#digital armbreakers

[mostlysignssomeportents]

When you hear "fintech," think "unlicensed bank"

Tomorrow (May 2) I’ll be in Portland at the Cedar Hills Powell’s with Andy Baio for my new novel, Red Team Blues.

In theory, patents are for novel, useful inventions that aren’t obvious “to a skilled practitioner of the art.” But as computers ate our society, grifters began to receive patents for “doing something we’ve done for centuries…with a computer.” “With a computer”: those three words had the power to cloud patent examiners’ minds.

If you’d like an essay-formatted version of this post to read or share, here’s a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2023/05/01/usury/#tech-exceptionalism

Patent trolls — who secure “with a computer” patents and then extract ransoms from people doing normal things on threat of a lawsuit — are an underappreciated form of “tech exceptionalism.” Normally, “tech exceptionalism” refers to bros who wave away things like privacy invasions by arguing that “with a computer” makes it all different.

These tech exceptionalists are the legit face of tech exceptionalism, the Forbes 30 Under 30 set. They’re grifters, but they’re celebrated grifters. There’s a whole bottom-feeding sludge of tech exceptionalists that don’t get the same kind of attention, like patent trolls.

Oh, and the fintech industry.

As Riley Quinn says, “when you hear ‘fintech,’ think: ‘unlicensed bank.’” The majority of fintech “innovation” consists of adding “with a computer” to highly regulated activities and declaring them to be unregulated (and, in the case of crypto, unregulatable).

There are a lot of heavily regulated financial activities, like dealing in securities (something the crypto industry is definitely doing and claims it isn’t). Most people don’t buy or sell securities regularly — indeed, most Americans own little or no stocks.

But you know what regulated financial activity a lot of Americans participate in?

Going into debt.

As wages stagnate and the price of housing, medical care, childcare, transportation and education soar, Americans fund their consumption with debt. Trillions of dollars’ worth of debt. Many of us are privileged to borrow money by walking into a bank and asking for a loan, but millions of Americans are denied that genteel experience.

Instead, working Americans increasingly rely on payday lenders and other usurers who charge sky-high interest rates, on top of penalties and fees, trapping borrowers in an endless cycle of indebtedness. This is an historical sign of a civilization in decline: productive workers require loans to engage in useful activities. Normally, the activity pans out — the crop comes in, say — and the debt is repaid.

But eventually, you’ll get a bad beat. The crop fails, the workshop burns down, a pandemic shuts down production. Instead of paying off your debt, you have to roll it over. Now, you’re in an even worse situation, and the next time you catch a bad break, you go further into debt. Over time, all production comes under the control of creditors.

The historical answer to this is jubilee: a regular wiping-away of all debt. While this was often dressed up in moral language, there was an absolutely practical rationale for it. Without jubilee, eventually, all the farmers stop growing food so that they can grow ornamental flowers for their creditors’ tables. Then, as starvation sets in, civilization collapses:

https://pluralistic.net/2022/07/08/jubilant/#construire-des-passerelles

As the debt historian Michael Hudson says, “Debts that can’t be paid, won’t be paid.” Without jubilee, indebtedness becomes a chronic and inescapable condition. As more and more creditors attach their claims to debtors’ assets, they have to compete with one another to terrorize the debtor into paying them off, first. One creditor might threaten to garnish your paycheck. Another, to repossess your car. Another, to evict you from your home. Another, to break your arm. Debts that can’t be paid, won’t be paid — but when you have a choice between a broken arm and stealing from your kid’s college fund or the cash-register, maybe the debt can be paid…a little. Of course, digital tools offer all kinds of exciting new tools for arm-breakers — immobilizing your car, say, or deleting the apps on your phone, starting with the ones you use most often:

https://pluralistic.net/2021/04/02/innovation-unlocks-markets/#digital-arm-breakers

Under Trump, payday lenders romped through America. A lobbyist for the payday lenders became a top Trump lawyer:

https://theintercept.com/2017/11/27/white-house-memo-justifying-cfpb-takeover-was-written-by-payday-lender-attorney/

This lobbyist then oversaw Trump’s appointment of a Consumer Finance Protection Bureau boss who deregulated payday lenders, opening the door to triple digit interest rates:

https://www.latimes.com/business/lazarus/la-fi-lazarus-cfpb-payday-lenders-20180119-story.html

To justify this, the payday loan industry found corruptible academics and paid them to write papers defending payday loans as “inclusive.” These papers were secretly co-authored by payday loan industry lobbyists:

https://www.washingtonpost.com/business/2019/02/25/how-payday-lending-industry-insider-tilted-academic-research-its-favor/

Of course, Trump doesn’t read academic papers, so the payday lenders also moved their annual conference to a Trump resort, writing the President a check for $1m:

https://www.propublica.org/article/trump-inc-podcast-payday-lenders-spent-1-million-at-a-trump-resort-and-cashed-in

Biden plugged many of the cracks that Trump created in the firewalls that guard against predatory lenders. Most significantly, he moved Rohit Chopra from the FTC to the CFPB, where, as director, he has overseen a determined effort to rein in the sector. As the CFPB re-establishes regulation, the fintech industry has moved in to add “with a computer” to many regulated activities and so declare them beyond regulation.

One fintech “innovation” is the creation of a “direct to consumer Earned Wage Access” product. Earned Wage Access is just a fancy term for a program some employers offer whereby workers can get paid ahead of payday for the hours they’ve already worked. The direct-to-consumer EWA offers loans without verifying that the borrower has money coming in. Companies like Earnin claim that their faux EWA services are free, but in practice, everyone who uses the service pays for the “Lightning Speed” upsell.

Of course they do. Earnin charges sky-high interest rates and twists borrowers’ arms into leaving a “tip” for the service (yes, they expect you to tip your loan-shark!). Anyone desperate enough to pay triple-digit interest rates and tip the service for originating their loan is desperate and needs to the money now:

https://prospect.org/power/05-01-2023-fintech-ewa-payday-loan-scam/

EWA annual interest rates sit around 300%. The average EWA borrower uses the service two or three times every month. EWA CEOs and lobbyists claim that they’re banking the unbanked — but the reality is that they’re acting as sticky-fingered brokers between banks and young, poor workers, marking up traditional bank services.

This fact is rarely mentioned when EWA companies lobby state legislatures seeking to be exempted from usury rules that are supposed to curb predatory lenders. In Vermont, Earnin wants an exemption from the state’s 18% interest rate cap — remember, the true APR for EWA loans is about 300%.

In Texas, payday lenders are classed as loan brokers, not loan originators and are thus able to avoid the state’s usury caps. EWAs are lobbying the Texas legislature for further exemptions from state money-transmitter and usury limit laws, principally on the strength of the “it’s different: we do it with a computer” logic.

But as Jarod Facundo writes for The American Prospect, quoting Monica Burks from the Center for Responsible Lending, a loan is a loan even if it’s with a computer: “The industry is trying to create a new definition for what a loan is in order to exempt themselves from existing consumer protection laws… When you offer someone a portion of money on the promise that they will repay it, and often that repayment will be accompanied with fees or charges or interest, that’s what a loan is.”

Catch me on tour with Red Team Blues in Mountain View, Berkeley, Portland, Vancouver, Calgary, Toronto, DC, Gaithersburg, Oxford, Hay, Manchester, Nottingham, London, and Berlin!

[Image ID: A stately, columnated bank building, bedecked in garish payday lender signs.]

Image: Andre Carrotflower (modified) https://commons.wikimedia.org/wiki/File:30_North_%28former_Pontiac_Commercial_%26_Savings_Bank_Building%29,_Pontiac,_Michigan_-_entrance_and_Chief_Pontiac_relief_sculpture_-_20201213.jpg

CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0/deed.en

[danwhobrowses]

NXT Takeover: Stand and Deliver Day 1 - Review

It is Wrestlemania Week, and every company wants their shot

but alas, I can only do so much, so we’re gonna be sticking with Mania and Stand & Deliver for now. I do also have some other WWE post-mania stuff planned which I’ll also do for AEW Double or Nothing in May

but in spite of Dynamite still doing a decent ‘not gonna try to top it’ show, the night belongs to NXT so let’s get into it

Spoilers for Stand & Deliver Day 1, you have been warned

Pre Show I had to add this in because Sam Roberts really laid in thick the bravado, NXT is great but chill man. Seeing Io and Raquel enter the building was a good touch though. The Samoa Joe interviews were good too but damn I miss this man in the ring, it kinda threw me how well-spoken WALTER is, he’s kinda giving me the same vibe as Daniel Bruhl’s Zemo currently is in Falcon & The Winter Soldier, also interviewing Io proves that if the company’s hot on you promo game isn’t necessary to be a great champion, also Io has put Rey over more than the main roster has in the last 3 years. The shoehorned Prince Harry comment was not needed that’s not gonna get a pop but mercifully we moved on to other interviews, LA Knight still does a great promo and hearing that Mickie James will be on commentary for the pre-show match was interesting.

Zoey Stark def. Toni Storm (Pinfall via Inside Cradle) Zoey Stark has been making quite some noise since her NXT Debut, similar to Utami Hayashishita’s start in Stardom and Leyla Hirsch in AEW it was mainly revolving around Zoey getting over even in defeat to big names. She started fairly even with Toni Storm with some solid chain wrestling, Toni was able to keep Stark grounded with submissions, which worked well for Zoey to feed off the babyface comeback, landing a big superplex. A flurry of an exploder and running knee hit two but then Toni came back with an electric chair facebuster, Toni tried Storm Zero but failed, so went for the Germans, tried the Storm Zero again but Stark counters it into a cradle for 3. It was a decent pre-show match, Stark gets a rub from winning but I get the feeling the rub should be bigger, Toni Storm is still good but her stock has dropped since her heel turn designed merely to lose to Io, the match finished a bit abruptly too.

Main Card Nita Strauss then guitars the anthem, ‘Merica and stuff on a PPV themed around Pirate and Highwayman motifs, as well as an Adam Ant song. The Skull is awesome though.

Pete Dunne def. KUSHIDA (Pinfall via Bitter End) Technical masterclass would of course be an understatement for this match. A minute in it was quickfire joint manipulation and reversals. Dunne took the early advantage after catching KUSHIDA and landing an X-Plex onto the apron, the injured arm didn’t slow KUSHIDA too much who did the handspring elbow and the Muta pele kick on the ramp. Dunne tried for the Kimura and the Bitter End but KUSHIDA escaped twice over, the latter catching a Back to the Future (small package driver). Dunne resumed control though in handling the arm, it might just be me but the audio was cutting out at this point. Cross Armbreakers traded and escaped as the arm began to slowly come into play, but KUSHIDA started handling Dunne’s arm too, a Top Turnbuckle Hoverboard Lock Spanish Fly also led to an armbreaker escaped by the ropes, another Hoverboard lock almost led to a pin. Dunne manipulates the digits of the other hand, which hurts KUSHIDA’s punch attempt, stomps on both hands twice over and then a Bitter End finishes the night.

That did not feel like 10 minutes, it was a great and well-paced match, wish it went longer. I anticipated that Dunne would win but one has to worry for KUSHIDA, even on his best WWE run he’s not able to win a feud, he didn’t leave NJPW for that.

Bronson Reed wins the Eliminator Gauntlet (Pinfall via Tsunami Splash on Isaiah ‘Swerve’ Scott) At first I thought Leon Ruff had botched his entrance until Swerve showed up, looking far different to the Killshot of Lucha Underground. Before the bell rang Ruff got hit into the barricade a lot and then an ad!? Dude, come on, the bell rings and they’re outside the ring again... Of course, it’s hard to start a pace for a Gauntlet, Ruff hit a lovely twisting Cutter as commentary ignored how his NA Title win was mainly a segue in the Gargano/Priest feud, a super frankensteiner was the big move before the next man came in: Bronson Reed. Ruff’s dive is caught and thrown back in the ring, Swerve planted with a combo suplex/crossbody before Ruff foolishly tried to attack Reed again, getting sat on a few times before Reed german’d Ruff and Swerve at the same time. Grimes came in next, delaying his entrance to distract Reed and land a moonsault, he bribes Swerve for a partnership which works for a decent while, Ruff got a big ouch suplex on the turnbuckle pads after some very slippery escapes. The arrival of Dexter Lumis involved super creepy eyes inside the Skull model but we missed most of Swerve finishing off Ruff. Lumis cleaned house until Reed recovered from the ramp DDT, Lumis even lifting Reed on the second time of asking before another big ouch ring-out with Grimes. LA Knight was last, his diss promos not as good as his earlier promo as Reed cut him off short and cleaned up house himself. Knight does get a good spur including a quickfire superplex but pauses when Lumis shows up, Grimes’ cheap shot misses and the Silence is locked in, but Knight rolls him for 3. Bit deflating that really, Lumis was the only one with story against Gargano and he kinda got chump pinned because he didn’t wanna release his finisher. Knight fell quickly after though, Grimes and Reed teaming up to end him, Lumis then locking the Silence onto him - probably setting up a feud there.

The final three ended all chance of alliances, Reed comically flattening both men when after a delayed fall from a superkick. Grimes and Swerve both try a handful of tights to pin each other, but Swerve’s one pays off. Swerve also powerslams Reed onto the apron and then hits a 450 for 2, two House Calls don’t drop Reed, a third gets 2, but a slap wakes Reed up. Powerbomb, Beach Break (idk the technical name) and Tsunami Splash for 3.

Liked the match, Reed is a worthy winner but I just wish they dealt with Lumis and Grimes better, Gargano came out the ramp to stare down his opponent and we moved on to the next.

NXT UK Championship: WALTER (c) def. Tomasso Ciampa (Pinfall via Knife Edged Chop) Reminder that the UK title is WWE’s best looking active belt because good god it’s glorious.Ciampa stayed on the turnbuckle to stare down WALTER, completely unafraid of the mountain he faces. They lock up but WALTER uses his muscle, looking for those monster chops, one on the turnbuckle preludes a messy drop for Ciampa, Walter’s hand is injured though by the chop of the announce table gimmick breaking, Ciampa works on it but the champion’s big boot earns a reprieve, his submission attempts are futile with the injured hand though so he applies his power and weight to keep on top. A flurry of lariats finally chops WALTER down for an Air Raid Crash, but it’s only for a 2. WALTER northern lights reversal’s a Fairytale Ending for 2 but could not escape the second, still a 2 count though. WALTER’s submission attempts neutralized by the fingers again as Ciampa continues to lay into WALTER’s hands and head, an Avalanche Air Raid Crash then hits for 2 as well, Ciampa at a loss for what he can do, opting to throw his own blistering chops, WALTER gets nasty with a neck twist and two powerbombs but it’s 2 again, Sleeper Exploder and one massive chop gets the 3.

I had heard great things from this match, and it was very well done narratively and physically, but a chop as the finish? Dunno, Ciampa had already taken chops, 2 powerbombs in succession and yet what ends it is a chop from an injured hand? Feel like it could’ve ended more emphatically.

No Thatcher present either, instead we get a Franky Monet (Taya Valkyrie) promo and a Reed/Gargano backstage argument.

NXT Tag Championship: MSK def. Grizzled Young Veterans & Legando del Fantasma (Pinfall by Wes Lee on Zack Gibson via combo Spinebuster/Spinning Blockbuster) Another ad break during LDF’s entrance was disrespectful, the mask was awesome though. Gibson likely not in the best of moods with Liverpool’s 3-1 defeat to Real Madrid in the Champion’s League first leg but he still flies the colors. LDF control the match at the start with tag offence, Gibson going for MSK off the bat until LDF get in the way. Drake and Carter get some time in the ring but Lee remains on the apron awaiting the hot tag, after a dive LDF comes back to do a dual dive themselves, double Coast to Coast on Carter is broken by Gibson who gets dumped out by the duo and another commercial break (wtf come on!). LDF were getting some great combo moves and rotating in quick tags as Carter continues to be the feeder, Drake almost catches Wilde with a roll up though and Lee gets another hot tag, first clear the ring, then out the ring to Gibson, then to LDF, somersault Pele Kick, combo move for 2. Gibson and Drake almost catch Carter with a Doomsday Device on the outside but Lee nails Drake with a knee, GYV neutralize Lee by hurting the hand as well, Carter holding Lee’s hand to prevent a tap as LDF come back in. They clear the ring, hit the combo move but it’s 2! GYV and MSK take out LDF leaving the two left to fight, a double cutter by Carter takes Drake out of the ring, leading to MSK finishing Gibson with a twisted blockbuster/spinebuster combo. Very much earned for the new champions, exciting match, LDF got a lot of shine too I hope they win the titles later down the line.

NXT Women’s Championship: Raquel Gonzalez def. Io Shirai (c) (pinfall via One-Arm Powerbomb TITLE CHANGE) If Raquel Gonzalez doesn’t win rookie of the year for 2021 it’ll be a travesty, her current run has been built amazingly. Before we started though we see Steph in the crowd with Sarray (Sendai Girls and SEADLINNG’s Sareee). The tunnel cam of the two competitors and the names on the LEDs sold the huge Main Event feel of this match. Side note though, while NXT does tout the most stacked Women’s Division out of the major wrestling companies they shouldn’t peacock themselves, most of their talent are ready made acquisitions with a few like Ripley, Belair and Gonzalez who gritted to the top, just because your division is stacked doesn’t mean that there aren’t cracks, and let’s not forget that ROH barely has a women’s division and NJPW doesn’t have a division at all, if we’re comparing the actual competition Stardom still gives WWE a run for their money having made their stars in Natsupoi, Guilia, Utami, Konami, AZM, Tam Nakano and others.

The match kicks off with a flurry, picking up where they left off last NXT of Gonzalez just boomeranging Io with her size and strength and Io flying back with vigor and athleticism. The champion takes control with a dive out the ring but Dakota rakes her eyes, leading to Dakota being kicked out of ringside immediately. Io hits the apron moonsault but Gonzalez lawn darts her into the ring post, a lovely Dominator-esque move with extra flip brings the advantage fully in the hands of the challenger. Io uses her flexibility to frustrate Raquel and hits a picture perfect hurricanrana, misses the 619 but arm drags into another 619, Yoshi Tonic for 2, tries for the Moonsault but Raquel sets up the One Arm Powerbomb, Io wriggles it into a crossface which is ended by a rope break, Moonsault on the ramp and then a running meteora leads to Io doing the ‘jump off the NXT arena prop), after slowly rolling Raquel into the ring it’s the Moonsault, but it only gets 2! Raquel flattens Io with the One Arm Powerbomb outside of the ring, rolls Io in with some trash talk, Shotei is responded with a Lariat, One Arm Powerbomb and that’s 3!

That was a solid main event, recurring problem though: it was too short! That match went under 15 minutes and while it was jam packed with high spots and power moves we could’ve had more time with Raquel’s crowning moment. I feel like Io could’ve resisted more offence seeing as her Skull crossbody and Moonsault should even out Raquel’s two One Arm Powerbombs. Also they overdid the smoke on her celebration we could barely see her. That being said, this was definitely a worthy usurper to Shirai, Gonzalez at the top of the division will be an interesting new landscape after a year of Shirai as champion. She’s had a good run, I do wish it didn’t involve the Charlotte skulfuckery at the start but she has done well to keep on top of the division during the COVID era and she’s done a good job in making sure the next champion is over.

Conclusion Good wrestling is all you need, and NXT Stand and Deliver stood and delivered strongly on Night 1, there is of course room to top it but that may be the intention. Do wish that some matches went longer but I’m not mad at all with who won, so once more a job well done as NXT end their Wednesday Night Campaign on a high.