This week in our Members Only Newsletter you missed:
A rant about Biden’s stupid smile
The Tuesday Top Five news articles everyone should be reading
An original essay from News Beat’s Rashed Mian about the Big Oil scandal no one seemed to care about
And Ryan Stanco’s “Not for Nothing” on rotten fruit, pigs in space and AI
So I guess the question is… what are you waiting for? Sign up today to become a member and level up to unlock a slew of additional perks!
Max Notes
Finally pooped out the PBM story. Whew. One of the reasons for the delay on this one was the decision to incorporate an interview into the episode rather than append it or release it separately. I think it really helped the flow of the narrative so hopefully you dig the way it came out. I’m sure you’ll let me know.
I’m also curious to know how much you knew about pharmacy benefit managers prior to this episode, and whether you have deeper insight or experience in the subject matter. I personally found this process enlightening, enraging and unnerving.
I’m back to the blank canvas but armed with a folder full of notes and prospective articles. I have to say, it’s reeeeaaaally hard to focus when you look through the tunnel at the oncoming train that is the 2024 election. But I’ll do my best to buckle down.
One quick note on the Chart of the Week. Commercial mortgage delinquencies increased for the sixth quarter in a row and there are a handful of possible explanations behind it. The question is whether there’s a main driver and will work itself out, or it’s a confluence of factors that signifies a trend. The optimistic take is that interest rates are the main driver. As more short-term loans (five and ten year notes) come due, the refinance rates are way higher than the market is used to. The reason that’s an optimistic take is because the European Central Bank and Canada both recently reduced core interest rates. Between their examples and pressure from commercial banks, maybe it will send a message to Big JP at the Fed that it’s time to give us all a fucking break.
This is something to keep an eye on. Not that most of us are invested in REITs or own commercial properties. Commercial loan delinquency rates are typically a reflection of the broader economy. At least they used to be. Early ‘90s, early 2000s, financial crisis, COVID. Each of these periods coincide with economic downturns. Well, for the sixth quarter in a row, delinquencies have been on the rise. Is this a hangover from COVID? Reflection of a high interest rate environment? The new normal of people not returning to work in urban centers?
Headlines
Clarence Gives Himself Clearance
I guess we’re good now. The justices are cleaning up their disclosures with the apparent realization that there’s not a fucking thing anyone can do about them. From Beyoncé tix for KBJ to private excursions for Clarence to a secluded island for men only, the SCOTUS is coming clean.
From the article:
“When his form was released to the public, Justice Thomas included an unusual addendum, a statement defending his acceptance of gifts from Harlan Crow, a real estate magnate in Texas and a donor to conservative causes. He had ‘inadvertently omitted’ information on earlier forms, the statement said, which also sought to justify his decision to fly on private jets. He stated that he had been advised to avoid commercial travel after the leak of the draft opinion overturning Roe v. Wade.
This morning I listened to field reporting from the BBC on the upcoming EU elections and how the left was beginning to cave and young voters throughout Europe were beginning to warm to ideas presented by far right populists. My ears perked up after receiving a comment from a listener in Sweden this week who spoke to the uptick in gang violence and anti-immigrant rhetoric. Even the more liberal pockets of Europe fail to understand that the middle—right or left—doesn’t get things done. It holds the status quo. The only way to combat a far right reactionary nationalist movement is with a far left populist and human one.
From the article:
“The EU’s centre left makes up the second largest group in the outgoing European Parliament. Known as the Progressive Alliance of Socialists and Democrats (S&D), they are projected, at best, to cling on to their 139 seats in the 720-seat parliament. It is Europe's parties on the right that have the wind in their sails, and any success the centre left achieves is likely be offset by losses elsewhere. In only four countries are the Socialists and Democrats projected to come out on top - in Sweden, Denmark, Lithuania and Malta. Even then, Denmark’s Social Democrats under Prime Minister Mette Frederiksen are geared up for a big drop in support.”
Yeah, sure. Why the fuck not. We’re on the precipice of re-electing our own maniac (you decide) so why not bring this one to Congress? Once again, I’m really struggling to figure out who the Democrats think they’re appealing to. This is such an unnecessary move. Invitations like these should be reserved for revered statesmen and allies that don’t massacre tens of thousands of people. Who’s next? George W. Bush? Sheesh.
From the article:
“It’s hard to imagine a worse guest for the United States right now. Netanyahu has prosecuted an utterly callous war in which more than 36,000 people have died, most of them children. His war has exposed more than a million people to catastrophic starvation. He has also done his best to eradicate Palestinian civilization, bombing all its universities. The New York Times reports that because of Israel’s ground offensive in Rafah, more than a million Gazans forced to flee that city have no power, water, or shelter. A construction worker who fled Rafah last week told the paper, ‘The situation is as bad as you can imagine. We are waiting for God’s mercy.’”
In this episode, Max breaks down the biggest scandal in the healthcare industry (and that’s saying a lot). We walk through how a bunch of pencil pushing pharmacy middlemen became so powerful they bought out the biggest health insurance companies and pharmacy chains, and did it through hiking up drug prices, kickbacks and taking advantage of government contracts. This is the story of pharmacy benefit managers (PBMs) and how they became the American Drug Cartel.
Here’s a snippet from the pod:
MAX: “PBMs were established to help coordinate the payouts and paperwork associated with these group plans and drug prices started to decrease as a result of the efficiencies in the marketplace. When Medicare Part D was introduced in the early 2000s, the prescription drug market exploded and the government once again looked to the market to find ways to manage the entire system. At this point, the PBMs were essentially deputized by the government and then by the health insurance companies to determine which drugs were covered on what they called formularies. With this newfound power, PBMs started charging higher fees along the supply chain and demanding rebates, (aka kickbacks) from the drug manufacturers in order to be considered on the formularies. So instead of passing along bulk purchasing power discounts to consumers, they pocketed them through a series of complex rebate schemes. From there it was simple math. The higher the drug prices, the larger the kickbacks.”
“The events of the German revolution are some of the most tragic in history. In this episode of Marxist Voice, Andy Southwark will explain the defeat of the German revolution in order to draw out the critical need to prepare a revolutionary leadership.”
“When factories close, stalwart industries shutter, and blue-collar opportunities evaporate, MLMs are there, ready to pounce on the crumbling American Dream. MLMs thrive in rural areas and on military bases, targeting women with promises of being their own boss and millions of dollars in easy income--even at the risk of their entire life savings. But the vast majority--99.7%--of those who join an MLM make no money or lose money, and wind up stuck with inventory they can't sell to recoup their losses.
“Featuring in-depth reporting and intimate research, Selling the Dream reveals how these companies--often owned by political and corporate elites, such as the Devos and the Van Andels families--have made a windfall in profit off of the desperation of the American working class.”
Despite early attempts to silence and imprison her, Black Panther icon Angela Davis remains one of the most outspoken voices against capitalism and the prison industrial complex today.
Progressive Organization of the Week: RootsAction.
“Dedicated to galvanizing people who are committed to economic fairness, equal rights for all, civil liberties, environmental protection -- and defunding endless wars. We mobilize on these issues no matter whether Democrats or Republicans control Washington D.C.”
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