The Young Turks - Nuclear Option

Episode Date: March 21, 2025

Pentagon gears up for “major” war with Iran. Another WAR Is brewing between Trump and the fed. Prosecutors accuse LA anti-gang “activist” of murder and kidnapping. Private equity firms buying homes for intellectually disabled. Hosts: Ana Kasparian SUBSCRIBE on YOUTUBE ☞ https://www.youtube.com/@TheYoungTurks FOLLOW US ON: FACEBOOK ☞ https://www.facebook.com/theyoungturks TWITTER ☞ https://twitter.com/TheYoungTurks INSTAGRAM ☞ https://www.instagram.com/theyoungturks TIKTOK ☞ https://www.tiktok.com/@theyoungturks 👕MERCH ☞ https:/www.shoptyt.com Learn more about your ad choices. Visit megaphone.fm/adchoices

You're listening to The Young Turks, the online news show. Make sure to follow and rate our show with not one, not two, not three, not four, but five stars. You're awesome. Thank you. Welcome to TYT. I'm your host, Anna Kasparian, and the Pentagon is considering a nuclear war. I'm not even kidding. Let's get to our first story. So Ken Klippenstein has been following what's been happening in regard to the U.S. response to Iran, the U.S. response to Iran, which of course the U.S. is being egged on by Israel. to engage in. And so here's what we're learning based on Ken Clippenstein's reporting here. So

the Pentagon has begun preparations for a potential war with Iran. And that's according to reports that are coming from Ken Clippenstein, a former colleague of TYT, and someone who's now writing independently over at Substack. And they're even considering, apparently, a scenario in which nuclear weapons could be used. So let's break this down. Let's see. see what the sources are. Let's see how much reality there is behind that possibility. So on Tuesday, Clippinstein reported that Pentagon and company contracting documents that he had obtained describe a unique joint staff planning effort underway in Washington and in the Middle East to refine the next generation of a major regional conflict with Iran.

So that planning effort is basically being referred to as a seed project. That's what they've dubbed it. Part of the reason why the project exists is that the Pentagon is re-evaluating Iran's war capabilities. I hope they're taking their time in reevaluating Iran's war capabilities. I hope they're maybe a little more competent than what we experienced during the Bush administration. But please make no mistake about it. The neocons are back. Okay, they're in charge.

Don't let anyone think for a second that the Trump Pentagon is any difference from the Bush era Pentagon, full to the rim, okay, with these neocons who are just salivating for a war with Iran. And they're literally talking about the potential of nuclear weapons. Okay, so let me continue. While the Pentagon is no longer concerned that Iran could launch a ground in, of their neighboring countries, which should be the most important thing, right? They are worried about the combination of narrow pinprick attacks by proxies, Iran's various covert and influence campaigns, and its use and proliferation of long-range drones and missiles, especially to Russia.

So U.S. Central Command or Sentcom is the Pentagon's regional command that oversees the Middle East specifically. And it's also the division that is working on the war planes or war plans, I should say, against Iran. So one document in that plan warns of the distinct possibility of the war escalating outside of the United States government's intention and impacting the rest of the region demanding a multifaceted approach. And so according to a retired senior military officer who was actually briefed on these plans, They include the possibility of using nuclear weapons. So let me just pause and say, for the young men who were concerned about the continuation of the Biden administration through the election of Kamala Harris, these were the same people who were concerned about World War III, about things getting so out of control that maybe the United States would even consider re-implementing a draft. They were worried about the possibility of nuclear war, not in regard to Israel and Iran or the Middle East. They were concerned that nuclear war would break out as a result of the conflict in Ukraine.

But now you have the Trump administration, and we're hearing from the Pentagon in the Trump administration, that they're, you know, considering scenarios in which nuclear weapons might be part of the scenario. Okay. But let's just go back to what that retired senior military officer said. One might find it extraordinary to think that nuclear weapons are even considered, the officer tells us, but we have entered a new era. I don't love the fact that I keep thinking about Tucker Carlson of all people being correct on the issue of Iran and urging the Trump. administration to avoid engaging in a war with Iran on behalf of Israel, but we're going to do it anyway because Tucker Carlson doesn't own the government. The Israel lobby owns the government.

And who cares about American soldiers? They're expendable. Who cares about civilian lives? I mean, anything for the Israel lobby. Anything. Okay, there's more. The officer stated that the nuclear plans aren't necessarily related to Donald Trump's. re-election, rather that these would be the three reasons for reintroducing nuclear deterrence. So the argument here is it's not like Trump's over at the Pentagon telling them, oh, you should threaten nuclear weapons or the use of nuclear weapons against Iran. But nonetheless, I mean, who's the head of the Pentagon right now? Who are the individuals within the Trump administration who have only escalated the conflict

in the Middle East, certainly with this notion that we should, you know, take over the Gaza strip, ethnically cleanse the Gaza strip of Palestinians. I mean, it's just, but anyway, so here are the three reasons for reintroducing nuclear deterrence, according to the Pentagon. So to directly deter Iran from developing nuclear weapons or then from using them, you know, a great way of doing that would be to re-implement the Iran nuclear deal, which prevented them from, you know, developing nuclear weapons. So if you don't want to blame Trump, I'm sorry, the president who actually ripped up the Iran nuclear deal was Donald Trump. But let me continue. To convince Israel not to use its own nuclear weapons, that is by making it clear that the U.S. equally would or could

preempt Iran if something dire happened. Also to dissuade Saudi Arabia from perceiving that it has to develop its own nuclear weapons because Iran is doing so. So here are the scenarios. in which the United States would authorize the use of nuclear weapons against Iran according to these plans. So one, with the CENTCOM commander requesting the use of nuclear weapons mostly to stave off Iranian conventional military success

and two, in a top-down order that is by the president, mostly as a demonstration to signal to Iran. In other words, the red button could very well be in Donald Trump's hand or hands or his decision to use nuclear weapons could be. So tensions are rising as Iran pushes back against the Trump administration. For instance, two weeks ago, Trump wrote a letter to Ayatollah Khamenei. That's Iran's supreme leader, a theocrat.

Now, he sends this letter as a gesture to start talks about the country's nuclear program. And according to reports, the letter contained a two-month deadline to reach a new nuclear deal. You know, he could have kept the old nuclear deal in place, but Obama negotiated it and Trump has to reverse anything a Democratic president does, even if the Democratic president actually secured a win. In this case, the Iran nuclear deal was a win. But make no mistake about it. Nanyahu doesn't want an Iran nuclear deal. He wants the U.S. to go to war against Iran on his behalf. And make no mistake, we will do it. I have no doubt at this point. that we're going to do it. It's so unhinged and so ridiculous, even as the Pentagon acknowledges

that Iran's not looking to do any kind of ground invasion against one of its neighboring countries. I mean, just think about the military capability and the defense capacity that Israel has. I mean, and we're still having a conversation, given what the Pentagon has acknowledged about doing a war against Iran, engaging in war against Iran. Okay, great. Anyway, so the letter was publicly rejected by both Kamenei and Iran's president. The supreme leader, the Grand Ayatollah, says that the insistence of some bullying governments on negotiations is not to resolve issues. Talks for them are a pathway to have new demands. It is not only about Iran's nuclear issue.

And that's not all. So nor news, an outlet affiliated with Iran's Supreme National Security Council, said there will be no guarantee Iran will not abandon the non-proliferation treaty if Trump and his team keep threatening them. And that's bad news given the state of Iran's nuclear advancements. Although given the reporter here, Barack Ravid, who seems to just, serve as a stenographer. I would kind of take these numbers with a grain of salt. I mean, I would want to find a different way of confirming them. But this is what's being

claimed that Iran's nuclear program has advanced over the past four years and it is closer than ever to producing a nuclear weapon. It's stockpile of 60 percent enriched uranium is enough for six nuclear bombs if enriched to 90 percent. And that's according to the International Atomic Energy Agency. So look, there's always been a lot of fearmongering about Iran and that fear mongering tends to, you know, come specifically from the Israeli government that sees Iran as a threat, wants us to use our resources and human lives in order to fight that war on their behalf. And we're going to do it. So I just want to be clear about that. I want to warn you about that. And the mention, the mere mention of nuclear weapons playing a role

in this is absolutely and utterly disgusting. So I have no malice toward Trump voters. These are are ordinary Americans, we live in a democracy, they get to vote however they want. But I just hope that for those who are persuaded to vote for Trump over Harris, because they were worried about war spreading, they were worried about World War III, they were worried about nuclear war, get a load of what's happening right now and what the Pentagon is considering. Are you okay with that? Because if we have any hope in preventing this from happening, it's not going to come from me. It's not going to come from from members of the Democratic Party, they're pathetic as it is, it's going to come from rage

and anger from Trump's base. And so I'm begging them to really think about what the consequences of this would be for the American people. And make your voices heard, please, because this is insane. All right, let's move on to the next story. We'll, I guess we'll counter that with some positive news today. Social Security is the biggest Ponzi scheme of all time. Well, the biggest Ponzi scheme of all time just secured a pretty huge win against Elon Musk and the Department of Government Efficiency because a federal court has weighed in on whether Doge should be able to access private data, private information of the Americans

who are part of the Social Security Administration's database. And this judge is basically saying, no. Your reasoning for wanting to access this information doesn't make sense. I'm not buying it. And by the way, that information includes social security numbers, medical health records. Okay, so that's a little bit problematic when you have randos who were chosen by Elon Musk to be Doge associates. accessing this information. You also have bank data, earnings history, and more. So the order specifically blocks the Social Security Administration acting commissioner, Leland Dudik, Chief Information Officer

Michael Rousseau, and all other SSA agents, social security administration agents and employees from granting access to members of Doge to basically have access to all that private data of Americans who are in that database. So the decision from U.S. District Judge Ellen Hollander in Maryland also requires the team to delete any personally identifiable data they may have. It comes after labor unions and retirees asked for an emergency order limiting Doge access to the agency and its vast troves of personal data. And if you can notice, like there's more than two dozen lawsuits playing out in the courts right now in order to challenge the Trump administration, what they're up to. And I want to be clear, every time we talk about these lawsuits,

we're not talking about a Democratic member of Congress that filed the lawsuit in order to fight back. Okay, Congress isn't fighting back in any way, shape, or form. The Democrats have totally bowed their heads. They're raising a ton of money. Okay, I just read a piece in the Hill about how, ooh, Democrats had a nice little fundraising hall in February, $11 million. Absolutely pathetic. They're so embarrassing. But in this case, you have labor unions and retirees getting active, filing a lawsuit in order to protect their private information from these Doge associates. So the labor union said that Doge's nearly unlimited access was in violation of privacy loss for a good reason. I mean, we are talking about medical records in this case as well. Judge Hollander also didn't buy that members of Doge absolutely needed that access to all that personal private information. in order to find waste, fraud, and abuse.

So here's what the judge said. Its method of doing so is tantamount to hitting a fly with a sledgehammer. The Doge team is essentially engaged in a fishing expedition at the Social Security Administration in search of a fraud epidemic based on little more than suspicion. It has launched a search for the proverbial needle in a haystack without any concrete knowledge that the needle is actually in the haystack. She also said that the government has not even attempted, not even attempted to explain why Doge needs such sweeping access

to Americans' personal data, instead repeating its refrain that Doge's mission to root out fraud and modernize the bureaucracy must not be hindered. Now, the judge also called out how important privacy clearly is for members of the Doge team. We don't even know their names. So clearly, they really care about their own personal privacy, but they have absolutely no respect for the privacy of American citizens.

And that includes their health records, their social security numbers. The judge says, ironically, the identity of these Doge affiliates has been concealed because defendants are concerned that the disclosure of even their names would expose them to harassment. and thus invade their privacy. The defense does not appear to share a privacy concern for the millions of Americans whose Social Security Administration records were made available to the Doge affiliates without their consent. So what happens now?

Well, basically, the judge has directed Trump's DOJ lawyers to provide her with some, you know, legitimate explanation as to why they need just widespread, broad access to all of this private information. And Hollander's order does not preclude the social security administration from providing Doge with redacted or anonymized data. However, to receive that data, Doge's agents must receive all training typically required of individuals granted access to social security administration's data systems, including on the laws and regulations governing privacy, she said. So an unelected person doesn't just get to come in, tap a bunch of random people who we don't even know the names of, and without training, without any process, have them access all of this private information and data belonging to the American people. That's the point that's being made here.

So at least there's a little bit of a win in a pretty horrific newsday. We got to take a break. I'll give you more of those horrific news stories when we come back. So it turns out that we're not going to get interest rate cuts in the near future, but we're going to get interest rate cuts later in this year. And I'm going to make a case for why that is in this next story. inflation has started to move up now, we think, partly in response to tariffs, and there may be a delay in further progress over the course of this year. Despite mounting pressure from President Donald Trump to have the Federal Reserve lower interest rates, Jerome Powell, head of the Federal Reserve, is resisting in that pressure and essentially pointing to the uncertainty in the economy.

as a result of Donald Trump's tariffs as his reason for wanting to hold off on cutting interest rates. Now, it wasn't just the fact that Donald Trump's tariffs have kind of caused chaos in the economy. It's also the fact that, well, if you look at consumer sentiment, and more importantly, if you look at where inflation currently is, well, they're not hitting the targets that they initially wanted to hit. And so out of an abundance of caution, the Federal Reserve has decided to keep interest rates exactly where they've been. So the feds move keeps the benchmark rate at 4.25% to 4.50%. Now again, Powell defended the central bank's decision to keep interest rates unchanged by citing the unusually elevated uncertainty that has resulted from Trump's tariffs and trade

policies. Take a look. You may have seen that goods inflation moved up pretty significantly in the first two months of the year, trying to track that back to actual tariff increases given what was tariffed and what was not. Very, very challenging. So some of it. The answer is clearly some of it. A good part of it is coming from tariffs. And look, financial institutions, Wall Street types, people like Trump, they love the sugar high from those interest rate cuts. They love the cheap money. They love it so much. I mean, without the cheap money, how are we going to get the overly inflated assets in the stock market? How are we going to have the growing inequality? Okay, so Trump responded to Jerome Powell in the way you would expect him to.

So on truth, social, he writes, the Fed would be much better off cutting rates as U.S. tariffs start to transition, ease their way into the economy, do the right thing. April 2nd is Liberation Day in America. Right. So Trump is likely going to get what he wants. Even though Powell did not provide interest rate cuts this time around, he did mention that he still expects two instances of the Fed cutting interest rates in the coming year. And by the way, one of the reasons why is because of what's currently happening with the banks. And that isn't really being talked about a lot.

One of the best journalists, in my opinion, on this matter, is Nomi Prins, a guess that we've had on this show multiple times. But she used to be at Wall Street. She worked for Bear Stearns, Goldman Sachs, and then she decided, yeah, I'm going to quit this and I'm going to be a whistleblower. And so I have a tremendous amount of respect for her. And her analysis is just on point. So regardless of what happens with Trump's tariffs or inflation, I do think the Fed is going to cut interest rates twice in the coming year because of the banks really suffering right now, they're drowning in unrealized bond and commercial real estate loan losses. They need that cheap money. They need that sugar high. And they're expecting it. So as Nomi Prince reports, according to the FDIC, unrealized losses, on investment securities hit $620 billion in the fourth quarter of 2024, a $150 billion jump in just months. Banks loaded up on long-term bonds when rates were low. Now those bonds are worth

far less locking them into deep losses. And by the way, the other issue is, you know, banks give out loans. And there's a little bit of an issue right now when it comes to defaults. defaults are rising, loan delinquencies are climbing with 3.6% of outstanding debt now delinquent. And that's according to the New York Fed's latest household debt and credit report. That's the highest level since 2020 that the reading reflects growing financial strain on consumers and adding pressure on banks already facing unrealized losses. So this is why despite the grim news on inflation, the Fed, still believes that they're going to cut interest rates this year.

And Nomi Prince is predicting that there will be a hundred basis points of cuts in this coming year. So the obvious reason is the slowing U.S. economy. The hidden reason, again, the banks. Markets are desperate for cheaper money. Wall Street needs an adrenaline shot. On top of that, the Fed doesn't want to deal with a banking crisis. And so that's really the hidden and main reason why the Fed is likely going to cut interest rates in the coming year on two different occasions by as much as 100 basis points because they don't want a financial collapse. They don't want to deal with the banking crisis. And that the banks are in a lot of trouble right now. If you listen to their earnings calls, they're freaking out. This economy is run on cheap money.

And the second you tried to correct that, things start falling apart. And by the way, of course, Americans, ordinary American workers are drowning in debt. Consumer debt is at an all-time high. Auto loan delinquencies defaults have risen significantly because a lot of those auto loans happen to be subprime loans. Things are not good at all, economically speaking. And I know we all like to point to one president or one administration that's at fault for this. But things really became like detached from reality in our economic system following the 2008 economic collapse, the qualitative easing that took place, quantitative easing, I should say, that took place following the 2008 economic collapse. Like the Fed's response to the economic collapse was,

give the banks cheap money, give them cheap money. And that distorted the market in many ways. That led to asset bubbles that haven't really popped yet. I don't know if they ever will, considering the fact that the Fed just keeps printing money. So this is not, in my opinion, the right solution to the problem that this economic system faces. But nonetheless, we'll get interest rate cuts and people will load up on more debt, including corporations. We'll see all sorts of weird distortions in the economy as a result. Also, the central bank approved plans to slow the reduction of its $6.8 trillion asset portfolio. Beginning in April, the Fed will allow $5 billion in Treasury securities to mature every month

without reinvesting the proceeds into new securities, and that's down from the current pace of $25 billion. So they're slowing the tightening that they had previously committed to. And if you don't know what that all means, let me explain. So when the Federal Reserve buys debt instruments like treasury notes or mortgage-backed securities, it's basically seeking to increase their price or the price of said securities while signaling a looser monetary policy, which, you know, financial institutions, corporations, they love that. And it's a policy meant to support the economy.

On the other hand, when the Fed sells these assets, it's considered a policy tightening approach that constrains financial conditions and asset values. But if you think this is monetary tightening by the Fed, what they're saying about allowing $5 billion in Treasury securities to mature every month, you should rethink that notion. Because, again, as Nomi Prince mentions, the Fed is sitting on a $6.7 trillion book of assets. of which $4.2 trillion in treasuries, is in treasuries. Realistically, $5 billion or $0 is pretty much the same thing when you consider like the grand scheme of these numbers here, right? When you're talking about $6.7 trillion, $5 billion a month is really not that big of a deal. And as she notes, optics called and the Fed seemingly answered. So it's really just about optics that this isn't real monetary tightening at all.

So there you have it. If you're looking forward to lower interest rates, great. If you think those lower interest rates will make it easier for you to buy a home, you're wrong because that will almost definitely lead to bidding wars. That'll drive up the price of housing. Lower interest rates is not the best solution for this housing market that's crippling a lot of first-time homebuyers. Now, low interest rates when it comes to your mortgage is great. I'm not completely discounting that. We need to build houses. That's what's leading to the increase of housing costs. And lowering

interest rates is only going to bring back the era of bidding wars. So regardless of what happens with the Federal Reserve, I feel like ordinary Americans lose anyway. And at the end of the day, the Fed is not working on behalf of you. They're working on behalf of financial markets, financial institutions, and the banks, and they're ready for that cheap money. They'll probably get it. Okay, let's move on to what the FBI announced yesterday, a pretty surprising story, a shocking story involving someone who was thought of as a reformed gang member, someone who's really helping out the community with his nonprofit. It turns out he was anything but. I'm going to turn myself in to see what's going on. They're talking about him a fugitive.

Music executive Eugene Henley or Big U taking to Instagram moments before turning himself in and just hours after federal authorities declared him a fugitive Wednesday. They just raided all my houses. Mr. Henley operated Big U Enterprises, a mafia-like organization. Federal authorities have arrested Eugene Henley, a Cripps gang leader, who they accuse of murder, kidnapping, robbery, extortion, and fraud. So Henley is facing RICO charges as a result of this lengthy investigation that was carried out by federal authorities. And it's a pretty embarrassing moment for local government here in Los Angeles, especially considering the fact

that his nonprofit was able to receive millions of dollars in taxpayer resources. He then took that money, and according to federal officials, put it in his pocket. So federal authorities liken Henley's Big U Enterprise to a mafia-like organization that relied on his stature and longstanding association with the Roland 60s and other street gangs to intimidate businesses and individuals in L.A. So Henley actually previously served 13, years in prison after he tried to rob an undercover sheriff's deputy of 33 pounds of cocaine in 1991. So he was under the assumption that he was going to meet with a drug dealer and the plan was to rob the drug dealer. Turns out that the alleged drug dealer was actually a sheriff's

deputy working in a sting operation. And so Henley got arrested, served 13 years in prison, and was released in 2004. Now Andrew Russo, a special agent with the FBI, says that, Henley simultaneously attempted to create an air of legitimacy for the Big U enterprise by promoting himself as a reformed gang member focused on bettering his community. Now, during their investigation, authorities recovered 49 weapons, 5 pounds of meth, no, I'm sorry, 10,000 fentanyl pills and large amounts of cash. And more than a dozen of Henley's associates have also been arrested. In fact, four of them were already in custody before this. investigation had finished. And, you know, the affidavit is a 107-page federal complaint. In it, the authorities detail that as part of Henley's purported grip on Los Angeles, his alleged

victims were required to check in with Henley before arriving in the city in order to obtain protection. And at that point, he would allegedly extort all sorts of people. And that includes big names, like celebrities, professional athletes, musicians. And on top of that, he is accused of defrauding donors and taxpayers who he basically persuaded to donate to his nonprofit and charities. Take a look. Officials also claim Henley used his nonprofit organization developing options, which purported to help sat-risk youth to dupe taxpayers, the county of Los Angeles, and NBA players. He allegedly embezzled hundreds of thousands of dollars worth of donations and grants

by transferring money into his personal bank account. Y'all don't understand what the FBI do, the black men who try to help their community. Yeah, but were you helping your community or were you, you know, stealing money that was meant to help your community and patting your pockets with it? That's the real question. And that is what the federal authorities are accusing him of doing. So after getting out of prison in 2004, following that 13 year prison sentence, he formed this nonprofit called Developing Options.

And it was a nonprofit that was supposed to provide underprivileged children with a safe outlet in sports in order to prevent them from joining gangs. Now, according to what he's being accused of, Henley fraudulently obtained funding from the gang reduction and youth development program, overseen by the L.A. Mayor's office. The nonprofit was allotted $2.35 million from the city from July 1st of 2018 to June 30th of 2023, according to the complaint. Henley's organization is one of more than 20 involved in this program. It's known as grid. And among those that he defrauded through this nonprofit were, you know, of course the taxpayers, because taxpayer money gets funneled into

this nonprofit, as it does with many other nonprofits that ended up defrauding taxpayers in the city. But among those donors were Golden State Warriors Forward Drayman Green, who donated $20,000. Shaquille O'Neal also donated $20,000 to this nonprofit. Now, this is obviously embarrassing, in my opinion, for previous Los Angeles mayors. This nonprofit was receiving money from taxpayers. dating back to 2011, but let's talk a little bit about Karen Bass, because before the FBI announced the charges against Henley, just days before, you know, Karen Bass had this press conference where she was touting the grid program and how effective it is and how wonderful it is. We always hear about how great things are going in L.A. when you hear from Karen Bass,

even as things are on fire and we can't get police to show up when there's an emergency. But in her press release, she didn't really mention anything about how you measure the success of these programs. How do you keep track of these programs to make sure they're working? And that's really the big problem that we're having in California in general, not just in L.A., when it comes to these public-private partnerships. Public-private partnerships aren't just between, you know, the government and a corporation. They're also between government and. private non-profits. And we've got so many of them here in California. Some of them that were established in 2020 as the George Floyd riots were happening. It's a perfect opportunity to

start a grift. And when you don't have some sort of review process, when there's no oversight to ensure that the money is being used the way it's supposed to be used, well, then these individuals get away with literally taking taxpayer money that was given to them for a specific cause for a specific mission, and they put it in their pockets. That's how this state lost $24 billion in five short years, and that money was specifically allocated to help the homeless. So not only were taxpayers robbed, the homeless were robbed too. But, you know, people weren't mad at Gavin Newsom about that. They were mad at him for having a conversation with Charlie Kirk, but they couldn't be bothered to be furious that that governor just squander $24 billion in taxpayer money.

And now, by the way, the state is in so much financial trouble. You have Gavin Newsom trying to take out $6 billion loans in order to cover losses for our state Medicaid program. This is the highest tax state in the country. L.A., one of the highest taxed cities in the highest state. taxed state in the country. And we're having a conversation about, oh, we're not going to be able to cover what we need to cover with Medicaid.

It's disgusting. But let's get back to Karen Bass because when Karen Bass was asked about Henley and the fact that for years, he ran this nonprofit, received taxpayer money and was transferring that money to his own personal bank accounts. You know, Bass's office was like, no, things are, we actually have a robust. bust review process. Okay. So this is DeMarcus Finnell. That's the press secretary for Mayor Bass. The city has strict oversight in place. Do they? Do they have strict oversight in place? This guy was receiving taxpayer money since 2011. And we're hearing now in 2025 that he was taking

that money and putting it in his pocket. What's the review process? All right, let's continue. However, the complaint alleges a sophisticated effort to thwart oversight for many avenues of funding, including the city. No, no, it wasn't that complicated. Homeboy took the money and transferred it to his personal bank accounts. There was no oversight. None, none, none. Unbelievable. And it wasn't, look, let's, and that's just the misuse of taxpayer money, which is bad enough, but let's talk about murder, which Henley's also accused of. A years long FBI investigation has led to federal authorities accusing Henley of kidnapping and fatally shooting a young rapper by the name of Ray Sean Williams. Shown him in the face allegedly in January of 2021. Henley then

fled after leaving the victim's body in a Las Vegas desert. The alleged murder occurred due to perceived disrespect over a dish track that Williams allegedly wrote about Henley. Now Henley was a referenced as a fugitive yesterday as the FBI and federal officials were announcing these charges. But as you saw earlier in that video, he did turn himself in. He denies all of these charges. It'll all be adjudicated in court. If you want me to predict what the reality of the situation is, I think he's probably guilty considering how long this investigation had gone on for, considering the evidence that the federal authorities claim they have. But here's what Henley says, I ain't been nothing but a help to our community.

This is the price of being black and trying to help somebody, trying to help your community and do what you can. You're just guilty because somebody else don't like you. Okay, yes, everybody is plotting against Henley because he wants to help his community. Sure. We got to take a break. We'll be right back. Well, everyone, private equity firms are now investing in, you know, residential facilities for those who have disabilities, elderly people, because why not squeeze profit from the most vulnerable people?

Why not? So let's give you the story. Let's tell you what's going on. Private equity firms, look, at the end of the day, they're in it for one reason or one reason only, which is that they're trying to make money out of this. And their strategy generally has been short-term, come in a few years, turn it around. And when I say turn it around, I don't mean necessarily turn to house or something around. What I mean is then flip it, sell it to somebody else, make a profit, but often that has real negative effects on the system they bought. Whether it was a hospital, a doctor's office, nursing home. So it leaves that community often much worse off, even though that private equity firm made

a very nice profit out of it. Well, great news for private equity firms because they have set their sights on a new victim. They've been buying up companies that care for people with intellectual and development, disabilities, which has already had and will continue to have some pretty devastating effects, horrible consequences for vulnerable patients and clients. Now, private equity is targeting residential facilities, home health and personal care, supported and independent living services, and other types of companies that provide services to those who have some challenges with intellectual or developmental disabilities, also

known as IDD. Now, traditionally, these types of services have been run by nonprofits and religious organizations and are commonly funded through Medicaid payments. But now an advocacy group called the Private Equity Stakeholders Project is warning that there has been this incursion of private equity into the industry that could result in investors' demands coming before the needs of people they're supposed to serve. And by the way, they shouldn't just warn about it. They should make it clear that that will happen because that's the whole model. That's the whole private equity model. Private equity is basically an institution in which wealthy individuals are looking for private investment opportunities. Okay, so that's what it's really

about. Why does anyone invest in anything? Because they're expecting to make a profit off of their investment. How are you going to make a profit? Or you're going to make a profit by cutting services, firing employees, basically taking a company that's doing great things and just chipping away at it so you spend as little as possible in helping that company run so you can extract as much wealth from it, as much profit from it as possible, and then return that profit to your investors, to your shareholders. So let's get into these details because according to their new report, and this is the report from the private equity stakeholders project. Over the past decade, Wall Street firms have been building, or I should say bundling, you know, just like

they've done with hospitals, smaller group homes and service providers into like these larger outfits that end up spanning multiple states. They say that there were over 1,000 private equity acquisitions of disability and elder care providers between 2013 and 2023. So, So in 10 short years, that's what's happened. In some cases, these companies have achieved regional market concentration obscured by complex ownership structures and disparate branding. So it's kind of like what you'd experience at a grocery store, right? So you'll see all these different brands of snacks and you think that there's a lot of choice

in a capitalistic system. That's what's supposed to be great about capitalism, right? innovation. You've got a lot of options. You don't have to just buy one, you know, type of snack or one brand of snack. But when you actually dig a little deeper, you'll notice that there are these massive corporations, you know, like Mars, for instance, will have a bunch of other brands under its umbrella. And that's kind of what's happening here with these facilities that are supposed to serve those who have, you know, developmental challenges and stuff like that. So, for example, Alpine investors has amassed a home care. services company with 100,000 employees, according to the report, working together two other private equity firms, Center Bridge, partners, and Vistria group have built two firms with 61,000 and 45,000 workers. So some of the companies acquired by private equity firms have been cited for all sorts of issues, but like repeated deficiencies in patient care, since They were bought and by the way, of course, again, let me reiterate that is the model.

Inadequate care is baked into this system because how are you going to provide adequate care, which is costly, and turn a profit and return, you know, provide a return on investment for, you know, your shareholders, for your investors. So let's talk about some of the costs that they cut. They laid off staff. They didn't provide adequate training to their staff. They underpaid employees. They failed to hire qualified people to do these jobs.

They cut services and they also failed to maintain the facilities. So the report highlights a company called Savita, which has been controlled by center bridge partners and Vistria group since 2019. So the Senate Finance Committee actually released a report back in 2020 that found a pattern of substandard care at Savita's Oregon locations. While most conditions, you know, well, a lot of these like bad conditions did exist even prior to the private equity firm, you know, buying, buying this out, you know, the poor conditions continued afterwards as well and they did nothing to stop it. Because again, that would obviously cost money.

Adequate care costs money. In October of 2023, the state of Florida moved to revoke the business license of neurorestorative, one of Savita's operations, citing repeat violations and a failure to protect the rights of its clients to be free from physical abuse by initiating inappropriate and excessive restraints. Ultimately, the state allowed it to continue operating. rating, which is pretty gross. Then in July of 2024, one of Savita's facilities in Florida called Mentor was fined for failing to meet state requirements for conducting criminal background checks for staff.

Something that you kind of hear happened in California, but no, this happened in Florida and they, you know, find the company. But what is a fine going to do? And by the way, let me just go back to what I said earlier about how these facilities basically get funded through. Medicaid. That's our money. That's our taxpayer money. So this is a way of private equity firms to take over certain facilities that offer services to the most vulnerable people among us. These facilities receive payment from Medicaid, which is taxpayer money. And private equity firms come in, they buy up the facilities, they cut services, provide inadequate care, But maximize their profits. Where's the profit coming from? The profits coming from Medicaid.

It's coming from American taxpayers. Private equity firms have been robbing the American people in more ways than one. This is just one of the ways. They have robbed future generations of the ability to buy homes as they snatch up residential real estate across the country. Biden didn't do anything about it. On his way out, he paid lip service to the issue, do, but he didn't do anything about it. You think a Democratic president is going to do a damn thing about it? No, I would never expect Republicans to do anything about it. Republicans love this kind of grift.

That's who they've been. But Democrats used to be different. Not anymore. Did I tell you that they raised $11 million in February? That fundraising is so sweet. In August of 2024, the state, meaning the state of Florida, find a different mentor facility for improper use of restraints. According to a state report, a resident was inappropriately, mechanically,

restrained to his wheelchair by a gate belt that prevented him from moving freely in the wheelchair and hindered his ability to go to the bathroom or meet basic needs. Man, we really have some seriously evil people around us who are just willing to do anything to make a buck, anything. No amount of human suffering would convince them to not engage in this brutal behavior to make a profit. It's amazing. Savita has also been cited for violations of patient care by regulations in Iowa, or regulators, I should say, in Iowa, Utah, and Indiana. And look, while the vulnerable people, they're supposed to be helping get mistreated, their investors.

They're making a killing. So let's talk about that. Firms typically seek to double or triple the value of their investment in four to seven years, which is challenging to do in IDD services without cutting costs in a way that compromises the quality of care. So keep that in mind as I give you these numbers because since being acquired in 2019, Savita has paid out $475 million in dividends to private equity. Investors, according to ratings agencies. Asked about the report's finding.

Savita, of course, disputed that care had diminished. But honestly, based on the evidence, obviously they're being dishonest if you ask me. Anyway, a 2020 study found that private equity ownership of nursing facilities was associated with an increase in the mortality of Medicare patients by 10%, an increase in patients pain intensity and probability. of taking antipsychotic medications and declines in patient mobility. A 2023 study found that private equity acquisition of hospitals was associated with a 25% increase in a hospital-acquired complications, including a 27% increase in falls, a 38% increase in central line infections, and a doubling of the rates of surgical site infections. We've got a massive infection in this country. It's called greed.

It's dominating everything that happens in our politics, everything that happens in society. And if we want a better country, if we want this country to heal, we don't just need Democratic leaders who are willing to fight Trump. We need politicians who actually want to be public servants, see the suffering of Americans across the board and want to actually do something about that. And right now, honestly, save for maybe a couple of people in Congress, I don't really see anyone else interested in serving in that mission, in being public servants, in making this country better, not for the richest among us, but for all of us.

There's a robbery happening out in the open, day in and day out, and no one's doing a damn thing about it. It is pathetic to say the least. All right, we got to take a break. We'll be right back.