Real estate is not for you

Here’s how real estate works, though not for you or me, or the millions of Americans losing their homes to foreclosure. The Gazette recorded real estate developer Lars Akerberg, reacting to the foreclosure of the Chidlaw Building which he bought in 1993 for $2 million. “It kind of hurts in a way.” Lars is actually defaulting on a 2006 loan for $14 million, only $1 million of it repaid. The article doesn’t mention how much of that went into the building, to whom it was paid, or the property’s current value, so Akerberg can probably say “It’s a little bit emotional, but what can you do?” because he’s losing $2 million but gets to keep an undisclosed part of the $13m. The Gazette article is a lesson in real estate, banking, and how the media obscures the swindles. Akerberg adds the salt, I think talking to you and me: “But that’s the way things are. You can’t help it.”

IMF pick Christine Lagarde-Obamette updates beau mot Cherchez La Femme

One of the boys, literally
IMF DSK replacement Christine Lagarde assumes leadership of the International Monetary Fund today, the world’s most powerful woman. Will she be the spoonful of sweetness to make austerity cuts go down? How’s your blood-sugar crashing on Obama? My guess is this fairy grandmother gambit will go down in Europe like an Obama Smurfette. To further my sexist analogy, imagine Lagarde the stereotypical bank loan officer, absolutely immovable. But Lagarde is personable, kindly, and maternal, and she’s willing to extend your loan, on the condition that you forfeit your house and all your possessions, and rent them from her. In the end you have nothing, but you don’t starve. By the way, the sheriff outside work for her. The IMF and the paramilitary riot police -that’s whose army. It’s a contract re-up you can’t refuse. That’s “austerity,” larceny with the improbably-legitimated veneer of usury, and it’s her last best offer.

Cherchez la femme or “get the woman”, used to be an investigative phrase meaning, find the extra-marital affair behind the political intrigue. The effect of this strategy was so absolute that it came to mean looking for the obvious. And so, isn’t the appointment of the silver-coiffed woman to front the severely PR-challenged, greed-saturated IMF, the obvious choice for a facelift?

Look at the IMF, an old boys network rivaled perhaps only by the World Bank. The solitary Lagarde is the next best thing to the superior exotic, one black man. They didn’t have one, and that novelty might be playing itself out already across the pond.

Augustin Carstens Fat BastardSpeaking of the New World, with Lagarde, the IMF avoided the challenger touted as the champion of emerging nations, Bank of Mexico nomineee and corpulence personified, Augustin Carstens. You might remember Carstens as the obesity-suited Fat Bastard from Austin Powers, who kept begging to be given Mini-Me for a snack.

What an unfortunately apt personification of the banking system Augusten Carstens would have been. Try to find a single photograph that wouldn’t have made the IMF aims plain: the bankers are licking their chops not only for your last penny, they want your ribs.

Mexicans have to brave illegal status in the United States to flee the economic policies enforced by their Fat Bastard.

Israel sends deputy consul general to CC

End the occupationThe Israel Today event changed the speakers on us, instead of the Israeli Consul General to Los Angeles, it’s the Deputy Consul Gil Artzyeli. But the act’s still on. Get to Gaylord hall sometime before noon, it’s the conference room at the Southeast corner of the Worner Center building. We’ll stand outside with our repudiation of Mr. Artzyeli’s message, then go inside to assure the discussion steers toward being honest. I found this quote by Artzyeli, addressing the Denver Jewish community earlier this year about the Gaza incursion:

“This is not a war for territory … The first war is to protect the citizens of Israel, the second war is against Iran and the third war is against lies and disinformation.”

Any takers? My first question, if I’m given the chance: Mr. Artzyeli, are you here only to speak, or will you listen?

Cyndy Kulp put together a handout for the occasion:

Human Rights Issues in “Israel Today”

Israel is a pariah nation condemned by the UN and much of the international community for its multiple violations of international human rights law, including:

• Continuing the occupation of the Palestinian people

• Building housing settlements on confiscated land

• Seizing additional land and property from Palestinians to build “The Wall”, highways for the exclusive use of Israelis, and military areas, etc.

• Using extremely disproportionate and indiscriminate force in the invasion of the Gaza Strip during “Operation Cast Lead” in Dec. 2008

• Inflicting heavy casualties on Palestinians, many civilians and children with no way to escape the bombing

• Refusing to compensate the 5.8 million Palestinian refugees and their descendants who were displaced from their homes and properties during 1948

Israeli Diplomats, like our speaker today, should not be given a public platform from which to promote their views as long as they refuse to recognize and cooperate with international laws.

HERE ARE FURTHER DETAILS:

? In June 1967, the Israeli military invaded the West Bank, Gaza and East Jerusalem. These areas of historic Palestine under military control are the “Occupied Territories,” comprising some 3.5 million Palestinians, and they are systematically being incorporated into the state of Israel in violation of international law.

? Life under occupation is very harsh. The Palestinians have virtually no human or civil rights. Unemployment is rampant. In order to go about their daily lives, the people in the Occupied Territories must line up and go through multiple checkpoints manned by the Israeli army. Proper paperwork, including Palestinian ID’s, and permits are required to pass through, and many people are denied entry, even into East Jerusalem which is Palestinian territory and home to many hospitals, schools, and employers.

? Israel has built 200+ settlements in the West Bank, and over 400,000 Israelis have moved onto Palestinian land. Many of the settlers are armed and aggressive extremists, and their actions are regularly protected by Israeli Defense Forces.

? Israel has seized a majority of the West Bank land as military bases, settlements, security areas, “land reserves,” by-pass roads linking settlements with Israel, and other areas forbidden to Palestinians. Palestinians are confined to small fragmented areas resembling Bantustans in an Israeli version of Apartheid.

?? Israel’s sovereignty in Jerusalem is questioned by the international community, and contrary to what the Israelis would like you to believe, Jerusalem does not belong to Israel. This is why other nations have their embassies in Tel Aviv instead.

? East Jerusalem was declared as an occupied territory in UN Security Council Resolution 242 which specifically emphasized the “inadmissibility of the acquisition of territory by war.” Yet Israel continues to seize homes and land and allow Israeli settlers to move into East Jerusalem.

? Over 10,000 Palestinian homes have been destroyed, leaving 30,000 people homeless. Housing demolitions and displacement are common for Palestinian families, and they are powerless to protect their properties or get legal permission to build homes.

? The Gaza strip remains under siege today. Despite the withdrawal of Israeli settlers in 2005, Israel still controls entry into Gaza. People cannot leave and cannot get the goods and services they need. They are literally locked into a ghetto.

? In Dec. 2008, Israel invaded the Gaza strip, causing massive destruction and Palestinian causalities. The vast majority of the Palestinians killed in Israel’s operation were innocent civilians rather than combatants, according to a new report by B’Tselem, an Israeli human rights organization. Of the 1,387 deaths, 773 were non combatants. 320 of these were under the age of 18, and 109 were women.

? Nine Israelis were killed during the Gaza war — four by rocket fire on southern Israel, including three civilians and one soldier, while the other five were soldiers killed in combat, primarily from “friendly fire” incidents.

? The Goldstone Report which investigated the Gaza Invasion for the UN concluded that both Israel and the Palestinians had committed violations of International Law, but that Israel because of it’s huge army and sophisticated weaponry was more culpable and guilty of Crimes Against Humanity in it’s 2008/09 Gaza onslaught.

? U.S. aid has made Israel’s army one of the most powerful military forces in the world. Israel is using U.S. F-16 fighters and Apache helicopters in attacks against Palestinian civilians. This violates the U.S. Foreign Arms Export Act. Over $3 billion in US foreign aid is given to Israel, and most of it is used for military operations.

There Will Be No Security For ISRAEL Until There Is Justice For PALESTINE.

Resources For more information:
Israeli Committee Against House Demolitions
B’tselem: The Israeli Information Center for Human Rights in the Occupied Territories
Bethlehem University
Mazin Qumsiyeh
Machsom Watch
Breaking the Silence
Women in Black
Sabeel

Stop the Wall Campaign

US Campaign to End the Occupation

–END THE OCCUPATION
–COMPLY WITH INTERNATIONAL LAWS
–FREEZE SETTLEMENTS
–NEGOTIATE AN EQUITABLE SOLUTION ON LAND AND WATER

The US claims to be an “honest broker” –fair to both sides– in the so-called peace process. At the same time, the U.S. proclaimed itself the unswerving ally of Israel. These roles are contradictory. Massive U.S. aid funds the occupation. Since 1949, the U.S. has given Israel well over $100 billion in grants, loans and other assistance. This amounts to over $15,000 per Israeli citizen. ?
A genuine peace with a minimum of justice requires an independent and viable Palestinian state on the territories occupied by Israel in 1967 (West Bank, Gaza, East Jerusalem). Jerusalem should be shared as the capital of both Israel and Palestine. Palestine should be an equal neighbor alongside Israel with peace and security for both peoples. ?

Next to the White House

While visiting Washington DC in March, I found it interesting to note the edifices closest to the White House.
The Executive Office Building

EAST, WEST
The neighbor to the immediate East of the Obama’s White House is the Department of the Treasury. Is that any surprise? Of course not, but how bourgeois! I could imagine Scrooge McDuck sneaking across the White House garden twice a day to check his reserves. To the West is what we now call the Dwight D. Eisenhower Executive Office Building. It’s the site of the suspicious office fires which may or may not have masked a recent vice-president’s misdeeds. The edifice looks straight out of A Series of Unfortunate Events, and check out the plaque which commemorates what the building used to be called:

State War and Navy Departments

Probably that should be no surprise as well: the White house sandwiched between Treasury and War. “State, War and Navy.” How so much less duplicitous than the “Department of Defense.”

SOUTHWEST
Behind the former War offices, to the Southwest of the White House, lies the war memorial to end all war memorials. It’s the WWI Memorial, of considerably diminutive size compared to those commemorations of subsequent wars which have spilled unto the Mall, but its form followed the convention of the typical Great War monuments erected throughout Europe among the nations who had participated.

WWI monument to US Army Expeditionary Force

Except the American version is dedicated to the “Expeditionary Forces” which I just love. That’s what WWI was about for the US. The trenches of Europe were no place Americans needed to defend their freedom. The troops we sent, to relieve France and England, represented a foreign expedition, exactly that. More precisely, our troops were an R&D expedition for our blustering capitalists.

(This may be no time or place to note that history books do not link America’s WWI experience with the Influenza outbreak of 1917-18, which began in the barracks of US soldiers being mobilized for war. American soldiers took their flu to Europe and ultimately killed 50 million people. Those were not the days before we knew better to stay home to prevent infecting others.)

The US entry into WWI was bitterly opposed by a peace movement which the war-opportunist-profiteers maligned as isolationist. Selfish globalization-denying isolationism has been the slander ever since, used against anyone who tries to block military interventions in all their guises.

Ultimately WWI was no affair of ours, had the Huns emerged victorious, American foreign affairs would hardly have changed. Our foreign trading partners would have numbered more Germans, that’s all. But it’s useless to compare alternative outcomes of WWI, all things staying constant, because America participated and profited wildly.

If American investors had not jumped in Over There, the greatest business opportunities of blossoming industrialism would have been missed. The opportunities offered by the Europeans fighting amongst themselves, proved to have been momentous.

And here was the monument to those lost American lives, sacrificed so that American industrial might, in particular the new banking monopolists, could seize the European spheres of influence throughout the world. Of course the lost lives of the American Expeditionary Force were remembered thus:

“…WHO GAVE THEIR LIVES IN THE WORLD WAR THAT LIBERTY AND THE IDEALS OF OUR COUNTRY MIGHT ENDURE”

It would take another World War for the US to appropriate the colonies and oil fields by means of contracts and loans, with the leverage of coming to their aid again, this time armed with lend-lease bills.

SOUTHEAST
To the Southeast of the White House, across the back lawn, lies the monument antecedent to the Great War. It’s the Civil War Memorial, atop which rides the triumphant General William Tecumseh Sherman. (Who, to be fair, presided over the War Department for a long stretch after the Civil War, actually this nation’s longest peacetime period.)

Sherman monumentCurious that I chose to crop his personage from my pictures, but my eyes were drawn to the lesser figures around the base of the monument, in particular, a half naked woman.

The memorial seemed to include various uniformed Civil War participants. How egalitarian to include a woman. But this woman was no French Revolutionary with breast bared oblivious as she rallied her comrades to victory. This delicate woman was unarmed and stripped to the waist, her children in tattered rags at her feet.

Could this statue be offering another conceit to the reality of war, to Sherman’s March to the sea, to the burning of Atlanta, to the shameful destruction he visited on the secessionist South? Was this a nod to the real role given to Women in war, their sons and husbands taken from them, a non-combatant left helpless to defend her children or herself. Did the shirt torn from her body confess to the woman’s rape?

More probably the feminine likeness personified man’s attraction to war, a soldier’s predilection for her beauty. How many war monuments memorialize as they also beacon?

Much of the terrain around the White House grounds is blocked off by secondary and tertiary security perimeters. But for the arrival of bus unloadng its visitors to see it, the Civil War Monument is normally cordoned off. When I had passed it earlier, a balaclava-clad guard was blocking the only entrance.

SOUTH
The grassy expanse immediately South of the White House, permitting the First Family an uninterrupted view of the National Mall, has actually been given over to parking permits. The loop of asphalt across the lawn, with cars strewn diagonally along the edges, gives the unfortunate impression of overflow event parking. In any other neighborhood, the crowd of cars would be a dead giveaway that someone on the block was having a party.

District 11 Colorado Springs cutbacks get to rolling

I went to one of the District 11 cutback hearing meetings where the Administration pretends to solicit community input for decisions they pretty much already have planned to make, and shared the auditorium with about 700 other concerned but utterly confused folk. It’s cutback time here in the city since the School District put itself in a very deep hole taking out loans whose interest payments now eat up huge chunks of money.

At a little over $63 million interest service on loans per year, that adds up to 1/2 billion dollars over every 8 years by my calculations taken from the School Districts own data. See my earlier comments about these figures on the commentary here about district 11 school district corruption

One half billion dollars every 8 years in debt service? Good grief! One would think that it would get mentioned by somebody at least at these meetings, and it was fully my intention to bring it up.

In fact I did, as I was being kicked out of the school with my big sign that said… DISTRICT 11- GRADE F I was told that no signs were permitted on Private Property by the ten or so cops on the scene. What the Heck?

“I thought my kid was getting a public education,” I responded.

But in a country where torture is legal and legalisms are torture the public in this case is classified ‘private’ per the cops! When I try to take a sign into the City Council public meetings they tell me I can’t do it because it’s public property. That’s America for you, isn’t it? You can’t do it on public or private property, either one, if it has to do with Free Speech. Amazing how so few people actually know that about our Fantasy Land though! They seem to think that we’re in the land that guarantees that Free Speech flourishes! Not exactly, Folk. I had to put my sign away and then try to sign up as a speaker. I did and never got to speak.

So no signs, no flyers, no nothing. That was my 3 hours spent in the auditorium. You see, handing out flyers with info not controlled by the D-11 administrative team would amount to giving them actual input, the parents input, and the teachers input. But D-11 merely wants to pretend that it is asking for public input, not actually get it. I almost got arrested for clapping for one speaker while standing up! That”s how tightly run this charade actually was. I kind of feared getting tasered but merely got ordered to sit down instead! It was a super mannerly assembly.

I really ran into trouble, too, there when I said I was ‘pissed off to an Administrative type in the John, who then lectured me on language! He didn’t seem upset at all that the public was pissed off though, just that I used bad language! He looked so horribly angry at me… He and I were the only ones in the John.

Colorado Springs is just that type of city though with just that type of people. Many of those speaking said that their schools were just fabulous and that the District should close some other school down instead. The meeting was not exactly solidarity forever… lol… It did seem like boredom forever though. What a charade. We all love our schools..blah/blah/blah.

Jerry Heimlicher, Council Member District 3 got to speak next to the last one allowed, and used his time to say that he wanted to be a good partner with this school district management that is refusing to ‘fess up to the real reason they are putting up to 8 public schools on the chopping block. See More details on D-11 restructuring plans Good Ol’ Jerry, wants to play the team player with everybody since he’s always the consummate play liberal politician in town.

I caught Jerry going out the door where I verbally asked him why he didn’t expose the interest servicing that the School District was hiding away from telling the public about? After all it is the real reason for cutbacks being made, and not the pretend reasons which can be found here… ‘If your child goes to a District 11 school, that school could soon be closing. The district is looking at closing at least eight schools and re-configuring several others. They say lower enrollment and budget cuts are to blame.’ …at KKTV Parents Weigh In On Possible District 11 School Closures See how D-11 forgets to mention that $63 million per year servicing of debt interest payments that are the real cause of the distress?

Jerry said that he didn’t want to talk to me about it, and stiffly headed towards his car. Shame on all of the D-11 administrative hacks, and shame on Jerry Heimlicher too for covering up for their crooked asses! The children will suffer because of the banks pulling off this gigantic haul, and this is just the beginning of the school cutbacks that will be coming our way most soon enough. The city too is already cutting services, and the layoffs are a coming. Who’ll bail the people out? All we have are cons in office these days.

Singin’ the Bail-out blues…

..except nothing that ugly could possibly be put to music..

There’s a massive effort from the Far Right to blame the Liberals, blame the Working poor (whispered rumors are that it’s those MINORITIES) when the evidence has been staring us right in the face for all this time.

Infomercials on how to Get Rich Without Trying filled the late-night, early morning TeeVee…

The loans that were defaulted, turns out that not only most but the Vast Majority of them were to people who were speculating.

Not people who were buying homes to actually, you know, LIVE in them.

The “Flip that house” show is still on HGTV…

Buy a house at a flexible rate, wait while the real estate value goes up, then sell it at a profit.

The Infomercials promised that you could do this with “little or even NO money down! How could you possibly lose?”

Buy a house with no money, sell it a week later, pay off the balance of your mortgage and use the rest as paper collateral, “Cash Instrument” on another loan, preferably two, and do the same thing over again.

“How could you possibly lose?”

ummm… maybe by following the instructions, yeah, that’s a fast way to lose.

NOW, How Much Would You Pay? BUT WAIT! THERE’S MORE!

these “Cash Instruments” essentially a post-dated check backed by an extremely ætherial government guarantee of payment…

then get used as collateral for secondary and tertiary levels of loans.

Now, the Republican-controlled Congress, (until January 07), top heavy with Harvard MBAs and even Doctorates in Economics, and of course the Investment Banks and the Brokerage Houses, for some reason now they’re saying they’re the victims, that none of them had the experience or the intellect to spot a Pyramid Scam in the works.

Especially not when given a 15 year head start on spotting it.

They say they were forced to give loans to Poor Risk (meaning: underpaid Minorities) customers, but neglect to mention that most of those owner-occupant houses didn’t default.

They also weren’t “required by Federal Law” to push the bank guarantees off onto the Speculators, in fact, they seem to be complicit in those crimes.

And all these Financial Experts, especially those in Congress, like McCain, have had their Corporate Sponsors spend Large Money telling us how vigilant they were over our economy…

WELL, DUH!!

So the most they can claim is Not Guilty By Reason of Massive Incompetence.

But they come, not hat in hand, not humbly, but Arrogantly, demanding that we pay their bills, with no questions and no oversight.

Because, so they say, they’re the only ones who have the competence and experience to do it.

my yass.

We’ve just experienced the full measure of their “Competence”

Then there’s the little matter of that Federal Insurance on the mortgages.

It wasn’t there. Why was that insurance not there?

Two Words: Eye Rack.

Seems Mr Bush, whose Grandpoppy, Poppy and brothers are all Bankers, has had a little Fancy Finance Finagling going on to “pay” the bills on that mess.

It makes the Treasonous Actions of Reagan, North, Poindexter Bush Sr Secord and Casey look like a trial run.

Which essentially it was.

This time instead of funding the Cuba Libre, the Contras, the Medellin Cartel, the Taliban, Hizbollah and al Qa’eda, it goes directly into the American Taliban in other words BlackWater, Halliburton and other more highly organized Terrorist Groups.

But they’re going to blame the entire collapse on a relative handful of low-budget homeowners.

Eat the Rich.

Stop the Senate of would-be thieves!

wallstreet-bailoutCall your Band of Thieving Senators now to tell them you don’t want to give $700 Billion –more honestly likely to be $5 Trillion– to the robber bankers of Wall Street! Telephone Colorado Senators Ken Salazar at 202.224.5852 and Wayne Allard at 202.224.5941 NOW. Why not call OBAMA too! (phone: 202-224-2854) Tell them you want them to consult with at least ONE economist of repute! At least one analyst not on the corporate payroll. As he promised yesterday, Michael Moore suggests a 10 PART PLAN, only IF pressure can be brought to bear right now to stop the Senate bill.

Friends,

The richest 400 Americans — that’s right, just four hundred people — own MORE than the bottom 150 million Americans combined. 400 rich Americans have got more stashed away than half the entire country! Their combined net worth is $1.6 trillion. During the eight years of the Bush Administration, their wealth has increased by nearly $700 billion — the same amount that they are now demanding we give to them for the “bailout.” Why don’t they just spend the money they made under Bush to bail themselves out? They’d still have nearly a trillion dollars left over to spread amongst themselves!

Of course, they are not going to do that — at least not voluntarily. George W. Bush was handed a $127 billion surplus when Bill Clinton left office. Because that money was OUR money and not his, he did what the rich prefer to do — spend it and never look back. Now we have a $9.5 trillion debt. Why on earth would we even think of giving these robber barons any more of our money?

I would like to propose my own bailout plan. My suggestions, listed below, are predicated on the singular and simple belief that the rich must pull themselves up by their own platinum bootstraps. Sorry, fellows, but you drilled it into our heads one too many times: There… is… no… free… lunch. And thank you for encouraging us to hate people on welfare! So, there will be no handouts from us to you. The Senate, tonight, is going to try to rush their version of a “bailout” bill to a vote. They must be stopped. We did it on Monday with the House, and we can do it again today with the Senate.

It is clear, though, that we cannot simply keep protesting without proposing exactly what it is we think Congress should do. So, after consulting with a number of people smarter than Phil Gramm, here is my proposal, now known as “Mike’s Rescue Plan.” It has 10 simple, straightforward points. They are:

1. APPOINT A SPECIAL PROSECUTOR TO CRIMINALLY INDICT ANYONE ON WALL STREET WHO KNOWINGLY CONTRIBUTED TO THIS COLLAPSE. Before any new money is expended, Congress must commit, by resolution, to criminally prosecute anyone who had anything to do with the attempted sacking of our economy. This means that anyone who committed insider trading, securities fraud or any action that helped bring about this collapse must go to jail. This Congress must call for a Special Prosecutor who will vigorously go after everyone who created the mess, and anyone else who attempts to scam the public in the future.

2. THE RICH MUST PAY FOR THEIR OWN BAILOUT. They may have to live in 5 houses instead of 7. They may have to drive 9 cars instead of 13. The chef for their mini-terriers may have to be reassigned. But there is no way in hell, after forcing family incomes to go down more than $2,000 dollars during the Bush years, that working people and the middle class are going to fork over one dime to underwrite the next yacht purchase.

If they truly need the $700 billion they say they need, well, here is an easy way they can raise it:

a) Every couple who makes over a million dollars a year and every single taxpayer who makes over $500,000 a year will pay a 10% surcharge tax for five years. (It’s the Senator Sanders plan. He’s like Colonel Sanders, only he’s out to fry the right chickens.) That means the rich will still be paying less income tax than when Carter was president. This will raise a total of $300 billion.

b) Like nearly every other democracy, charge a 0.25% tax on every stock transaction. This will raise more than $200 billion in a year.

c) Because every stockholder is a patriotic American, stockholders will forgo receiving a dividend check for one quarter and instead this money will go the treasury to help pay for the bailout.

d) 25% of major U.S. corporations currently pay NO federal income tax. Federal corporate tax revenues currently amount to 1.7% of the GDP compared to 5% in the 1950s. If we raise the corporate income tax back to the level of the 1950s, that gives us an extra $500 billion.

All of this combined should be enough to end the calamity. The rich will get to keep their mansions and their servants, and our United States government (“COUNTRY FIRST!”) will have a little leftover to repair some roads, bridges and schools.

3. BAIL OUT THE PEOPLE LOSING THEIR HOMES, NOT THE PEOPLE WHO WILL BUILD AN EIGHTH HOME. There are 1.3 million homes in foreclosure right now. That is what is at the heart of this problem. So instead of giving the money to the banks as a gift, pay down each of these mortgages by $100,000. Force the banks to renegotiate the mortgage so the homeowner can pay on its current value. To insure that this help does no go to speculators and those who have tried to make money by flipping houses, this bailout is only for people’s primary residence. And in return for the $100K paydown on the existing mortgage, the government gets to share in the holding of the mortgage so that it can get some of its money back. Thus, the total initial cost of fixing the mortgage crisis at its roots (instead of with the greedy lenders) is $150 billion, not $700 billion.

And let’s set the record straight. People who have defaulted on their mortgages are not “bad risks.” They are our fellow Americans, and all they wanted was what we all want and most of us still get: a home to call their own. But during the Bush years, millions of them lost the decent paying jobs they had. Six million fell into poverty. Seven million lost their health insurance. And every one of them saw their real wages go down by $2,000. Those who dare to look down on these Americans who got hit with one bad break after another should be ashamed. We are a better, stronger, safer and happier society when all of our citizens can afford to live in a home that they own.

4. IF YOUR BANK OR COMPANY GETS ANY OF OUR MONEY IN A “BAILOUT,” THEN WE OWN YOU. Sorry, that’s how it’s done. If the bank gives me money so I can buy a house, the bank “owns” that house until I pay it all back — with interest. Same deal for Wall Street. Whatever money you need to stay afloat, if our government considers you a safe risk — and necessary for the good of the country — then you can get a loan, but we will own you. If you default, we will sell you. This is how the Swedish government did it and it worked.

5. ALL REGULATIONS MUST BE RESTORED. THE REAGAN REVOLUTION IS DEAD. This catastrophe happened because we let the fox have the keys to the henhouse. In 1999, Phil Gramm authored a bill to remove all the regulations that governed Wall Street and our banking system. The bill passed and Clinton signed it. Here’s what Sen. Phil Gramm, McCain’s chief economic advisor, said at the bill signing:

“In the 1930s … it was believed that government was the answer. It was believed that stability and growth came from government overriding the functioning of free markets.

“We are here today to repeal [that] because we have learned that government is not the answer. We have learned that freedom and competition are the answers. We have learned that we promote economic growth and we promote stability by having competition and freedom.

“I am proud to be here because this is an important bill; it is a deregulatory bill. I believe that that is the wave of the future, and I am awfully proud to have been a part of making it a reality.”

This bill must be repealed. Bill Clinton can help by leading the effort for the repeal of the Gramm bill and the reinstating of even tougher regulations regarding our financial institutions. And when they’re done with that, they can restore the regulations for the airlines, the inspection of our food, the oil industry, OSHA, and every other entity that affects our daily lives. All oversight provisions for any “bailout” must have enforcement monies attached to them and criminal penalties for all offenders.

6. IF IT’S TOO BIG TO FAIL, THEN THAT MEANS IT’S TOO BIG TO EXIST. Allowing the creation of these mega-mergers and not enforcing the monopoly and anti-trust laws has allowed a number of financial institutions and corporations to become so large, the very thought of their collapse means an even bigger collapse across the entire economy. No one or two companies should have this kind of power. The so-called “economic Pearl Harbor” can’t happen when you have hundreds — thousands — of institutions where people have their money. When you have a dozen auto companies, if one goes belly-up, we don’t face a national disaster. If you have three separately-owned daily newspapers in your town, then one media company can’t call all the shots (I know… What am I thinking?! Who reads a paper anymore? Sure glad all those mergers and buyouts left us with a strong and free press!). Laws must be enacted to prevent companies from being so large and dominant that with one slingshot to the eye, the giant falls and dies. And no institution should be allowed to set up money schemes that no one can understand. If you can’t explain it in two sentences, you shouldn’t be taking anyone’s money.

7. NO EXECUTIVE SHOULD BE PAID MORE THAN 40 TIMES THEIR AVERAGE EMPLOYEE, AND NO EXECUTIVE SHOULD RECEIVE ANY KIND OF “PARACHUTE” OTHER THAN THE VERY GENEROUS SALARY HE OR SHE MADE WHILE WORKING FOR THE COMPANY. In 1980, the average American CEO made 45 times what their employees made. By 2003, they were making 254 times what their workers made. After 8 years of Bush, they now make over 400 times what their average employee makes. How this can happen at publicly held companies is beyond reason. In Britain, the average CEO makes 28 times what their average employee makes. In Japan, it’s only 17 times! The last I heard, the CEO of Toyota was living the high life in Tokyo. How does he do it on so little money? Seriously, this is an outrage. We have created the mess we’re in by letting the people at the top become bloated beyond belief with millions of dollars. This has to stop. Not only should no executive who receives help out of this mess profit from it, but any executive who was in charge of running his company into the ground should be fired before the company receives any help.

8. STRENGTHEN THE FDIC AND MAKE IT A MODEL FOR PROTECTING NOT ONLY PEOPLE’S SAVINGS, BUT ALSO THEIR PENSIONS AND THEIR HOMES. Obama was correct yesterday to propose expanding FDIC protection of people’s savings in their banks to $250,000. But this same sort of government insurance must be given to our nation’s pension funds. People should never have to worry about whether or not the money they’ve put away for their old age will be there. This will mean strict government oversight of companies who manage their employees’ funds — or perhaps it means that the companies will have to turn over those funds and their management to the government. People’s private retirement funds must also be protected, but perhaps it’s time to consider not having one’s retirement invested in the casino known as the stock market. Our government should have a solemn duty to guarantee that no one who grows old in this country has to worry about ending up destitute.

9. EVERYBODY NEEDS TO TAKE A DEEP BREATH, CALM DOWN, AND NOT LET FEAR RULE THE DAY. Turn off the TV! We are not in the Second Great Depression. The sky is not falling. Pundits and politicians are lying to us so fast and furious it’s hard not to be affected by all the fear mongering. Even I, yesterday, wrote to you and repeated what I heard on the news, that the Dow had the biggest one day drop in its history. Well, that’s true in terms of points, but its 7% drop came nowhere close to Black Monday in 1987 when the stock market in one day lost 23% of its value. In the ’80s, 3,000 banks closed, but America didn’t go out of business. These institutions have always had their ups and downs and eventually it works out. It has to, because the rich do not like their wealth being disrupted! They have a vested interest in calming things down and getting back into the Jacuzzi.

As crazy as things are right now, tens of thousands of people got a car loan this week. Thousands went to the bank and got a mortgage to buy a home. Students just back to college found banks more than happy to put them into hock for the next 15 years with a student loan. Life has gone on. Not a single person has lost any of their money if it’s in a bank or a treasury note or a CD. And the most amazing thing is that the American public hasn’t bought the scare campaign. The citizens didn’t blink, and instead told Congress to take that bailout and shove it. THAT was impressive. Why didn’t the population succumb to the fright-filled warnings from their president and his cronies? Well, you can only say ‘Saddam has da bomb’ so many times before the people realize you’re a lying sack of shite. After eight long years, the nation is worn out and simply can’t take it any longer.

10. CREATE A NATIONAL BANK, A “PEOPLE’S BANK.” If we really are itching to print up a trillion dollars, instead of giving it to a few rich people, why don’t we give it to ourselves? Now that we own Freddie and Fannie, why not set up a people’s bank? One that can provide low-interest loans for all sorts of people who want to own a home, start a small business, go to school, come up with the cure for cancer or create the next great invention. And now that we own AIG, the country’s largest insurance company, let’s take the next step and provide health insurance for everyone. Medicare for all. It will save us so much money in the long run. And we won’t be 12th on the life expectancy list. We’ll be able to have a longer life, enjoying our government-protected pension, and living to see the day when the corporate criminals who caused so much misery are let out of prison so that we can help reaclimate them to civilian life — a life with one nice home and a gas-free car that was invented with help from the People’s Bank.

Yours,
Michael Moore

P.S. Call your Senators now. Here’s a backup link in case we crash that site again. They are going to attempt their own version of the Looting of America tonight. And let your reps know if you agree with my 10-point plan.

No blank-check bailout for Wall Street

COLORADO SPRINGS, CO – Organizations in Southern Colorado will participate in a National Day of Action in opposition to the no-strings attached, $700 billion corporate bailout plan advanced by President Bush and Treasury Secretary Paulson. A press conference will take place 2PM on Thursday, Sept. 25 in front of the Department of Human Services Sand Creek Office at 1635 South Murray Blvd., Colorado Springs.

From the LOCAL PRESS RELEASE:

“We believe the bailout is wrong headed – it’s low-wage working families struggling to make ends meet, who will most suffer the consequences of this kind of bad economic policy,” said Dennis Apuan, community leader and Democratic candidate for Statehouse, District 17. “We must press on our elected officials to ensure that families do not have to make impossible choices between feeding their children, heating their homes and filling their prescriptions. We need leaders who know how to respond to the growing need in our communities – lost jobs, threatened homes, and surging food and energy prices,” Apuan added.

The National Day of Action will feature more than 75 press conferences, demonstrations and other public events throughout the United States. Some of the events are being held by local and national organizations; others will be citizen-organized, involving taxpayers angered by the proposed corporate bailout, as introduced in Congress. The local event will include a voter registration drive and sign-up opportunities to volunteer in community civic engagement.

“With so many of the citizens and residents of House District 17 suffering from the downturn in the economy, it is important that they have a voice in these ill-advised corporate bailouts,” said Rosemary Harris, President of the Colorado Springs Branch NAACP. “This is a diverse community, with people from all racial, social and economic backgrounds. Our lives matter. Our voices matter. And our vote is our true voice. Registering voters who will determine the future policies and future leaders of this House District, this state, and this country is perhaps the best way to respond to the actions of those in Washington,” Harris added.

Among the leaders of the national organizing effort are TrueMajority.org, US Action Education Fund, ACORN, Campaign For America’s Future, Coalition on Human Needs, Military Spouses For Change, National Priorities Project and many others.

From the INDYPENDENT’s Arun Gupta, the ORIGINAL EMAIL CALL-OUT:

NO BAILOUT FOR WALL STREET
Protest on Wall Street this Thursday at 4pm!

Call to Self-Organize

This week the White House is going to try to push through the biggest robbery in world history with nary a stitch of debate to bail out the Wall Street bastards who created this economic apocalypse in the first place.

This is the financial equivalent of September 11. They think, just like with the Patriot Act, they can use the shock to force through the “therapy,” and we’ll just roll over!

Think about it: They said providing healthcare for 9 million children, perhaps costing $6 billion a year, was too expensive, but there’s evidently no sum of money large enough that will sate the Wall Street pigs. If this passes, forget about any money for environmental protection, to counter global warming, for education, for national healthcare, to rebuild our decaying infrastructure, for alternative energy.

This is a historic moment. We need to act now while we can influence the debate. Let’s demonstrate this Thursday at 4pm in Wall Street (see below).

We know the congressional Democrats will peep meekly before caving in like they have on everything else, from FISA to the Iraq War.

With Bear Stearns, Fannie and Freddie, AIG, the money markets and now this omnibus bailout, well in excess of $1 trillion will be distributed from the poor, workers and middle class to the scum floating on top.

This whole mess gives lie to the free market. The Feds are propping up stock prices, directing buyouts, subsidizing crooks and swindlers who already made a killing off the mortgage bubble.

Worst of all, even before any details have been hashed out, The New York Times admits that “Wall Street began looking for ways to profit from it,” and its chief financial correspondent writes that the Bush administration wants “Congress to give them a blank check to do whatever they want, whatever the cost, with no one able to watch them closely.”

It’s socialism for the rich and dog-eat-dog capitalism for the rest of us.

Let’s take it to the heart of the financial district! Gather at 4pm, this Thursday, Sept. 25 in the plaza at the southern end of Bowling Green Park, which is the small triangular park that has the Wall Street bull at the northern tip.

By having it later in the day we can show these thieves, as they leave work, we’re not their suckers. Plus, anyone who can’t get off work can still join us downtown as soon as they are able.

There is no agenda, no leaders, no organizing group, nothing to endorse other than we’re not going to pay! Let the bondholders pay, let the banks pay, let those who brought the “toxic” mortgage-backed securities pay!

On this list are many key organizers and activists. We have a huge amount of connections – we all know many other organizations, activists and community groups. We know P.R. folk who can quickly write up and distribute press releases, those who can contact legal observers, media activists who can spread the word, the videographers who can film the event, etc.

Do whatever you can – make and distribute your own flyers, contact all your groups and friends. This crime is without precedence and we can’t be silent! What’s the point of waiting for someone else to organize a protest two months from now, long after the crime has been perpetrated?

We have everything we need to create a large, peaceful, loud demonstration. Millions of others must feel the same way; they just don’t know what to do. Let’s take the lead and make this the start!

AGAIN:
When: 4pm – ? Thursday, September 25.
Where: Southern end of Bowling Green Park, in the plaza area
What to bring: Banners, noisemakers, signs, leaflets, etc.
Why: To say we won’t pay for the Wall Street bailout
Who: Everyone!

PETITION LETTER from 200 ECONOMISTS:

To the Speaker of the House of Representatives and the President pro tempore of the Senate:

As economists, we want to express to Congress our great concern for the plan proposed by Treasury Secretary Paulson to deal with the financial crisis. We are well aware of the difficulty of the current financial situation and we agree with the need for bold action to ensure that the financial system continues to function. We see three fatal pitfalls in the currently proposed plan:

1) Its fairness. The plan is a subsidy to investors at taxpayers’ expense. Investors who took risks to earn profits must also bear the losses. Not every business failure carries systemic risk. The government can ensure a well-functioning financial industry, able to make new loans to creditworthy borrowers, without bailing out particular investors and institutions whose choices proved unwise.

2) Its ambiguity. Neither the mission of the new agency nor its oversight are clear. If taxpayers are to buy illiquid and opaque assets from troubled sellers, the terms, occasions, and methods of such purchases must be crystal clear ahead of time and carefully monitored afterwards.

3) Its long-term effects. If the plan is enacted, its effects will be with us for a generation. For all their recent troubles, America’s dynamic and innovative private capital markets have brought the nation unparalleled prosperity. Fundamentally weakening those markets in order to calm short-run disruptions is desperately short-sighted.

For these reasons we ask Congress not to rush, to hold appropriate hearings, and to carefully consider the right course of action, and to wisely determine the future of the financial industry and the U.S. economy for years to come.

Signed (updated at 9/25/2008 8:30AM CT)

Acemoglu Daron (Massachussets Institute of Technology)
Adler Michael (Columbia University)
Admati Anat R. (Stanford University)
Alexis Marcus (Northwestern University)
Alvarez Fernando (University of Chicago)
Andersen Torben (Northwestern University)
Baliga Sandeep (Northwestern University)
Banerjee Abhijit V. (Massachussets Institute of Technology)
Barankay Iwan (University of Pennsylvania)
Barry Brian (University of Chicago)
Bartkus James R. (Xavier University of Louisiana)
Becker Charles M. (Duke University)
Becker Robert A. (Indiana University)
Beim David (Columbia University)
Berk Jonathan (Stanford University)
Bisin Alberto (New York University)
Bittlingmayer George (University of Kansas)
Boldrin Michele (Washington University)
Brooks Taggert J. (University of Wisconsin)
Brynjolfsson Erik (Massachusetts Institute of Technology)
Buera Francisco J. (UCLA)
Camp Mary Elizabeth (Indiana University)
Carmel Jonathan (University of Michigan)
Carroll Christopher (Johns Hopkins University)
Cassar Gavin (University of Pennsylvania)
Chaney Thomas (University of Chicago)
Chari Varadarajan V. (University of Minnesota)
Chauvin Keith W. (University of Kansas)
Chintagunta Pradeep K. (University of Chicago)
Christiano Lawrence J. (Northwestern University)
Cochrane John (University of Chicago)
Coleman John (Duke University)
Constantinides George M. (University of Chicago)
Crain Robert (UC Berkeley)
Culp Christopher (University of Chicago)
Da Zhi (University of Notre Dame)
Davis Morris (University of Wisconsin)
De Marzo Peter (Stanford University)
Dubé Jean-Pierre H. (University of Chicago)
Edlin Aaron (UC Berkeley)
Eichenbaum Martin (Northwestern University)
Ely Jeffrey (Northwestern University)
Eraslan Hülya K. K.(Johns Hopkins University)
Faulhaber Gerald (University of Pennsylvania)
Feldmann Sven (University of Melbourne)
Fernandez-Villaverde Jesus (University of Pennsylvania)
Fohlin Caroline (Johns Hopkins University)
Fox Jeremy T. (University of Chicago)
Frank Murray Z.(University of Minnesota)
Frenzen Jonathan (University of Chicago)
Fuchs William (University of Chicago)
Fudenberg Drew (Harvard University)
Gabaix Xavier (New York University)
Gao Paul (Notre Dame University)
Garicano Luis (University of Chicago)
Gerakos Joseph J. (University of Chicago)
Gibbs Michael (University of Chicago)
Glomm Gerhard (Indiana University)
Goettler Ron (University of Chicago)
Goldin Claudia (Harvard University)
Gordon Robert J. (Northwestern University)
Greenstone Michael (Massachusetts Institute of Technology)
Guadalupe Maria (Columbia University)
Guerrieri Veronica (University of Chicago)
Hagerty Kathleen (Northwestern University)
Hamada Robert S. (University of Chicago)
Hansen Lars (University of Chicago)
Harris Milton (University of Chicago)
Hart Oliver (Harvard University)
Hazlett Thomas W. (George Mason University)
Heaton John (University of Chicago)
Heckman James (University of Chicago – Nobel Laureate)
Henderson David R. (Hoover Institution)
Henisz, Witold (University of Pennsylvania)
Hertzberg Andrew (Columbia University)
Hite Gailen (Columbia University)
Hitsch Günter J. (University of Chicago)
Hodrick Robert J. (Columbia University)
Hopenhayn Hugo (UCLA)
Hurst Erik (University of Chicago)
Imrohoroglu Ayse (University of Southern California)
Isakson Hans (University of Northern Iowa)
Israel Ronen (London Business School)
Jaffee Dwight M. (UC Berkeley)
Jagannathan Ravi (Northwestern University)
Jenter Dirk (Stanford University)
Jones Charles M. (Columbia Business School)
Kaboski Joseph P. (Ohio State University)
Kahn Matthew (UCLA)
Kaplan Ethan (Stockholm University)
Karolyi, Andrew (Ohio State University)
Kashyap Anil (University of Chicago)
Keim Donald B (University of Pennsylvania)
Ketkar Suhas L (Vanderbilt University)
Kiesling Lynne (Northwestern University)
Klenow Pete (Stanford University)
Koch Paul (University of Kansas)
Kocherlakota Narayana (University of Minnesota)
Koijen Ralph S.J. (University of Chicago)
Kondo Jiro (Northwestern University)
Korteweg Arthur (Stanford University)
Kortum Samuel (University of Chicago)
Krueger Dirk (University of Pennsylvania)
Ledesma Patricia (Northwestern University)
Lee Lung-fei (Ohio State University)
Leeper Eric M. (Indiana University)
Leuz Christian (University of Chicago)
Levine David I.(UC Berkeley)
Levine David K.(Washington University)
Levy David M. (George Mason University)
Linnainmaa Juhani (University of Chicago)
Lott John R. Jr. (University of Maryland)
Lucas Robert (University of Chicago – Nobel Laureate)
Luttmer Erzo G.J. (University of Minnesota)
Manski Charles F. (Northwestern University)
Martin Ian (Stanford University)
Mayer Christopher (Columbia University)
Mazzeo Michael (Northwestern University)
McDonald Robert (Northwestern University)
Meadow Scott F. (University of Chicago)
Mehra Rajnish (UC Santa Barbara)
Mian Atif (University of Chicago)
Middlebrook Art (University of Chicago)
Miguel Edward (UC Berkeley)
Miravete Eugenio J. (University of Texas at Austin)
Miron Jeffrey (Harvard University)
Moretti Enrico (UC Berkeley)
Moriguchi Chiaki (Northwestern University)
Moro Andrea (Vanderbilt University)
Morse Adair (University of Chicago)
Mortensen Dale T. (Northwestern University)
Mortimer Julie Holland (Harvard University)
Muralidharan Karthik (UC San Diego)
Nanda Dhananjay (University of Miami)
Nevo Aviv (Northwestern University)
Ohanian Lee (UCLA)
Pagliari Joseph (University of Chicago)
Papanikolaou Dimitris (Northwestern University)
Parker Jonathan (Northwestern University)
Paul Evans (Ohio State University)
Pejovich Svetozar (Steve) (Texas A&M University)
Peltzman Sam (University of Chicago)
Perri Fabrizio (University of Minnesota)
Phelan Christopher (University of Minnesota)
Piazzesi Monika (Stanford University)
Piskorski Tomasz (Columbia University)
Rampini Adriano (Duke University)
Reagan Patricia (Ohio State University)
Reich Michael (UC Berkeley)
Reuben Ernesto (Northwestern University)
Roberts Michael (University of Pennsylvania)
Robinson David (Duke University)
Rogers Michele (Northwestern University)
Rotella Elyce (Indiana University)
Ruud Paul (Vassar College)
Safford Sean (University of Chicago)
Sandbu Martin E. (University of Pennsylvania)
Sapienza Paola (Northwestern University)
Savor Pavel (University of Pennsylvania)
Scharfstein David (Harvard University)
Seim Katja (University of Pennsylvania)
Seru Amit (University of Chicago)
Shang-Jin Wei (Columbia University)
Shimer Robert (University of Chicago)
Shore Stephen H. (Johns Hopkins University)
Siegel Ron (Northwestern University)
Smith David C. (University of Virginia)
Smith Vernon L.(Chapman University- Nobel Laureate)
Sorensen Morten (Columbia University)
Spiegel Matthew (Yale University)
Stevenson Betsey (University of Pennsylvania)
Stokey Nancy (University of Chicago)
Strahan Philip (Boston College)
Strebulaev Ilya (Stanford University)
Sufi Amir (University of Chicago)
Tabarrok Alex (George Mason University)
Taylor Alan M. (UC Davis)
Thompson Tim (Northwestern University)
Tschoegl Adrian E. (University of Pennsylvania)
Uhlig Harald (University of Chicago)
Ulrich, Maxim (Columbia University)
Van Buskirk Andrew (University of Chicago)
Veronesi Pietro (University of Chicago)
Vissing-Jorgensen Annette (Northwestern University)
Wacziarg Romain (UCLA)
Weill Pierre-Olivier (UCLA)
Williamson Samuel H. (Miami University)
Witte Mark (Northwestern University)
Wolfers Justin (University of Pennsylvania)
Woutersen Tiemen (Johns Hopkins University)
Zingales Luigi (University of Chicago)
Zitzewitz Eric (Dartmouth College)

Let the greedy bastards eat cake

Class struggle posterThe tax break for the rich wasn’t enough, the GWOT siphon on the US treasury isn’t flowing fast enough, CEO bonuses aren’t enough, usury is not unregulated enough, bankruptcy laws to ruin small borrowers aren’t predatory enough, the disparity between rich and poor is not obscene enough.

It’s not enough that the parasitic rich contribute only smoke and mirrors to the economy. Now the [investment] bank robbers are dropping even that pretext to demand that US taxpayers simply fork over the money. And don’t anyone try to follow them out.

Michael Hudson on paying for the bailout AND the fallout:

It is bad enough for the government to buy $700 billion of bad bank investments at prices that no private-sector investor has been willing to approach. This itself is an undeserved giveaway to the financial institutions that caused the problem by living recklessly in the short run. But making them – and indeed, helping them – pay back this gift with the aid of favorable tax and deregulatory policies will simply shift the cost off their shoulders onto those of bank depositors, credit-card users, mortgage borrowers and hapless pension-fund contributors to the money managers who have taken most of the current income in the form of commissions, salaries and bonuses to themselves. This will sharply add to the price of doing business in the United States, and specifically to the economy’s debt overhead by the banks making even more predatory loans.

It gets worse. In order for the existing junk mortgages to be “made good,” real estate prices must be raised further above the ability to pay for this year’s five million homeowners in arrears and facing default. Is this a good thing? Is it good to raise access prices for housing even more, forcing new homebuyers to go further into debt than ever before to gain access to housing? Mr. Paulson has directed the Federal Reserve, Fannie Mae, Freddie Mac and the FHA (Federal Housing Authority) to re-inflate the real estate market. They are to pump nearly a trillion dollars into the mortgage market.

Fiscal policy is also to be brought to bear to turn the real estate market around by pressuring cities and states to “help homeowners pay their mortgage debts” by cutting property taxes. The idea is to leave more revenue available for property owners to pay mortgage bankers. Unfortunately, this will oblige cities to make up these cuts by taxing labor and sales, running deeper into debt than they already are, or cutting back their spending on basic infrastructure, education and public services and continue shortchanging their pension funds. This is the price to be exacted to “protect the taxpayer’s interest” by bailing out irresponsible banks. The solution is to let them make even more money by acting in a yet more predatory way.

And:

The most egregious pretense is that the problem is only temporary, not structural. We are merely “freeing up” the market for new loans. This is precisely the opposite of what the classical economists meant by “free markets.” What America has is a bad debt problem, not a “liquidity” problem. There is no “illiquidity” when people refuse to buy a junk mortgage on a property worth only a fraction of the mortgage’s face value. Many of these bad mortgage loans are fraudulent. The Treasury bailout seeks to make $700 billion of fictitious financial claims “real” – that is, way overvalued as compared to their actual worth(lessness).

AIG and Washington Mutual soon to follow Lehman Brothers down the drain?

while-you-were-outTo put things in perspective, it helps to know that Lehman Brothers holdings were 10 times the value of Enron’s, a company that also fell into bankruptcy amidst scandal. But the collapse of the American economy is not over yet, as other companies, such as Washington Mutual and AIG also appear to be on their way to going under. Here is what wikipedia has to say about AIG, the 18th largest company in the world, and one that in 2006 was fined over 1.5 billion dollars for fraud.

‘On June 15, 2008, under intense pressure due to financial losses and a falling stock price, Martin Sullivan resigned from the CEO position. He was replaced by Robert B. Willumstad who has served as Chairman of the Board of Directors of the Company since 2006.

In 2008, AIG’s share prices fell over 95% to less than $3 in September and the company reported over $13.2 billion in losses in the first six months of that year. As Lehman Brothers suffered a major decline in value and share price, potential investors began to compare the types of securities held by AIG to those held by Lehman, and found that AIG had valued their Alt-A and sub-prime mortgage-backed securities at rates 1.7 to 2.0 times those Lehman had used for what Lehman officials called similar securities. On September 14, 2008, AIG announced it was considering selling its aircraft leasing division, International Lease Finance Corporation, in an effort to raise necessary capital for the company. The Federal Reserve has hired Morgan Stanley to determine if there are systemic risks to a failing AIG, and has asked private entities to supply short-term “bridge” loans to the company. In the meantime, New York regulators have approved AIG for $20 billion in borrowing from its subsidiaries.

On September 16, AIG’s stock dropped 60 percent at the market’s opening. The Federal Reserve continued to meet that day with major Wall Street investment firms to broker a deal to create a $75 billion line of credit to the company. Rating agencies Moody’s and Standard and Poor’s, meanwhile, downgraded their ratings on AIG’s credit on concerns over continuing losses to mortgage-backed securities. The New York Times later reported that talks on Wall Street had broken down and AIG may file for bankruptcy protection on Wednesday, September 17.’

Will this company in fact file for bankruptcy tomorrow as the NYT reports? And what about Washington Mutual and the others? It’s beginning to look like the 30’s once again, and all doubt about ‘recessions’ or not is now over. The word is DEPRESSION. Hang onto your job, house, and pension if you can, for it looks grim.

A letter from an American Soldier

I received a well written letter yesterday from an American Soldier. It was addressed to me, but I thought I’d post his arguments for general comment.

Mr. Verlo,

I stumbled upon your website by a pure stroke of accidental misfortune while searching for current news on the Fort Carson Installation.. My wife, my son and I are from Colorado, and I am an American Soldier. I am college educated and studied Middle-Eastern history, and I am well versed as it pertains to Mesopotamia, global-terror and global insurgencies.

I have deployed to Iraq twice and Afghanistan once. In 2003-2004 I served in Al-Fallujah and Ar-Ramadi in the Al-Anbar province, and in 2005-2006 in Tal’afar in the western Ninewah province with the 3d Armored Cavalry from Fort Carson (maybe you heard about the letter that Najim Abdullah wrote to George Bush about my unit?).

I spent seven months in Afghanistan training Afghani Security Forces, and would go back again to either country to serve for one reason only: to support my Soldiers. Although I am career-military, I do not now, nor did I ever support the Bush Administration or the pretenses under which we invaded Iraq. But, unfortunately, our elected officials thrust us into this mess, and we (Americans and American Military alike) are essentially left to deal with it. I am writing to you to comment on a few articles that you have authored, and provide my own opinions and citations.

First, in your article titled: “It’s in the Percentages”, you note that “apparently” 30% of Soldiers don’t have a high school education, 30% are returning with PTSD and 25% percent of their children are considered “special needs”. These are very interesting statistics, yet, you provided no citations. You go on to state that (and I quote): “I find it an absolute nightmare to imagine soldiers in positions of authority, making life and death decisions over others, who don’t know right from wrong, history from high stakes poker, or intelligence from drunken stupor. How do you reason with someone whose only motivation is their next beer?” and “It’s a war crime to subject civilian populations to rule by incompetents”. Again, very interesting. Here are some solid statistics for you, as well as citations. I chose to contrast military service members to college students in this case, but the same could be applied to any demographic (i.e., individuals who were recently laid off nation-wide, or illegal immigrants).

– 40% of college students who come from middle to upper class families engage in binge drinking on a regular (weekly) basis, as opposed to 26% of military personnel who have recently returned from combat tours overseas, where they suffered some sort of physical and/or emotional trauma (ABC news poll, 2007/2008). In addition, over 22,000 service members have called suicide hotlines in an attempt to get help (VA poll, 2008).

– 20% of college students engage in heavy drug use, as opposed to less than 5% of military personnel (ABC News Poll, 2007).

Here’s my favorite one:

3% of all college women report sexual assault at some point in their college career. In 2007, there were 2,212 reported cases of sexual assault on military installations by service members. In a military that exceeds roughly 2,000,000 people, that’s less than 1%.

Second, in your article titled: “Turning out to support fewer Troops”, you allude to Soldiers “riding in on a black cloud”. Hmmm, I’m not quite sure I understand that one. Is this a reference to the environmental damage we do with our vehicles, or the perceived “evil” that we bring with us because we are all, in fact, rapists, murderers and psychopaths?

Third, in your article titled: “Colorado Springs Military Community”, you state that (and I quote) “FIVE MAJOR MILITARY INSTALLATIONS ALREADY AND THE CITY AND COUNTY ARE BROKE”. El Paso County is broke? Since when? I would love to see a citation in reference to this one, because I have “Googled” it to no end and have found nothing that would lead me to believe anything but the contrary. The Colorado Springs Economic Development Corporation reports that: “Colorado Springs has a 3.1 million labor force within an hour radius, a Fast track permitting and planning program (30-60 days), 27 Fortune 500 Companies and a quality of life which is 70% the cost of coastal communities” (CSEDC 2008).

Sir, I have read your opinions on the media (many of which I share with you, by the way), so I would presume that you think this is a fabrication. Here’s the bottom line; the military presence in Colorado (the big, scary war-machine that we are) boosts the economy of the area due to its service members buying cars, houses (and paying taxes on their properties), shopping at local businesses, applying for and receiving loans from local banks, etc. There is no doubt in my mind that if the military left Colorado Springs, the city would continue to thrive, but the economy would noticeably decline anywhere that 30,000 people leave, military or not.

Fourth and final, in your article titled: “On Jan 14 let us not expand Fort Carson”, you state that more military in the area would make (and I quote) “Colorado Springs even more dependent on poor paying jobs, predatory businesses, and skyrocketing social problems. Only developers, car-dealers, pawn shops, strip clubs, liquor stores, social workers, jails and mortuaries benefit from a higher soldier population”. Wow, seriously? These are only issues tied to the influx of more military in the area? So, if 3,000 recently released convicted felons chose Colorado Springs as their new home, it would have less of an impact? Or how about 3,000 illegal immigrants, or 3,000 pregnant teenagers?

Well, let’s go ahead and analyze this a bit further. Developers and car-dealers will benefit from ANY new arrivals to the area, not just military. In reference to pawn shops and strip clubs, the owners of these businesses know exactly what they are doing by placing them outside of military installations. Service members are targeted by these establishments. That’s why they are placed where they are in the community. The same can be said for pay-day loan houses and used car dealerships on Powers and Academy blvd. But if you placed strip clubs next to colleges, would it still be the military that held the higher attendance record? It’s all about business strategy my friend, not the assumption that all military service members are sex-crazed, alcoholic lunatics.

Social workers, jails and mortuaries benefit wherever there are people with problems, criminals and people who have died. I suppose that again, it’s only military who fall into these categories. Ah yes, and our children are even more screwed up than we are. The fact that you said (and I quote): “The rest of us suffer increased crime and their children’s behavioral problems in our schools” vividly displays your utter incompetence and lack of any compassionate notion. You realize that less than 30% of military children who have been separated from a parent experience behavioral issues (USA Today poll, 2008)? The percentage of non-military children who experience behavioral issues as a result of a parent’s incarceration, or divorce, or even domestic abuse is almost twice as high.

Sir, I will be the first to admit that military service members are not perfect. But we are human beings, who are susceptible to the same things that civilians are. We are an easy target, because so many of us are returning home from Iraq and Afghanistan with severe problems, after having served in a war that has lost most of it’s public support (and rightly so).

What I have a hard time understanding is why people such as you exercise your freedoms of speech, protest, religion, etc, and then malign the very people who provide, protect and preserve those liberties? I am as anti-Bush as the average American left-wing protestor, but to blame service members for the actions of their elected leadership is immoral. You are essentially grouping us with Nazi’s, which is absolutely ridiculous. The Nazis’ goal was global domination, and they had no clearly defined rule of engagement. They knew that what they were doing was wrong, and did it anyway.

Does the US Military have people who behave in this manner? Absolutely, and they are dealt with within the justice system for their actions. We are in fact “just following orders” with our presence in the Middle-East. As I realize that this was also the defense of Nazi war criminals at Nurnberg, allow me to elaborate. The US military has clearly defined Rules of Engagement, and our greater mission is to stabilize an unstable region, not global control as conspiracy theorists would have everyone believe. Unless you have a solid understanding of counter-terror and counterinsurgency doctrine, you are in no position to presume anything about the US Military in the Middle-East (unless YOU have been there) other than the fact that we invaded Iraq under false pretenses. I’ll give you that one, and take it for myself as well.

Sir, have you ever held a young Iraqi child in your arms, returning him to his parents as they kiss you and your Soldiers’ cheeks, after he had been treated at a US facility because terrorists sodomized him and cut out his tongue? Have you ever looked straight into the eyes of a terrorist, who swore allegiance to Zarqawi and proclaimed himself a “holy warrior”, and seen pure evil? And while your medical personnel treated him for burns (which were sustained when he poured kerosene on a child and his father and attempted to set them on fire publicly, only succeeding to set himself on fire) he spoke perfect English and vowed to remember your name and kill your family? I presume you would view this as our fault, correct?

But here’s the difference between the American Soldier and everyone else: when it is our fault, we acknowledge it, and DO something about it. We help people, good and bad, bottom line. Do bad things happen? Of course. Are all Soldiers and Marines upright citizens? Of course not.. That’s why one Marine out of 30,000 threw a puppy off of a cliff, and four Soldiers out of 121,000 raped a 14-year old girl and killed her family. These actions were inexcusable and tragic, and the individuals in question were/are being dealt with. To generalize every American service member based on these isolated incidents vividly shows your lack of any rational thought.

So in closing, allow me to say that whether you care to acknowledge it or not, it is the MILITARY who grant and preserve liberties and who TRULY make a difference, not politicians, protestors, or half-minded anti-war bloggers. And understand (or don’t) why we are involved in the Global War on Terror, it is because it doesn’t matter whether or not you are white, black, Canadian, American, gay, straight, blind, deaf, or how many anti-Bush websites you manage or protests you attend, there are fundamentalist extremists who want to murder you and your family because you represent western culture.

I want this war to be over so badly that it consumes me at times. I do not want my son to have to see what I have seen as a result of a failed administration. Sir, we are human beings also, and I gladly serve to protect the liberty and freedom of individuals like you who don’t support me at all. So at your next rally, or the next article you write which slanders US service members, take a moment to reflect on your freedoms, and understand who it is that truly grants them. I wish you all continued health and happiness.

Sincerely,

[D.]

Higher food prices now being driven by higher fuel prices

We can now see the first effects of the world energy crisis, as local grocery stores are creeping their prices of basic foods upward. The dollar stores also are not exactly dollar stores these days, and never will be again. There are two reasons for these price hikes.

First off, the Pentagon is doing this to us. We are throwing them money (and hence the military suppliers and contractors money, too) like it is going out of style. This is money we simply don’t have, and therefore it is coming from loans to our government, who then passes it off to those that have literally bought the government.

We know who eventually will get stuck with paying off these bad debts, too. It will be the working class and lower middle class of our country. And meanwhile, the rich suck at this gigantic welfare program (teat) with absolutely no shame, as they wave the American flag outside all their offices pretending to be the great patriots. The lower echelons of this fraud get 10% off!

Second cause of the rising prices is simply that we have hit the crisis of declining world oil supplies head on, and nobody has any solution to it beyond trying to corner the world supply (Thank you, Dick Cheney and Dumbo Dubya). But capturing control of world petroleum supply doesn’t exactly increase it, even if such a plot were to be ever successful. All in all, we still have yet to come up with an alternative to the mobility of oil transport, and we are dependent on oil, as we have been for all the later half of the industrial revolution.

Some think that the solution is turning back to coal. Some think it is turning to the deadly nuclear option. Some dream of sun, hydrogen fuel cells, and wind. Meanwhile, in the real world, it is still oil that fuels civilization, uh ‘civilization’ as we know it.

We currently have a rapacious economic system that expands constantly at nature’s expense. Nature is now fed up with it, even if our family and neighbors are not. Nature is run down, and will be run out if we continue this way.

Meanwhile, the prices have begun to inch up and we grow uncomfortable here at home. Elsewhere, things have grown more desperate from the start. Ahead, it is $4/ gallon prices this summer, and the sky will certainly be the limit. Oil barrel prices flown up from below $10 a barrel (not adjusted for inflation) as close back as the mid- ’80s some 22 years ago, to heading towards $120 a barrel right now. It is easy to see how our dollars are now being turned to pennies and we haven’t seen anything yet.

There are some horrible times for the world ahead as the world begins to run into shorter and shorter supply of oil. Meanwhile, let’s shop if we can, shall we not? It’s going to be much harder to do that soon.

Predatory bank strikes again…

They might try to sue me, but I don’t owe them any money… mainly because I was a) never dumb enough to fall for their shit and b) didn’t have any property to triple-lien mortgage in order to get one of their loans.

Talking, of course, about Countrywide.

THE major player in the subprime mortgages >selling those mortgages for stock options > getting the Yankee government to bail their thieving asses out (but not the people whose mortgages they’re foreclosing)

They’re all over Cable TeeVee now, pushing their same old Bill Consolidation Loan, (available, of course, only to homeowners)

And where are they getting the bread to buy up more homes at a discount rate?

Could it possibly be that multi-hundred billion dollar bailout “our” president gave them?

Yeppers, true American “Conservative” values in action. Spend your way out of debt.

Sincerest apologies if this seems repetitive… but sometimes the madness they’re pulling is so damned unbelievable you have to write it out or speak it out loud, just to focus on the fact that it is actually REAL.

They’re redefining the classic definition of Chutzpah.

Are we, are we, are we there yet, Dad?

‘What a vacation! Yeah, a vacation from reality, Kids! We could take it because we took out those loans though. We’ll pay back the national debt some day, but today let’s just enjoy the road trip, OK? Hey, look out the window! HEY! I thought I saw an al-Qaeda’s member flying by!’

‘Dad, are we there yet? Are we, are we, are we there yet? I’m hungry. I need to go to the bathroom now. Are we there yet?’

‘Now, now. I told you that there would be no clean bathroom in this desert. You’ll just have to wait. Besides, there are no good hamburgers here either. Just falafel, if even that? We’ll be getting into Tehran late this evening though. Just wait!’

‘Oh, Dad!’ You always take us on the most awful vacations. All we wanted to do this summer is go to the mall and shop. Why’d you have to take us here, Dad?’

‘Look! Someday you will appreciate this trip. You will thank me for it, you will. Besides, you will like the fire works display tonight, I am sure. Your mom Hillary and I have wanted to take this vacation for a long time. Now just sit quiet and watch the road. See that body of water way over there? It’s called the Persian Gulf.’

‘Oh. Dad….’ tears come rolling down the kids cheeks. The kids are tired. And then they fell asleep once again, in the back seat of the car. Meanwhile, good ol Dad continues to drive resolutely down the road, headed towards Tehran. This is the trip he had most planned for!

An American Socialism?

In the current housing bankruptcy “crisis” which was in fact created by the privately owned Fed through interest rates that reached 1% in 2003 combined with lax oversight of the banks, the bail out now being talked about in Congress will help… no surprise… the banks by and large. It is meant to deceive the public again by using words such as “helping” the homeowners, or “saving” peoples homes. NOTE: When you save a mortgage you save the bank’s payments by insuring they keep coming in. Besides the fact that people don’t own their homes, the banks do!

Regardless, in a socialist system this kind of gross manipulation would never have happened in the first place. And the half honest sensible solution by these charlatans in Congress should be to refi these homes to these homebuyers at the new lesser value. Because the value is lost anyway. And these homes were wildly overvalued by an out of control speculatory financial cabal. Besides, the bundled debt obligations and structured investment vehicles are worthless. Adding misery, the value of these homes will keep crashing. The rub? The banks and Investors made millions off these paper schemes and walked away… and probably paid little or no taxes. And now, the home buyers who were preyed upon by these lenders, owe money on a devalued home that was used only as a commodity by the “gentlemen” on Wall St. to manipulate, through the creation of CDO’s and SIVs? Sure! That’s capitalism. Systemic political and corporate corruption. And it’s going to get worse.

Congress desperately needs this property tax, interest payment, revenue stream to keep flowing to the banks and the states. But the reason this is a problem for Congress of “what is the best poison” to cure this, is that to bail out the home buyer who got screwed, is using tax money to keep receiving tax money. It’s double taxation!! And a zero sum game… besides rewarding the crooks. More deficit spending. But the Fed doesn’t care about homeowners and thusly told Congress as much by introducing Paulson’s new scheme to have the Fed take over the duties of the SEC and oversight of the big investment banks and their financial debauchery and chicanery. To keep the graft and secret deals going. The “dark trades” as they’re called. And spineless Congress cannot protest. They are owned by the Fed. In fact they are linked in responsibility by their repealing of the Glass-Steagall act with Greenspan’s urging (which Clinton didn’t veto) and attaching the Commodities Reauthorization Act attached to an appropriations bill in 2000. Ahhh the rewards for the capitalist elite are sweet indeed. No accountability, no worries, no chance of getting the blame. The yellow press at their beckon call.

Socialism would put all properties under the ownership of the people with all rents going to the citizens public fund and distributed to each social association for necessary services, loans, needs. There is no reason for housing or land to have any kind of increased value over the years. NONE. Ask yourself why your car then, doesn’t appreciate in value? Or your furniture? Real estate has been another way to oppress and exploit people by putting them into massive debt and making them pay banks twice the value of the home over the term of the loan. Besides the fleecing by the middlemen realtors and speculators using homes as commodities,(thus the current death spiral in housing). Have you ever looked at your amortization schedule? On a fixed rate 30 year loan? You pay twice or more of purchase price, if you paid off your loan! And you’re paying the bank first. We are insane for agreeing to this but that’s why the banks are the most powerful sector of capitalism. Which include the privately owned Federal Reserve. Oh you say, I made thousands when the market was good! No, you made the banks richer and more powerful by putting the next person into new debt for 30 years at 1 1/2 to 2 times the mortgage payment. Now your house increasing in value, puts upward pricing pressure on all homes and finally drives them out of reach of buyers. Thus the 1% housing bubble. For every person who “wins” in the capitalist system, 8 people lose (and those who depend on them). Otherwise you wouldn’t have a system where 10% of the population own 85% of the household wealth and property. The trick is to keep you thinking you’re winning when you’re really just up to your neck in debt in this American Casino Land.

Capitalism is a constant barrage of fairy tales and propaganda aimed at deluding the masses into believing there is no other way a social/economic system can be run. And that to be rich (or at least have the opportunity-possibility to be) is the ultimate goal because that is the genuine expression of self freedom and self worth! Or the lie that mercantilism and worker owned production could not work alone… without the corporate structure or Wall St. But the facts on the ground show us the truth, that capitalism is a fascist system designed to concentrate wealth at the top, steal our productive gains, and by doing so, makes those at the top the most powerful, privileged members of a society. It’s Monarchical. A plutocracy. Oligarchs rule. Fascism! Congress, the court system and state/city regulatory systems are subservient in every way to maintaining the fascist construct. Question: Ever taken part in an organization by volunteering to help change one of the many injustices in this country? You know what I’m talking about then. Wall after wall after obstacle after pot hole after bought off politician …all lined up to trip you, slip you and flip you upside down. New rules to increase petition signatures required for public ballots. Electronic vote stealing and manipulation. Redistricting. Third parties crushed. City council and board meetings held during weekdays. Hundreds of fees and licenses required to run business. Lobbyists at every turn. Zoning codes that dis-allow creative housing solutions and energy use. State insurance commissions. Mineral rights sold for pennies on the dollar… On and on and on… Unless of course your organization/church is involved in taking up the slack for capitalisms failures… then you’re a Mother Theresa! What’s that saying? “I work to feed the poor, they call me a saint. I ask why the poor have no food, they call me a communist.”

Many people I talk to, on all fronts, are frustrated. And many realize that it is the corporate structure, their power to manipulate policy, to move jobs overseas, encourage wars, and the massive deregulated profit taking and currency manipulation that is at the center core of this American milieu. Besides the fact that no one I talk to has make a thin dime or dollar on Wall St. But the thing I keep running into are differences on how to solve the problem without changing the system drastically. A hypothesis that can be presented is that there is much delusion and neurosis in this land. The idea that we can somehow keep the system we have and make it work for the masses of productive working people, is the delusion as repeatedly, the corrupt one party system consistently proves otherwise. The neurosis is contained within this same idea that is the crux of the delusion. Knowing that something needs to change drastically and on the other hand knowing (by experience or observation) that it is irrational and impossible within the corrupt fascist matrix that will not allow drastic change that is needed. This creates neurosis. The constant tension of this negative psychic entrapment, is energy that has to be released and is finally. Usually negatively in some way. But it could be positive and productive IF there were a real alternative to work toward. Democratic socialism.

Socialists are realists. They are objective creative intelligent humanitarians who know that this delusion and neurosis is not healthy and requires a clean break from the causation. Often I am scoffed at by others for this view. Where? Where would – could this happen? I think that if it’s possible anywhere it would be in a state that seceded from the nation. Vermont’s trying and testing the water. Though even then, there would be no consensus for a socialist form of citizen led, decentralized government. No, until the public is re-educated as to the true intent and purpose of democratic socialism and its platform, and can be persuaded that exploitation of man by man is unacceptable, they will forever bicker and fight among themselves, as children who fight for a place in the lunch line or over possessions. Seemingly without the skills to reassess, re-strategise, and break away from the malignancy present all around us. Socialism takes a deep commitment and concentration to assess the situation on the ground (objectivism) and rationalize, then actualize the alternatives that will then benefit the real producers of capital (us) and replace the owners of the means of production and pushers of propaganda. It’s time to consider socialism as the correct answer to our dilemma.

Death spiral economy

The fascist business model in full view, unapologetic. Unaccountable. The Democrats have no intention of changing it. They have to protect their major donors. Obama is fully backed by Wall Street capitalists. He talks the talk of reform but he cannot and won’t walk the walk. He won’t tell you the real problem is the FED who created this mess. He’s just another black face in a high place. Powerless. Selling the illusion of hope. No substance.

USB bank today declaring more massive losses/write-offs. Muni-bonds and huge retirement funds will soon be reporting major losses. Member of PERA? Watch out! And of course when states start hurting bad, the taxes on these criminals who created this won’t be raised, nor fees increased on the oil companies who’ve raked in massive profits over the last 5 years… rather services and state education funding will be cut dramatically. Adding to the death spiral. Don’t you just love American capitalism? It’s a war/service cheap imports, low wages race to the bottom economy. And the vultures are coming out picking the bones of the unemployed and devalued real estate. Predators and scavengers. That’s the real U.S. economy.

We’ve lost all the gains from our productivity, we could have enjoyed, to these corporations and bankers/financial firms and war arms mfgrs. in their increased profits and paper schemes. Then by job loss, then poverty, our few possessions are lost-sold to the bottom feeders and other desperate folk.

A new American Socialism is needed that will stop war, take back the control of the currency from the Fed, abolish the IRS, abolish the corporate structure, abolish Wall Street and its speculators and commodities traders, and make the banks use social credit with low or no interest loans. Only low admin fees allowed. Then fully fund education through college, provide a national dividend to all citizens, fund a natl. health insurance program and return the means and ownership of production to the workers so that no non-productive parasitical outsider (stockholder) can make a profit from that company. Then turn our economy inward to the benefit of our people first with few exceptions in limited import and exports. And a radical energy transformation to zero point sources and hydrogen. Of course non of this will ever happen. As a famous autistic said: “I’m not a stupid person… Jenny.”

“Not surprisingly, neither in Paulson’s remarks nor in the 214 pages of the plan he released is there any suggestion that Wall Street firms or their top executives be called to account and held legally culpable for the economic and social disaster that has resulted from their reckless and often deceptive, if not outright illegal, policies and actions. US Treasury plan shields Wall Street speculators” -wsws.org

April Fools: The Fox To Guard The Banking Henhouse
– by Dr. Ellen Brown – 2008-03-31

U.S. Treasury Regulatory Reform Proposals: Hapless, Helpless, Hopeless
– by Richard C. Cook – 2008-03-31

New World Order. A Planned World Economy
Mankind at the Turning Point Part 3
– by Brent Jessop – 2008-03-31

Republicans and “Free Market” Zealots Bring Death to America
– by Paul Craig Roberts – 2008-03-30

Economic Cycles and Political Trends in the United States
Part I – by Prof. Rodrigue Tremblay – 2008-03-28

Is an International Financial Conspiracy Driving World Events?
Bankers now control national monetary systems in their entirety.
– by Richard C. Cook – 2008-03-27

The Fed’s Bailout: Whose Money Is It?
– by Richard C. Cook – 2008-03-23

Speculative Onslaught. Crisis of the World Financial System: The Financial Predators had a Ball
Danger of a domino collapse of banks akin to that in Europe in 1931?
– by F. William Engdahl – 2008-02-23

Derivatives – A Potential Financial Tsunami?
– by Daniel Apple, Rick Baugnon -2008-03-21

A New President Should Seize Control of the U.S. Monetary System
– by Richard C. Cook – 2008-03-20

America ‘In debt we trust’

Why is this country going down? It’s because ‘in debt we trust’ to give us jobs, of all things! It actually works the other way ’round. Check out In Debt We Trust

The multi-national corporations are putting the American people into hock. Payday loans may very well soon be replaced by lack-of-payday groans.

Do you really know how much in debt you have become? Our lives are now seemingly being played like Russian Roulette with everything. Especially with your health… You are already in debt but do not yet know it.

It’s in the percentages

Apparently 30% of the most recent batch of Army recruits do not have a high school education. And by the Army’s own findings, 30% of soldiers returning from our occupations have Post Traumatic Stress Disorder. And a Colorado Springs school district has revealed that 25% of the children of the Fort Carson new arrivals are “Special Needs” students. Americans, and Colorado Springs in particular, have to live with these percentages. Are we 25% screwed or 30% screwed? At least we don’t have to look at these guys across the sights of their guns. Iraqis do, and over one million dead Iraqis it may now be deduced were 100% screwed.

I mean it, I find it an absolute nightmare to imagine soldiers in positions of authority, making life and death decisions over others, who don’t know right from wrong, history from high stakes poker, or intelligence from drunken stupor. How do you reason with someone whose only motivation is their next beer? Where they’d just as soon shoot you dead than worry about regretting not shooting you?

It’s a war crime to subject civilian populations to rule by incompetents. Just because Americans elect a certified idiot for president is no indication that anyone else, certainly not a more cultured society, would want their lives overseen by uneducated amoral brigands.

Unprincipled Colorado Springs businessmen salivate at the houses, cars, loans and strippers they can sell to uneducated soldiers. Colorado Springs residents better think hard about whether they make good neighbors.

Say’s Law and undemocratic monetarism

Richard C. Cook has written an excellent synthesis of C. H. Douglas, Keynes and Galbraith in Global Research repudiating the orthodox economics used to legitimate the Federal Reserve under which the world’s capitalist economies are enslaved.
 
Cook writes: “Overall, banks have served four main purposes—one legitimate, one dubious, one puzzling, and one deeply flawed.

1. Legitimate
“The first purpose—a legitimate one—is to facilitate commerce. It is often cheaper for a business to borrow capital from a bank than to stockpile cash itself. This was the purpose of the state banking system in the U.S. prior to the Civil War. The state-chartered banks existed to provide working capital for commercial transactions, such as stocking inventory, or for business expansion. Use of banking for these purposes was tied to specific commercial activities—the “real bills” doctrine. Of course credit used for this purpose has a cost which is factored into prices. When these loans are repaid, they are canceled at the bank which thus removes purchasing power from the economy. This is another area, besides retained corporate earnings, that contributes to the gap between prices and purchasing power identified by C.H. Douglas. But lending for commerce itself remains a legitimate activity.

2. Dubious
“The second use of banking—the dubious one—is for capital formation in the creation of new businesses, a function which overlaps with capital markets such as the stock exchanges. But this use very easily turns into lending for speculation by permitting investors to borrow money in order to buy stock on margin or to “leverage” investing by borrowing money in order to purchase whole companies. The costs of this borrowing also show up in consumer prices without introducing any new purchasing power into the system.

“This practice has mushroomed in recent decades starting with the buyout/merger/acquisition mania of the 1980s and has reached disastrous proportions through the creation and growth of equity and hedge funds. The use of bank borrowing for such speculative purposes is an obvious abuse that should not even be legal. It is actually a form of theft from the nation’s natural and normal store of credit that should be carefully administered by competent public authorities as a utility as critical to social health as the water supply.

3. Puzzling
“The third use of banking—the puzzling one—is for consumer credit. This includes borrowing for big purchases such as buying houses and automobiles, or small ones such as items bought with credit cards. Increasingly it includes purchasing even the necessities of life such groceries.

“Buying an object with a credit card often means that a person cannot afford to buy it at the present moment. So the person is gambling that he or she will be able to pay off this loan—including interest—at some point in the future. What is puzzling is that in the midst of what is claimed to be the most productive economy in the history of the world, why are most people so poor that they cannot buy what they need to live with the proceeds of their present earnings? This is the ultimate repudiation of Say’s Law and its derivatives—Libertarianism, supply-side economics, and the like.

4. Flawed
“The fourth use of banking—the one that is deeply flawed—is the financing of government inflation through purchase of public debt instruments which allow deficit financing of public activities, most particularly the waging of war. Banking for the purpose of financing war has a long pedigree, going back to the medieval times where kings were perpetually in hock to the money-lenders. Today we have the national debt, which has been used primarily for war, as well as for the Keynesian pump-priming described previously. A classic case of the use of banking for deficit financing of war is the borrowing by the federal government under the Bush/Cheney administration to raise the trillion dollars already spent on the Iraq and Afghanistan wars.”

Parasitical capitalism exposed

Got Real Player?
 
Two hours of excellent deconstruction of the big financial parasites and how 2008 will see a depression and a transfer of tax burden (bail out) onto the working and what’s left of the middle class. Banks are calling in loans on hedge funds and hedge funds don’t have the money (lost it gambling) so they are selling their assets (any assets) which include stocks. That’s why we see the big drops in the stock market. And the writing off of billions by the banks …large and small. And their stock price declining.

If the Fed keeps lowering interest rates (printing money to save their banking and wall street buddies) we’re screwed and it won’t help. That’s the same as me giving someone more money who is already in deep debt and has no way to repay me. They, the Fed, has screwed things up so bad we’d still be f__ked if they raised interest rates. It’s a liquidity fix one way and a credit tightening the other. But either way credit is cut off due to all the debt.

And all of this due to the subprime and criminal mortgage lending practices of the banks the Fed is supposed to be watching. Greenspan is a crook of magnificent proportion! He should be behind bars!! But it’s a systemic problem of corrupt fascist business model since the Fed took over the management, value and issuing of our currency in 1913. And largely amplified after the 1971 de-coupling of gold from the dollar. Dr Hudson explains how it’s all working to our demise.

This was in August before we see now Kucinich, like Paul, is being kept out of the debates and marginalized by the media. Hudson is Kucinich’s financial adviser. Some of you may not agree with his tax solutions but regardless, this is a scathing indictment of the current globalist capitalist financial/economic system. Deeply corrupt and terminal.

Dr. Michael Hudson on Financial corruption and collapse
Part 1 – Aug 15
Part 2 – Aug 22

Links on this site to the Aug 15 and 22 interviews.

Columbia Savings revisited

subprime.jpgTwo memorable things in my life were tied to Columbia Savings. The first was the explosion of the space shuttle Challenger. I was a recent college graduate working for a large international accounting firm, KPMG Peat Marwick. I remember sitting in a conference room, clad in a conservative business suit, already on hour 5 of an 18-hour workday. These were the days before the Internet; we still relied on the Big 3 to provide us with news. One of the higher ups came into the room, solemn look on his face, and turned on the television. The ten of us sat there and watched hope gone awry….seven lives gone due to an improperly sealed O-ring.

A few years later, the “Feds” came in and took the CEO, the CFO, and several others out of the building in handcuffs. It was a scary sight. These were our friends…our role models. What the hell? What was going on?

The S&L crisis changed the American way of life. Without an extensive legal or financial background, you may not understand how. But, trust me, rules were changed. I worked for the next several years with the Resolution Trust Corporation (RTC), the branch of the government created to ensure that we would all enjoy a safe financial future. They were a bunch of dumbshits who had absolutely no chance of being hired by Peat Marwick, or any other reputable company. Like so many, the government is a safe haven for idiots who crave authority.

Moving on. Despite the noble efforts of the RTC, the country is facing another financial crisis. As interest rates have gone down over the past several years, a new brand of leech has been unleashed on the unsuspecting public. The mortgage broker. We are in a housing crisis due to the prevalence of SUBPRIME loans. Let me explain. In the past, a family had to meet certain requirements in order to obtain a mortgage. They had to earn enough income, own assets, show that they would be able to meet ongoing financial obligations. Banks and S&Ls had strict underwriting requirements. They extended credit and collected interest in return. Borrowers had to be a PRIME candidates to qualify for a mortgage loan.

Today, the mortgage industry has gone wild. There are zillions of mortgage brokers who can find ANYONE a loan. They shop around for a third tier underwriter who is willing to lend the money. The broker receives a large commission. The underwriter receives an origination fee and various other payments. Neither care if you are in over your head. They will offer you an initial rate of 2 or 3% with adjustable rate mortgage (ARM), and convince you that rates won’t go up much. You can afford it. Buy that bigger house. Once the deal is inked, the lender simply takes the cruddy mortgage portfolio and sells it to the next prick in line, greedy for the soon-to-be usurious interest payments.

For the past two years, mortgage rates have increased. Over a trillion dollars of ARM loans are due to reset in the next 18 months. Homeowners’ adjustable payments have gone from $400/month to $600 to $1500. With no end in sight. Foreclosures are at an all time high. Too bad for the idiots, you say? Well, I would normally agree with you. But let’s hope that you don’t have a house to sell. As the banks divest themselves of the properties they’ve foreclosed on, real estate prices will be driven into the ground. The lenders will have to write off trillions of dollars of bad loans, likely rendering many of them insolvent. Huge investment funds tied to subprime loans will become worthless. Many Americans will lose their homes, their market investments, and their ability to obtain future credit. I’m predicting another bail out that will cost the taxpayers billions.

Meanwhile, my best friend saw the potential in the industry, despite the fact that she knew nothing about mortgage banking, and earned $18,000. Last month.

No peacemakers without justice makers

The Gun that won the WestThe Peacemaker of the American west was a Colt 45. What does Peacemaker mean to you?
 
I’ll start. A peacemaker would be someone within a community, preferably a peer, who polices the activities between fellow members such as to temper the periodic injustice to which human nature is prone. Fair enough?

A peacemaker would not be an overseer of slaves for example, bent on keeping the oppressed from overwhelming their master. Not a peacekeeper. A peacekeeper would not be a security guard contracted to keep a population from disrupting the extraction of mineral wealth of a country by a foreign corporation. Not a peacemaker. A peacemaker is not a caretaker of properties fretted over by international investors. A peacemaker would not be a foreign soldier sent in to protect the sovereignty of a ruling elite who no longer can control the displeasure of their impoverished subjects. A peacemaker would not be an international police agency trying to quell a civil war, where revolutionaries are trying to free the people of their post-colonial dead weight.

A UN peacemaker in Africa is often a white cop in a black neighborhood. A United African peacemaker is often a neighbor’s soldiers occupying your land. Foreign intervention into the affairs of a sovereign nation is an invasion. Interrupting the violence of a people’s uprising is to shove into their throats more fistfuls of the status quo. And call it keeping the peace.

The principle of an international governing body such as the UN being able to dispatch peacekeepers who have no ulterior motive is an honorable one. The principle of an international body being able to make loans to small nations to provide aid for their development is likewise honorable, unless the bureaucrats in between are corrupt.

A peacemaker is meant to maintain a peaceful equilibrium, but the equilibrium must be just. The Justice and Peace movements worldwide say: no peace without justice. And who is it that’s pursuing the justice beside the reformers and the rebels? It’s not the banks.

No peacemakers without justice makers.

Draft the poor

The two biggest Democrat- led events in this past century were the New Deal and the War on Poverty, and a lot of liberals say that these were the true glory days of Saint Franklin and Saint Lyndon, heir apparent to Saint Johnnie.

Fact of it was, even though Roosevelt did do a massive restructure of wealth, and the very richest condemned him roundly as a traitor to his class. They did in fact retain the vast majority of their wealth. And the main focus of the New Deal was buying off a pending revolution which would have made Red October seem more like a delicate shade of pink. The Communist party was extremely strong and organized. The anarchists were extremely strong and not so well organized. There had recently been an election where the Socialist / IWW leader Eugene Debs, campaigning from prison, had garnered enough votes in a presidential race to be included in the next election cycle.

The United States Army had recently been involved in a shooting scrape where they fired on a march on Washington of World War One veterans, who were airing their grievance that the US government had fucked them without grease. (This one I learned from that well known liberal hotbed, the VFW and American Legion)

The country was in ruins, financially and spiritually, people were starving in the streets.

People were so very pissed off they were on the verge of storming the mansions of the mighty and dragging them out, and hanging them in their immaculately trimmed trees, by their own intestines, while they were still alive. Saint Franklin saved their sorry asses.

And Saint Lyndon with the Great Society, the so called liberal handout programs the R’s whine about so much today? The ones which collectively wouldn’t amount to the amount of debt accrued just in the afhani/Iraqi conflict, yeah those programs… They were sold to the R’s as an investment in a future draft.

Yeppers. Seems the poor kids the Army depends on to go and secure the money fields for the rich kids, they had some massive health problems that caused a panic amongst the Draft ‘em All crowd. Problems that could be fixed by a comparatively small increase in nutrition and health care and education. Eighteen year old boys who didn’t have enough teeth to pass the physical. Scurvy and rickets, underweight. Poor eyesight from a lifetime of eating trash food. Ok so it wasn’t really trash food, more like just trash.

Now they are babbling about reinstating the draft. stupid stupid stupid.

Don’t they see, can’t they understand, the money the rich have today is phantom cash? Interest paid on the interest from loans made against the interest of IOUs. What are they going to buy the poor off with this time?