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Their Budgets Flush, Many States Are Sending Checks to Residents

by SITKI KOVALI 18 Nov 2022
written by SITKI KOVALI

Millions of Americans received stimulus checks from the federal government during the depths of the pandemic. This year, many states have a budget surplus and are using some of it to help taxpayers deal with high inflation.

As many as 20 states — depending on who’s counting — are offering one-time rebates or expanded tax credits. That’s up from just a handful last year, said Richard Auxier, a senior policy associate with the Tax Policy Center.

Some states have already distributed the payments, but others will be sending checks well into next year. You may want to contact your state tax agency to see if you may still be eligible — particularly if you don’t regularly file an income tax return, Mr. Auxier said.

Many states can afford to be generous. They have benefited from federal Covid-19 relief money and have seen higher tax revenue as their economies have rebounded from pandemic closings. At the same time, high inflation — while easing somewhat recently — continues to burden consumers. That has led states to offer “inflation relief” as well as general tax cuts and expanded sales tax holidays.

“This lets states play Santa Claus,” Mr. Auxier said.

The state payments are often smaller than the stimulus checks sent by the federal government in 2020 and 2021, but can be substantial, leading some economists to worry that they could fuel inflation by encouraging spending. New Mexico, for instance, offered up to $1,500 in rebates and direct relief. Some residents can file a 2021 state tax return as late as May 31 of next year and still be eligible for a payment.

Inflation F.A.Q.

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What is inflation? Inflation is a loss of purchasing power over time, meaning your dollar will not go as far tomorrow as it did today. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation and toys.

What causes inflation? It can be the result of rising consumer demand. But inflation can also rise and fall based on developments that have little to do with economic conditions, such as limited oil production and supply chain problems.

Is inflation bad? It depends on the circumstances. Fast price increases spell trouble, but moderate price gains can lead to higher wages and job growth.

How does inflation affect the poor? Inflation can be especially hard to shoulder for poor households because they spend a bigger chunk of their budgets on necessities like food, housing and gas.

Can inflation affect the stock market? Rapid inflation typically spells trouble for stocks. Financial assets in general have historically fared badly during inflation booms, while tangible assets like houses have held their value better.

Some states, including California, base payments on a taxpayer’s income (up to $250,000 for singles and $500,000 for married couples, in 2020). They must have filed a state tax return by Oct. 15, 2021. The state’s “middle-class tax refund” credit ranges from $200 to $1,050, and payments began in October and are continuing through January.

Still others — like South Carolina — limit rebates to people who had a tax liability for 2021, meaning people who ended up owing no tax last year won’t get a rebate. The rebates are worth up to $800.

Some states have to send rebates. A Massachusetts law requires that tax revenue over the state’s annual tax revenue cap be returned to taxpayers, and a state audit determined that the cap was exceeded. Taxpayers will receive refunds equal to about 14 percent of their tax billfor 2021. Taxpayers who have already filed their 2021 returns should get their refund by mid-December, according to the state’s website. If you haven’t filed yet, you can still get a refund if you file by Sept. 15, 2023.

New York is paying rebates to homeowners through a new, one-year program based on factors like income and where they live. The state is also sending checks to families and workers who claim the state’s child tax credit or earned-income tax credit, and the average payment is $270, the governor’s office has said. Most eligible New Yorkers should have received them by the end of October.

New Jersey expanded eligibility for property tax rebates with its ANCHOR tax relief program. Residents who owned or rented their main home in the state on Oct. 1, 2019, and had 2019 household income up to $250,000 (for owners) and $150,000 (renters) are eligible. Homeowners will get $1,000 or $1,500, depending on their income; renters get $450. Residents have until Dec. 30 to apply for the credit. Payments are expected to be made no later than May. (The rebates are intended as an annual program, rather than a one-time offering, said Danielle Currie, a spokeswoman for the state’s Treasury Department.)

Other states offering some type of rebate or credit are Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Oregon, Pennsylvania, Rhode Island and Virginia.

Here are some questions and answers about state relief payments:

What if I have questions about relief payments in my state?

Tax matters are typically handled by state tax agencies or revenue departments. The Federation of Tax Administrators’ website offers a list of agencies with contact information.

Are the state relief checks sent automatically?

It varies, so check your state’s program for details. In many states, you don’t have to submit an application, but you must have filed an income tax return for a specific year to qualify.

What if my payment is smaller than expected?

Some states may subtract amounts for past-due tax bills, unpaid child support or other debts from the rebates.

18 Nov 2022 0 comment
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How FTX’s Sister Firm Brought the Crypto Exchange Down

by SITKI KOVALI 18 Nov 2022
written by SITKI KOVALI

In late 2017, Sam Bankman-Fried, then 25 years old, co-founded Alameda Research, a small trading firm that marked the beginning of his cryptocurrency empire.

Now the relationship between Alameda and his cryptocurrency exchange, FTX — and how the two propped each other up — is coming under scrutiny as prosecutors and regulators investigate the collapse of one of the best-known trading platforms in the crypto universe.

Alameda’s need for funds to run its trading business was a big reason Mr. Bankman-Fried created FTX in 2019. But the way the two entities were set up meant that trouble in one unit shook up the other as crypto prices began to drop in the spring. In the end, it brought down both Alameda and FTX, leading to billions of dollars in losses for customers and traders.

And although the collapse echoed past calamities on Wall Street, the lack of regulatory oversight — coupled with an ambitious start-up founder flush with venture capital money and few internal controls — meant that there were few parallels.

John Jay Ray, III, a prominent restructuring lawyer handling the cleanup of FTX, called the situation “unprecedented” in a U.S. Bankruptcy Court filing on Thursday. He blasted the company for the “concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals.”

Mr. Bankman-Fried co-founded Alameda in Berkeley, Calif. His scrappy team of traders in their 20s worked around the clock, showering in the locker room of the gym of the four-story building where Alameda had its headquarters. He soon moved the firm to Hong Kong, which had been wooing crypto traders and imposed little oversight on the nascent industry.

The main way that Alameda made money was straightforward: It bought Bitcoin and other cryptocurrencies in one part of the world and sold them in another, pocketing the difference.

Alameda’s methods borrowed many aspects from traditional high finance. It was a quantitative trading firm, similar to Wall Street hedge funds that use mathematical models and data to inform decisions. It used “leverage” — or borrowed money — to fuel its trades and make bigger returns. And its Bitcoin trade was a so-called arbitrage trade, also popular on Wall Street.

But while Wall Street firms operate within guardrails that limit risk-taking and require regular financial disclosures, Alameda had no regulatory oversight.

The firm initially managed around $55 million — a pittance in the financial world. Its capital came from a mix of the group’s own funds and high-interest cryptocurrency loans from wealthy investors, according to a 2018 firm presentation viewed by The New York Times and people briefed on the firm’s operations. In recent years, Alameda struck bigger financing agreements with other crypto trading firms, the people said.

The Aftermath of FTX’s Downfall

The sudden collapse of the crypto exchange has left the industry stunned.

  • A Company in Disarray: The new chief executive of FTX, who helped manage Enron after its collapse, said that he had never seen “such a complete failure of corporate control.”
  • The Scope of the Meltdown: FTX could owe money to more than one million creditors, according to the first substantial court filing since the company’s bankruptcy.
  • Investors Under Scrutiny: Venture capital firms and investment funds showered nearly $2 billion on FTX with few strings attached. Now, they are facing questions, too.
  • A Pall on a Philanthropy Movement: The fall of FTX dealt a significant blow to the “effective altruism” movement that is deeply tied to the company’s founder, Sam Bankman-Fried.

In a video posted on YouTube three years ago, Mr. Bankman-Fried discussed the hectic nature of Alameda’s trading. Seated in front of trading screens, he talked about often having to make split-second decisions on trades.

Eventually, as more sophisticated investors like hedge funds piled into the crypto arbitrage trade, it became much less lucrative for Alameda.Still, with the price of Bitcoin and other cryptocurrencies soaring — and expected to keep going up — Alameda had no trouble paying back its loans in either dollars or crypto.

That’s why, in the presentation to investors, Alameda was able to say it could offer lenders “high returns with no risk” and “no downside.” However, finding a ready supply of dependable lenders was time-consuming for Alameda, especially since banks and traditional Wall Street firms largely shunned crypto because of the lack of regulation and oversight.

In 2019, Mr. Bankman-Fried hit upon an idea: Why not build a cryptocurrency exchange that could bring in revenue to help fund Alameda’s activities?

FTX was born. It moved from Hong Kong to the Bahamas, where Mr. Bankman-Fried built his base of operations, and the exchange took off. In financial presentations to investors, the company claimed in 2021 that it was raking in $1 billion in annual revenue by charging fees to customers who wanted to trade cryptocurrencies on its platform. It marketed itself aggressively to ordinary investors eager to trade the hot new thing.

With crypto exchanges proliferating, their owners, including Mr. Bankman-Fried, sought more ways to make profit. One way was for an exchange to invent a token for use on its platform. Customers can trade cryptocurrencies directly or by using these tokens; if they use the tokens, typically the exchange offers a trading discount.

As long as customers used them to trade cryptocurrencies, the tokens could be quite valuable.

FTX called its token FTT and sought “seed” money from investors to get trading going. To maintain the value of FTT and keep its price stable, Alameda, still based in Hong Kong, served as the token’s main market maker. That meant it bought and sold the majority of FTT on the exchange and, as a major trader, had the ability to set prices for the token.

As investors, enticed by the trading discounts, embraced FTT to trade on FTX, the newly minted token became one of the biggest sources of trading revenue for the exchange.

Both FTX and Alameda benefited from the token’s rising value. The exchange began using FTT to make dozens of investments worth billions of dollars in other crypto companies. A 2019 investor presentation for the new exchange said, “FTT will be the backbone of the growing FTX ecosystem,” and promised investors and customers “guaranteed liquidity,” or the ability to always get back their money.

Sam Bankman-Fried, the FTX founder, was a compelling pitchman for the cryptocurrency exchange.Credit…Erika P. Rodriguez for The New York Times

In the presentation, a cartoon avatar of mop-topped Mr. Bankman-Fried gave a thumbs up and simply said: “So easy!”

At the same time, Alameda, which held a large stake in the token, began using its FTT holdings as collateral for more loans to facilitate its trading activities. As of Sept. 30, Alameda had roughly $13 billion in assets, according to Thursday’s bankruptcy filings, although Mr. Ray, the restructuring lawyer and newly appointed chief executive, said he had no confidence in the numbers.

The intertwined business model, with FTT propping up the two entities, turned Mr. Bankman-Fried into a crypto hero. Even if many backers and supporters of the exchange didn’t quite understand how it all worked, they were taken in by his compelling pitch. He styled himself as an idiosyncratic genius willing to engage with regulators and call out the scams plaguing the crypto industry. He also expressed a commitment to give away much of his wealth to charity.

SoftBank Group was one of the investors in FTX.Credit…Charly Triballeau/Agence France-Presse — Getty Images

In 2021 and early this year, FTX raised nearly $2 billion in equity from more than two dozen high-profile investors, including Sequoia Capital, SoftBank, Tiger Global and BlackRock. Some of those investors have since said they were blindsided by FTX’s implosion, partly because they didn’t fully appreciate the symbiotic relationship between FTX and Alameda, or the potential conflicts of interest that it could pose.

For instance, one of the co-chief executives of Alameda, Caroline Ellison, was at times in a romantic relationship with Mr. Bankman-Fried. The two met while working at Jane Street Capital, a New York trading firm, before Alameda opened for business.

Critics pointed to other potential conflicts. Alameda traded heavily on FTX and sometimes profited when other customers lost money. Mr. Bankman-Fried had a hand in Alameda’s big trading decisions as well as its venture investments, two people familiar with the companies said.

In the bankruptcy filing on Thursday, Mr. Ray said there had been an “absence of independent governance.” He also said he was not aware that any of Alameda’s financial statements had been audited.

Tyler Gellasch, president of the Healthy Markets Association, called FTX’s collapse a “catastrophe.”Credit…Justin T. Gellerson for The New York Times

The lack of transparency and regulation of Mr. Bankman-Fried’s businesses should have been a bright red flag early on, said Tyler Gellasch, president of the Healthy Markets Association, an advocate for greater transparency in financial markets.

“This catastrophe with FTX was enabled by two things: It was crypto, and it wasn’t public in any fashion,” Mr. Gellasch said. “It wasn’t a public company, so there were no robust disclosures. They were able to raise billions without public disclosure and without serious accountability.”

With the influx of investor money, Mr. Bankman-Fried started a giant publicity campaign for FTX, signing branding deals with sports leagues, advertising on television and hiring celebrities to endorse its platform and woo retail investors. At the same time, Alameda and FTX stepped up their ambitions, providing billions in early-stage funding to 246 crypto companies, according to PitchBook, a data company.

It’s hard to pinpoint the exact moment when Mr. Bankman-Fried’s empire began to spiral out of control, or whether a particular event precipitated it. Early this year, some lenders to Alameda wanted their funds back because they were concerned about the more than $2 billion that Alameda had invested in crypto start-ups.

Blockchain.com, a leading seller of Bitcoin and other cryptocurrencies, closed out a loan it had made to Alameda, concerned about “too many illiquid-related assets” on its balance sheet, a person with knowledge of the matter said.

But the problems cascaded this spring when the crypto market began to teeter, with a number of high-profile failures of companies that FTX had close ties to.

With crypto prices falling, more lenders wanted their money back. The falling prices also reduced the value of FTT, which Alameda had used as collateral for some loans. As the firm struggled to pay lenders back, FTX resorted to using funds that customers had deposited with the exchange for ease of trading to pay Alameda’s lenders back.

In an interview with The Times early this week, Mr. Bankman-Fried dodged questions about customer funds. But the amount of customer dollars lent to Alameda could exceed $10 billion.

18 Nov 2022 0 comment
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‘Do You Really Want to Rebuild at 80?’ Rethinking Where to Retire.

by SITKI KOVALI 18 Nov 2022
written by SITKI KOVALI

For a decade, Melissa and Guy Hoagland, both retired physicians in their 60s, had split their time between their homes on a barrier island in Florida and in Half Moon Bay, a small coastal city in the San Francisco Bay Area.

But the intensifying drought and wildfires in Northern California and escalating hurricanes and storm surges along the Southeastern coastline drove the couple to sell both houses.

Mulling the idea of living permanently in Southern California, the Hoaglands moved into a rental house in San Diego in 2019 after selling their West Coast property. But climate risks there, including drought and rising sea levels, put an end to that plan as well.

“We loved living along the coast, but we knew that life there was not sustainable for us in our old age,” Melissa Hoagland said.

The couple began to search for a safer place. They pored over climate data, including projections of rising temperatures, availability of fresh water and the northward expansion of tropical diseases. In 2022, they moved to Asheville, N.C., hoping to buy a house there.

A small but growing number of older people like the Hoaglands are taking climate change into account when choosing a retirement destination, real estate agents and other experts say. Armed with climate studies, many retirees are looking for communities that are less likely to experience extreme weather events, such as wildfires, drought and flooding.

David Dew, a real estate broker who sells homes near the Rappahannock River in and around White Stone, Va., said a larger number of retired clients were voicing concerns about weather patterns. With many waterfront properties in minimal danger of flooding there, the area is attracting retirees from the flood-ravaged Outer Banks of North Carolina as well as other Atlantic Ocean communities, he said.

“At first, they will say they want big views and deep water, but then they ask whether a hurricane or a nor’easter will wipe out the dock,” Mr. Dew said. “They want to be on the water but more protected.”

In an analysis of nearly 1.4 million home sales along Florida’s coasts, for example, University of Pennsylvania researchers found that the sales volume of homes in areas where 70 percent of developed land was less than six feet above sea level dropped by up to 20 percent between 2013 and 2018, while sales rose on less-vulnerable coastal land. Prices on homes in riskier areas declined between 2018 and 2020.

The lead researcher, Benjamin Keys, a professor of real estate and finance at the university’s Wharton School, said the biggest sales declines occurred in Florida coastal communities where retirees from the Northeast — particularly those who lived in counties exposed to Hurricane Sandy in 2012 — tended to move.

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“It seems like Northeast retirees were looking at retirement differently,” Dr. Keys said. “On one hand, you have a strong demographic pull of baby boomers who are looking for warmer climate, and on the other hand, there is a newfound appreciation of climate risks.”

Florida coastal home sales and prices spiked during the pandemic as buyers fled urban living for warmer climes. But Dr. Keys said he expected the prepandemic trends would resume as fewer people feared living in densely populated areas and as remote work declined.

Aging and Climate Change Collide

Extreme weather can be particularly dangerous, and even deadly, for the elderly, who are more likely to have chronic medical conditions and disabilities, according to numerous studies.

Three-quarters of residents who died in the 2018 Camp Fire, which destroyed the Northern California community of Paradise, were 65 and older. Well over half of the record-high 323 people who died from heat-related causes in Arizona’s Maricopa County in 2020 were at least 50. And two-thirds of the people who died in Florida during Hurricane Ian in September were 60 and older.

Frailty and cognitive impairments make it difficult for older people to evacuate and prepare their homes for disasters. Older people are also more likely than younger people to die from heat stroke. Extreme heat and wildfire smoke can worsen diabetes, heart disease and lung conditions.

“The ability to see a doctor during a king tide could be hard,” said Mathew Hauer, an assistant professor of sociology at Florida State University in Tallahassee, using a term for exceptionally high tides. “And an ambulance may not be able to get to you.”

These health-related dangers are certain to increase as rising sea levels coincide with the growing elderly population along the coasts, Dr. Hauer said.

In an analysis of all coastal counties in the United States, Dr. Hauer predicted that the proportion of people over 65 who lived in coastal communities would steadily rise, to about 37 percent of the population in 2100, compared with 16 percent today. That population would comprise older people moving in and younger people remaining into their later years.

“Two trends we know are happening — the impact of climate change at the same time the world is aging,” Dr. Hauer said. “Those two trends, I’m afraid, will crash head-on, and we will see more catastrophic impacts than if either one had happened.”

The Hoaglands said their stress was mounting as the climate risks on both coasts grew.

They moved to Florida in 1992 to raise their four children and practice medicine (Melissa, 64, as a pathologist and Guy, 65, as an internist). In 2011, they bought a house in the Bay Area, where Melissa had gone to medical school and had always dreamed of returning. They retired early, living in California in the summers and Florida in the winters.

Over the years, in Florida, hurricanes and storm surges up the Indian River threatened their home on a barrier island near Melbourne. During one storm, water jumped over a road within several feet of their house.

“Drainage was a problem on the roads,” Guy said. “I noticed the localized flooding was higher than it ever was.”

At the same time, wildfires, which were becoming more frequent, were spreading smoke in the Bay Area. An avid hiker, Guy began carrying an inhaler to help with exercise-induced asthma.

“The power company would cut power when the wind was up, for up to five days at a time,” he said. With extended drought came water restrictions.

What frightened them was the possibility of having to evacuate during a wildfire. They learned of one large fire in Northern California that had “advanced faster than 60 miles an hour,” Guy said. “You could not be able to drive faster than the fire. It felt apocalyptic.” The couple kept emergency bags at both houses.

“Even if you are a mobile older person, do you really want to rebuild at 80?” Melissa said.

As for Asheville, they said, their research showed the city was taking measures to reduce wildfire risk. Parts of the area are in a flood plain, but they plan to use climate data to make sure the house they buy and its surrounding neighborhood are not at risk.

Researching Climate Risks

The kind of data the Hoaglands used to search for a new destination is readily available online. The National Oceanic and Atmospheric Association’s Climate.gov includes links to trend data on floods, wildfires, drought, wind, disease and other climate hazards.

Prospective home buyers can also check out individual properties. Risk Factor provides data on anticipated wildfire, flooding and extreme heat risks for 145 million properties in the United States over the next 30 years.

Each property is ranked for each type of risk on a scale from 1 (minimal) to 10 (extreme). The online tool provides a percentage likelihood of the risk occurring over time — for example, that floodwaters could reach your house in the next five or 10 years or that the community could experience a certain number of 100-degree days. (ClimateCheck also provides property-specific risk data on heat, drought, fire, flood and storm.)

Redfin, Realtor.com and several other real estate firms are including Risk Factor climate projections with each listing.

The data appears to be changing the behavior of many home buyers. According to a Redfin analysis released in September, the company’s users who had viewed listings that scored at severe or extreme flood risk instead bid on homes with 54 percent less risk. The website’s users who did not have access to the data were more likely to bid on high-risk homes.

“This is the best evidence that people do respond to climate change risks when they are presented with the information,” said Daryl Fairweather, Redfin’s chief economist.

Dr. Ed Kearns, chief data officer of First Street Foundation, the nonprofit that developed Risk Factor, said retirees considering homes that had some measurable risk could plan to reduce the exposure, perhaps by elevating a home or installing a fire-resistant roof.

“Check your exposure first, and then decide what you can do about that hazard,” he said. He recommends that prospective home buyers ask flood-plain managers and other officials about the protections the community has in place or plans to have.

Budgeting for Climate Change

In deciding where to move either full time or as snowbirds, older people should consider the possible financial costs of climate risks.

Expenses for hurricane windows, flame-resistant roofs, energy-efficient air-conditioning, home elevation and repairs from wind damage or flooding can take big bites out of even healthy retirement savings.

Robert Auclair, a certified financial planner in East Greenwich, R.I., advises retired clients who are considering a second home on the Southern coast to check out the climate by renting for a year first.

Mr. Auclair said his father-in-law, who lives north of Miami, was required by the homeowners’ association several years ago to update his wind-resistant windows and shutters. The cost: tens of thousands of dollars.

“These are expenses you would not ordinarily think of,” he said.

Before buying, retirees should ask several insurance companies about the cost and availability of homeowners’ coverage. Premiums are rising considerably in communities prone to wildfires, hurricanes or flooding, and many insurers are not renewing policies, limiting coverage or pulling out of high-risk markets.

Even if you know today’s cost, insurance can still be a wild card for retirees living with fixed incomes who need predictable expenses, Dr. Keys said.

“Some of this is about risk tolerance,” he said. “They should recognize that insurance will not cover everything and that the costs of insurance will keep going up.” He recommended that homeowners who live outside a flood plain but near water buy federally subsidized flood insurance.

For now, retired climate migrants such as the Hoaglands are the exceptions. Dr. Kearns of Risk Factor said he hoped more older people would step up efforts to protect themselves.

“Very often, you hear people say, ‘I don’t have to worry about climate change because I am 60 or 70 years old — this is a problem for my grandkids,’” he said. “I greatly disagree with that statement. Climate change is here, and it is affecting all of us.”

18 Nov 2022 0 comment
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The Mystic of Mar-a-Lago

by SITKI KOVALI 18 Nov 2022
written by SITKI KOVALI

The first time I saw the hat was out West four years ago. On a reporting trip to a small fruit-growing agricultural town divided between white Republicans and Mexican and Central American migrant workers, my host invited me to attend a raffle luncheon. Within minutes of my arrival, a jovial, big-bellied white man walked into the lobby of the community center that was hosting the event, wearing the hat. I was a Black woman alone. I had felt entirely comfortable there, however, until I saw the hat.

The man wearing it paused in front of three teenage Chicano boys and me, greeting his friends and neighbors. The scene seemed appalling. And I wanted a record of it. Click, my phone went, as I snapped a picture.

I had forgotten to silence the shutter. The man spun around. Humiliated and caught, I pretended to take a selfie. The teen boys were, as teen boys often are, absorbed in a hand-held video game, uninterested in the man, the raffle and my disgust. They slumped together on the bench, lost in their virtual second life. “Did you want to take a picture together or something? With me?” the man asked. He was chuckling.

I told myself, sometime in 2016, if I ever found myself in an exchange like this, I would say something pointed. Instead, we bared our teeth at each other for a few counts while I tried to draw up sharp words to say. Nothing came. “No, no,” I said, “I took a picture so I could remember this.”

This was not a lie.

We stood there, still smiling, like two people trying to agree on a common language. Until finally I told him I wanted more of the dump cake they were serving and walked away. This was a lie. Throughout it all, the three boys never looked up. That was the first time I saw the hat, and I felt like a fool standing there rattled by it. And I still do whenever I look through my pictures of that trip and see that man and his red Make America Great Again hat.

The third time that I saw a MAGA hat, I finally understood its power. This time, no one was wearing it; it was sprawled out with ludicrously designed bootleg Keep America Great apparel that reminded me of the New Kids on the Block clothing I once begged my mother to purchase. That type of clothing doesn’t have a long life, my mother told me then. She was right. At the time, emblazoning a bunch of teeny-bopper singers’ faces on my chest seemed like an easy way to put forth my personality. No different from the “God, Guns & Trump” shirts and hats I saw at this roadside caravan in West Virginia, just days before the 2020 presidential election.

My husband and I had pulled over not because the gear beckoned us but because the sight of a hyperactive Black man hawking MAGA hats caught my eye. We were less than a mile away from Harpers Ferry, where John Brown, a white man, had conducted his noble abolitionist raid, and here was a Black man selling red hats and Confederate flags to burly, going-through-bad-times white people without any irony.

“Brother, what the eff are you doing?” I asked him, laughing. He smiled. A gold tooth flashed. Biography came. He was from up North. “Wasn’t about no Trump. Be serious,” he told me. He also did Freaknik, Daytona, Sturgis. Merchandise is merchandise. If he had things to sell, he would sell them.

“But Trump?” I said, shaking my head.

He shrugged. A good salesman, he was a quick study of me. His mood changed to no more jokes, just frustration. “Do me a favor? Please don’t run off my business. It’s a hustle, my hustle.”

I agreed. We laughed together once more, and we drove off, with him waving goodbye to us in our rearview mirror. Two days later, we drove back that way and passed the stand. The brother was still there, this time with a huge handwritten sign that said, “5 dollars. Everything must go.” Including the hats.

Credit…Damon Winter/The New York Times

Another memory: Once, on the border of two countries in Africa, getting out to stretch my legs, I saw something that I still consider whenever I think of the power of a MAGA hat and the psychic hold that Donald Trump has over his acolytes and his opponents. On the edge of a market was a small table selling what seemed to be talismanic pouches and remedies. I asked my friend what they were used for, and he told me to stay away. An avowed Christian, he sniffed the air with resentment and explained that they were occult things to protect against bad spirits. “You have no need for this.”

I agreed with him. But when he wasn’t looking, I headed over to the table and studied the sachets and the small crowd of people who, in their stockpiling — their avid apparent belief in their purchases to recover them, empower them or do right what life had done them wrong — would later remind me of the West Virginians standing in a line, desperate to buy their MAGA looks, clothes intended to project permanence and strength, days before their MAGA world came tumbling down.

Hegel, Marx and Freud would most likely object to what I’m about to suggest, but the only word that comes to mind whenever I’m asked to consider the hat, and the third presidential campaign of Mr. Trump, is “fetish.” Hegel in the 1820s put forth an easily refuted lie: that “Africans” worship “the first thing that comes in their way,” be it “an animal, a tree, a stone or a wooden figure.” “If rain is suspended,” he wrote, “if there is a failure in the crops, they bind and beat or destroy the Fetich and so get rid of it, making another immediately, and thus holding it in their own power.” A fetish object, as identified by these biased Europeans who struggled to define cosmologies they could not understand, was an African object imbued with spiritual belief. But as J. Lorand Matory, a distinguished professor of cultural anthropology at Duke University, recognized in his brilliant upending of the concept of fetish, “The Fetish Revisited,” their claim that this irrational relationship with “false” gods was specific to Africans actually exposed the limitations of these European thinkers. “Fetish” is a polarizing term, its value often animated by rivalsocieties and personal expectations. And the West has also long had its own kind of, as Mr. Matory put it, “equally useful but human-made reifications.”

The 45th president, for those who abhor him and those who adore him, is not just a well-utilized object. He is a fetish object. If possessed of any form of brilliance, he is a brilliant synthesizer of low American moments; his presence replays the racial suspiciousness of the 1980s and of “Birth of a Nation” all at once. He is a brilliant manifestation of what a poor, angry man hopes a rich, angry man will be like; he brilliantly demonstrates what an embittered loser hopes winning will feel like — vengeful and delicious. A fetish figure is illogical to those on the outside, but it makes perfect sense to those who venerate it.

The menaces and right-wing fires that Mr. Trump unleashed are now beyond his control and, worse, are all but ready to consume him for being a tactless distraction. He outrages traditional conservatives because his behavior blitzkriegs conventions and conceals nothing. His refusal to act like a reasonable person and play by the rules pulls back the curtains on the greased poles upholding so many American structures that prevent and deter equity and progress. He is brash and indiscreet. He is unnecessary trouble. If you consider him as a symbolic object, you understand that an object often outlives its usefulness and routinely gets discarded when more potent, new idols appear.

Whatever remains of Mr. Trump’s close to supernatural hold on America relies on two things: his base’s need for him to articulate what would get most people fired and the incoherence and insincerity of the many liberals who discussed him with so much compulsion, they almost spun like dervishes. Once he appeared, they avoided having to truly commit themselves to the progressive movement, and they did not produce any real strategies to combat the xenophobic racism he bellowed; instead victory, for many liberals, in particular the wealthy ones, became all about defeating the man, not the underpinnings of what had propelled him to power or the foundational myths that created him. They put up Breonna Taylor’s image in their windows and did little else. Whole histories of subversions and violent radical protest were co-opted into trite abbreviations like “D.E.I.” People donated to circumvent self-interrogation. He gave them camouflage. It was and is a dangerous loop. For me, the weightlessness of the liberal response to the surge of right-wing thought in America is as concerning as the return of the former president.

Credit…Damon Winter/The New York Times

That MAGA’s greatest demographic enemy when it comes to the polls was Black American women is proof of the long arm of Black history. Who else was ready to take him off his vulture’s perch? His racial chauvinism was remarkable only in the sense that it was a deft regurgitation of the bones of his predecessors.

My grandmother died many years ago. But I think of her often, especially whenever I think of Mr. Trump. My grandmother and me? It’s not that we had an easy relationship — we did not — but now, in the era of Trump, she exists for me as a parable or an oracle, an unburied Southern ghost, smoking, gray haired, sipping her Sanka, eye cocked at my ways and confident that I was not the one. She was complicated, and so she was a profound introduction to a country I still do not understand but belong to and cannot quit. I have no idea what my grandmother thought of the Trumps in any deep way. But through her, I was introduced to a glossary that lasts, of the most American of names, ideals, signs and symbols. And among the most persevering of them is Donald Trump’s.

For the 15 years that she lived in our house, my grandmother was a Winston-smoking primer for an America that I believed was long gone, a time catacombed inside her taste for Mary Jane candies, afternoons spent shellacking down her shoulder-length hair with bergamot hair grease. She spent her almost indistinguishable days in front of her television watching her shows: “In the Heat of the Night,” “Lifestyles of the Rich and Famous” with Robin Leach and “The Young and the Restless.” What was going on outside was their business. In her room, we lived in the American South, as she recalled it.

I keep saying that my grandmother was Southern, but she was not just Southern. She was Louisianian, and therefore her morality was hot and judgmental but also fervid, touched with the kind of heat of someone who had seen the extremes and lusciousness of life, swamps, boudin blanc, rosaries, floods and sensuality. She spoke of uplift, excess, decay and wrought-iron French architecture, Louisiana whiffs of Haiti and West Africa. She read the Bible daily and smoked until the birth of my younger sister, someone who gave her a reason to live. She moved North to care for us but was so wary of her new surroundings that she rarely socialized or left her room. She was Black by choice and Black and Asian by biology, and she preferred dark skin, in particular pitch-colored men above all, as if to assert that the racial designation bestowed upon her by Jim Crow could be bested by her sincere love of a deep-down brown-skinned handsome man. She married many times. Her mother went to college, but my grandmother suffered the vast humiliation of not doing well in anything except home economics at the school where her mother taught. So my grandmother was determined to make sure that her three girls would return to her mother’s legacy and that do-for-self form of formal Black self-education.

My grandmother didn’t work yet managed money so well that not only did they all get graduate degrees, but they did so with few loans. My grandmother was unyielding toward me, often telling me if I ran too fast, I would fall. I had no idea what this threat or admonition — or was it fear? — meant until I was much older and she was dead.

Because my grandmother loved her television, I have known of Donald Trump my entire life. He was the rich man of my childhood. He is now the rich man of my adulthood. I remember sitting in my grandmother’s room watching some terrible chiffon of a television movie that showed a fictionalized version of the Trumps’ marriage. There was Ivana Trump, ostensibly skiing across the Czech border on an endless slope toward freedom. And there were the two of us, grandmother and child, finding the rare mutual core to cheer together for something — a woman’s flight away from her limitations, propelled by her wits, as best could be represented by two pieces of fiberglass in forward motion taking her closer and closer to the kind of life my grandmother, as a Black woman, could only imagine: Greenwich, Conn., gold veneer, a rich slag of a husband and the bright lights of New York City.

When I was young, maybe too young, she was also the first person to tell me about another fetish, the Ku Klux Klan. She didn’t fear it, but she knew all about it.

This is where we must hold these convergences in the same American line: That my grandmother introduced me to the Ku Klux Klan and the phenomenal wealth of Mr. Trump can make sense only in the context of her room, where not only the South rose again but it also stampeded into her a sense of things the way that racism does for all Black people, uninvited, braying and ready to ride over you senseless.

I wonder what my grandmother would have thought of Mr. Trump’s evolution into public, overt racism, if the overripening of his capitalism into fetid hatred would have surprised her. Or if she would have accepted it as the confirmation of her remove from people she did not trust, her extraperceptive sense that everything was possible within them and that a dislike of Black people and Black self-determination should always be expected, if not anticipated. But as much as she distrusted everyone, my Black Southern grandmother held the good liberals around us at a certain distance, as if she could tell they were not rugged warriors. No, our friends in our Northern city of Philadelphia were the kinds of people wholly unprepared to battle with the nastiness she had seen and witnessed. They made the fight sound good, but their knuckles and wills were untested. This strange woman in our house! I spent much of my childhood thinking that my socially calloused grandmother was wrong on that account. Until she was right.

Credit…Damon Winter/The New York Times

These days, so many of us speak the language of emergency, but where is the language of integrity, sincerity and dedication?

Gone is the ability to bear down, to think beyond ourselves, even in the most basic ways. Instead, we have been left to navigate a disabling pandemic on our own, with the most vulnerable left to their own resources.

We are becoming a country anesthetized to people saying, “I am afraid for my life.” The war on one another demands that we not stop to ask, “Why are you afraid?” but rather that we bear our right to be callous and to keep on.

Mr. Trump gave people something to coalesce around as a communion of disdain, but it signified nothing at the end of the day. The vaporization of investment appeared everywhere. For centuries, Quakers, known as the Friends, led the fight for abolition, sat out the Vietnam War and fought tirelessly for civil rights in America. But two years ago, Brooklyn Friends School attempted to decertify its teachers’ union, using a Trump-backed ruling designed to prevent certain employees from unionizing.

In 2017, The New Yorker published a fantastic cartoon cover of Mr. Trump blowing air into a boat’s sail that resembled an eerie K.K.K. hood. This strong public stance against white supremacy was later gravely undermined by the intrepid work of the magazine’s archivist Erin Overbey, who disclosed a number of statistics about diversity at the publication. (She was later fired.) The same magazine that had implied that Mr. Trump was a bigot was discovered to have published in 30 years of its weekly publication fewer than five profiles by Black women.

In 2020, David Zapolsky, Amazon’s general counsel, reportedly described Christian Smalls — a Black Amazon worker who had led a significant walkout at one of its warehouses — as being “not smart or articulate.” Two months later, in the heat of that June we will never forget, without offering any kind of apology to Mr. Smalls, a Black labor leader standing up to a billionaire, Mr. Zapolsky wrote a memo detailing his commitment to Black life.

Those harnessing this brand of power would actually like us to imagine that our strength is a fluke. Or would have us think that the precariousness and alienation that Black people experience is merely a kind of speculative fiction unless filmed or photographed. When in reality we simply have to ask ourselves why we keep imagining that those with no blisters on their fingers, no courage or clarity of spirit should be at all qualified to take on Mr. Trump or the right.

In a bifurcated political system such as America’s, us against them is often taken to the utmost extremes. The faded stain of civil war is always present. But Mr. Trump, because he broadcast so loudly a kind of uncommon indecency, if not ignorance, provided those who opposed him with a four-year screed that propelled us all into an airless nightmare whether we want to admit it or not. Found in Mr. Trump’s inability to shut up was a kind of fuel for a furious energy that had been missing in liberal circles for decades. People knitted pussy hats. They put images of slaughtered Black people in their windows. They purchased rhinestone-lettered bracelets that spelled “Obama.” They took to the streets fortified to declare mutiny against Mr. Trump’s America. It was an energetic performance. But ultimately, it was just that: a performance. Mr. Trump, the president, was treated by so many like a boogeyman, the person bellowing at the perimeters of our towns who impatiently demanded more while those bemoaning him continued to feed and negotiate with him in order to preserve their own lives.

But liberals cannot continue to depend upon Black urban centers, the working class and the young to save this fragile democracy without any authentic commitment to improving our futures in tangible ways. They have to view the defense of our lives not as a culture war but as a progression of values to bring forth leaders who can see America in its totality. There must be lasting recognition of the young voters and the communities laboring nonstop to send Mr. Trump and his hate to the dustbin of history. The work will not be light. But it cannot splinter us. We see now that there is a way out of this shattering, out of this American fetishism and fatalism and into recovery.

The first time I headed South on my own, with no obligation to see aunts and cousins, I headed straight to Oxford, Miss. Where the heat makes you feel vertiginous. Crowded with Ole Miss college students, Oxford rests on red clay and fallen magnolia flower petals, swarmed by echoes, shadows, history and grief. I felt the anguish of the past there, the fragility of the present. And in a motel just off the main square, I found reinforcement from the words of a writer who mostly wrote about women like my beautiful grandmother only as maids, but he still retained a kind of unsettling sight, a way of seeing how ill we are and why. He was a brilliant American because he knew he was flawed. He knew that none of us are perfect, that we all have inherited a sickness and ache from residing in this place and we must contend with it by facing it with a sense of honesty that actually dismantles, disintegrates and reveals. And soin “Absalom, Absalom!” there is a passage that all “good” American liberals should be read whenever they find themselves fearful about the return of Mr. Trump:

“His very body was an empty hall echoing with sonorous defeated names; he was not a being, an entity,” William Faulkner wrote. “He was a barracks filled with stubborn back looking ghosts still recovering, even 43 years afterward, from the fever which had cured the disease, waking from the fever without even knowing that it had been the fever itself which they had fought against and not the sickness.”

Rachel Kaadzi Ghansah is an essayist. In 2018, she won a Pulitzer Prize for feature writing.

The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips. And here’s our email: letters@nytimes.com.

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An iPhone Factory Needs Workers. The Chinese Government Wants to Help.

by SITKI KOVALI 18 Nov 2022
written by SITKI KOVALI

Apple’s largest iPhone factory, in the city of Zhengzhou, has been beset with production problems caused first by a Covid lockdown and then a shortage of workers. Now, that plant is getting help from an unlikely source: the Chinese government.

Officials in central China have tapped the government’s vast network of party members, civil servants and military veterans to help Foxconn, the Taiwan-based assembler of Apple’s iPhones, with its recruitment drive. They called on them to “respond to the government’s call” and “aid in the resumption of production” at the factory, according to county notices and state media reports.

The mobilization campaign highlights the Communist Party’s concerns over its reeling economy in a time of severe business disruptions, low demand and record-high debt. As businesses falter under the tough pandemic prevention measures of the nation’s top leader, Xi Jinping, authorities are turning to party-led mechanisms to keep them humming.

“It’s a great irony,” said Adam Segal, an expert on the Chinese military and technology at the Council on Foreign Relations, referring to the party’s efforts to recruit cadres to work at Foxconn. “It’s clearly reflective of the sorry state of the economy and the worry that Apple and others may relocate.”

Businesses, both foreign and domestic, have struggled in China as the government has continued to pursue a stringent zero Covid policy that relies on mass lockdowns, quarantines and near-daily testing to try to quash infections. Those measures have prompted some longstanding foreign manufacturers, including Apple, to look to countries like Vietnam and India to reduce its reliance on China.

Disinfecting a factory at the Foxconn industrial park of Foxconn in Zhengzhou, Henan Province, this month. As the rest of the world has mostly moved on to living with Covid, China remains an outlier.Credit…Visual China Group, via Getty Images

The risk of Apple’s dependence on China became clear when an outbreak of coronavirus battered Zhengzhou in mid-October. The Foxconn plant, which makes more than half of the world’s iPhones, went into a lockdown: holding roughly 200,000 workers inside its compound and setting off widespread panic.

More on Big Tech

  • Amazon: The company appears set to lay off approximately 10,000 people in corporate and technology jobs, in what would be the largest cuts in the company’s history.
  • Meta: The parent of Facebook said it was laying off more than 11,000 people, or about 13 percent of its work force
  • Google: The tech giant agreed to a record $391.5 million privacy settlement with a 40-state coalition of attorneys general for charges that it misled users into thinking they had turned off location tracking in their account settings even as the company continued collecting that information.

Workers who spoke to The New York Times on the condition of anonymity described food shortages and the fear of being at the mercy of the company for basic necessities. On the last weekend of October, hundreds of workers fled, some with no plans to return.

The worker exodus hit Apple’s supply chains, with a possible delay in iPhone shipments for the holiday season, the company announced. A report by UBS, a global investment bank, estimated that wait times for the iPhone 14 Pro and iPhone Max were approaching “the highest levels in history.”

A week after the mass departure of workers, the Chinese government sprang into action.

In Zhoukou, a city in eastern Henan, a township government met to discuss Foxconn’s recruitment challenges, and officials gave out quotas for workers to be recruited, according to Shanghai Securities Journal, a state newspaper. Reached by phone by The Times, a Zhoukou official acknowledged the city had been helping Foxconn with recruitment but declined to elaborate.

Military veterans have also been brought in.

“It’s been difficult for companies to resume work and production,” Zhang Yongchao, the office manager of the veteran affairs bureau of Changge, a city an hour from the Foxconn plant, told The Times. As the pandemic, along with China’s harsh measures to contain it, have led to labor shortfalls at Foxconn and other businesses, it has created opportunity for veterans, who have long had difficulty finding work, he said.

In Zhengzhou in October, Foxconn workers headed to their hometowns on buses arranged by local authorities after a coronavirus outbreak in the city. Credit…Visual China Group, via Getty Images

“Plus, Foxconn’s pay is relatively good,” he added.

Notices for recruitment were posted across official county social media pages. Foxconn would pay 30 yuan ($4) a day, roughly 5 yuan, or around 70 cents, more than earlier in the year. Workers who had previously fled because of the outbreak and were willing to return would get a one-time bonus of 500 yuan ($70). The notices made clear the urgency of the company’s recruitment drive: Those who showed up for work by mid-November were promised an additional 3,000 yuan after 30 days of work.

“It is quite rare to see a mass recruiting with such a large-scale use of the government’s power,” said Li Qiang, founder and executive director of China Labor Watch, a New York-based Chinese labor rights group.

The government has an interest in supporting companies like Foxconn, a major taxpayer and employer in Henan.

As the pandemic has rattled businesses and caused labor shortages, the government must take up the “baton” to help enterprises and “promote the stability of the global supply chain,” Global Times, a Communist Party newspaper, said in a commentary justifying the government’s aid to Foxconn.

China often deploys its military and party members in moments of crisis, reflecting the party’s deep-seated faith in the power of ideology and loyalty over material interests. During the Shanghai lockdowns this spring, China called on thousands of medics in the People’s Liberation Army and party cadres as part of its full-throated pandemic response.

Mr. Li, the activist, who has spent decades observing labor trends in China, said he had never seen a government campaign for private businesses hiring retired soldiers. He also expressed doubt about older veterans’ fitness for factory work, as most employees at Foxconn are under 35.

An image taken from a video shows people leaving a Foxconn compound in Zhengzhou in October.Credit…Hangpai Xingyang, via Associated Press

Foxconn said it did not comment on “individual employee matters” but said the manufacturer was working with “relevant local government agencies” to recruit and return production to normal as soon as possible.

Apple declined a request for comment.

The country’s push to mobilize workers also shows that there is a deep mutual dependence between one of the world’s most valuable companies and the world’s most populous country. It has long been assumed that Apple needs China more than China needs Apple, as throngs of smartphone buyers generate a fifth of the company’s sales.

But now, as the country faces mounting economic challenges, Apple may have the upper hand. If production fails to meet expectations, Mr. Li said, “Foxconn may transfer to other countries, and it could also drive the entire electronic industries to speed up their transfer to foreign countries.”

The bellicose rhetoric used in the recruitment drive suggests that the government is keen to avoid losing a major economic partnership. One notice urged veterans to “Keep duty in mind: If there is a war, respond to the call.”

Tripp Mickle contributed reporting.

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Biden Administration Offers New Path to Discharging Student Debt in Bankruptcy

by SITKI KOVALI 18 Nov 2022
written by SITKI KOVALI

As President Biden’s broad plan to cancel student debt for millions of borrowers faces mounting legal challenges, his administration took a separate step on Thursday that could make it easier for the most vulnerable student borrowers to clear their debts: through bankruptcy.

Unlike credit card bills, medical bills and other consumer debts, student loans aren’t automatically wiped away in bankruptcy; borrowers are required to file a separate lawsuit to try to do so. It’s stressful, costly and notoriously difficult to meet the strict legal tests to succeed, and most debtors don’t even try.

But, on Thursday, the Justice Department, in coordination with the Education Department, announced a new process that it said would help ensure that people in bankruptcy seeking relief on their federal student loans were treated more fairly, with clearer guidelines about what types of cases would result in a discharge.

“Today’s guidance outlines a better, fairer, more transparent process for student loan borrowers in bankruptcy,” Associate Attorney General Vanita Gupta said in a statement. “It will allow Justice Department attorneys to more easily identify cases in which we can recommend discharge of a borrower’s student loans.”

Under the new guidelines, debtors will complete an “attestation form,” which the government will use to help determine whether to recommend a discharge. If debtors meet certain requirements — including having expenses that exceed their income — government lawyers will recommend a full or partial discharge.

In each of the five years before the pandemic, roughly a quarter-million people who had student debt filed for bankruptcy, according to a 2020 analysis by Jason Iuliano, an associate professor of law at the University of Utah.

But only a small sliver — less than 1 percent — filed the separate lawsuit, known as an adversary proceeding, to try to have that debt discharged. After reviewing the policy changes, Professor Iuliano was hopeful that the new guidance would encourage more people to try.

President Biden talking about student loan forgiveness last month. His broad plan to cancel student debts for millions of borrowers faces mounting legal challenges.Credit…Al Drago for The New York Times

“At a quick glance, the process seems reasonable,” he said. “It should increase the number of student discharge requests while also making it far cheaper and easier to litigate those requests. It will be interesting to see how the reforms play out.”

The guidance comes roughly a year after officials in the Education Department said they were working with the Justice Department to review their approach. The government also agreed to pause cases if debtors, as they refined their playbook, wanted to.

Borrower advocates, consumer bankruptcy lawyers and law professors who have been critical of the difficulties borrowers face took a cautiously optimistic stance on the policy changes.

“The new guidance has the potential to provide a meaningful avenue for relief, but its effectiveness will depend on how it is implemented by the Departments of Education and Justice,” said John Rao, staff attorney at the National Consumer Law Center.

Discharging student debt has become increasingly challenging over the past four decades — and differing standards across the country mean a debtor’s outcome can vary based on where he or she lives.

Before 1976, student loans were wiped away in bankruptcy, just like any other form of consumer debt. But some lawmakers were concerned that professionals with expensive degrees and high-earning potential could game the system, so they tightened the rules: Borrowers could no longer receive a discharge within five years of when they had to start making loan payments, unless they could show that the debt posed an “undue hardship.”

The undue hardship standard isn’t defined in the bankruptcy code, so courts developed their own definition — and the code is interpreted differently between jurisdictions.

In some, judges can consider the “totality of the circumstances” in their decision. But most of the country uses a stricter interpretation, called the Brunner test.

It was named for Marie Brunner, who filed for a discharge of her debt less than a year after she’d completed a master’s degree. The case created a three-prong test: Can debtors maintain a minimal standard of living based on their income and expenses while repaying the debt? Have they made a good-faith effort to repay the loans? And is their situation likely to persist for a significant part of the repayment period?

Some courts take the test a step further, and require borrowers to demonstrate a “certainty of hopelessness.”

Today, every debtor must meet some version of the undue hardship standard. In decades past, meeting the standard was required only if you tried to discharge your debt in fewer than five years. But, over time, that window was eliminated, making everyone subject to the standard.

People protesting student debt in Washington this spring. Credit…Kenny Holston for The New York Times

The new policy will still track the broad outlines of the Brunner test, but the Justice Department’s attorneys will recommend a discharge under certain circumstances. For example, if a debtor’s expenses equal or exceed his or her income, a discharge may be suggested if the borrower also meets other criteria: The debtor is of retirement age; did not earn a college degree; or has a disability or chronic injury, a protracted unemployment history or has been in repayment for at least 10 years.

The government will also consider whether the borrower has made a “good-faith effort” to earn income and pay back the loans.

Pamela Foohey, a professor at the Cardozo School of Law, said she believed the policy changes would lead the Justice and Education Departments to recommend more discharges, though the bankruptcy judge would make the ultimate decision. But she has concerns that the “good-faith” measure remains too vague and could discourage people from bringing cases.

“Nonetheless, that the guidance hopefully will provide consistency in how the D.O.J. and D.O.E. will assess each case is a significant step forward,” Professor Foohey said.

Some bankruptcy judges have spoken out through strongly worded opinions, acknowledging that the landscape has changed since Brunner was decided and that the standard that emerged was too stringent.

During his presidential campaign, Mr. Biden pledged his support for the bankruptcy proposal put forward by Senator Elizabeth Warren, Democrat of Massachusetts, which would make both federal and private student loans dischargeable, just like other consumer debt. (The changes announced on Thursday apply only to federal debts.)

“For many years, the treatment of people who borrowed money to go to school has been much harsher than for those who ran up other kinds of debts,” Ms. Warren said in a statement on Thursday. “Now, within the law, the Biden administration has begun to build meaningful change.”

A president cannot change the bankruptcy code — doing so requires congressional approval. But the Education Department is typically the main defendant in these cases, so the government can revise its approach. And that’s what has been done here.

Though there has been bipartisan support for related bills in Congress, none have gained traction. Senator Dick Durbin, Democrat of Illinois, and Senator John Cornyn, Republican of Texas, introduced a bill in 2021 that would discharge federal student debt as part of the bankruptcy process, but only 10 years after the first payment was due.

In each of the five years before the start of the pandemic, roughly a quarter-million people who had student debt filed for bankruptcy.Credit…Brandon Bell/Getty Images
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Democratic Lawmakers Call for Investigation of Elon Musk’s Twitter

by SITKI KOVALI 18 Nov 2022
written by SITKI KOVALI

WASHINGTON — Seven Democratic senators called for the Federal Trade Commission on Thursday to investigate whether Twitter had violated a privacy agreement with the agency since Elon Musk took over the company.

In a letter to Lina Khan, the chair of the F.T.C., the lawmakers said they were worried that Mr. Musk’s “reported changes to internal reviews and data security practices further put consumers at risk” and that Twitter had broken the terms of a 2011 legal settlement with the regulator.

The senators who signed the letter included Richard Blumenthal of Connecticut, Elizabeth Warren of Massachusetts and Cory Booker of New Jersey.

A spokesman for the F.T.C. declined to comment. The agency previously said it was “tracking recent developments at Twitter with deep concern.” Twitter did not immediately respond to a request for comment.

Mr. Musk, who completed a $44 billion buyout of Twitter last month, has upended the social media company. He has slashed 50 percent of the company’s work force, instituted changes to the site’s verification program and sought to quell fears among advertisers about the direction of the service. On Wednesday, he told remaining employees in an email that they had a deadline of 5 p.m. Eastern on Thursday to decide whether they wanted to stay or leave the company.

Twitter had agreed to a settlement with the F.T.C. in 2011 over privacy violations, which requires the company to submit regular reports about its privacy practices and open its doors to audits. But last week, several of its security executives resigned a day before a deadline for Twitter to submit a report to the F.T.C.

In internal messages later that day, an employee wrote about the resignations and suggested that internal privacy reviews of Twitter’s products under Mr. Musk were not proceeding as they should under the F.T.C. settlement. Mr. Musk later told staff that the company would comply with the F.T.C. settlement.

In their letter to the F.T.C., the lawmakers raised concerns about the executives’ departures, as well as Mr. Musk’s changes to the verification program for Twitter accounts, which they said had been a boon to scammers on the website.

“We urge the commission to vigorously oversee its consent decree with Twitter and to bring enforcement actions against any breaches or business practices that are unfair or deceptive, including bringing civil penalties and imposing liability on individual Twitter executives where appropriate,” the lawmakers said.

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How Jellied Cranberry Sauce Is Made

by SITKI KOVALI 17 Nov 2022
written by SITKI KOVALI

Jellied cranberry sauce is arguably one of the easiest things to prepare on Thanksgiving. It slides onto the serving plate, retaining its cylindrical shape — and even some of the can grooves. Slice it along the rings and you have perfect circles of tart jelly to serve alongside traditional American fixings.

Jellied cranberry sauce is “that same product you count on year after year,” said Joan Driggs, a vice president at IRI, a marketing research company. And this year marks the 110th birthday for the sauce, which was invented in 1912 by Marcus Urann, a Massachusetts farmer.

Less than two decades later, in 1930, Mr. Urann would establish the Ocean Spray cooperative with two other cranberry farmers: John Makepeace, also of Massachusetts, and Elizabeth Lee of New Jersey. Their canned jellied sauce became available nationwide in 1941, and their cooperative has now grown to be owned by 700 family farmers.

Last year, Ocean Spray sold 75 million cans of jellied cranberry sauce, with the bulk of sales — 85 percent — occurring in the holiday season.

Some of that popularity can be attributed to younger millennials and members of Generation Z, who are taking over Thanksgiving plans from their older relatives, Ms. Driggs said. They’re also doubling or tripling up on the cans as they host other small Thanksgiving celebrations, like Friendsgivings, before the actual meal.

The price of the sauce is up about 21 percent compared to a year ago, but there are no supply chain concerns this year, Ms. Driggs said. In fact, she said, cranberry production has increased by about four percent as farmers across the country prepare a year ahead to harvest about 15 billion plump, red cranberries just for the canned jelly.

A Brilliant Red Harvest

About 1,100 farms grow cranberries in the United States, and this year, the crop is estimated to produce around 8.3 million barrels, or about 830 million pounds of cranberries, according to Karen Cahill, the marketing director of the Cranberry Marketing Committee.

Many farms, like the 300-acre Rezin Berries in Cranmoor, Wis., pictured above, are family-run. In operation for 76 years, the farm has sent berries to Ocean Spray for the last 50, now providing about a million pounds each year, a number that has grown throughout the farm’s history with the cooperative, said Lisa Rezin, an owner of the farm.

To grow an acre of cranberries, a farmer needs another five to seven acres of support land, Ms. Rezin said, just for the farm’s water reservoir system. Contrary to popular belief, the berries do not grow in water, but rather in a moist, well-drained environment. These cranberry beds, also called bogs, are flooded with water — about 18 to 30 inches — when the berries are ready to be harvested in September and October.

“It’s about knee-deep,” Ms. Rezin said. “It just depends on whose knees you’re measuring.”

When the bed is flooded, fully grown cranberries, which have four air pockets in them, naturally rise to the top. Farmers use hand rakes and tractors to detach the berries from their vines, while protecting the cranberry buds for next year’s harvest. The harvested berries are then corralled into yellow containment booms, the same type used to contain oil spills.

The ruby puddle of corralled berries gets smaller and smaller as it’s loaded onto a conveyor at the edge of the cranberry bed. The conveyor dumps the berries into a truck, and farmers loosen any stragglers off their vines before the truck heads to their cleaning facility.

At the cleaning facility, the berries move onto another conveyor. There, they’re rinsed with water that goes back into the farm’s reservoir system for use in the next cranberry bed, and whatever water is left over heads to other nearby farms.

Once clean, the berries are off to Ocean Spray’s receiving facility in Babcock, Wis., one of several across eight states where farmers drop off their cranberries. There, the cranberries are cleaned again and frozen until they’re ready to be processed.

Back at the farm in January, more water is added to the flooded beds to freeze the cranberry vines and protect the buds from harsh Wisconsin winters. Every few years, farmers will also throw about a half-inch layer of sand over the ice. As the ice melts during the spring, the sand settles around the vines, helping promote new growth and prevent fungi.

Canning Time at the Factory

Throughout the day, frozen cranberries are transported from the receiving facility to Ocean Spray’s production facility, pictured here in Kenosha, Wis., where they’re inspected with a laser, to make sure each one meets the company’s specifications for color and size.

The berries are sent through a machine that removes their skins and seeds, producing a smooth purée. A second purée is made with what the company calls presscake, other reserved skins and seeds from Ocean Spray’s other products, which contains the pectin that gives the sauce its gelatinous texture. Corn syrup is mixed in while making the purée. Once the mixtures are filtered and blended together, they’re sent off to be packaged in cans.

Empty cans move down a conveyor, where they’re inspected for defects and rinsed before they travel to the filler, the device that fills the can. There, the hot cranberry sauce is poured into the can, and a lid is added. Random cans are inspected to make sure that they’ve been filled to the proper height and that the sauce has the right texture. The sealed cans are then sent to a rotary can cooler to chill.

The cans are coded, labeled, packed into cases, shrink-wrapped and put into pallets for shipment.

Eagle-eyed consumers may note that the labels are upside down. That’s intentional: That positioning means the cans will be presented upside down on store shelves, making it easier for that cylinder of sauce to wriggle its way out of the can onto Thanksgiving platters, a long journey that ends with a satisfying plop.

Follow New York Times Cooking on Instagram, Facebook, YouTube, TikTok and Pinterest. Get regular updates from New York Times Cooking, with recipe suggestions, cooking tips and shopping advice.

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Judge John Hodgman on Klingon Cat Names

by SITKI KOVALI 17 Nov 2022
written by SITKI KOVALI

Tyler writes: My partner, who is also named Tyler, wants a second cat. I’m not a fan of cats, so he takes full responsibility for ours. I told him if he adopts another cat, I would get to name it. He agreed. But he doesn’t like the name I’ve chosen — Gowron, after the Chancellor of the Klingon High Council — and insists I choose another.

This one hurts. First, because you presumed I didn’t know who Gowron is. He’s the son of M’Rel, for Kahless’s sake! Second, I suspect you’re just trying to annoy Tyler as punishment for this second cat. Third, it’s obvious this cat should be named Tyler. But a deal is a deal: Gowron it is. At least you did not get clever and suggest “Meowron,” which I’m sure has been done one million times. Readers, let me know how many of you have cats named Chancellor Meowron. Also email me if your dog is named Lieutenant Woof.

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Steven Ginsberg Named Editor of The Athletic

by SITKI KOVALI 17 Nov 2022
written by SITKI KOVALI

The Athletic, the sports website owned by The New York Times Company, announced on Thursday that Steven Ginsberg, a top editor at The Washington Post, would become its executive editor.

In a note to staff members, David Perpich, the publisher of The Athletic, said that Mr. Ginsberg would join the publication on Jan. 3 in the newly created role.

“We conducted an intensive search and interview process during which it became clear that Steven is the right leader for The Athletic’s newsroom,” Mr. Perpich wrote. “He is a champion of ambitious and creative journalism who has a love for breaking news, beat reporting, analysis and investigative scoops.”

Mr. Perpich added that Mr. Ginsberg “shares our vision for The Athletic to be the best destination for sports journalism in the world.”

The Times bought the The Athletic in January for $550 million. Meredith Kopit Levien, the chief executive of the Times Company, told analysts at the time that she expected the sports site to take three years to turn a profit. It has lost nearly $29 million in the past three quarters while under The Times’s ownership.

Mr. Ginsberg, 50,will lead the site as it further integrates into the Times Company and pushes to expand its subscriber base. In Mr. Perpich’s letter to The Athletic newsroom, Mr. Ginsberg said his goal as executive editor was “to build on what you have created, to continue bringing together the world’s best journalists to create the world’s best sports journalism site.”

Mr. Ginsberg is currently a managing editor at The Post, overseeing the publication’s major news sections. He started at the news organization in 1994, and worked as a reporter on The Post’s business and metro desks before becoming an editor in 2007. He was named national editor in 2017, and was a top candidate to take over as executive editor of the paper when Martin Baron announced his retirement in 2021. That job ultimately went to Sally Buzbee from The Associated Press.

Mr. Ginsberg’s departure is the latest in a stream of top executives and journalists exiting The Post. In recent months, Shailesh Prakash, the chief information officer, and Kat Downs Mulder, the chief product officer, left for other opportunities. The Pulitzer Prize-winning book critic Carlos Lozada joined The Times’s Opinion section as a columnist in September.

Mr. Ginsberg’s move to The Athletic was first reported by Semafor.

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