[Plura-list] Student loans are dischargeable; Cracking the Ghislaine Maxwell redactions; Bring back the CCC; Foxconn out-trumped Trump

[Cory Doctorow]

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This weekend's events:

Milehicon (Fri/Sat/Sun): https://milehicon.org/

Litquake with Richard Kadrey (Fri):
https://www.eventbrite.com/e/fantasy-and-dystopia-cory-doctorow-with-richard-kadrey-registration-116950677625

Toronto International Festival of Authors (Sat):
https://festivalofauthors.ca/event/maureen-webb-coding-democracy/


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Today's links

* Student loans are dischargeable: Billions in debt can be flushed away.

* Cracking the Ghislaine Maxwell redactions: An interesting variation on
an old theme.

* Bring back the CCC: Towards a Job Guarantee.

* Foxconn out-trumped Trump: And Wisconsin paid the price.

* This day in history: 2005, 2015, 2019

* Colophon: Recent publications, upcoming appearances, current writing
projects, current reading

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🌴 Student loans are dischargeable

Not only are Americans drowning in student loans they have no hope of
repaying, but it's commonly understood that student debt can't be
discharged in bankruptcy. 1 in 4 bankruptcies involves student debt, and
that debt is almost never discharged.

A generation's worth of tacit conspiracies between higher-learning
institutions, lenders, and educational advisors has saddled millions of
Americans with crushing, punitive debt, subjected to outrageous interest
rates and penalties.

These people took out loans when they were children in hopes of
attaining a middle-class life through education. They got the education,
but are mired in spiralling poverty thanks to the debt they took on to
get it.

Meanwhile, that debt has been spun into a form of toxic Wall Street
asset, the "student loan asset-backed security" (SLAB), which
securitizes the payment streams from immiserated people whose student
debts will chase them into the grave.

What if it's all a con, though? What if the law that prevents student
debt from being discharged in bankruptcy had been systematically
misinterpreted? What if all that debt could just be erased through
bankruptcies that are not nearly so awful as the debts they'd clear?

That'd be wild, huh?

Earlier this month, Above the Law ran a long, fascinating feature by Ian
Frisch, telling the story of Austin Smith, a lawyer who happened upon a
long-buried legal secret while working on a law review article
assignment for law-school in 2014.

https://abovethelaw.com/2020/10/how-the-bankruptcy-code-protects-lenders-and-harms-student-debtors-and-what-one-lawyer-is-doing-about-it/

Smith discovered that most student debt *could* be discharged in
bankruptcy, that the "educational benefit" clause of the 1990 bankruptcy
act *clearly* didn't mean what the courts and the legal profession had
taken it to mean. It was right there, in the Congressional Record.

Government student loans couldn't be readily discharged, but the $150b
in private student loans, a form of subprime debt dominated by an
obscure institution called The National Collegiate Student Loan Trust
(no employees, office, or website!) could be.

After law school, Smith got a job at an NYC white-shoe firm and
convinced the partners to let him test his theory: he sued Citibank on
behalf of a student debtor...and won. It was his first time in court, he
didn't even know where to stand, but the case was crystal clear.

His bosses thought the win was cute, but they were in the business of
representing banks, not suing them. Smith quit and started his own firm,
and racked up 50 individual victories in four years, totalling millions.

Starting in 2016, Smith forged alliances with other lawyers to begin
mass-scale class action cases against banks holding student debt.

These cases cover 500k borrowers and $3b in debt, and  have three demands:

I. All outstanding debt is wiped away, you never call these people and
ask for this money again

II. Give back all the money you have collected since the date of these
people’s initial bankruptcies

III. Pay punitive damages for your illegal conduct

He's particularly interested in the NCSLT, that shadowy LLC with no
employees or offices, that oversees $12b in debt that it neither
originated, issued or serviced.

NCSLT is a front for Massachusetts's First Marblehead, a bank so tiny it
lacks a federal charter.

Without a charter, First Marblehead can't originate out-of-state loans,
so it created a rent-a-charter arrangement with PNC Bank, Jpmorganchase
and Wells Fargo, who originate 11% loans to the poorest, most desperate
children hoping for university educations.

First Marblehead buys the loans and pays finders' fees to the big banks.
It also works directly with universities, who act as loan originators to
desperate kids, knowing that First Marblehead will immediately buy those
loans and pay the university a commission.

First Marblehead acquired a nonprofit, The Education Resources
Institute, and laundered loans through that division, making the
"nonprofit loans" that, it believed, would be immune to discharge in
bankruptcy. The company went public in 2003 and shares jumped 250% in a
year.

First Marblehead uses NCSLT to turn these subprime loans into SLABS, and
the SLABS are unloaded onto investors by Goldman Sachs, Deutschebank,
Citibank, and UBS.

One set of giant banks originates the loans, another set buys them, and
in between sits First Marblehead and NCSLT, whose sole purpose is to
wrap them in a legal fiction that makes them eternal millstones around
borrowers necks, immune to bankruptcy.

This is why Smith's work is so important: when he shows that the law has
been incorrectly interpreted - as he has in so many cases before now -
the whole rotten system collapses and hundreds of thousands of Americans
will get justice.

And while NCSLT is the worst offender, it's not the only one. Smith's
also locked in legal battles with Navient (formerly Sally Mae) and many
other lenders.

Godspeed, Austin Smith, you slayer of debt!

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🌴 Cracking the Ghislaine Maxwell redactions

Since the earliest days of digital legal records, redaction failures
have been a source of perpetual mirth and chaos. The most common failure
is simply adding black boxes over text in PDFs; the text can be easily
recovered by selecting the underlying text and copying it.

I first encountered this in the early 2000s, and it was the stupid
mistake that no one ever learned from. Not the TSA in 2009:

https://cryptome.org/tsa-screening.zip

Not the DHS in 2016:

http://www.wired.com/2016/03/government-error-just-revealed-snowden-target-lavabit-case/

Nor Facebook's legal opponents in 2018:

https://arstechnica.com/tech-policy/2018/11/facebook-pondered-for-a-time-selling-access-to-user-data/

This 2011 study by Timothy B Lee for Public Resource reveals how
widespread the problem was a decade ago:

https://freedom-to-tinker.com/2011/05/25/studying-frequency-redaction-failures-pacer/

It's only gotten worse since. Better redaction systems - blurring and
pixelation - turn out be vulnerable to machine learning attacks that
unblur these elements:

http://arxiv.org/pdf/1609.00408v2.pdf

But this week revealed a new kind of redaction failure, in the
spectacular, high-profile case of Ghislaine Maxwell, the woman accused
of being the procurer for the child rapist Jeffrey Epstein.

https://slate.com/news-and-politics/2020/10/ghislaine-maxwell-deposition-redactions-epstein-how-to-crack.html

Maxwell was deposed on Epstein's crimes in 2016. Yesterday, a federal
court released a redacted transcript of her deposition, in which the
names of high profile individuals who've been accused of collaborating
with Epstein in sex-crimes were redacted.

https://www.miamiherald.com/news/state/florida/article246624308.html

Within a few hours, journalists at Slate had reversed many of these
redactions! Their secret weapon was the deposition's index, which was
also redacted, but which nevertheless served as a key for uncovering the
masked-out names.

For example: the journalists saw that a redacted word that fell
alphabetically between "client" and "clock" appeared on several pages.
They know that this is a name that starts with "Cl." But only *some*
instances of that name have been redacted.

On page 135, line 7, that name appears in the clear: "President
Clinton." Now we know that all the places in which that name is
redacted, it can be unmasked as "President Clinton."

A similar method revealed the places where Alan Dershowitz's name had
been blacked out: a word that comes between "Airport" and "Alcohol"
appears before a word that comes between "Depth" and "Describe" on
several pages.

The inference that the A-word is "Alan" and the D-word is "Dershowitz"
is validated through context.

A related technique reveals the blacked-out instances of Prince Andrew's
name.

All in all, the journalists de-redacted mentions of 15 people, from
Chelsea Clinton to Marvin Minsky to Kevin Spacey to Al Gore. Note that
their presence in this record is not proof of their direct complicity in
sex-crimes.

Epstein's method involved mixing legitimate business (particularly
scientific research) with child rape in ways that blended people who
suspected his crimes, knew of his crimes, and participated in his
crimes, all together in a jumble of varying complicity and knowledge.

I don't know if we'll ever know the full truth of the crimes committed
(and abetted) by wealthy, powerful people.

But this de-redaction attack is noteworthy irrespective of the Epstein
case. In some ways, it militates for a heavier hand in redaction,
blocking all instances of a term (even those that don't reveal sensitive
info) and/or redacting indexes.

As to the Maxwell deposition, the Slate journalists are seeking help in
reversing the remaining redactions in the document.

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🌴 Bring back the CCC

In 1933, FDR created the Civilian Conservation Corps, which went on to
employ 3m workers (5% of the US male workforce!) in projects whose
benefit we still feel today: road- and trail-building, tree-planting,
firefighting, infrastructure maintenance and more.

The CCC had serious flaws - notably a policy of racial and gender
discrimination - but for those who were lucky enough to qualify, it was
a transformative experience, an end to the years-long terror of economic
precarity and a chance to make a difference in the world.

Millions of working-class Americans were given a chance to see their
country and be immersed in the natural environment in a way that
mainstreamed the principles of conservation. The beautiful outdoor
spaces Americans enjoy today are the legacy of that program.

Today, about a quarter of the US workforce is unemployed; when you add
in the people who are underemployed, or whose employment is in through a
precarious, exploitative "gig economy" app that misclassifies them as
contractors, the number climbs even higher.

But America does not lack for work that needs doing. The nation's
crumbling infrastructure and public works need more than maintenance:
the needs remediation and hardening against the coming waves of climate
emergency.

Just in California, we need at least $1b worth of brush clearout and
controlled burns, ANNUALLY, for the next DECADE, to make up for a
century of forest mismanagement, terribly exacerbated by climate change.

https://pluralistic.net/2020/09/21/too-big-to-jail/#aflame

There's caring work, too, as people are traumatized by climate change
and its heralds: invasive species, pandemic, dislocations.

Long term, there's relocating every coastal city inland. We have full
employment for the next three centuries. At least.

https://locusmag.com/2020/07/cory-doctorow-full-employment/

The leading theorist of a modernized workforce to cope with climate
emergency is Pavlina Tcherneva, whose "The Case for a Job Guarantee"
makes the case that, beyond "programs" like CCC, we need to make
employment for those who want it into a legal right.

https://www.latimes.com/entertainment-arts/books/story/2020-06-24/forget-ubi-says-an-economist-its-time-for-universal-basic-jobs

The Sanders campaign endorsed the idea, as do progressive elements of
the Democratic Congressional caucus. But even though the party
establishment hasn't come around to a guarantee, they have come out for
a rebooted CCC, a Civilian Climate Corps.

https://www.wired.com/story/the-case-for-reviving-the-civilian-conservation-corps/

The new CCC is in the Biden platform, and versions of it have been
mooted by Sen Dick Durbin [D-IL] and Rep Marcy Kaptur [D-OH]. As
MattSimon points out in his Wired story, the CCC is an American
institution, something with a national history.

The American exceptionalism used to dismiss other commonsense measures
like universal health care ("Maybe it works in Sweden, but it won't work
here") can't be applied to CCC: it has worked here, and left behind a
beloved legacy.

The popularity of a new CCC is another sign that Reaganomics and its
emphasis on enriching the wealthy in the hopes of some trickledown for
the rest of us is on the way out.

 If the US government gives people good jobs that pay inclusive wages
and humane benefits, it will create massive demand for goods and
services from the private sector.

"A revived CCC could pour money into tackling a bevy of other
environmental problems, too. Revitalizing public green spaces, for
instance, benefits all Americans. We urgently need to better prepare our
coastlines for rising seas. Restoring wetlands and forests would pull
double duty, returning ecosystems to their former glory and creating
carbon sinks: Plant more trees and you can sequester more CO2 from the
atmosphere. Actually, in the case of wetlands, make that triple
duty—healthy wetlands work as flood control during hurricanes, absorbing
surges of water."

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🌴 Foxconn out-trumped Trump

In 2017, Donald Trump declared victory. Working with the far-right
Wisconsin governor Scott Walker, he had brokered a deal to bring
high-tech manufacturing jobs back to America, with a new, massive
Foxconn plant that would anchor the new Wisconn Valley.

Right away, there were three serious, obvious problems.

I. Foxconn are crooks. It's not just the Apple device factories where
they drive workers to suicide, it's a long history of promising to build
massive factories, absorbing billions in subsidies, and then bailing.

It's a con they'd already pulled in Indonesia, Vietnam, Brazil and in
Pennsylvania. The US heist happened only four years before the Wisconsin
deal (which offered $4b in subsidies!) was signed.

II. The plant made no sense. Foxconn promised that it would employ tens
of thousands of American workers building massive LCDs. The world did
not need massive LCDs. It had a glut of them. The price for cheap LCDs
built by low-waged workers in the Pacific Rim was tumbling.

III. There was already stuff where the plant was supposed to be built.
Notably, there were family homes, places that had been owned by
Wisconsinites for generations, real homesteads.

In order for Foxconn to build its nonsensical plant and receive $4b in
US public subsidies, these families would have to be expropriated and
their homes - their whole communities - literally bulldozed and dumped
into landfills.

The deal revealed - if there was any doubt - that Trump is a rube, a
sucker, a fool. Foxconn played him and played Walker and the state of
Wisconsin. They never planned to build an LCD plant. Indeed, they seem
never to have planned to build ANYTHING.

They wanted the free money as a subsidy for exploring what they might
build, and they knew that the best way to get Wisconsin and the USA to
subsidize this speculation was to tell risible lies about
multibillion-dollar LCD factories that credulous US leaders would swallow.

No news outlet has done more to chronicle the endless, absurd, idiotic
Foxconn grift than The Verge, and while many writers there have worked
on the story (like Bruce Murphy and James Vincent), Josh Dzieza has been
the most indefatigable chronicler of the Foxconn shitshow.

Now, after reporting out piece after piece on the Foxconn deal, Dzieza
has published a kind of master narrative that tells the whole story from
beginning to end, piecing it all together and augmenting it with new
insider dope:

https://www.theverge.com/21507966/foxconn-empty-factories-wisconsin-jobs-loophole-trump

Dzieza's masterpiece leaves no doubt that this was a titanic fraud, nor
that it was incompetently negotiated by Wisconsin's local and state
officials as well as the federal government.

Take the subsidies: to qualify for them, Foxconn had to meet various
hiring targets.

But those targets were easily gamed. So long as Foxconn had a certain
number of workers on the books in December, it could count them as
employed for the whole year, even if it laid them off in January.

Which, of course, it did. Indeed, the way Foxconn uses human lives as
conveniences not worthy of any consideration make it clear that the
suicides at its Apple factories are not isolated incidents (and also
constitute a stinging rebuke to Walker and Trump's union-bashing).

To prop up its sham, Foxconn sent recruiters out to hold high-pressure
job fairs where applicants were pressured to immediately accept job
offers and tender their resignations at their current employers.

Then they were strung along for months as they jobs they'd been promised
didn't materialized, and, for many, those jobs did not ever materialize.
Workers who DID get jobs hardly fared better, showered in racist abuse
about their inferiority to Asian workers.

They were asked to work in facilities without furniture, made to bring
in their own pencils *and networking equipment*, made to buy new
elevator carpets out of their own pockets to assuage the screaming rages
of their managers, given impossible duties or none at all.

At various stages, these workers were called in to brainstorm ideas for
building something, anything, in the facilities that Foxconn had been
given at firesale prices by the state of Wisconsin.

Some ideas:

* A fish-farm that could absorb the subsidized water they'd been
guaranteed for cooling the data-center they would never build

* An AI research lab

* A Wework clone

* A dairy exporter serving the Chinese market

* A federal tech contractor

None of this bore fruit. The only time Foxconn turned a nickel was when
they bought in-use office buildings with the intention of using them for
some harebrained scheme but lost interest before they could evict the
businesses tenanted there, and so earned some rent.

Foxconn eventually laid off the bulk of its US workforce and hired
Indian and Chinese tech-workers on H1B visas, whom it showered with even
more abuse, backstopped by threats of deportation if any of them dared
to complain.

All along, Foxconn just told stupid lies that Wisconsin's business
community gobbled up: Foxconn founder Terry Guo got fantastic praise for
his $100m donation to the U Wisconsin system. None of that praise was
revoked when he only delivered $700k of it.

The Foxconn deal is a black hole that has sucked Wisconsin's productive
economy through its event horizon. The company charged local businesses
thousands of dollars to get signed up as suppliers, then stiffed them on
their invoices.

And the towns - like Mt Pleasant - that destroyed their residents'
family homes to clear the way for Foxconn lost those taxpayers - and
never got the promised tax payments that a Foxconn facility was supposed
to deliver.

Here's Dzieza's masterful summary: "Trump promised to bring back
manufacturing... Into the gap between appearance and reality fell
people’s jobs, homes, and livelihoods."

Trump calls the Foxconn plant "The Eighth Wonder of the World."

In 2018, Wisconsin voters fired Scott Walker for being such a
plute-sucking rube.

In 2020, they have the chance to fire Trump.

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🌴 This day in history

#15yrsago Technorati indexes 20 millionth blog
https://epeus.blogspot.com/2005_10_01_epeus_archive.html#113014965252163836

#5yrsago DoJ to Apple: your software is licensed, not sold, so we can
force you to decrypt
https://ia801501.us.archive.org/27/items/gov.uscourts.nyed.376325/gov.uscourts.nyed.376325.15.0.pdf

#5yrsago Botnets running on CCTVs and NASs
https://www.imperva.com/blog/cctv-ddos-botnet-back-yard/

#5yrsago Astounding showpiece table full of hidden compartments nested
in hidden compartments https://ctfinefurniture.com/

#5yrsago Investing in David v Goliath: hundreds of millions slosh into
litigation finance funds
https://www.nytimes.com/2015/10/25/magazine/should-you-be-allowed-to-invest-in-a-lawsuit.html

#5yrsago Ta-Nehisi Coates’s “Between the World and Me” is the next book
you should read
https://memex.craphound.com/2015/10/23/ta-nehisi-coatess-between-the-world-and-me-is-the-next-book-you-should-read/

#5yrsago Antioxidants protect cancer cells, help tumors to spread
https://arstechnica.com/science/2015/10/myths-about-antioxidant-supplements-need-to-die/

#5yrsago 70% of CEOs’ effect on company performance can be attributed to
random chance https://onlinelibrary.wiley.com/doi/abs/10.1002/smj.2192

#5yrsago FCC trying to stop phone companies that rip off prisoners’
families
https://www.bloomberg.com/news/articles/2015-10-22/is-this-the-end-of-sky-high-prison-phone-call-rates-

#1yrago A visual history of Soviet anti-religious artwork
https://www.theguardian.com/artanddesign/gallery/2019/oct/23/down-with-god-how-the-soviet-union-took-on-religion-in-pictures

#1yrago When the HR department is a robotic phrenologist: “face-scanning
algorithm” gains popularity as a job-applicant screener
https://www.washingtonpost.com/technology/2019/10/22/ai-hiring-face-scanning-algorithm-increasingly-decides-whether-you-deserve-job/

#1yrago Japanese robot hotel chain ignored repeated warnings that its
in-room “bed-facing” robots could be turned into spy devices
https://www.tokyoreporter.com/business/robot-hotel-operator-announces-modification-to-prevent-hacks-by-guests/

#1yrago The wonderful You Must Remember This podcast returns to tell the
secret history of Disney’s most racist movie, Song of the South
http://www.youmustrememberthispodcast.com/episodes/2019/10/21/six-degrees-of-song-of-the-south-episode-1-disneys-most-controversial-film

#1yrago New York Times abruptly eliminates its “director of information
security” position: “there is no need for a dedicated focus on newsroom
and journalistic security”
https://twitter.com/runasand/status/1186775481615605760

#1yrago Educational spyware company to school boards: hire us to spy on
your kids and we’ll help you sabotage teachers’ strikes
https://qz.com/1318758/schools-are-using-ai-to-track-what-students-write-on-their-computers/

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🌴 Colophon

Today's top sources: Naked Capitalism
(https://www.nakedcapitalism.com/), Lowering the Bar
(https://loweringthebar.net/)

Currently writing: My next novel, "The Lost Cause," a post-GND novel
about truth and reconciliation. Yesterday's progress: 520 words (76061
total).

Currently reading: Harrow the Ninth, Tamsyn Muir

Latest podcast: Someone Comes to Town, Someone Leaves Town (part 17)
https://craphound.com/podcast/2020/10/05/someone-comes-to-town-someone-leaves-town-part-17/

Upcoming appearances:

* Fantasy and Dystopia with Richard Kadrey, Litquake, Oct 23,
https://www.eventbrite.com/e/fantasy-and-dystopia-cory-doctorow-with-richard-kadrey-registration-116950677625

* Milehicon (Guest of Honor!), Oct 23-5, https://milehicon.org/

* Coding Democracy/Toronto International Festival of Authors, Oct 24
https://festivalofauthors.ca/event/maureen-webb-coding-democracy/

* Keynote, Privacyweek, Oct 27
https://cfp.privacyweek.at/pw20/speaker/LKXVKM/

* How to Fix the Internet/Reboot 2020, Nov 9,
https://www.rebootconference.org/day-two

* Cyberterrorists, Post-Apocalyptic Landscapes, and
Were-Pomeranians/Texas Book Festival, Nov 12,
https://www.texasbookfestival.org/events/cyberterrorists-post-apocalyptic-landscapes-and-were-pomeranians-new-in-speculative-fiction/

* Let's Talk About Influence/Designthinkers, Nov 16,
https://www.designthinkers.com/week-2/strategy-lets-talk-about-influence

* Shaping the Digital Future Summit/Kaspersky, Nov 17, details TBD

* Misinformation and Disinformation in Science Fiction and Fantasy/LITA,
Nov 17, details TBD

* Keynote, Data Natives, Nov 18, https://datanatives.io/tickets/

* Keynote, Cologne Futures, Nov 20, details TBD

* Keynote, Cybersummit 2020, Nov 26 https://www.cybera.ca/cyber-summit-2020/

* Beaverbrook Lecture: How to Destroy Surveillance Capitalism, Nov 30,
https://www.mcgill.ca/maxbellschool/channels/event/2020-beaverbrook-annual-lecture-part-ii-cory-doctorow-325538

Recent appearances:

* TWiT: The J to J Protocol
https://twit.tv/shows/this-week-in-tech/episodes/793

* Writing Excuses: Researching the FCK out of Things
https://writingexcuses.com/2020/10/11/15-41-researching-the-fck-out-of-things-with-cory-doctorow/

* SRSLY WRONG: Stop Techno Dystopia!
https://srslywrong.com/podcast/220-stop-techno-dystopia-w-cory-doctorow/

Latest book:

* "How to Destroy Surveillance Capitalism": an anti-monopoly pamphlet
analyzing the true harms of surveillance capitalism and proposing a
solution.
https://onezero.medium.com/how-to-destroy-surveillance-capitalism-8135e6744d59

* "Little Brother/Homeland": A reissue omnibus edition with a new
introduction by Edward Snowden:
https://us.macmillan.com/books/9781250774583; personalized/signed copies
here:
https://www.darkdel.com/store/p1750/July%3A__Little_Brother_%26_Homeland.html

* "Poesy the Monster Slayer" a picture book about monsters, bedtime,
gender, and kicking ass. Order here:
https://us.macmillan.com/books/9781626723627. Get a personalized, signed
copy here:
https://www.darkdel.com/store/p1562/_Poesy_the_Monster_Slayer.html.

This work licensed under a Creative Commons Attribution 4.0 license.
That means you can use it any way you like, including commercially,
provided that you attribute it to me, Cory Doctorow, and include a link
to pluralistic.net.

https://creativecommons.org/licenses/by/4.0/

Quotations and images are not included in this license; they are
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basis of a separate license. Please exercise caution.

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*When life gives you SARS, you make sarsaparilla* -Joey "Accordion Guy"
DeVilla

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