1/Today's @bopinion post is about Trump's taxes, and what they show about how America allocates capital.

We appear to have some big problems.

2/Trump has a bunch of businesses that lose money. Our financial system has lent him money to throw into unsuccessful golf courses, hotels, and so on.

https://t.co/mgWQbsFQGN
3/A lot of these loans are loans that Trump hasn't even paid back yet, using loopholes in the tax system to avoid paying taxes on those unpaid debts.

Why would creditors give money to a guy who wastes the money on bad businesses and doesn't even pay them back?
4/One seemingly obvious answer is that capital is just really cheap these days. Companies are able to borrow more easily than at any time in the last few decades.
5/But this presents us with a mystery.

Why hasn't an abundance of cheap capital caused the return on financial capital to fall? Interest rates are low, but stock returns have held up strongly.
6/Standard economic theory says this isn't supposed to happen.

When you increase the supply of loanable funds, prices are supposed to go down. In other words, cheap capital should fund a lot of marginal businesses that compete away profits...
7/But far from being competed away, profits have risen to unprecedented levels!!
8/Economists are starting to notice that capital markets aren't working like an Econ 101 textbook says they're supposed to work.

Simcha Barkai and Matt Rognlie have both written about this:

1. https://t.co/OLln8npr8b

2. https://t.co/BY1EWyluD7
9/One possible explanation -- which Barkai prefers -- is that market power is growing in the economy. Meaning that big profitable quasi-monopolies are sucking up all the cheap capital, while all the little guys starve.

https://t.co/xNzE9SO8nY
10/But Rognlie doubts this explanation.
https://t.co/BY1EWyluD7

And it doesn't really explain Trump, does it? He's not a monopolist, and he doesn't even make profit. He's just a huckster who can borrow cheaply because he's famous.
11/An alternative idea is that capital is being RATIONED in the U.S., rather than priced.

Financiers are willing to throw tons of cheap money at big powerful companies or at famous hucksters like Trump, but charge inordinate prices to fund new entrants or marginal businesses.
12/If this is true, it means lots of perfectly good companies are probably struggling to get the capital they need, leaving the playing field to the big boys who can borrow cheaply. As a side effect, crappy borrowers like Trump waste some of our nation's savings.
13/Our financial system isn't working the way it's supposed to. Cheap capital should be reducing the return on financial capital, increasing business entry, and competing down profits.

We need to figure out what's going wrong, and fix it!

(end)

https://t.co/dHVCEQGa9q

More from Noah Smith 🐇

When Republicans started to believe in racial bloc voting - when they stopped believing that nonwhite people could ever be persuaded to vote Republican - they started to see immigration as an invasion.

This explains why immigration is now at the center of partisan conflict.


Of course, the belief in ethnic bloc voting becomes a self-fulfilling prophecy.

When a slight Dem tilt among Hispanics and Asians caused the GOP to turn against them, Hispanics and Asians shifted more toward the Dems. Etc. etc. A self-reinforcing cycle.

Bush's 2006 amnesty attempt, and the 2013 intra-GOP fight over immigration reform, were two moments when the GOP could have turned back to the approach of Reagan, and courted Hispanics and Asians.

But they decided against this, and...here we are.

What will disrupt this bad equilibrium, and save American politics from being an eternal race war?

Either:
A) More white voters will grow disgusted with the GOP approach and defect, or
B) The GOP will find some non-immigration-related issues to attract more Hispanics and Asians.

As long as both parties see elections in terms of racial bloc voting - where the only way to win is to increase turnout among your own racial blocs or suppress turnout by the other party's racial blocs - American politics will not improve, and the country will decline.

(end)
1/I'm thinking about the end of Apu in the context of the national debates on immigration and diversity.


2/Apu's presence in Springfield represented a basic reality of America in the late 20th and early 21st century: the presence of nonwhite immigrants.

3/As Tomas Jimenez writes in "The Other Side of Assimilation", for my generation, immigrants from India, China, Mexico, and many other countries aren't strange or foreign. On the contrary, they're a

4/But that America I grew up with is fundamentally ephemeral. The kids of immigrants don't retain their parents' culture. They merge into the local culture (and, as Jimenez documents, the local culture changes to reflect their influence).

5/Simpsons character don't change. But real people, and real communities, do. So a character who once represented the diversity that immigrants brought to American towns now represents a stereotype of Indian-Americans as "permanent foreigners".

More from Trump

Trump: Day 1,407 (THREAD)
-13,454,254 Cases of COVID-19 in US
-US CV-19 Death Toll Rises to 271,026
-Day 20 Since Biden Declared Winner
-Day 424 at a Trump-owned Property
-Touts Assassination of Iran Scientist
-Appointed Judge Rejects PA Lawsuit
-$3M Recount Increases Biden Lead


https://t.co/hOfTV6hRNx


https://t.co/KYBIm6Qohw


https://t.co/Bj5tluZ5dh


https://t.co/Q9YG4btKvH
1. Yes, Trump will claim to intend to target GOP senators up for reelection in '22 (like he did to Thune with Kristi Noem) if they don't join in @HawleyMO's sedition on Jan. 6, but the fact is, it's not clear whether Trump will be successful in ANY of those efforts & voting yes


2. to hedge off these threats will also create fissures & fractures for these incumbents among other elements of their party that could complicate their renominations. Indeed, what worries me the most about the potential for the country to slip into @anneapplebaum territory is

3. that what should be robust and intense push back from the party establishment against actually ending democracy- bc that's what Trump's request would do, if it was granted, is fairly muted. What we SHOULD be seeing from the mainstream of the party is threats to strip committee

4. assignments, chairs, privileges, even reelection funds, if anyone gets involved in this bullshit- in the House & the Senate, and the fact that you don't see it is more than a story of McConnell & McCarthy being afraid of Trump & his base. Its a story of receptivity, of the

5. level of receptivity the congressional and party leadership is dealing with both within the rank and file membership of the party and within its donor class, and THAT, my friends, is why you find me so concerned. That, and my decision to finally pull @anneapplebaum's book

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Following @BAUDEGS I have experienced hateful and propagandist tweets time after time. I have been shocked that an academic community would be so reckless with their publications. So I did some research.
The question is:
Is this an official account for Bahcesehir Uni (Bau)?


Bahcesehir Uni, BAU has an official website
https://t.co/ztzX6uj34V which links to their social media, leading to their Twitter account @Bahcesehir

BAU’s official Twitter account


BAU has many departments, which all have separate accounts. Nowhere among them did I find @BAUDEGS
@BAUOrganization @ApplyBAU @adayBAU @BAUAlumniCenter @bahcesehirfbe @baufens @CyprusBau @bauiisbf @bauglobal @bahcesehirebe @BAUintBatumi @BAUiletisim @BAUSaglik @bauebf @TIPBAU

Nowhere among them was @BAUDEGS to find
The first ever world map was sketched thousands of years ago by Indian saint
“Ramanujacharya” who simply translated the following verse from Mahabharat and gave the world its real face

In Mahabharat,it is described how 'Maharishi Ved Vyasa' gave away his divine vision to Sanjay


Dhritarashtra's charioteer so that he could describe him the events of the upcoming war.

But, even before questions of war could begin, Dhritarashtra asked him to describe how the world looks like from space.

This is how he described the face of the world:

सुदर्शनं प्रवक्ष्यामि द्वीपं तु कुरुनन्दन। परिमण्डलो महाराज द्वीपोऽसौ चक्रसंस्थितः॥
यथा हि पुरुषः पश्येदादर्शे मुखमात्मनः। एवं सुदर्शनद्वीपो दृश्यते चन्द्रमण्डले॥ द्विरंशे पिप्पलस्तत्र द्विरंशे च शशो महान्।

—वेद व्यास, भीष्म पर्व, महाभारत


Meaning:-

हे कुरुनन्दन ! सुदर्शन नामक यह द्वीप चक्र की भाँति गोलाकार स्थित है, जैसे पुरुष दर्पण में अपना मुख देखता है, उसी प्रकार यह द्वीप चन्द्रमण्डल में दिखायी देता है। इसके दो अंशो मे पीपल और दो अंशो मे विशाल शश (खरगोश) दिखायी देता है।


Meaning: "Just like a man sees his face in the mirror, so does the Earth appears in the Universe. In the first part you see leaves of the Peepal Tree, and in the next part you see a Rabbit."

Based on this shloka, Saint Ramanujacharya sketched out the map, but the world laughed