Two activists who filmed undercover videos of Planned Parenthood charged with 15 felonies

In announcing the charges against David Robert Daleiden and Sandra Merritt on Tuesday, California Attorney General Xavier Becerra said the duo used manufactured identities and a fictitious bioresearch company to meet medical officials and covertly record the private discussions they initiated.

“The right to privacy is a cornerstone of California’s Constitution, and a right that is foundational in a free democratic society,” Becerra said. “We will not tolerate the criminal recording of confidential conversations.”

The criminal complaint alleges that on 14 occasions, between October 2013 and July 2015, Daleiden and Merritt filmed people without permission in Los Angeles, San Francisco and El Dorado counties. The activists face a felony count for each person covertly recorded, and an additional felony charge for criminal conspiracy to invade privacy.

The charges mark a major turning point in a case that had drawn national attention from both sides of the abortion debate and led to investigations — but no charges — against Planned Parenthood in 13 states. The secretly recorded conversations dropped during the politically tumultuous summer of 2015, amid a crowded field of Republican presidential contenders, and turned Daleiden into the biggest star of the antiabortion movement. The heavily edited videos attempted to discredit Planned Parenthood, long a target of the right, and galvanized conservatives’ efforts to pull funding from the women’s health organization and other family planning programs.

The anti-abortion group Center for Medical Progress posted a long version of the conversation between a Planned Parenthood executive and undercover actors on YouTube along with an shorter version that has been shared widely. These are excerpts of the longer version. (

The court fight over the videos began in April 2015, when Daleiden and Merritt made site visits at Planned Parenthood Gulf Coast headquarters, using fake names and driver’s licenses to portray themselves as a company interested in connecting Planned Parenthood health centers with research studies. The two antiabortion activists were actually affiliated with Daleiden’s little-known antiabortion nonprofit, the Center for Medical Progress.

While touring the facilities, they recorded undercover videos, supposedly showing Planned Parenthood employees discussing plans to sell aborted human fetal tissue and body parts left for scientific research.

In a phone interview with The Washington Post after the charges were announced Tuesday, Daleiden said they were “completely bogus” and claimed that the conversations were not confidential. He pointed to a September 2015 congressional hearing during which Cecile Richards, president of Planned Parenthood, called the setting of some of the recorded clinical conversations “nonconfidential.”

“Planned Parenthood’s own CEO might have to be the first witness that we call in opposition to the charges that are being brought,” Daleiden said, adding that his work in exposing the conversations was “citizen journalism par excellence.”

The antiabortion activist added that in the coming weeks he will be releasing previously unseen footage pertaining to Planned Parenthood.

Daleiden’s lawyer, Steve Cooley, a former district attorney of Los Angeles, blamed the charges on Sen. Kamala D. Harris (D-Calif.), a former attorney general of California whose office initiated the investigation that produced Tuesday’s charges. He claims Harris corrupted the current attorney general’s office to “pander to her constituents and her supporters.” Cooley said he looks forward to “cross examining her” in court.

“It was nothing more than a First Amendment journalist pursuing a good cause and fighting a battle, now a martyr who’s being crushed by the power of the State of California,” Cooley said.

Mary Alice Carter, interim vice president of communications for Planned Parenthood Federation of America, said in a statement Tuesday that the nationwide investigations have made clear Planned Parenthood has done nothing wrong, and the only people who broke the law are those behind the “fraudulent tapes.”

“The California Attorney General filing criminal charges sends a clear message that you cannot target women and you cannot target health care providers without consequences,” Carter said in the statement. “We look forward to justice being served.”

Richards, president of Planned Parenthood, tweeted: “Thanks to Planned Parenthood docs & clinicians who continued thru it all to provide care, no matter what.”

The anti-abortion activists turned themselves in to authorities in Texas in February 2016, after being indicted on similar charges. Months later, all the charges were dropped, as prosecutors said a grand jury had overstepped its authority.

Last month, in one of several state investigations stemming from the undercover videos, a federal judge ruled that Texas officials could not cut off Medicaid funding to Planned Parenthood, allowing the organization to continue providing reimbursed services — at least temporarily — to the 12,500 Texas Medicaid patients who rely on it.

U.S. District Court Judge Sam Sparks, in Austin, wrote that Texas officials lacked “even a scintilla of evidence” to conclude that Planned Parenthood committed wrongdoing and warranted termination from the Medicaid program.

“A secretly recorded video, fake names, a grand jury indictment, congressional investigations — these are the building blocks of a best-selling novel rather than a case concerning interplay of federal and state authority through the Medicaid program,” Sparks wrote in the ruling.

Shocking Video: Planned Parenthood Director Caught Admitting Babies Born Alive After Abortion are Killed

By Steven Ertelt

A shocking new undercover video exposes a Planned Parenthood medical director admitting that babies born alive after abortion are sometimes killed.

The top Planned Parenthood official is caught on video essentially admitting that it “depends on who is in the room” as to whether or not a baby who is born alive after a failed abortion is taken to the hospital or left to die.

The new undercover video shows Dr. DeShawn Taylor, previous Medical Director of Planned Parenthood of Arizona and longtime abortion practitioner at Planned Parenthood Los Angeles, graphically describing how to deliver intact fetuses in late-term abortions to harvest high-quality body parts, and indicating possible cover-up of infanticide.

The footage is never-before-released material obtained by The Center for Medical Progress, whose undercover videos recorded top-level Planned Parenthood leaders negotiating the harvesting and sale of the hearts, lungs, livers, and brains of aborted fetuses for financial benefit.

At a networking reception at a Planned Parenthood conference, CMP investigators posing as buyers from a biotech company are introduced to Dr. Taylor by Dr. Deborah Nucatola, Planned Parenthood Federation of America’s Senior Director of Medical Services.

Taylor explains to the investigators, “In Arizona, if the fetus comes out with any signs of life, we’re supposed to transport it. To the hospital.” When one investigator then asks, “Is there any standard procedure for verifying signs of of life?”

Taylor replies, “Well, the thing is, I mean the key is, you need to pay attention to who’s in the room, right?”

Taylor then laughs as she repeats what the Arizona law requires, and says, “It’s a mess. It’s a mess.”

The Planned Parenthood medical director also admits that Planned Parenthood does its best to obtain intact fetal organs to sell — essentially the body parts of aborted babies.

Taylor confirms she does elective abortions on healthy fetuses and pregnant women up to 24 weeks. When the investigators ask her about obtaining intact fetal organs, Dr. Taylor replies, “It’s not a matter of how I feel about it coming out intact, but I gotta worry about my staff and people’s feelings about it coming out looking like a baby.”

Additionally, the Planned Parenthood official says she doesn’t like it when people call and born children babies because she considers that “creepy.”

She continues, “We have the people who do our paperwork for the fetal death certificates, they email us calling them ‘babies’. Baby this, baby that, baby so-and-so, and I’m like, that’s creepy!”

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Taylor acknowledges that the feticidal chemical digoxin cannot be used in an abortion where fetal body parts will be harvested for sale, but she remarks that in a standard dismemberment dilation and evacuation abortion, “My biceps appreciate when the dig[oxin] works,” to kill the fetus before the procedure. “I remember when I was a [Family Planning] Fellow and I was training, I was like, Oh, I have to hit the gym for this,” she says, describing the force she feels in her biceps when performing a dismemberment abortion with forceps.

Dr. Taylor also mentions she was trained by Dr. Nucatola. In CMP’s first-released video in July 2015, Dr. Nucatola discussed the per-specimen pricing of fetal tissue and harvesting intact hearts, lungs, livers, and brains using partial-birth abortions.

CMP Project Lead David Daleiden notes, “This footage shows a longtime Planned Parenthood abortion doctor willing to sell baby parts for profit, use criminal abortion methods to get more intact body parts, and even cover up infanticide. This doctor was trained by Planned Parenthood’s Senior Director of Medical Services, and encouraged by her to participate in the fetal body parts market. This footage is just a preview of the damning and incriminating admissions of Planned Parenthood leaders on our further unreleased tapes, being censored by an unconstitutional gag order from a federal judge in San Francisco.”

Daleiden continues, “The only difference between Planned Parenthood’s barbaric abortion business, and that of the notorious Dr. Kermit Gosnell, is that Gosnell was not so careful as to ‘pay attention to who’s in the room.’ Elected officials must stop forcing taxpayers to subsidize Planned Parenthood’s criminal abortion business, and the Department of Justice must immediately open a full investigation and prosecute Planned Parenthood to the fullest extent of the law.”

The sale or purchase of human fetal tissue is a federal felony punishable by up to 10 years in prison or a fine of up to $500,000 (42 U.S.C. 289g-2). In December, after over a year of comprehensive, nationwide investigation, the Senate Judiciary Committee and the House Energy & Commerce Committee’s Select Investigative Panel referred Planned Parenthood Federation of America, several of the largest Planned Parenthood affiliates in the country, and three of their fetal parts business associates to the FBI and U.S. Department of Justice for criminal prosecution.

Congress just killed your right to online privacy


Congress approved a measure that allows internet service providers (ISPs) to sell your web browsing history to the highest bidder.

Senate Joint Resolution 34 (S.J.Res.34) passed mostly along party lines. Not a single Democrat voted in favor, while 15 Republicans did vote against the resolution — unfortunately 215 voted in favor of it.

The vote was one in favor of rolling back Obama administration guidelines designed to protect consumers from ISPs that sought to collect, and sell personal data from customers. This information included, but isn’t necessarily limited to internet browsing history and search data. This would, presumably, be used by third-party corporate interests to track internet users and inject relevant ads.

As the Electrnoic Frontier Foundation pointed out, these rules protect consumers from nefarious actions previously attempted by ISPs like AT&T and others. They include:

  • Selling your data to marketers
  • Hijacking searches
  • Snooping through your internet traffic and inserting ads
  • Pre-installing software on your phone and recording your activity
  • Injecting undetectable, undeletable tracking cookies in all of your unsecured web traffic

After passing the Senate days before, the repeal of the FCCs privacy rules passed through the House of Representatives. President Trump is expected to sign the bill into law.

Proponents of the repeal argue it’s necessary to do away with the regulations that stifle innovation by forcing ISPs to abide by unreasonably strict guidelines. Opponents argue the guidelines are fair, and all the rules prevent are spying on customers by the ISPs.

Regardless of which side you fall on, we’ve essentially turned over the internet to ISPs, and stripped away what few rules they had in regards to our privacy. We’ve now given ISPs — and partners they share data with or sell data to — everything from the content of your emails to what apps you download, and even (potentially) your online healthcare records.

The repeal also means ISPs are no longer required to alert you of potential data breaches and take reasonable measures to protect our user data.

Worse, the ruling could put the FCC in danger of not being able to create similar ones in the future. According to the Congressional Review Act:

Once a rule is thus repealed, the CRA also prohibits the reissuing of the rule in substantially the same form or the issuing of a new rule that is substantially the same, “unless the reissued or new rule is specifically authorized by a law enacted after the date of the joint resolution disapproving the original rule.

It’s a sad day for the internet.

James Harris Jackson Stabs A Black Man In Racially Motivated Attack In New York City

The racist who fatally drove a sword through 66-year-old Timothy Caughman said Sunday he hoped the attack would stop white women from entering relationships with black men.

In an exclusive Rikers Island interview with the Daily News, James Jackson, 28, offered a window into his deranged, hate-filled psyche.

He shared details about his upbringing with “typical liberal” parents,( his wishes to have shed more African-American blood), and his fear of being killed in custody now that he is being held in a jail with a largely minority inmate population and staff.

During the disturbing sitdown, Johnson was at times self-aggrandizing, (boasting of his white supremacy without shame). In other moments, he appeared dejected by society’s rejection of his violent, racist message — which echoed another notorious racist killer, South Carolina church gunman Dylann Roof.

Most chillingly, Jackson said he had traveled to New York from Baltimore (intending to kill numerous black men, imagining that the bloodshed would deter white women from interracial relationships). “‘Well, if that guy feels so strongly about it, maybe I shouldn’t do it,’” he said, imagining how he wanted a white woman to think.

Jackson said he grew up in an “almost all-white” area outside of Baltimore. “My family is as liberal as they come … typical liberal Democrats,” he said.

His grandfather in Louisiana was “very pro-integration” and had crosses burned on his lawn, he said.

(Jackson said he had his first racist thoughts when he was just 3). As he grew older, he only shared his views with “like-minded people” online, he said. He mentioned the website Daily Stormer — which was also frequented by Roof, who was sentenced to death for killing nine black worshipers in 2015.

NYC PAPERS OUT. Social media use restricted to low res file max 184 x 128 pixels and 72 dpi

James Jackson told the Daily News he regretted fatally stabbing a 66-year-old black man to death in Midtown — because (he would have rather killed a younger or more “successful” black victim). He is seen being brought to Manhattan Central Booking on Wednesday,

“The white race is being eroded. … No one cares about you. The Chinese don’t care about you, the blacks don’t care about you,” he said.

Jackson graduated in 2007 from a prestigious Quaker school, Friends School of Baltimore, but its message of peace didn’t take.

“I guess it’s like anything — if something gets pushed on you too much, you reject it,” he said.

In 2008, Jackson said, he voted for Barack Obama for President, one of the few people of mixed race he said he could respect. “I couldn’t let Palin get in there. She’s stupid,” he said, referencing then-Republican candidate for vice president Sarah Palin.

In 2009, he joined the Army and served as a military intelligence analyst in Kabul. He loved the “sense of mission” and embraced a vision of the U.S. as an imperialist power.

He was discharged in 2012 after winning several awards.

(The military training, he said, helped him plan to kill black men). “I had (been thinking about it for a long time, for the past couple of years,” he said). “I figured I would end up getting shot by police, kill myself, or end up in jail.”

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Timothy Caughman was collecting bottles at 36th St. and Ninth Ave. when he was killed.

His most recent address was in Hampden, a northern Baltimore neighborhood that is 78% white in a city that is 70% nonwhite.

On March 17, he took a bus from Baltimore to New York and got a room in the Hotel Times Square. He’d chosen the area to maximize his media exposure, police sources said.

Sources said he stalked one black man last Monday but got “spooked” and turned his attention to Caughman. The bottle collector from Jamaica, Queens, was well-liked by neighbors and delighted in taking pictures of himself with celebrities.

At 11:30 p.m. at 36th St. and Ninth Ave., Jackson plunged a sword with an 18-inch blade into Caughman’s chest.

“I figured they were fatal blows,” Jackson said.

Caughman died at Bellevue Hospital.

Jackson had a sick regret about his victim, who was chosen at random. “I didn’t know he was elderly,” he said. (He would have rather killed “a young thug” or “a successful older black man with blonds) … people you see in Midtown. These younger guys that put white girls on the wrong path.

Brooklyn Borough President Eric Adams at a Manhattan memorial to Caughman.

Brooklyn Borough President Eric Adams at a Manhattan memorial to Caughman.

(Jackson said he’d intended for the killing to be “a practice run”) —( the first step in a larger plan with many more casualties).

But his bloodlust diminished after the killing. “I got depressed. …I saw it was too late. It’s irreversible,” he said, adding, “I didn’t want to put my family through any more pain.”

And what of the white women repulsed by his violent, hateful ideology? “That’s the problem,” he said.

He turned himself in to police in Times Square on Wednesday. He is charged with murder as a hate crime.

He didn’t understand how the charge applied to him.

“I don’t hate anyone I don’t think is on my level,” he said.

Mayor de Blasio called the attack “domestic, racist terrorism.”

James Jackson is accused of using this blade to kill 66-year-old Timothy Caughman. He's charged with murder as a hate crime. 

James Jackson is accused of using this blade to kill 66-year-old Timothy Caughman. He’s charged with murder as a hate crime.

Life at Rikers Island has been a real eyeopener for Jackson. The inmate population is 55% black, and Correction Department staff is 65% black. “I thought it would be 40% white, 40% black, 20% Hispanic … and all the guards, I didn’t expect so many would be black,” he said.

He is in protective custody, watching and reading news as much as 10 hours a day.

“It’s like every other commercial in the past few years has a mixed-race couple in it,” he said.

He said he had received about 50 death threats while at the Manhattan Detention Complex.

“I think I’m going to die here,” he said matter-of-factly. “I don’t blame them, I’d feel the same if I were in their shoes.”

Jackson had one last piece of advice for a News reporter: have children. “Good white women should have as many children as possible,” he said, defining “good” as “smart, sane women.”

His solution for how those women support themselves was to “go on welfare.”

His ideal society was “1950s America.”

A News reporter pointed out that it is 2017. “I know. I’m too late. We’re screwed,” Jackson said.

White Teen Jailed After Lying About Being Sexually Assaulted By Three Black Men

A Texas 18-year-old has been sent to jail after lying about being kidnapped and raped by three black men.

Breana Harmon Talbott had run into a church and told people she had been kidnapped and raped by three masked black men. When Talbott had arrived at the church she was only wearing a bra, t-shirt and underwear, and reportedly was bloodied and looked battered.

However, Talbott ended up confessing that the entire incident was a hoax to the Denison Police Department this past Wednesday.

“The so-called victim in the case confessed to the hoax last evening (March 21) to a member of the investigative team working the case,” read a news release by Denison Police Chief Jay Burch. “Talbott’s hoax was also insulting to our community and especially offensive to the African-American community due to her description of the so-called suspects in her hoax.”

“It’s unfortunate a person can falsely report such a major incident in our community that wastes the time of law enforcement and needlessly puts some people in fear,” Burch added.

In a report from the Dallas News, it turned out that Talbott’s injuries were self-inflicted, with the medical personnel that examined her unable to confirm that she had actually been abducted or sexually assaulted.

The news release from Burch also detailed Talbott’s punishment for the hoax. “The department will file a criminal case against her for false report to a peace officer, a class B misdemeanor” and will “seek restitution for the significant costs for conducting such a major investigation,” the statement read.

It is still not clear why the teen made up the hoax in the first place.

Slick Rick’s “Children’s Story” Is Being Made Into An Actual Children’s Story

by Somhairle Cinnsealach

“He was only 17, in a madman’s dream/ The cops shot the kid, I still hear him scream…” — not exactly what you’d expect from a classic children’s story.

But these are lyrics from Slick Rick’s iconic 1988 track “Children’s Story,” which has now been made into an actual children’s book that includes illustrations and a puffy cover.

Get On Down and Def Jam will release The Great Adventures of Slick Rick… Children’s Book on April 22 for Record Store Day, and the book will be accompanied by a 7″ copy of the track, and a CD copy of the full The Great Adventures of Slick Rick album.

All in all it sounds like the bundle is a pretty worthy investment, although not necessarily one that’s ready for storytime at school — as seen when a substitute teacher in Virginia got in trouble for using “Children’s Story” in a lesson last December.

Illuminati Kingpin David Rockefeller Dead @ 101, Hooray!

By Associated Press

The most highly anticipated death of David Rockefeller happened when his newly transplanted heart failed this time around. Seven Heart Transplants In All!

No sir, you won’t be missed.

In the statement from the Rockefeller Foundation, David Rockefeller described as “one of the most influential figures in the history of American philanthropy and finance.”

Rockefeller was the last surviving grandson of John D. Rockefeller who founded the Standard Oil Company in the 19th century and built a fortune that made him America’s first billionaire, the statement added.

​David Rockefeller was born in New York City on June 12, 1915. Since 2004, he was the family patriarch and the oldest living member of the Rockefeller family.

Rockefeller graduated from Harvard in 1936 and received a doctorate in economics from the University of Chicago in 1940. He served in the Army during World War II, then began climbing the ranks of management at Chase Bank. That bank merged with The Manhattan Company in 1955.

In 1961, David Rockefeller was named Chase Manhattan’s president and chief executive officer 8 years later.

In 1965, at age 65 David Rockefeller resigned after a 35-year career.

He died of congestive heart failure in his sleep at home in Pocantico Hills. A family spokesman, Fraser P. Seitel, confirmed the death.

Wait, was it really the failure of his 7th heart transplant?

(The Rockefeller Foundation owns the patent to the Zika virus, and has interests on the entire bioweapons of mass death enterprise, together with the Bill and Melinda Gates Foundation).

David Rockefeller saw the proliferation of fake news even before the phrase became an everyday byword.

“We are grateful to the Washington Post, the New York Times, Time Magazine and other great publications whose directors have attended our meetings and respected their promises of discretion for almost 40 years……

(It would have been impossible for us to develop our plan for the world if we had been subjected to the lights of publicity during those years).

But, the world is more sophisticated and prepared to march towards a (world government). The supernational sovereignty of an (intellectual elite and world bankers) is surely preferable to the national autodetermination practiced in past centuries.” ― David Rockefeller

The Rockefeller Foundation wields enough power to influence not just the mainstream media, (but the entire educational, medical and political system of the West). It has a controlling interest in the( American Medical Association), and has provided the real estate where the United Nations General Assembly is now sitting on.

According to mainstream Wikipedia, its activities have included:

  • Financially supported education in the United States “without distinction of race, sex or creed”[5]
  • Helped establish the London School of Hygiene and Tropical Medicine in the United Kingdom;
  • Established the Johns Hopkins School of Public Health and Harvard School of Public Health, two of the first such institutions in the United States;[6][7]
  • Established the School of Hygiene at the University of Toronto in 1927;[8]
  • Developed the vaccine to prevent yellow fever;[9][10]
    Helped The New School provide a haven for scholars threatened by the Nazis[11]

Some of its infamous activities include:

  • Funding various German eugenics programs, including the laboratory of Otmar Freiherr von Verschuer, for whom Josef Mengele worked before he went to Auschwitz.
  • Construction of the Kaiser Wilhelm Institute’s Institute for Brain Research with a $317,000 grant in 1929, with continuing support for the Institute’s operations under Ernst Rüdin over the next several years.[12]

That’s just a sampler by the way.

Then, consider how the “authoritative” publication and statements coming out from those “institutions” shaped the government policies of the day.


“For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure–one world, if you will. If that’s the charge, (I stand guilty, and I am proud of it). ― David Rockefeller

Steve Harvey Wants Snoop Dogg, T.I. & Bow Wow To Show Respect To Donald Trump

by Somhairle Cinnsealach

After Snoop Dogg dropped the video for “Lavender,” the whole country — up to and including Donald Trump — couldn’t stop talking about it.

President Trump, unhappy at the video that showed a likeness of him being kidnapped and “shot” with a toy gun, went so far as to call Snoop out on Twitter and brand him with one of his favorite tags: “failing.”


Comedian Steve Harvey threw his two cents into the mix during a recent episode of his morning radio show and came out on the side of the president, the same man he met with in Trump Tower during the transition period between Election Day and Inauguration Day.

“The problem with this is that there’s an office in this country called the ‘president,’ and you have to respect the office. You really do. Whether you want to or not. You have to respect the office. They got laws … I would hate for anything to come down,” Harvey said.

He also addressed T.I. and Bow Wow‘s criticism of the president, warning them to keep their eyes on their money.

“I love Snoop. Bow Wow, always respectful and cordial with one another, me and T.I. I don’t have no problem with T.I. I love the dude. I’m just saying brothers be smart. You gotta be smart man … All y’all talking got money. You got money, man. You got money and they know how to go after that money. Just be smart, let me tell ya man, leave the first lady out of this. Y’all going down another path with these cats now. You start messing with they wives … I’ll tell y’all you going down another path.”

Harvey also seemed to suggest that Snoop Dogg could be held in some way accountable for the actions of others if someone were to bring to life the scenario seen in the “Lavender” video.

“Here’s the problem. If something happens, do you get brought in as the copycat version, the reason that spurred action? ‘Cause there’s some idiot that’s sitting at his house that’s willing to carry this out … and you don’t want to be tied to that.”

Harvey’s comments drew plenty of blowback on Twitter, with one notable response coming from singer John Legend.


Murs Recalls Seeing Biggie Getting Slaughtered In A Rap Battle

by Marcel Williams

Los Angeles, CA – Triple beam lyrical dream? The late great Notorious B.I.G. may have been that cat you see at all events bent but on one fateful night, he met his match in Los Angeles. SoCal rap pioneer Murs stopped by the #DXLive set to promote his latest album and shared his favorite Notorious story about how B.I.G. may have caught an L.

“He [had a show] right around the corner from Project Blowed at Marley Gibbs place, the Crossroads of L.A,” recalls Murs. “He was opening for Craig Mack. He came out [and] did ‘Juicy’ and then said ‘Who’s the hottest MC in here? I’ll battle him right now.’ It was barely nobody [in] there. Lady Of Rage was in the back. It was maybe 50 people in there. He battled this dude named NgaFsh from [Chillin’ Villain Empire]. Fish got in his ass. Killed him. And Biggie was a good sport about it. As a 14-year-old looking up to that shit I was like, ‘Wow I’ve been listening to [Biggie’s] album all month and I love him and he got served’ but it didn’t mean anything. He was just giving this dude some shine that’s from our city. Gave him love, held up his hand and was like, ‘You got me bro,’ went back [to his set] then Craig Mack came on and did ‘Flava In Ya Ear’ twice and left.”

Captain California also dropped some gems on the #DXLive cast about the early days of and how the head Black Eyed Pea may have more street cred than people realize. “He’s from the projects [of] East L.A. The only episode of Punk’d never to air because shit got too real is the Black Eyed Peas episode,” Murs emphatically recalled as he slammed his hands into the table. “They tried to set it up like a GRAMMY after-party. This is the story I got from parties involved. They tried to make it like an after-party with prostitutes, a whorehouse, and it got busted. Will’s in the pool with girls [and] they kick in the door like, ‘DEA,’ and scoop Will up by his throat. Polo [’s manager], who is butt naked, turns around and socks the DEA off rip. DEA. Did not give a fuck! A federal agent. Will turns around [and starts throwing punches]. In their mind they’re fighting the DEA. The Black Eyed Peas. Sleep if you want to. By the time they yelled, ‘Cut! This is a joke,” folks on both side were too mad.”

The depths of just how gully Will can get didn’t stop there though. “I said [don’t mess with Will] the night I seen him at the club and some Blood dude was in the front row [saying], ‘You wack. You wack, nigga.’ [Will] said, ‘What? Come on!’ [He] pulled the dude on stage. ‘Go, nigga. Go!’ He gave him the mic [and] had his band drop the beat. ‘You not gon’ go?’ [Will] snatched the mic from him and mushed that nigga in the face. This was a gang-banger!”

U.S. Banks’ Real Estate Boom Could Be Signaling Next Crisis

by Alex J. Pollock


Looking back to 1960, there were in the United States: 13,126 commercial banks and 18,962 depository institutions. By the end of 2016, depositories totaled only 5,913, of which 5,113 were commercial banks. That’s a 69 percent reduction in the number of depository institutions, and a 61 percent reduction in commercial banks.

On the other hand, in 1960, the total assets of the commercial banking system were only $256 billion. Though hard to believe, the entire banking system had total assets of only about one-tenth of today’s JPMorgan-Chase, and only 1.6 percent of today’s banking assets of $15.6 trillion. Citibank — which wasn’t Citibank then, but the dignified First National City Bank of New York — had less than $9 billion in assets. To our minds, now muddled by decades of constant inflation — including a central bank that has formally committed itself to creating perpetual inflation — these all seem like very small numbers.

Instead of measuring in nominal dollars, to see through the fog of long years of inflation, we can measure banking assets consistently relative to the size of the economy, as a percent of annual gross domestic product. The $256 billion of commercial banking assets in 1960 was 47 percent of the $541 billion in GDP.

The increase is striking: by 2016, banking assets had gone from 47 percent to 83 percent of GDP. That is more than a 75 percent increase in the banking system’s size relative to the economy, at the same time the number of banks fell by more than 60 percent. At present, this ratio is close to its all-time bubble peak.

What is driving this growth? It’s not commercial and industrial loans. On the trend, their percent of GDP is flat at 8 percent to 10 percent since 1960. On average, the commercial and industrial loans of the banking system have kept up with the growth of the economy, but not more.

The real driving factor is real estate credit. The commercial banking system’s real estate loans rose relentlessly from 5 percent of GDP in 1960, to more than 26 percent at their bubble peak, and are now at 22.5 percent.

Nor is this the whole real estate story. With the popularization of mortgage securitization, the banking system’s securities portfolio, not only its loan portfolio, shifted to real estate risk. Going back to 1992, the sum of banks’ real estate loans and mortgage-backed securities as a percent of GDP has risen to 32 percent — six times the 1960 level.

In short, the vast bulk of the dramatic increase in the size of the banking system relative to the economy comes from the acceleration of real estate exposure — a rising trend for more than six decades. How can the banks keep doing this? Well, it helps to have your liabilities guaranteed by the government, both explicitly through deposit insurance and implicitly through bailouts and central banking.

Should the banking system keep getting bigger relative to the economy, and should this increase continue overwhelmingly to reflect real estate risk? That is a dubious proposition. As Columbia University’s Charles Calomiris has written (in a not-yet-published paper): “The unprecedented pandemic of financial system collapses over the last four decades around the world is largely a story of real estate booms and busts. Real estate is central to systemic risk.”

Very true. But as Calomiris notes, the Financial Stability Oversight Board, set up as part of the Dodd-Frank Act to oversee the U.S. financial system, “seems to be uninterested.”

The Bank Holding Company Act of 1956 defined a bank as an institution that accepts demand deposits and makes commercial loans. Neither part of this old definition still touches on the main point. A bank now is for the most part an institution that makes real estate loans and funds them with government-guaranteed liabilities.

This banking evolution poses a huge systemic question: How do you deal with a banking system whose risks are concentrated in real estate prices and leverage? To this question we are, as yet, without an answer. Do the supposed systemic thinkers at the Financial Stability Oversight Council even understand the magnitude of the historic shift in risk? Maybe a future FSOC with new members will do better.