laws and treat COVID-19 as a public health emergency indefinitely,” Reynolds said in a statement. “After two years, it’s no longer feasible or necessary. The flu and other infectious illnesses are part of our everyday lives, and coronavirus can be managed similarly.”

In a state with less than two-thirds of the population over 5 years old fully vaccinated, Wrongo asks what kind of governor and legislature shuts down a website aimed at making it easier for people to get their shots? If the last year has taught us anything, it’s that it is in the people’s best interest to make it as easy as possible to vaccinate as many people as possible.

The Register adds:

“Her move comes as Iowa’s spike in cases and hospitalizations from the omicron variant has begun to ease. Still, 794 people were hospitalized with COVID-19 in Iowa as of Wednesday, while 109 patients required intensive care and 51 required ventilators.”

BTW, 70.6% of the patients in Iowa ICUs were not vaccinated. Having contemporaneous data allows us to see that Iowa recorded more than 150 additional COVID-19 deaths in its weekly update last Friday. In the same report, Iowa’s health department recorded just three additional flu deaths in its weekly flu report Jan. 28, bringing the total since last fall to just 13.

The data do not seem to make a case to treat Covid and the flu the same way.

The governor’s decision to end the emergency declaration may be more sensible. Many states have already discontinued theirs. And as Omicron case counts plummet, maybe there’s a chance to reallocate resources to other state priorities.

Today you can check Iowa’s status on its readable and useful Covid dashboard. That dashboard will now be going away.

Soon, the state health department’s website will not include regular reports on Covid hospitalizations or nursing home outbreaks. Kelly Garcia, interim director of the Iowa Department of Public Health, said Iowa will no longer require hospitals and nursing homes to report the data to the state, since they already report it to the federal government. Iowans wanting updates on those numbers will be referred to federal websites.

Lina Tucker Reinders, executive director of the Iowa Public Health Association, said in an interview that the move was premature, and could give Iowans the false impression the pandemic is over.

Iowa’s own statistics show that isn’t the case.

It’s become an article of faith inside the Republican cult that Covid is No Big Deal, and that vaccinations are either unnecessary or some sort of plot. And that masks are also unnecessary, because Covid is just like the flu.

Across the country, these same Republicans are seeing the elderly in their families, neighborhoods and churches die of Covid while a free and effective vaccine is available. But they don’t care enough to make getting themselves vaccinated a priority.

If they don’t care about their elders, why would they care about nurses, or teachers? That would require disrupting their entire worldview.

No scientist says that the virus is finished mutating. So will treating it like the flu be good enough? If it isn’t, Gov. Reynolds certainly won’t give a shit.

Time to let go for a few minutes and relocate to a chair by a window for our Saturday Soother.

It will be another winter weekend of indoor sports in New England, with binge streaming of favorite shows on tap, along with chiseling ice on the walkways around the Mansion of Wrong.

Let’s start into the weekend by brewing up a large mug of Chutzpah Coffee ($13.99/ 12oz.) brought to us by Hebrew Coffee. Their tag line is “A strong coffee to get you off your tuches”. Now settle into your chair and watch “Pow Surf 101”, a long snowboard ride through deep powder, while listening to Claude Debussy’s “Claire de Lune”, written in 1890 when Debussy was 28. The snowboarding takes place in Steamboat Springs, CO. Consider this Wrongo’s nod to the Winter Olympics:

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