Tuesday, November 13, 2012

Occupy Prop. 30 Passage

or somethin' like that:
Prop. 30 Funds Will Go To Wall Street

"Now these swaps have turned out to be losing bets. UC is taking huge losses because interest rates plummeted following the financial crisis of 2008 - allegedly in part because of illegal manipulation by the same banks that sold the swaps - and have stayed at record lows. Swap deals already have cost UC nearly $57 million, with $200 million more in losses anticipated. Of the $250 million UC expects to receive from Prop. 30, some $10 million a year will go to swaps payments unless the deals are ended.

In other words, the UC Regents forgot the first rule of casino gambling: The house always wins. Now the rest of us are paying the price."

Here is a direct link to the report Swapping Our Future (it runs about 11 pages) by the following authors:

Charlie Eaton is a Javits Fellow and a doctoral student in Sociology at UC Berkeley. His other research interests concern political institutions and economic inequality in the U.S.

Jacob Habinek is a PhD candidate in Sociology at UC Berkeley. He holds a Master’s in Sociology from the University of Wisconsin. His research interests include the development of the market for mortgage-backed securities.

Mukul Kumar is a doctoral student in City and Regional Planning at UC Berkeley. He holds an M.Phil from the University of Cambridge and his research interests are in political economy and public finance.

Tamera Lee Stover is a PhD candidate in Sociology at UC Berkeley and a Berkeley Empirical Legal Studies Graduate Fellow. Her other research interests include ethnic boundaries and immigrant attachments.

Alexander Roehrkasse is a doctoral student in sociology at the University of California, Berkeley. His current research focuses on the development of credit markets and inequality in the United States.

and Remaking the University has The UC Regents' Budget: The Trouble with the Prop 30 Norm:
"What we have had for years, and what we will continue to have with the Prop 30 track, is de facto privatization. It is privatization American style, will a hefty dose of public subsidy, but however much we don't like to say it, that is what it is.

This won't work, it sticks us with a new normal of assured mediocrity, its coping mechanisms will suppress new state investment, and it guarantees that students and faculty will gradually seek and find better venues than UC for that unique prerequisite to a non-plutocratic society that we call public higher ed. We now need to fight the Prop 30 norm as hard as we worked to install it. "

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