Tag Archives: exchange

Meet the New Super Working Class

Mother Jones

Via Counterparties, a new study suggests that we now have a “superordinate” working class: highly paid professionals who are so dedicated to their professions that they’d rather work in the office than engage in leisure or vacation time:

The best educated men used once to work much shorter hours for pay, an echo, still in the 1960s, of the end-of-19th century leisure-class ideology. But by the beginning of the 21st century they are working the longest hours in their exchange-economy jobs. And the best-educated women in each of the regime types, show an even more decisive differential movement into paid work.

Now add these trends together and we see, unambiguously, the 21st century reversed education/leisure gradient, with the best educated, both men and women, working, overall, a much larger part of the day than the medium-level educated, who in turn do more than the lowest educated. At least from the 1970s onwards, we see no decisive decline in overall work time, perhaps the slightly the reverse, with a small historical increase, particularly for the best educated, in the range 530 to 550 minutes per day. Industrious activities are transferred out of the money economy, and, replacing the 19th century leisure class, we find a 21st century superordinate working class.

The basic evidence is on the right. I guess I find it only modestly convincing. In 1961, highly educated men in the corporate world worked similar hours to their less-educated peers. By 2005, they were working a bit more, but their total work hours were actually down from their peak. Conversely, although it’s true that highly educated women have very plainly outpaced the working hours of their less-educated peers, this is hardly surprising given the immense change in opportunities allowed to women since 1961, as well as the vastly higher pay that well-educated women can now expect in the corporate world.

So yes: highly-educated professionals are working more than they used to. Are they working themselves into a new, 21st-century frenzy, though? The evidence for that seems fairly modest. The big story here seems to be a more prosaic one: women are basically catching up to men, which hardly comes as a surprise. Beyond that, though, the evidence for a rising Veblenesque warrior class that views long hours as a status symbol strikes me as weak. Obviously it exists in places like Wall Street and Silicon Valley, but I suspect that its broader impact is fairly limited.

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Meet the New Super Working Class

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The Right Wing Trains Its Hysterical Eye on Renewable Energy

Mother Jones

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Evan Halper of the LA Times filed a story this weekend about new conservative efforts to fight America’s biggest energy scourge: solar power. And they’re dead serious:

The Koch brothers, anti-tax activist Grover Norquist and some of the nation’s largest power companies have backed efforts in recent months to roll back state policies that favor green energy. The conservative luminaries have pushed campaigns in Kansas, North Carolina and Arizona, with the battle rapidly spreading to other states.

….At the nub of the dispute are two policies found in dozens of states. One requires utilities to get a certain share of power from renewable sources. The other, known as net metering, guarantees homeowners or businesses with solar panels on their roofs the right to sell any excess electricity back into the power grid at attractive rates.

….The American Legislative Exchange Council, or ALEC, a membership group for conservative state lawmakers, recently drafted model legislation that targeted net metering. The group also helped launch efforts by conservative lawmakers in more than half a dozen states to repeal green energy mandates.

“State governments are starting to wake up,” Christine Harbin Hanson, a spokeswoman for Americans for Prosperity, the advocacy group backed by billionaire industrialists Charles and David Koch, said in an email. The organization has led the effort to overturn the mandate in Kansas, which requires that 20% of the state’s electricity come from renewable sources.

There are, technically speaking, some colorable objections to the way net metering (or feed-in tariffs, a similar concept) operate. Sometimes the incentive schemes go awry, and sometimes the pricing goes awry. It’s reasonable to insist that these programs be evaluated regularly and rigorously, and modified where necessary. Mandates need to be designed properly too, though in practice they tend to have fewer problems since they allow a lot of flexibility in implementation.

But does anyone think this is what’s going on here? A calm, technocratic effort to make sure these programs work better? Of course not. We’ve now entered an era in which affinity politics has gotten so toxic that even motherhood and apple pie are fair targets if it turns out that liberals happen to like apple pie. There are dozens of good reasons that we should be building out solar as fast as we possibly can—plummeting prices, overdependence on foreign oil, poisonous petrostate politics, clean air—but yes, global warming is one of those reasons too. And since global warming has now entered the conservative pantheon of conspiratorial hoaxes designed to allow liberals to quietly enslave the economy, it means that conservatives are instinctively opposed to anything even vaguely related to stopping it. As a result, fracking has become practically the holy grail of conservative energy policy, while solar, which improves by leaps and bounds every year, is a sign of decay and creeping socialism.

Does it help that the Koch brothers happen to be oil barons who don’t want to see the oil industry lose any of the massive government support it’s gotten for decades? It sure doesn’t hurt, does it?

If there’s anything that liberals and conservatives ought to be able to agree on, it’s the benefit of renewable power. It’s as close to a no-brainer as you can get. But President Obama made green programs part of his stimulus package, and that was that. When tea-party hysteria took over the conservative movement, renewable energy became one of its pariahs. Griping about Solyndra is ancient history. Today’s conservatives oppose renewable energy for the same reason they’ve gone nuts over Benghazi and the IRS and Syrian rebels: to show solidarity to the cause. Welcome to modern American politics.

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The Right Wing Trains Its Hysterical Eye on Renewable Energy

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Watch Hillary Clinton Tell an Undocumented 19-Year-Old Why She Supports Immigration Reform

Mother Jones

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A 19-year-old undocumented immigrant confronted Hillary Clinton, the former secretary of state and not-quite-presidential candidate, about immigration reform at an event hosted by the Clinton Foundation Thursday.

An hour into the panel discussion, which featured Clinton and her daughter, Chelsea Clinton, the moderator, actress America Ferrera, called on a young woman at the front of the room to ask a question. “I have a very different glass ceiling than some of the girls here,” the 19-year-old woman explained, fighting back tears. “For the first time publicly I want to say that I am an undocumented immigrant.” She went on to explain that her family had illegally brought her to the US from Croatia when she was five-years-old. “It’s been very hard,” she continued, “because I don’t have the documentation to get a job, to vote—which is essential obviously to women representation—to buy an apartment, to take out a loan to go to college, so I couldn’t even go to my dream college because of that, to get no financial aid.”

Clinton immediately sympathized. “I believe strongly that we are missing a great opportunity by not welcoming people like you,” she said, “and 11 million others who have made contributions to our country, into a legal status.”

You can watch the exchange here, beginning at the hour and 20-minute mark.

Clinton continued, saying that she favors “immigration reform and a path to citizenship.” The former secretary of state shied away from offering an opinion on how exactly she thinks the government should offer citizenship to those residing in the country without documents, but she endorsed the reform bill that the Senate passed last year. Without naming the party, she called out the Republican leaders of the House of Representatives and said that they should allow a vote on the bill. “I think that’s a big missed opportunity for our country,” Clinton said, “because part of the reason we’re going to do really well in the 21st century is because we are a nation of immigrants. We keep attracting people like you and your family who want to make a contribution. It’s not only because we want to make life better for people like yourselves who is already here, it’s good for us.”

The Clintons were speaking at an event for the family foundation’s No Ceilings: The Full Participation Project, which focuses on advancing women’s rights worldwide. The younger Clinton made news herself at the event by announcing that she is pregnant.

Clinton supported the failed bipartisan efforts to reform the immigration system during George W Bush’s second term. The Senate’s latest stab at fixing the system is more modest than the Bush-era proposal.

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Watch Hillary Clinton Tell an Undocumented 19-Year-Old Why She Supports Immigration Reform

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The Good News on Obamacare Just Keeps Rolling In

Mother Jones

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The open enrollment period for Obamacare is finally (almost) over, and today the White House announced the final figures for signups via the exchanges:

8 million people signed up for private insurance in the Health Insurance Marketplace. For states that have Federally-Facilitated Marketplaces, 35 percent of those who signed up are under 35 years old, and 28 percent are between 18 and 34 years old, virtually the same youth percentage that signed up in Massachusetts in its first year of health reform.

That’s a little better than I expected. I was figuring the final number would be around 7.7 million or so. We Americans sure do like to procrastinate, don’t we?

Anyway, once some of these new enrollees drop out for not paying their premiums, the final number will be around 7 million, which matches the CBO’s original estimate—the one they made before the website debacle. That’s pretty amazing. It suggests that either the CBO was overly pessimistic or else that the website problems really didn’t have any effect at all. I suppose the latter is plausible if you assume that hardly anyone was ever going to sign up in the first couple of months anyway.

And the 28 percent number for young enrollees is pretty good too. It’s below the administration’s goal, but Jon Cohn points out that what really matters is whether it matches what insurance companies expected:

The worry has always been that older and sicker people would sign up in unusually high numbers, forcing insurers to raise their prices next year and beyond.

But insurance companies didn’t expect young people to sign up in proportion to their numbers in the population. They knew participation would be a bit lower and they set premiums accordingly. Only company officials know exactly what they were projecting—that’s proprietary information—but one good metric is the signup rate in Massachusetts, in 2007, when that state had open enrollment for its version of the same reforms. According to information provided by Jonathan Gruber, the MIT economist and reform architect, 28.3 percent of Massachusetts enrollees were ages 19 to 34, a comparable age group.

So what were insurance companies expecting? As Cohn says, we don’t know for sure, but there’s good reason to think that it was around 28 percent. First, there’s the Massachusetts precedent. And second, we learned yesterday that insurance companies are now expected to raise premiums a modest 7 percent next year. This suggests that that the age and health profile of exchange enrollees is pretty close to their projections.

All in all, another day of pretty good news for Obamacare.

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The Good News on Obamacare Just Keeps Rolling In

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WATCH: GOP Lawmaker Compares Getting Abortion to Buying a Car and Picking Carpeting

Mother Jones

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A bill is making its way through the Missouri House of Representatives that would require women seeking abortions to undergo mandatory ultrasounds and increase the waiting period for an abortion from 24 to 72 hours—measures that are necessary, in the words of the bill’s sponsor, because women should have as much information about pregnancy as he seeks out when he’s shopping for a car or picking out carpeting for his house.

Republican Rep. Chuck Gatschenberger made the comparison between cars and pregnancy while taking questions on the bill before the Committee on Children, Families, and Persons with Disabilities. In his remarks, captured on video, Gatschenberger noted that he has many sisters and daughters who put ultrasound images of their children on the fridge. An off-camera committee member then asked him, “Do you not trust your sisters to make their decisions for themselves?”

Gatschenberger replied:

“Well, yesterday, I went over to the car lot over here. I was just going to get a key made for a vehicle. And I was looking around because I’m considering maybe buying a new vehicle. Even when I buy a new vehicle—this is my experience, again—I don’t go right in there and say I want to buy that vehicle, and then, you know, you leave with it. I have to look at it, get information about it, maybe drive it, you know, a lot of different things. Check prices. There’s lots of things that I do, putting into a decision. Whether that’s a car, whether that’s a house, whether that’s any major decision that I put in my life. Even carpeting. You know, I was just considering getting some carpeting or wood in my house. And that process probably took, you know, a month, because of just seeing all the aspects of it.”

In a later exchange between Gatschenberger and Rep. Stacey Newman, a Democrat on the committee, Newman called his remarks “offensive to every woman in this room.” Gatschenberger replied to her that he wasn’t comparing reproductive health decisions to buying a car—and then went on to compare reproductive health decisions to buying a car.

Here’s part of the exchange:

Newman: Your original premise, that a woman who is receiving any type of care with her pregnancy, regardless of what decisions are involved, is somehow similar to purchasing a key for an automobile—

Gatschenberger: If you were listening to my explanation, it had nothing to do with that…In making a decision—not making a life-changing decision—but making a decision to buy a car, I put research in there to find out what to do.

Newman: Do you believe that buying a car is in any way related to any type of pregnancy decision?

Gatschenberger: Did I say that?

Newman: That’s what I’m asking you.

Gatschenberger: I did not say that. I’m saying my decision to accomplish something is, I get the input in it. And that’s what this bill does, is give more information for people.

Newman: So you’re assuming that women who are under care…for their pregnancy, need additional information that they’re not already receiving?

Gatschenberger: I’m just saying they have the opportunity, it increases the opportunity. If you want to know what this bill does, it increases the opportunity.

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WATCH: GOP Lawmaker Compares Getting Abortion to Buying a Car and Picking Carpeting

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Vermont expands solar net metering, gives finger to ALEC

Vermont expands solar net metering, gives finger to ALEC

Tim Patterson

Bad news for the polluter-funded American Legislative Exchange Council, but wonderful news for the planet.

In 2012 and 2013, ALEC tried to roll back states’ renewable energy standards, and failed. Now it’s trying to roll back solar net-metering programs, which let homeowners sell electricity from their rooftop panels into the grid, and that campaign isn’t going so well either.

Case in point: In Vermont, Gov. Peter Shumlin (D) just signed a bill that will expand the state’s net-metering program, allowing solar panel owners to sell more of their clean electricity into the grid.

The bill will nearly quadruple the size of a cap on the amount of solar power that utilities must be willing to buy from their customers. It also creates pilot projects that could allow for solar projects as large as 5 megawatts to be built under the scheme. The AP reports:

Alternative energy proponents pushed for the increased cap after some Vermont utilities had reached the 4 percent cap and stopped taking new net-metered power.

“Our success exceeded our wildest dreams,” Shumlin said before signing the bill into law, noting that since he took office in 2011 the state had quadrupled the amount of solar energy on the state’s electric grid.

Vermont’s increased use of alternative energy has helped the state to become the nation’s per-capita leader in the number of solar energy jobs.

The new law is being lauded by renewable energy advocates. “Thousands of Vermonters have already gone solar, and this law will allow thousands more, of all walks of life, to be part of building a clean energy legacy for our state,” the Vermont Public Interest Research Group said in a statement. “While we have more work to do, this law is a good next step.”

Meanwhile, the solar industry recently helped defeat ALEC-championed efforts in Washington and Utah to wind back the net-metering programs in those states. And we told you in November about a similar success in Arizona.

“In state after state, overwhelming public support for rooftop solar continues to trump multi-million dollar attacks from utilities … and ALEC,” an exec with solar company Sunrun told CleanTechnica.


Source
New Vermont law expands use of renewable energy by encouraging small power projects, AP
Solar Industry Defeats ALEC Net Metering Attacks In Utah & Washington, CleanTechnica

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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EPA gives BP a big “welcome back” kiss

EPA gives BP a big “welcome back” kiss

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Congratulations and best wishes are in order for BP. The federal government has decided that the Gulf-wrecking corporation was rehabilitated during less than 16 months in the reformatory and is now ready to be released back into American society.

Of course, corporations can’t be jailed, so BP’s punishment for its “lack of integrity” in allowing the Deepwater Horizon explosion and oil spill was a multibillion-dollar fine and a ban on winning any new federal contracts, both imposed in late 2012.

On Thursday, following months of legal pressure from BP, the EPA lifted the ban. Reuters has the details:

The Environmental Protection Agency and BP said they reached an agreement ending the prohibition on bidding for federal contracts on everything from fuel supply contracts to offshore leases after the company committed to a set of safety, ethical and corporate governance requirements.

Shares of BP traded in the United States rose about 1 percent to $48.09 after the close of regular trading on the New York Stock Exchange, a sign investors were hopeful the company could now try to grow its U.S. offshore operations.

Some conditions were imposed on the company’s parole, as The Washington Post explains:

The five-year agreement announced Thursday requires BP to retain an independent auditor approved by the EPA who will conduct an annual review of BP’s compliance with a set of safety, ethics and corporate governance guidelines. The EPA said the agreement gives it the authority to “take appropriate corrective action in the event the agreement is breached.”

Not everybody is as eager as the EPA to see BP let loose on American taxpayers again.

“[T]he federal government’s decision that BP has somehow paid its debt and should once again be eligible for federal contracts is a disgrace,” blogged Rena Steinzor, president of the Center for Progressive Reform, reflecting widespread anger amongst environmentalists over Thursday’s announcement. “Not only does it let BP off the hook, it sends an unmistakable signal to the rest of the energy industry: That no matter how much harm you do, no matter how horrid your safety record, the feds will cut you some slack.”


Source
U.S. lifts ban blocking BP from new government contracts, Reuters
EPA Declares BP a ‘Responsible Contractor’ Makes It Eligible Again for Federal Contracts in the Gulf, Center for Progressive Reform
BP regains ability to bid on leases for U.S. land, water, The Washington Post

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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The Financial Industry Doesn’t Want You To Know About Its Lack of Diversity

Mother Jones

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It’s not unusual for the banking industry to challenge a new government rule. Ever since Congress passed the Dodd-Frank Act in 2010, the banks have sent forth their army of lobbyists any time federal regulators try to enforce a new restriction, often resorting to the courts if they don’t get their way. But their latest objection is particularly galling: they don’t want the government or public to know about the diversity—or lack thereof—within their industry.

When Congress went about reforming the banking industry in 2010, Democrats made a specific point to encourage the financial industry to diversify its workforce. It has long needed a fix. The financial trade is controlled by old, rich white dudes, a cohort that doesn’t accurately reflect the country’s shifting demographics. The problem only gets worse when you look higher up the chain of command. Overall management in the financial services industry is 81 percent white as of 2011. African-Americans only account for 2.7 percent of senior-level staff in the financial industry, while women hold just 28.4 percent of upper management jobs.

Dodd-Frank, the Democrats’ bill to reform Wall Street following the crash, included a provision that creates Offices of Minority and Women Inclusion in each branch of the federal regulatory regime, such as the Department of Treasury and the Securities and Exchange Commission. (The provision doesn’t touch sexual orientation.) These new offices are tasked with boosting diversity within their own ranks and analyzing hiring practices of the businesses in their purview. Late last year, regulators from six of these offices wrote a rule, still in the proposal stage, to enforce the second half of that mandate. It’s a modest measure—a simple request that the banks conduct self-assessments based on a few best-practice guidelines, but it was enough to rile up the banks.

Complaint letters sent from the main lobbying arms of the financial industry to regulators show a concerted effort to avoid changing their hiring practices and to dissuade regulators from revealing the lack of diversity in the banking sector. “In an otherwise good-faith effort to utilize the joint standards and meet certain standards or metrics relating to ‘diversity,’” the Chamber of Commerce wrote in its letter, “regulated entities may inadvertently run afoul of federal workplace requirements by, for example, engaging in ‘reverse’ discrimination.” Smaller regional banks shared those concerns. The Missouri Bankers Association likened the agencies’ proposal to a “government mandated affirmative action program.”

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The Financial Industry Doesn’t Want You To Know About Its Lack of Diversity

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The Latest Obamacare Extension Won’t Have Much of an Impact

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Adrianna McIntyre agrees that the optics and legality of allowing consumers to extend old health care policies is dodgy. However, she also thinks that its practical impact is pretty slight:

Senior officials reported that some 1.5 million people might be eligible for the latest administrative tweak to the Affordable Care Act, an extension of the “like it/keep it” fix that would permit individuals to maintain plans that don’t meet new coverage requirements through October 2017. The move has already been roundly criticized, but I’m inclined to believe the substantive policy impact will be small.

The thing about the individual market is that it’s volatile. The Kaiser Family Foundation found that about a third of those enrolled in nongroup plans exit within six months. Fewer than half remain after two years. This coverage is transitory for many, a bridge between employer-sponsored plans or other forms of insurance. Since the “fix” only applies to people maintaining these plans, the population eligible for the extension will dwindle over time.

There’s a fear that individuals who cling to old, less generous plans are healthier than those who already jumped to the exchanges. That might be true, but it also probably doesn’t matter much. CBO estimates that the exchange population will swell to 22 million by 2016 as people become more aware of coverage options and the penalty becomes more severe. The specter of adverse selection fades pretty fast when you set 1.5 million—a number that will erode over the life of the administrative fix—in that context.

Actually, according to research published in Health Affairs, only 17 percent of those with individual coverage keep it for more than 24 months. In other words, by the end of 2015, the number of people affected by this extension will be down to about 250,000 at most. That’s not enough to affect the overall operation of Obamacare very much, and it’s also a small enough number that pushback will be pretty slight by the time those remaining few folks are forced to switch to different plans. This is obviously what makes it politically attractive to the Obama administration.

Bottom line: it’s legally a little dodgy but practically of little consequence. Probably not something to get too worked up about.

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The Latest Obamacare Extension Won’t Have Much of an Impact

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University of Chicago Hires Notorious Goldman Sachs Fraudster to Teach Economics to Undergrads

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The lone individual found liable for committing fraud during the lead up to the financial crisis will soon be teaching undergrads the basics of economics at one of America’s most prestigious universities. Former Goldman Sachs banker Fabrice Tourre—better known by his self-assigned nickname, “Fabulous Fab”—is studying to get his Ph.D. in economics from University of Chicago. Per the Chicago Maroon, the school’s student newspaper, Tourre will teach a class this semester, offering honors students the opportunity to learn “Elements of Economics Analysis 3” from a man who owes over $1 million in fines to the Securities and Exchange Commission.

Tourre is a poster child for Wall Street malfeasance. While working at Goldman in 2007, he designed a financial product called Abacus 2007-AC1. This collection of mortgage-backed securities was designed to fail—hedge funder John Paulson had asked Goldman to sell a package of bad mortgages that he could then bet against. Thanks to Tourre and the foreclosure crisis, Paulson made a cool $1 billion. Fab and Paulson knew Abacus was a bum product from the get-go, but Tourre hide that information from investors. Goldman rewarded Tourre handsomely for the scheme: he was promoted and earned a reported $2 million.

After the crash, though, the deal came under scrutiny. Congress summoned Tourre and other Goldmanites for hearings to examine the causes of the crisis, and Fab drew widespread media attention when e-mails he sent to his girlfriend became public. The e-mails showed Tourre boasting about how he had hoodwinked investors. Here’s an excerpt:

When I think that I had some input into the creation of this product (which by the way is a product of pure intellectual masturbation, the type of thing which you invent telling yourself: “Well, what if we created a “thing”, which has no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price?”) it sickens the heart to see it shot down in mid-flight.

The emails raised the ire of the SEC, which sued Goldman and Tourre for fraud. The agency settled with Goldman for $550 million in the summer of 2010, but the deal didn’t include protection for Tourre. (Goldman has been covering his legal fees, though). Last year, a federal court found Tourre liable for six counts of civil securities fraud. The fines totaled $1 million, an amount he’s currently contesting. Although the ruling was a victory for people who wanted to see Wall Street pay for the financial crisis, it was a minor win—Tourre, who was 28 when he helped create Abacus, was only a mid-tier employee at Goldman.

Tourre did not respond to a request for comment Thursday afternoon. But last April he granted The Wall Street Journal a glimpse into his life as an average grad student. He was captain of an undefeated intramural soccer team, cheering his teammates own from crutches after an injury. He tutored fellow classmates. But the remnants of his former life of decadence linger. He lives in a high-rise apartment with a scenic view of Lake Michigan and a uniformed guard at the entrance.

The course guide for the class Tourre will be teaching describes it as “an introduction to macroeconomic theory and policy.” There’s no word on whether dreaming up crappy new financial products to sell to unwitting investors will be on the syllabus, too.

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University of Chicago Hires Notorious Goldman Sachs Fraudster to Teach Economics to Undergrads

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