Showing posts with label LLOYD BLANKFEIN. Show all posts
Showing posts with label LLOYD BLANKFEIN. Show all posts

Wednesday, March 22, 2023

FOCUS: Robert Reich | To Prevent More Bank Runs, the Fed Should Pause Rate Hikes

 

 

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Federal Reserve Board Chairman Jerome Powell in Washington, November 2, 2022. (photo: Elizabeth Frantz/Reuters)
FOCUS: Robert Reich | To Prevent More Bank Runs, the Fed Should Pause Rate Hikes
Robert Reich, Guardian UK
Reich writes: "The global financial system is facing a crisis of confidence. Which makes this week's meeting of America's central bankers critically important." 


Inflation is receding, albeit slowly, so there’s no reason to risk more financial tumult. Will the central bank see it that way?

The global financial system is facing a crisis of confidence. Which makes this week’s meeting of America’s central bankers critically important.

None of the 12 members of the Federal Reserve Board’s Open Market Committee were elected to their posts. The vast majority of Americans don’t even know their names, except perhaps for the chairman, Jerome Powell.

But as they try to decide whether to raise interest rates and, if so, by how much, America’s central bankers are deciding on the fate of the American – and much of the world’s – economy.

And they’re sitting on the horns of a dilemma.

On one horn is their fear that inflation will become entrenched in the economy, requiring more interest-rate hikes.

On the other horn is their fear that if they continue to raise interest rates, smaller banks won’t have enough capital to meet their depositors’ needs.

Higher rates could imperil more banks, especially those that used depositors’ money to purchase long-term bonds when interest rates were lower, as did Silicon Valley Bank.

That means that raising interest rates could cause more runs on more banks. The financial system is already shaky.

The two objectives – fighting inflation by raising rates, and avoiding a bank run – are in direct conflict. As the old song goes: “Something’s got to give.” What will it be?

The sensible thing would be for the Fed to pause rate hikes long enough to let the financial system calm down. Besides, inflation is receding, albeit slowly. So there’s no reason to risk more financial tumult.

But will the Fed see it that way?

The Fed’s goal last week was to stabilize the banks enough so the Fed could raise interest rates this week without prompting more bank runs.

The Fed bailed out uninsured depositors at two banks and signaled it would bail out others – in effect, expanding federal deposit insurance to cover every depositor at every bank.

On top of this, 11 of America’s biggest banks agreed to contribute a total of $30bn to prop up First Republic, another smaller bank caught in the turmoil.

This “show of support” (as it was billed, without irony) elicited a cheer from Jerome Powell and the treasury secretary, Janet Yellen, who called it “most welcome”. (Of course it was welcome. They probably organized it.)

But investors and depositors are still worried.

Other regional banks across the US have done just what Silicon Valley Bank did – buying long-dated bonds whose values have dropped as interest rates have risen. According to one study, as many as 190 more lenders could fail.

On Monday, First Republic remained imperiled notwithstanding last week’s $30bn cash infusion. Trading in its shares on the New York Stock Exchange was automatically halted several times to prevent a freefall.

Multiple recent downgrades of banks by ratings agencies like Moody’s haven’t helped.

Reportedly, the Biden administration is even in talks with Warren Buffett, the chairman of Berkshire Hathaway, who invested billions to bolster Goldman Sachs during the 2008 financial crisis.

Meanwhile, on the other side of the Atlantic, the European Central Bank last week raised interest rates by half a percentage point, asserting its commitment to fighting inflation.

Yet the higher interest rates, combined with the failure of the two smaller American banks, have shaken banks in Europe.

Just hours before the European Central Bank’s announcement, the banking giant Credit Suisse got a $54bn lifeline from Switzerland’s central bank.

Yet not even this was enough to restore confidence. After a several days of negotiations involving regulators in Switzerland, the US and the UK, Switzerland’s biggest bank, UBS, agreed over the weekend to buy Credit Suisse in an emergency rescue deal.

Finance ultimately depends on confidence – confidence that banks are sound and confidence that prices are under control.

But ever since the near meltdown of Wall Street in 2008, followed by the milquetoast Dodd-Frank regulation of 2010 and the awful 2018 law exempting smaller banks, confidence in America’s banks has been shaky.

November’s revelation that the crypto giant FTX was merely a house of cards has contributed to the fears. Where were the regulators?

The revelation that Silicon Valley Bank didn’t have enough capital to pay its depositors added to the anxieties. Where were the regulators?

Credit Suisse had been battered by years of mistakes and controversies. It is now on its third CEO in three years.

Swiss banking regulations are notoriously lax, but American bankers have also pushed Europeans to relax their financial regulations, setting off a race to the bottom where the only winners are the bankers. As Lloyd Blankfein, then CEO of Goldman Sachs, warned Europeans: “Operations can be moved globally and capital can be accessed globally.”

One advantage of being a bank (whether headquartered in the US or Switzerland) is that you get bailed out when you make dumb bets. Another is you can choose where around the world to make dumb bets.

Which is why central banks and bank regulators around the world must not only pause interest rate hikes. They must also join together to set stricter bank regulations, to ensure that instead of a race to the bottom, it’s a race to protect the public.

Banking is a confidence game. If the public loses confidence in banks, the financial system can’t function.

In the panic of 1907, when major New York banks were heading toward bankruptcy, the secretary of the treasury, George B Cortelyou, deposited $35m of federal money in the banks. It was one of the earliest bank bailouts, designed to restore confidence.

But it wasn’t enough. JP Morgan (the man who founded the bank) organized the nation’s leading financiers to devise a private bailout of the banks, analogous to last week’s $30bn deal.

Confidence was restored, but the underlying weaknesses of the financial system remained. Those weaknesses finally became painfully and irrevocably apparent in the great crash of 1929.


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Sunday, March 29, 2020

FOCUS: Frank Rich | What a Plague Reveals






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28 March 20



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28 March 20

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FOCUS: Frank Rich | What a Plague Reveals
Lloyd Blankfein has a dissenting view on coronavirus. (photo: Justin Lane/EPA-EFE/Shutterstock)
Frank Rich, New York Magazine
Rich writes: "A society reveals a lot about itself, heroic and not, when confronting a plague. But we didn't need a plague to tell us that Trump places zero value on any life except his own."

Most weeks, New York Magazine writer-at-large Frank Rich speaks with contributor Alex Carp about the biggest stories in politics and culture. Today, the argument, both from the White House and supposed centrists outside of it, that America should prioritize the economy.

hough coronavirus cases continue to climb in the U.S., a number of businesspeople and commentators have begun to talk about “restarting” the economy, even at the cost of American lives. If even non-Trumpists are in part echoing Trump’s views on this, should we take them seriously?
A society reveals a lot about itself, heroic and not, when confronting a plague. But we didn’t need a plague to tell us that Trump places zero value on any life except his own, and it’s no surprise that many of his zealots are willing to blindly follow his example. Witness that so-called man of God, Jerry Falwell Jr., who decided to end social distancing and summon the previously dispersed student body back to Liberty University in Virginia, at whatever cost to themselves. Or Larry Kudlow, the White House economic adviser who had previously assured Americans that the virus was “contained” and advised them to buy stocks just before the bottom dropped out of the markets. Not content to speed the destruction of Americans’ 401(k)s, he has led the cheerleading for Trump’s kamikaze goal of getting the country back to work by Easter. Perhaps Trump can kick off this return to normalcy by holding the biggest and best MAGA rally ever on Easter Sunday at Liberty U.
But what does it say that ostensibly serious people like Lloyd Blankfein, Gary Cohn, Thomas Friedman, and the ABC analyst Matthew Dowd, among others, have in varying degrees taken up this cause? And done so with so little grounding in reality? Cohn, for instance, tweeted, “We should be able to handle incremental economic activity in appropriate locations while not allowing it in other geographies.” What are “appropriate” locations and what are those “other geographies,” pray tell, and who would designate them? Others take the tack of layering in caveats intended to shield them from criticism if such a plan goes wrong and corpses start piling up in genocidal magnitude across the land. Take Friedman, for instance, who points out how “urgent” it is to first “immediately rectify the colossal failure to supply rapid, widespread testing” and to get more N95 masks and hospital beds before initiating a scheme to start bringing back the workforce “in as early as a few weeks.” Get those tests and masks “immediately” — great idea! And the White House agrees besides! “More testing is essential,” says Larry Kudlow, “and we’re loading up on tests right now.”
But in the reality-based world, the idea that we’ll have enough capacity anytime soon should be given as much weight as Mike Pence’s weeks-ago promise that 4 million tests were on the way. So whether you’re Kudlow or Friedman or a former partner at Goldman Sachs, to posit that a return to normal in “a few weeks” would be preceded by the sudden advent of “rapid, widespread testing” is disingenuous on its face. Tests are nowhere near as available as promised, or as they need to be nationally if the density and speed of South Korea’s testing regime is used as an effective model. And even if we had the needed quantity of tests, the coronavirus has already left the barn in the United States; it is too late for mass testing to map the contours of a return-to-normal plan any time in the near or nearish future. Masks and other PPE, not to mention hospital beds and ventilators, also remain in desperate demand, and the White House, having lied for weeks that they’re on the way, is still refusing to use the federal government to mobilize their production.
So why are these return-to-normalcy enthusiasts so willing to roll the dice on public health? It depends on who’s making this pitch. Clowns like Glenn Beck, Brit Hume, and the lieutenant governor of Texas, Dan Patrick, who have volunteered that older people risk sacrificing their lives for younger generations, are just Trump lapdogs. But when someone like Lloyd Blankfein proposes that we “let those with a lower risk to the disease return to work” in “a very few weeks,” it’s another story. They are revealing their arrogance, of course — masters of the universe know more than, say, a mere civil servant like Anthony Fauci — but also their own economic isolation from the masses they are purporting to help. It’s behavior reminiscent of the titans who tried to rally Wall Street after the 1929 crash by making a big show of buying large blocks of stock. And let’s face it: Most, if not all, of these public notables who are preaching get-back-to-work-soon schemes have a cushion most Americans don’t — the means and the clout to cut the line for a coronavirus test and to secure immediate and attentive medical care away from an overflowing public hospital. This class divide is most ostentatiously exemplified by Richard Kovacevich, the former CEO of one of the most predatory banks in American history, Wells Fargo, who in giving his endorsement to a get-back-to-work scheme, said, “Some may even die, I don’t know.” Doesn’t know and doesn’t care to find out, clearly. This is a guy who served on the board of Theranos, whose marketing of fraudulent blood tests was a potentially moral threat to the national health ecosystem.
It is cheering that some businessmen will have none of this. As Mark Cuban succinctly put it, “Ignore anything someone like me might say. Lives are at stake.” Bill Gates, who actually has devoted his own fortune to the amelioration of world health, implicitly called out the Cohns and Friedmans and Blankfeins, by stating without equivocation that “there really is no middle ground, and it’s very tough to say to people, ‘Hey, keep going to restaurants, go buy new houses, ignore that pile of bodies over in the corner.’” He added that “it’s very irresponsible for somebody to suggest that we can have the best of both worlds.”
These exceptions are to be applauded. But overall, the pandemic has revealed in particularly stark terms that the extreme economic inequalities unmasked by the 2008 economic collapse remain unaddressed. There’s a titanic dynamic playing out now in real time. Celebrities and the wealthy are first in line for the lifeboats of coronavirus tests. Rupert Murdoch and his family protect their own health while profiting from a news empire that downplayed and outright disputed the threat of the coronavirus. The permanent residents of resort towns on the Eastern seaboard are being shoved aside by prematurely returning summer vacationers who are stripping shelves of food and flooding the limited local health facilities.
As the virus spreads from its current epicenters throughout the country, the grotesque discrepancy between the elites and the have-nots is going to make Parasite look as benign as an episode of Modern Family. The anger and despair that have fueled populism in America, even to the point of inducing voters to hand power to a charlatan like Trump, may metastasize at least as fast as the plague.
















Wednesday, March 25, 2020

We Can't Let the Coronavirus Lead to a 9/11-Style Erosion of Civil Liberties





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We Can't Let the Coronavirus Lead to a 9/11-Style Erosion of Civil Liberties
'As we witnessed with the authoritarian reactions to 9/11, emergency violations of civil liberties are not easily rolled back, and often aggregate over time.' (photo: Lucas Jackson/Reuters)
Samuel Miller McDonald, Guardian UK
McDonald writes: "As a millennial, much of my adulthood has been punctuated by severe national emergencies. The first my generation experienced was the terrorist attack on September 11, 2001."

We must reject such authoritarian measures wholly, no matter who says they’re ‘necessary’

 We all watched in horror as the months-long media spectacle replayed footage of the towers swallowing airplanes and crumbling into fire and dust. The moment of national solidarity and everyday heroism was brief.
The government quickly responded by attempting to achieve two things: one, expanding executive power, and two, transferring public wealth into private corporations. The Bush administration achieved the first by passing the Patriot Act, which built the foundation for what is probably the world’s most expansive surveillance state, but also by setting legal precedents that violated basic constitutional rights and by creating the Department for Homeland Security, with its aggressive constituent agencies like Immigration and Customs Enforcement (Ice) and Customs and Border Protection (CBP). The second goal was achieved with the “war on terror”, which involved unilateral occupations of Afghanistan and Iraq, and subsequent military forays into many African countries. In Iraq, private security, logistics and reconstruction contractors swallowed up $138bn alone. Since 2001, $5.9tn in taxpayer dollars have gone toward wars (not to mention resulted in hundreds of thousands of deaths and a foreign policy blackhole that still haunts the Middle East). Neither of these goals addressed the root cause of the crisis, and arguably exacerbated the conditions that led to 9/11.
The second national emergency my generation experienced was the 2008 housing bubble collapse and subsequent recession: the most severe economic meltdown since the Great Depression. Again the federal government, this time under Barack Obama’s administration, sought to exploit the crisis to move vast wealth from the public treasury into private bank accounts. A staggering $14tn was transferred from taxpayers to private hands, including Wall Street executives who used that money to continue giving themselves seven-figure bonuses. One of the largest recipients of bailout money, Citigroup, paid out $5.3bn to employees in bonuses. While the federal government debatably halted a further stock market collapse, they certainly did not address the root cause of the crisis. A mere 11 years later and we are again standing on the edge of a major economic crisis.
Ecological devastation, meanwhile, is the quiet crisis amplifier that has persisted through both of these national emergencies and cast a shadow over the whole of my generation. Its latest iteration is the Covid-19 pandemic, whose origins lay in habitat destruction and biodiversity loss.
Once again, the federal government appears poised to exploit this emergency to expand executive power and move wealth from the public treasury into private bank accounts. As the Nation recently reported, an internal CBP directive empowers the agency to indefinitely monitor and detain anyone suspected of carrying the virus. Meanwhile, the Trump administration has begun a bailout for the oil industry, which could exceed $2.6bn in tax dollars going to oil industry control, and is toying with the idea of an airline industry bailout, which could exceed $50bn.
The authoritarian lockdowns in China and Italy may soon arrive to the anglophone world. Seeing self-avowed leftists and liberals praising such draconian reactions is frightening. Anyone who cares about democracy and civil liberty should not welcome such responses. As we witnessed with the authoritarian reactions to 9/11, emergency violations of civil liberties are not easily rolled back, and often aggregate over time. In the wake of 9/11, Congress passed the National Defense Authorization Act, which gave sweeping powers to the executive branch. In 2012, Obama signed an expanded version into law, which gave the president the power to “hold individuals, including US citizens, in military detention indefinitely”, which means for life. We must reject such authoritarian measures wholly, no matter who says they’re “necessary”.
The fact is, neither expanding executive power nor redistributing wealth upward will save lives or address the root cause of the crisis. In fact, both the oil and airline industries are accelerating the ecological devastation at the heart of this pandemic. As ecological collapse continues to unfold, more and more emergencies like this will occur with greater frequency and intensity. Now is the time to break out of the recurring pattern in which national responses not only fail to solve the problem, but even exacerbate the original cause, while transferring wealth from taxpayers to already-wealthy, well-connected executives. Instead, now is the time to implement a set of standards for what constitutes a response that puts the common good at the center.
In the case of this virus, there are plenty of good ideas already being discussed that would do exactly that. Instead of moving public wealth into private corporations, the government should be doing the opposite.
The first step to containing this virus is handing out cash to every American to fund their ability to self-isolate without having to go to work. A basic income of, at minimum, subsistence rate would achieve this. The New York congresswoman Alexandria Ocasio-Cortez has called for implementing an emergency universal basic income, while presidential candidate Bernie Sanders suggested delivering a monthly $2,000 check to every household to deal with lost income.
Providing universal healthcare, both during the virus flareup and after, would also go a long way to containing its spread and reducing its seasonal intensity; the for-profit system is probably exacerbating the spread of the virus. Subsidizing or even nationalizing essential goods and services like utilities, pharmaceuticals and distribution of basic necessities could also help contain the virus and reduce its negative long-term impacts, and ensure that those services remain available to all. The Trump administration has (surprisingly) ordered the Department of Housing and Urban Development to halt evictions and foreclosures temporarily. Taking that further and reforming or eliminating them, even past the worst of the pandemic, could help soften conditions leading to virus spreading in the future.
Interim support for local services, like small businesses and charities, would also help keep local infrastructure intact beyond the most intense phases of social isolation. Dismantling the prison industrial complex and deeply reforming the justice system would help as well. The US has the highest incarceration rate and absolute prison population in the world. Abolishing the institution would go a long way toward reducing the impact of highly infectious viruses, given that prisons are “the perfect incubators” for coronaviruses. Finally, bypassing intellectual property laws with regard to vaccine development, and preventing anyone from limiting access for private profit, would also be important, both now and beyond the pandemic.
Of course the best thing we can do is halt the twin ecological and climate crises that are now driving so many existential emergencies like the Covid-19 pandemic. But, in the meantime of attending to that herculean task, the least we can be doing is agreeing on a set of responses that reject authoritarian exercises of executive power and the further enrichment of the already wealthy at the expense of the public. Instead, we should be responding to such national crises by saving lives and fortifying the common good. Through a series of compounding national emergencies, a benevolent response would be the first my generation has ever witnessed.



Goldman Sachs Chief Executive Lloyd Blankfein has run the firm longer than anyone since Sidney Weinberg, who died in 1969. (photo: Andrew Harrer/Bloomberg News)
Goldman Sachs Chief Executive Lloyd Blankfein has run the firm longer than anyone since Sidney Weinberg, who died in 1969. (photo: Andrew Harrer/Bloomberg News)


Back to Work? You First.
Hamilton Nolan, In These Times
Nolan writes: "'We must reopen the economy,' you say. 'It is vital that we send people back to work,' you say. Well, it sounds important. By all means - you first."

The cure must not be worse than the problem, the president says. It is important that we not disincentive work, right-wing economists say. Keeping things closed could devastate the economy, business leaders say. These things are a tradeoff, you see. Yes, some people will die if we put everyone back to work sooner than the health experts say. But these things are inevitable. And the economic damage could be awful if we don’t.
Okay. All of you line up, to report to work.
Lloyd Blankfein, the reasonable cheerleader for restarting commerce, you can be a doorman, throwing open the doors of your Manhattan office building for all the bankers to return to their desks. The doorman, who prefers not to die, can be the CEO of Goldman Sachs. That office is sufficiently large for social distancing, I’m sure.
Art Laffer, the discredited economist, can be a waiter in a crowded restaurant. A waiter, who prefers not to die, can become an economist. No waiter could be a worse economist than Art Laffer, anyhow.
Let the lieutenant governor of Texas, raring to sacrifice himself on the altar of the free market, become a grocery store worker. Let the CNBC pundits become retail cashiers. Let the Washington corporate lobbyists beating the drum for restarting production become warehouse workers. And let the regular people who work in crowded restaurants and crowded stores and crowded warehouses and crowded factories take jobs in statehouses, and on cable TV, and at think tanks. It is only fair that the bold leaders urging us all to be brave enough to disregard scientifically sound warnings of millions of deaths in order to prop back up American business be the first ones out there, in close proximity to the infectious public, getting coughed on as they enable each and every one of the transactions that will get money flowing again. That is what leadership is all about.
Besides, there will certainly be a number of job openings in politics and cable TV punditry and think tanks once all of those free marketeers go out into the workforce and promptly catch coronavirus.
There is an unspoken and underlying assumption in all of the push to end our national shutdown before the pandemic has passed, which is: Rich people will not be the victims of this. This belief is untrue, but the rich can be forgiven for believing it—in normal circumstances, it is a very reliable rule. The rich have been sending poor people to their deaths in wars for the sake of profits for centuries. Nothing new at all about that. In violent conflicts, non-rich people are just grease in the wheels of the capitalist machine. It is not remarkable that business leaders and their allies would want to enact the same pattern of human sacrifice now, with the stock market plummeting. The difference is that the pandemic will kill the rich, too. They are currently acting as if they can buy their own safety, because they haven’t seen their peers die too much yet. But they will.
The voices pushing to send millions of people back to work at the cost of what could be millions of lives will say that they are being hardheaded realists. They will say that the cost of our ongoing economic shutdown, with its attendant unemployment and bankruptcies, will be even worse. But the only world in which that could possibly be true is a world in which we preserve our old, suddenly absurd economic arrangements at all costs. It is only true in a world in which we refuse to consider debt forgiveness, and a massive government wage subsidy, and health care for all. It is only true if you accept the premise that, during this economic shutdown, all small businesses will go bankrupt and workers will lose their jobs permanently and we’ll all become buried in debt.
If you instead assume a world in which we recognize the obvious reality that, as a result of this unprecedented public health crisis, we must waive many debts and let government spending carry us past the dangerous period, then keeping people at home in order to save a million or two million lives is the only choice. But recognizing the necessity of what must be done means that, on the other end of this, the capitalists must take a loss. They will not take all of the loss, or even a permanent loss, but they will take a loss, because economic activity will almost cease for a period of time.
That loss—of a year or two’s profits—is what is considered unacceptable. So, of course, we must all get back to work while the pandemic is still raging. And if a couple million people must die in order to ensure that we do not forgive any loans in this country, then that is just how it is going to be. It’s just plain common sense. Okay? Fine.
You first, fuckers. See you in hell.




Sen. Richard Burr. (photo: Alex Brandon/AP)
Sen. Richard Burr. (photo: Alex Brandon/AP)


Shareholder Lawsuit Accuses Republican Sen. Richard Burr of Securities Fraud
Matthew Choi, POLITICO
Choi writes: "Sen. Richard Burr (R-N.C.) is being sued after selling shares in a hotel company while possessing confidential information about the potential impact of the coronavirus pandemic."
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Lt. Governor Dan Patrick leans back in his chair during a midnight session during the third day of a special legislative session on Thursday, July 20, 2017, at the Texas state capitol in Austin, Texas. (photo: Ashley Landis)
Lt. Governor Dan Patrick leans back in his chair during a midnight session during the third day of a special legislative session on Thursday, July 20, 2017, at the Texas state capitol in Austin, Texas. (photo: Ashley Landis)


Texas' Republican Lieutenant Governor Suggests Grandparents Are Willing to Die for US Economy
Adrianna Rodriguez, USA TODAY
Rodriguez writes: "The lieutenant governor of Texas argued in an interview on Fox News Monday night that the United States should go back to work, saying grandparents like him don't want to sacrifice the country's economy during the coronavirus crisis."
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Pedestrians wearing face masks outside the Tokyo Metropolitan Government building, which carries the logo of the 2020 Olympic Games. (photo: Kazuhiro Nogi/AFP/Getty Images)
Pedestrians wearing face masks outside the Tokyo Metropolitan Government building, which carries the logo of the 2020 Olympic Games. (photo: Kazuhiro Nogi/AFP/Getty Images)


Japan, International Olympic Committee Agree to Postpone Tokyo Games
Adam Kilgore, Rick Maese and Simon Denyer, The Washington Post
Excerpt: "Facing heavy global pressure and rising athlete dissent, the International Olympic Committee and Japanese officials sharply reversed course Tuesday and agreed that the Olympics and Paralympics will not take place this summer in Tokyo in the wake of the growing novel coronavirus pandemic."
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Cuban doctors prepare to leave for Italy to provide medical aid. (photo: Twitter)
Cuban doctors prepare to leave for Italy to provide medical aid. (photo: Twitter)


Cuba's Coronavirus Response Is Putting Other Countries to Shame
Ben Burgis, Jacobin
Burgis writes: "Cuba is caricatured by the Right as a totalitarian hellhole. But its response to the coronavirus pandemic - from sending doctors to other countries to pioneering anti-viral treatments to converting factories into mask-making machines - is putting other countries, even rich countries, to shame."


ast week, the MS Braemar, a transatlantic cruise ship carrying 682 passengers from the United Kingdom, found itself momentarily stranded. Five of the cruise’s passengers had tested positive for the coronavirus. Several dozen more passengers and crew members were in isolation after exhibiting flu-like symptoms. The ship had been rebuffed from several ports of entry throughout the Caribbean. According to sources in the British government who spoke to CNN, the UK then reached out to both the United States and Cuba “to find a suitable port for the Braemar.”
Which country took them in? If you’ve paid attention to the Trump administration’s xenophobic rhetoric about “the Chinese virus” and its obsession with keeping foreign nationals out of the country, and you know anything about Cuba’s tradition of sending doctors to help with humanitarian crises all around the world, you should be able to guess the answer.
The Braemar docked in the Cuban port of Mariel last Wednesday. Passengers who were healthy enough to travel to their home countries were transported to the airport in Havana. Those who were too sick to fly were offered treatment at Cuban hospitals — even though there had only been ten confirmed cases in the whole country, and allowing patients from the cruise ship to stay threatened to increase the number.
Cuba Mobilizes Against the Virus
Despite being a poor country that often experiences shortages — a product of both the economy’s structural flaws and the effects of sixty years of economic embargo by its largest natural trading partner — Cuba was better positioned than most to deal with the coronavirus pandemic.
The country combines a completely socialized medical system that guarantees health care to all with impressive biotech innovations. A Cuban antiviral drug (Interferon Alfa-2B) has been used to combat the coronavirus both inside the country and in China. Cuba also boasts 8.2 doctors per capita — well over three times the rate in the United States (2.6) or South Korea (2.4), almost five times as many as China (1.8), and nearly twice as many as Italy (4.1).
On top of its impressive medical system, Cuba has a far better track record of protecting its citizens from emergencies than other poor nations — and even some rich ones. Their “comprehensive, all-hands-on-deck” hurricane-preparedness system, for example, is a marvel, and the numbers speak for themselves. In 2016, Hurricane Matthew killed dozens of Americans and hundreds of Haitians. Not a single Cuban died. Fleeing residents were even able to bring their household pets with them — veterinarians were stationed at the evacuation centers.
The coronavirus will be a harder challenge than a hurricane, but Cuba has been applying the same “all-hands-on-deck” spirit to prepare. Tourism has been shut down (a particularly painful sacrifice, given the industry’s importance to Cuba’s beleaguered economy). And the nationalized health care industry has not only made sure that thousands of civilian hospitals are at the ready for coronavirus patients, but that several military hospitals are open for civilian use as well.
Masks: A Tale of Two Countries
In the United States, the surgeon general and other authorities tried to conserve face masks for medical professionals by telling the public that the masks “wouldn’t help.” The problem, as Dr Zeynep Tufekci argued in a recent New York Times op-ed, is that the idea that doctors and nurses needed the masks undermined the claim that they would be ineffective. Authorities correctly pointed out that masks would be useless (or even do more harm than good) if not used correctly, but as Tufekci notes, this messaging never really made sense. Why not launch an aggressive educational campaign to promote the dos and don’ts of proper mask usage rather than telling people they’d never be able to figure it out?
Many people also wash their hands wrong, but we don’t respond to that by telling them not to bother. Instead, we provide instructions; we post signs in bathrooms; we help people sing songs that time their hand-washing. Telling people they can’t possibly figure out how to wear a mask properly isn’t a winning message. Besides, when you tell people that something works only if done right, they think they will be the person who does it right, even if everyone else doesn’t.
The predictable result of all of this is that, after weeks of “don’t buy masks, they won’t work for you” messaging, so many have been purchased that you can’t find a mask for sale anywhere in the United States outside of a few on Amazon for absurdly gouged prices.
In Cuba, on the other hand, nationalized factories that normally churn out school uniforms and other non-medical items have been repurposed to dramatically increase the supply of masks.
Cuban Doctors Abroad
The same humanitarian and internationalist spirit that led Cuba to allow the Braemar to dock has also led the tiny country to send doctors to assist Haiti after that nation’s devastating 2010 earthquake, fight Ebola in West Africa in 2014, and, most recently, help Italy’s overwhelmed health system amid the coronavirus pandemic. (Cuba offered to send similar assistance to the United States after Hurricane Katrina ravaged the Gulf Coast, but was predictably rebuffed by the Bush administration.)
Even outside of temporary emergencies, Cuba has long dispatched doctors to work in poor countries with shortages of medical care. In Brazil, Cuban doctors were warmly welcomed for years by the ruling Workers’ Party. That began to change with the ascendance of far-right demagogue Jair Bolsonaro. When he assumed office, Bolsonaro expelled most of the Cuban doctors from the country, insisting that they were in Brazil not to heal the sick but “to create guerrilla cells and indoctrinate people.”
As recently as two weeks ago, Bolsonaro was calling the idea that the coronavirus posed a serious threat to public health  a “fantasy.” Now that reality has set in, he’s begging the Cuban doctors to come back.
Embracing Complexity About Cuba
Last month, Bernie Sanders was red-baited and slandered by both Republicans and establishment Democrats for acknowledging the real accomplishments of the Cuban Revolution. It didn’t seem to matter to these critics that Sanders started and ended his comments by calling the Cuban government “authoritarian” and condemning it for keeping political prisoners. Instead, they seemed to judge his comments by what I called the “Narnia Standard.” Rather than frankly discussing both the positive and negative aspects of Cuban society, the island state is treated as if it lacks any redeeming features — like Narnia before Aslan, where it was “always winter and never Christmas.”
Democratic socialists value free speech, press freedom, multiparty elections, and workplace democracy. We can and should criticize Cuba’s model of social organization for its deficits. But Cuba’s admirably humane and solidaristic approach to the coronavirus should humble those who insist on talking about the island nation as if it were some unending nightmare.



Swedish environmentalist Greta Thunberg attends a meeting with President of the European Commission Ursula von der Leyen as they announce a new EU climate deal, at the European Commission on March 4, 2020, in Brussels, Belgium. (photo: Leon Neal/Getty Images)
Swedish environmentalist Greta Thunberg attends a meeting with President of the European Commission Ursula von der Leyen as they announce a new EU climate deal, at the European Commission on March 4, 2020, in Brussels, Belgium. (photo: Leon Neal/Getty Images)


Climate Activist Thunberg Says She's Recovered From COVID-19
Associated Press
Excerpt: "Swedish climate activist Greta Thunberg says on social media that she believes she has recovered from mild symptoms of COVID-19 experienced during a period of quarantine following a European trip."
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Trump RIDICULED as DOJ tells Appeals Court Trump is allowed to sell Presidential Records on EBAY!!

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