Have We Not Learned That Bigger Is Not Better When It Comes to Banking?

10 largest banks

How can this be a good thing?

The very people who legally crashed our economy – and those who did it illegally and still haven’t gone to jail – and have kept their bonuses are now even bigger than before.

This is when our government needs to – HAS TO – step in and say….

“You are a danger to the rest of society. You are no longer going to operate in this manner. You have abused the rights and privileges afforded to you in the law, and now the law is changing. You will be broken up, and you will be regulated such that your actions cannot threaten the global economy and the financial well-being of all of the rest of us ever again.”

If there was ever an industry that has repeatedly proven that it is populated with and largely led by people incapable of policing themselves, it’s the financial services industry. This isn’t a personal attack. It’s just the facts, and it’s just history.

There can’t be opportunity and protection without a balance between the private sector and the government. There is no balance today. The scales have been tipping for far too long toward Big Money. This is why it’s so important that we strike at the root of all of our problems – money in politics.

Caseyoncampaigning

We must change campaign finance laws in order to get the influence of Big Money out of our political processes and out of the halls of government. It’s the only way we can expect to have any influence as ordinary citizens over our elected officials.

What can we do? Plenty.

Join up with other concerned citizens who have come together to make their voices heard.

Here are some of my favorites. Please feel free to share this and to add others.

 

https://movetoamend.org/
https://movetoamend.org/
http://anticorruptionact.org/
Join the fight. Become a Citizen Co-Sponsor of the American Anti-Corruption Act at http://bit.ly/CitizenCoSponsor
http://www.wolf-pac.com/
http://www.wolf-pac.com/
https://represent.us/
https://represent.us/
Support MAYDAY.US Together we can end the corruption of money in politics. Pledge now: https://mayday.us/pledge
Support MAYDAY.US Together we can end the corruption of money in politics. Pledge now: https://mayday.us/pledge
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Unhappy Anniversary, Citizens United

Today is the 4th anniversary of the Supreme Court’s infamous “Citizens United” decision.

Why should you care?

Watch the 2 1/2 minute video at…

http://unitedrepublic.actionkit.com/event/cosponsor/9815/
http://unitedrepublic.actionkit.com/event/cosponsor/9815/

http://unitedrepublic.actionkit.com/event/cosponsor/9815/ to get a sense of what money in politics is doing to us and to our government. I hope you’ll then decide you want to add your name as a Citizen Co-Sponsor of the American Anti-Corruption Act. I hope you’ll want to tell everyone to do the same.

After that, visit…

https://movetoamend.org/
https://movetoamend.org/

https://movetoamend.org/ to understand what a bunch of concerned citizens are doing to push for an amendment to our Constitution, “… to firmly establish that money is not speech, and that human beings, not corporations, are persons entitled to constitutional rights.”

You can sign their petition, too.

Sounds pretty easy, right? It doesn’t take a lot, and every voice counts.

Look, if you don’t do something, who will?

And if you decide to do nothing? That’s your choice, of course.

The way I see it, though, is people who won’t take action – any action – really don’t get to complain about money in politics or the Democrats or the Republicans or the size of government or the size of the military or voter ID laws or how the 2-party system keeps independents from running and winning or fracking or climate science or Roe v Wade or the minimum wage or right-to-work states or class warfare or corporate welfare or Wall Street bonuses and bail outs or George Soros or Sheldon Adelson or Donald Trump or Fox News or MSNBC or Glass-Steagall or the Gilded Age or Obamacare or the NRA or immigration reform or lots of other things that corrupt our representative democracy.

Ask Your House Rep & Senators to "Be A Leader" on Overturning Citizens UnitedIt all boils down to money, and unless and until we – you and I and everyone we know – does something – ANYTHING – to get money out of politics while we get out and vote in every election, well then we shouldn’t expect much to change for the better.

We can do this. You can do this. Why not do it right now?

 

Farewell QE, you have been a magnificent success – Telegraph

See on Scoop.itDidYouCheckFirst

The moral contours of QE depend on your angle of vision. But would you rather be surrounded by mass unemployment?

Greg Russak‘s insight:

This article is pretty wonky, and I don’t profess or pretend to understand all of it. There a couple of basic takeaways for me.

The main one is this: AUSTERITY DOES NOT WORK.

“The crippled eurozone alone has chosen to stagger on defiantly without monetary crutches. The result has been a double-dip recession of nine quarters, the longest since the Second World War. The austerity regime has been self-defeating even on its own crude terms. Debt ratios have ratcheted up even faster.”

…and this….

“We can all agree that America’s recovery has been feeble. The unemployment rate has fallen to 7pc, but that masks the damage as discouraged workers drop off the rolls. The labour participation rate is still near a 40-year low of 63pc. Yet there is no comparison with the eurozone’s jobless rate of 12.1pc, let alone the crucifixion of Southern Europe’s youth.”

(Side note: I just heard on an NPR report yesterday that youth unemployment in Italy is 25%. Wonder how much higher it needs to get before people take to the streets.)

The other takeaway is this sobering fact:

Economies don’t work like household budgets, and it’s a dangerous oversimplification in the extreme to believe that they do.

See on www.telegraph.co.uk

Let’s #NeverForget915 and the Lies of Trickle-Down Economics

NeverForget915On this, the 5th anniversary of the bankruptcy of Lehman Brothers, Americans should take time to pause and remember this as yet another heinous crime of historic proportions perpetrated on Americans on a day in September.

It wasn’t terrorists and it wasn’t Main Street who killed our economy. No, this crime was perpetrated on us by a conspiracy forged between Big Money on Wall Street and Small (not Big!) Government politicians who carry their water and actually pass rules and laws that make the crime legal.

That means we’re also to blame. Actually, it’s not all of us who must share the blame.

There’s no other way to say this. It’s Americans who vote for politicians who want to further deregulate all kinds of industries, including the financial services industry, who share in the blame. By electing people who work to shrink government and deregulate industries, we’re actually creating a “Socialism of Wall Street” where the gains of capitalism are privatized to an infinitesimally small number of people while all the losses are socialized to all the rest of America.

How much more proof is needed that deregulation, coupled with greed and power, leads to terrible outcomes for everyone except those with wealth and power? I consider myself to be a capitalist, but I also know from experience that corporations have proven time and again that they cannot be trusted to police themselves alone.

For an excellent accounting and timeline of events that led up to the crash of ’08, I recommend reading this 2011 Forbes piece, Lest We Forget: Why We Had a Financial Crisis.

In it, Steve Denning writes:

Many actors obviously played a role in this story. Some of the actors were in the public sector and some of them were in the private sector. But the public sector agencies were acting at behest of the private sector. It’s not as though Congress woke up one morning and thought to itself, “Let’s abolish the Glass-Steagall Act!” Or the SEC spontaneously happened to have the bright idea of relaxing capital requirements on the investment banks. Or the Office of the Comptroller of the Currency of its own accord abruptly had the idea of preempting state laws protecting borrowers. These agencies of government were being strenuously lobbied to do the very things that would benefit the financial sector and their managers and traders. And behind it all, was the drive for short-term profits. <emphasis added>

I think “…being strenuously lobbied…” is too polite a euphemism.

It was the Big Money One-Percenters exercising their control over politicians who got agencies to do their bidding. 2008 was the result of the lies Reagan told America about trickle-down economics and the size of government, and the perpetuation of those lies coming from Republicans, extreme neo-cons, and the One Percent ever since. They are the ones who killed our economy in 2008, and they will do it again unless we do something to stop them.

Need more evidence?

Here are some facts about the 2008 bailout, courtesy of Public Citizen.

  • Amount the crash cost the U.S. economy: $22 trillion
  • How much everyone would get if that $22 trillion were divided equally among the U.S. populace: $69,478.88
  • Assets of the four biggest banks in America — JPMorgan Chase, Bank of America, Citigroup and Wachovia/Wells Fargo — when they were “too big to fail” in 2008: $6.4 trillion
  • Assets of those four banks today: $7.8 trillion
  • Of the 63 former Lehman Brothers employees identified by a bankruptcy examiner as being aware of an accounting scheme Lehman used to mask its true finances, number who are employed in senior financial services positions today: 47
  • Number of the 25 banks responsible for the bulk of risky subprime loans leading up to the crash that are back in the mortgage business: 25
  • Chances that an American voter thinks that regulating financial products and services is “important” or “very important”: 9 in 10
  • Chances that an American knows the Earth orbits the sun: 8 in 10
  • Amount spent in 2012 by Wall Street and other finance industry behemoths on lobbying to roll back, water down and weasel out of the Dodd-Frank Wall Street Reform and Consumer Protection Act: $487 million
  • Number of registered financial industry lobbyists in 2012: 2,429
  • Number of lawsuits filed as of April of this year by Eugene Scalia, son of U.S. Supreme Court Justice Antonin Scalia, to hold up implementation of Dodd-Frank rules on legal technicalities: 7
  • Rank of finance industry among all corporate election spending by sector in 2011 and 2012: 1
  • Amount the industry gave to political candidates in 2011 and 2012: $664 million
  • In 2012, rate at which revenues of JPMorgan Chase, the largest bank in the U.S., matched Public Citizen’s operating expenses for the entire year: Every 80 minutes

To my friends on the right, isn’t it time to wake up to the reality that trickle-down economics is a lie? The One Percent don’t care about you, and you are extremely unlikely to ever become one of them.

Isn’t it time to join forces as average, middle class Americans to make our voices heard about getting big money and it’s corrupting influence out of politics, and to get our democracy turned back over to us ordinary citizens?

You can start by joining and supporting CoffeePartyUSA and by becoming a Citizen Co-Sponsor of the American Anti-Corruption Act.

UPDATE 9/16/2016:

I am no longer a supporter of any kind of Coffee Party USA. To understand why, click here.

http://anticorruptionact.org/
http://anticorruptionact.org/

“Bankers Are Balking at a Proposed Rule on Capital” Gretchen Morgenson – The New York Times

See on Scoop.itDidYouCheckFirst

“Over the next two months, the regulators proposing this rule will no doubt encounter a lobbying buzz saw. Mr. Hoenig (vice chairman of the F.D.I.C.) said he and his colleagues were bracing for that. Bankers, after all, prefer things just the way they are. They can load up on leverage to take risks and reap the rewards. But when losses abound? Well, they’re the taxpayers’ problem.” – Gretchen Morgenson, assistant business and financial editor and a columnist at the New York Times.

Greg Russak‘s insight:

Letting banks regulate themselves with what is called ‘risk-weighting’ didn’t work out so well in the past.

“This so-called risk-weighting approach was an abject failure. For example, the assumptions characterized the sovereign debt of Greece as risk-free, requiring that banks set aside no capital against those holdings for possible losses. The risk-weight system also determined, incorrectly, that highly rated mortgage securities fell low on the risk scale.”

Why shouldn’t banks be regulated up to their eye-balls? How can we think bankers can be trusted now?

Either they are horrible at analyzing risk and need lots and lots of oversight or, more likely, they know that in an under-regulated environment they can privatize any gains and socialize all their losses back to us through future federal bailouts.

See http://www.nytimes.com/2013/07/14/business/bankers-are-balking-at-a-proposed-rule-on-capital.html?ref=gretchenmorgenson&_r=0