Showing posts with label Wall Street. Show all posts
Showing posts with label Wall Street. Show all posts

Oct 7, 2011

Marine Discusses Wall Street Protest and NYPD: Time for Police to Back Off

Another Dangerous Terrorist Captured -
Oh She's a Bad One for Sure! - Just Look at Those Eyes
 Republican Rep Eric Cantor (VA) said he is "concerned"
about this woman and her growing "mobs" of fellow protestors.
 A Vietnam War combat veteran sees the movement and speaks out.

I remember Vietnam, the real Vietnam, the Vietnam of the Marine rifle squad, the senselessness of it, the suffering. We all knew it as what it was, a huge con.

Now, nobody doubts the War on Terror was the same thing, Afghanistan, the drug producing capitol of the world, Iraq, the farce staged by the Bushites to loot oil and empty America’s treasury. ... I am more than familiar with what 'on the job' means.

[See live stream at Global Revolution. Democracy in action; fascism in the street of New York as brave souls - the young, labor, veterans, grow by the day and spread to cities across the country. Panic from the powers that be is next. See also #OccupyWallStreet.]

Sep 27, 2011

Americans who hate us for our freedom

From Scott Walker attacks on protesting families at the Madison Capitol to Mayor Bloomberg's ongoing attack on the 99 percenters' Occupy Wall Street, we have seen the criminalization of Americans' exercising their right to assemble and express themselves.


With corporate media complicity we are witness to an ongoing crime of blocking Americans exercising their rights.

Attacking Americans in this fashion is a violation of what this county has come to stand for.

America is the land of liberty, yet when Americans assemble in most any major city, the presumption of the media is that police attacks are just and rightful under the law. Nothing could be further from the truth.

The idea that Americans exercising their First Amendment rights somehow indicts Americans is absurd, but we see the Bush-Cheney war on dissent carried out by political leaders from President Obama to Mayor Bloomberg to a village executive.

You want to dissent from the government? In America the land of the free, you will be herded into a First Amendment zone or protest zone.

The First Amendment zone, used when opposition to Bush-Cheney and the lies of war refused to die, is emblematic of how the Bush-Cheney regime lives on today.

Political rhetoric matters. All Obama has to do is make a speech enshrining the First Amendment, publicly ditching the contemptible idea of proper dissent zones when he appears, and say: You have a right and duty to express yourself.

"It’s now officially a toss-up between Wisconsin and Michigan in the race to see which state government can do the best job of thumbing its nose at our most basic democratic principles in order to force their autocratic desires on their citizens," wrote Rick Ungar in March, Forbes Magazine Online blasting Scott Walker's defiance of a court order blocking the implementation of an unlawful attack on labor organizing.

Autocratic desires and indifference add up to an authoritarian state.

By Michael Ratner and Margaret Ratner Kunstler

The following is an excerpt from Hell No: Your Right to Dissent in Twenty-First Century America by Michael Ratner and Margaret Ratner Kunstler, published this spring by the New Press.

Many of us think of the constitutionally protected right to dissent as the right to speak our minds and write and publish what we think. But free speech is only one of three related rights protected by the First Amendment. Not only is Congress prohibited from passing a law “abridging the freedom of speech, or of the press,” the amendment also protects “the right of the people peaceably to assemble” and their right “to petition the Government for a redress of grievances.”

Taken together, the right to free speech, the right of assembly, and the explicit right to express grievances to the government add up to an expansive right to “dissent” enshrined in the Bill of Rights. Beyond written or spoken words, the right to dissent is the right of citizens to organize themselves, to associate, to make themselves heard in order to achieve political and social change and oppose government policies without fear of impediment or reprisal.

Despite these clear protections, the government has not always lived up to its constitutionally required mandate to protect our right to dissent. Indeed, it is this right that the government, whether federal, state, or local, has typically targeted for repression, especially in times of claimed “emergencies.” That has been true historically and it is true today. Often, federal agencies and state and city governments, at times of both war and relative quiescence, try through surveillance, infiltration, and limits on protest to suppress dissent. Most of these repressive efforts have ultimately been beaten back, but not before people were jailed, and often not until the effects of the claimed “emergency” that purportedly justified the restrictions had dissipated.

Since the founding of this nation, the government has made many efforts to restrict free speech and dissent. The list on page 8 is a cursory overview of major turning points in the history of attacks on dissent. The rest of this chapter provides a more in-depth look at the continued assault on our right to dissent over the past fifty years, with a special focus on the new post–9/11 legal framework.

It is important to note that government measures limiting organized dissent have become increasingly common in our society since the terrorist attacks of 2001.

These assaults upon and criminalization of dissent—from the surveillance of activists to the federalization of local law enforcement to the labeling of activists as “terrorists”—dismantle piece by piece a core right considered essential to meaningful democracy. Understanding the evisceration of this right is a first step to regaining our lost liberties.

Bringing About Political and Social Change

Free speech is a bedrock principle of our nation. The Framers believed that open and unfettered discussion would promote better thinking and decisions, particularly important when it came to government policies. The Supreme Court stated in 1964 in New York Times Co. v. Sullivan, a seminal case on modern-day dissent:

The general proposition that freedom of expression upon public questions is secured by the First Amendment has long been settled by our decisions. The constitutional safeguard, we have said, “was fashioned to assure unfettered interchange of ideas for the bringing about of political and social changes desired by the people.”

This “unfettered interchange of ideas” on public issues, according to Sullivan, must be “uninhibited, robust, and wide-open . . . [and] it may well include vehement, caustic, and sometimes unpleasantly sharp attacks on government and public officials.”

Clearly, the lone speaker standing on a soapbox in Times Square or the odd local newspaper article opposing a war will generally not lead to change in government policy. It has always been understood that the right to speak freely is not sufficient without the ability to make that speech effectively reach a meaningful audience. That is why other related rights are included in the First Amendment. Congress was prohibited from abridging the right to demonstrate (“people peaceably to assemble”) and from interfering with the right to petition and lobby government officials (“petition the Government for a redress of grievances”). Implicit in the rights to assemble and petition is the right to freedom of association—the right to join together with others to advocate for change. The Supreme Court has recognized this right of association as a critical part of First Amendment protections.

While not literally protected by the First Amendment, civil disobedience and passive resistance fall within its broad ambit. They are often found to be effective expressions of political dissent because such tactics are a source of organizational solidarity and attract wider media attention. For people without the means to purchase airtime or newspaper space, organized protest offers a chance to “speak with their bodies” and collectively to make themselves heard.

Protesters typically break the law in insubstantial, generally nonviolent ways while making clear that their technically illegal actions seek to bring about change in policies or practices that are much more harmful than these actions. Such minor violations of law have a long and honorable history in this country. Thousands of activists engaged in civil disobedience in the South to break the Jim Crow laws. Hundreds today engage in civil disobedience protesting the Guantánamo Bay detention camp, torture, draconian immigration laws, and Appalachian mountaintop removal.

Sometimes, however, these minor violations are dealt with severely so as to discourage effective protest. We saw this in the South with mass arrests and jailings meted out to Dr. King and others. We are seeing it today with special laws that treat acts of civil disobedience as terrorism and single out environmentalists for especially harsh sentences. Such repression is never about the nature of the legal violations; it is always about discouraging vigorous dissent and protecting governmental and corporate interests.

Other amendments in our Constitution also ensure that these speech protections can be used effectively. The Fourth Amendment ensures that our persons, homes, and places of work are not searched without good reason (searching homes and offices for evidence of dissent is one way governments have historically tried to impede free speech) and that our various forms of communications are protected from unwarranted surveillance. The Fifth Amendment guarantees us due process of law before we can be imprisoned or held liable and is designed in part to stop government from using imprisonment as a means of suppressing potential dissent.

Even a cursory look at struggles for progressive social change in America reveals the wisdom of viewing the First Amendment in the context of protecting direct advocacy of social and political change. Often change has occurred only when free speech is taken to the streets, when thousands and eventually millions of people force their demands upon the government and compel the government to act and to change. That is how women gained the right to vote, labor won the 40-hour workweek and the right to unionize, the civil rights movement in the 1950s and 1960s overcame the segregation policies of Jim Crow, protesters helped bring an end to the Vietnam War, and millions in the United States and around the world tried to prevent the 2003 Iraq war. That is why today immigrants and their supporters are marching in demand of immigration reform.

There are some who believed that the access to information provided by the Internet would provide a new force for change—that the democratization of information sharing would provide a new means of association and organization by which to foster political and social change. While access to the Internet has allowed countless voices to speak, the very proliferation of voices means that few are heard by large numbers of people. Neither does the Internet alone provide the real social connectedness needed for political organization. A YouTube video or a blog post can certainly spark action, but as we saw throughout North Africa, change comes about when people take to the streets.

Protests, while often having an element of spontaneity, need organization to be effective. This organizing often begins with small activist groups who believe that protest against unjust policies and practices is a necessity, and that activism in support of just and moral policies is an obligation.

The Student Nonviolent Coordinating Committee, the Southern Christian Leadership Conference, and other activist organizations led civil rights protests in the South; the National Mobilization Committee to End the War in Vietnam (a coalition of many groups) led protests against that war; ACT UP organized to draw attention to our government’s failure to respond to the AIDS crisis; dozens of groups concerned by the draconian 2010 anti-immigration law in Arizona protested in almost 50 cities against that law. These groups formed and were able to function because the First Amendment forbids the government from interfering with their right of association. Too often, however, the history books omit that, at the time these protests occurred, they met strong, even violent resistance from the government and parts of the public.

Disabling Democracy: The Attack on Dissent in America

The U.S. government has regularly sought to suppress movements for social change that challenge the status quo, the hierarchy of power, and the impunity of corporations. This suppression has waxed and waned based on various factors, including the strength and popularity of such movements. Despite the widespread heralding of First Amendment rights, U.S. history includes numerous examples of government authorities using surveillance, spying, wiretapping, infiltration, entrapment, criminal prosecutions, and even extrajudicial homicide to try to suppress dissent and its public expression. The targeting of movements, organizations, and individuals seeking social and political change has taken many forms, including denying demonstrators permits, restricting demonstration sites, controlling the media, and harassing participants, often involving tax audits and character assassination. Historically the government has used both legal means such as search warrants, grand jury subpoenas, indictments, and trials as well as illegal means such as infiltration and entrapment to hinder, if not destroy, its opponents.

--The Sedition Act (1798) (allowed to expire in 1801, but considered unconstitutional by later courts) made it a crime to criticize the government.

--The Espionage Act (1917) made it a crime to incite disloyalty or advocate against military recruitment. Courts have since cast doubt on the constitutionality of its speech provisions.

--The anticommunist Palmer Raids (1919) combined executive action with legislation to crack down on and deport radical leftists and immigrants, actions subsequently revoked by the secretary of labor.

--The Special Committee on Un‑American Activities (1934), which later became the House Un‑American Activities Committee (HUAC), was a congressional committee devoted to investigating political thought that subsequently imprisoned people who refused to answer questions about their political affiliations.

--The preventive internment of more than 120,000 Japanese citizens and residents during World War II exemplified wartime excesses in racial profiling, preventive detention, and violation of civil liberties. It was later ruled by the Supreme Court to be unjustified.

--COINTELPRO (1950s–1970s), the FBI’s secret intelligence program, illegally targeted various individuals and groups including Dr. Martin Luther King Jr., the Southern Christian Leadership Conference, the Black Panther Party, the American Indian Movement, Daniel Ellsberg, and many others in the name of monitoring potential “threats.”

--The Antiterrorism and Effective Death Penalty Act (1996) created a new category of prohibited activity: “material support” to groups designated by the State Department to be Foreign Terrorist Organizations (FTOs), including a range of groups sharing a common opposition to U.S. foreign policy. Enacted in the wake of the Oklahoma City bombing, this act contained little to no content relevant to the circumstances that produced it.

--The USA PATRIOT Act (2001), containing laws of questionable constitutionality, expands government surveillance powers, erodes the right to habeas corpus, formalizes the use of military tribunals rather than courts in the judicial branch, and allows the use of coerced testimony and torture as part of military prosecution techniques. Under this act, much of what has been traditionally considered standard civil disobedience is now viewed as terrorism.

--The TALON databases (2003), part of the increased federalization of local law enforcement, were purportedly set up by the Defense Department to monitor potential threats to the department’s quarters within the United States. However, Freedom of Information Act (FOIA) requests, lawsuits, and media coverage have shown that the Defense Department went well beyond its stated mission, executing sweeping surveillance of a wide variety of peaceful political activities and meetings rather than adhering to the mandate to collect information on an alleged “threat” and judge it to be either “credible” or “not credible.”

--The Animal Enterprise Terrorism Act (2006) amends the Animal Enterprise Protection Act by increasing the penalties for activities that disrupt the business of companies that exploit and abuse animals, and broadens the scope of businesses that the law protects. The law deters protests, leafleting, boycotts, and joining animal rights organizations by using broad language that induces fear of being labeled a “terrorist,” and federalizes penalties for civil disobedience–type actions that were previously classified as minor crimes and prosecuted under state law.
---
Michael Ratner is president emeritus of the Center for Constitutional Rights

Margaret Ratner Kunstler originated the Movement Support Network as the education director at the Center for Constitutional Rights. Currently an attorney in private practice in New York City, Kunstler is the president of the William Moses Kunstler Fund for Racial Justice.

Sep 17, 2011

New Book Says Obama Played by Wall Street Quislings—His Econ Team

As news broke Saturday that President Obama will propose a new minimum tax rate for millionaires, those who have been banging their heads against the wall [like Paul Krugman and the progressive base of the Democratic Party] and asking for [it's been only two years gone by now] why their brilliant President Obama with his historical commitment to the working-class was acting like he was a secret neocon were effectively proven correct.

According to reports on Ron Suskinds's political blockbuster, Confidence Men: Wall Street, Washington, and the Education of a President, Obama is no neocon but rather a neophyte who ran his economic policy team like Secretary Hillary Clinton ran her 2008 campaign for the Democratic nomination for the presidency—ineffectively like there was no one in charge except for the protectors of the huge-moneyed interests of Wall Street and assorted megalomaniacs.

Tim Geithner, Larry Summers and Rahm Emanuel among others were manufacturing the policy and political product that only looked like it was made by imbeciles or crazy Republicans.

From Frank Rich and Adam Moss in New York Magazine:

Adam Moss:
I kept flipping back and forth between fury at Obama and — I know I'm easy — sympathy. So much of the damage comes from the initial decision to hire these guys, a decision he had to make almost immediately after being elected. He was inexperienced, he needed help, they burned him, he let them — that's the story in brief. The number of stupefyingly momentous decisions he had to make in those first few months put me in a vicarious panic. There was no obvious path, the way I read it — though in your view, I suspect, the choices were clearer. Though we'll never know for sure what other solutions might have worked, the book is a litany of missed opportunities, particularly with respect to financial reform (one banker after another wonders incredulously — and anonymously — why Obama didn't pin them when they were down). Would some other president have had more success? ...
Frank Rich:
Suskind also nails, I think, Obama's intellectual blind spot. Indeed, Obama himself nails it, telling Suskind that he was too inclined to search for "the perfect technical answer" to the myriad of complex issues coming at him. What he'd end up with instead is, as Suskind astutely summarizes it, "clever" answers that were "respectfully acknowledging opponents' positions, even those with thin evidence behind them, that then get stitched together into some pragmatic conclusion — but hollow." That said, could someone else have done better? Not the out-of-it McCain, not Hillary (an equivocator in her own right and one who would have embraced the same Clinton administration alumni and Wall Street crowd that Obama did). I still believe Obama was our best hope, and I still hope, however quixotically and self-deludedly, that he might learn from his mistakes.
The White House is pushing back of course very hard; as political junkies actually look forward to watching the Sunday morning news shows for once.

Mike Allen in Politico writes:
The White House launched an aggressive response to a forthcoming book that chronicles internal dissent and second-guessing of President Barack Obama by his own staff and presents Obama as a conflicted, sometimes wavering leader.

Administration officials assert that “Confidence Men: Wall Street, Washington, and the Education of a President” by Ron Suskind is infested with errors, both big (what they characterize as misquotations and distorted narratives) and small (several names, a birth date, a publication date, an employer, an unemployment rate, etc.) and gives a distorted and inaccurate picture of the White House under Obama.
The questions remain:
  • Why didn't Obama push this hard against Wall Street and the Republicans?
  • And whatever happened to that hardhitting, some-change-of direction that the American people actually took dead seriously in the middle of the global economic crisis and the discovery of the secret Republican hit squad on the American middle class?
It's a comedian, Bill Maher, who has his pulse on the Obama base.

"He's not your boyfriend," Maher said repeatedly on his show as his criticisms of Obama the last several months brought muted reactions from Maher's audience and often his progressive guests.

We're all still wondering: Is President Obama our friend?

Yes, the sense of betrayal can go viral.

May 21, 2009

TNR Profiles Dr. Doom

The New Republic has a profile on Nouriel Roubini, "the economist known to the general public as Dr. Doom, Prophet of the Financial Apocalypse," by Julia Ioffe.

Though he hasn't attacked the Obama administration's policies with Paul Krugman's fury, and though he is no longer the most bearish of the bears, his short-term outlook is still quite bleak: a 36-month downturn, double-digit unemployment, and sluggish, recessionary growth well into 2010. ...

Roubini understood better than anyone just how weak the fundamentals of our economy were. The day after the now-famous 2006 IMF talk, he went on 'Kudlow & Company,' on CNBC. Roubini was, as always, the foil to Kudlow's chipperness. 'All my friends are in a great mood, Nouriel. They're in a terrific mood. They love America,' Kudlow sang. Roubini countered starkly: 'Well, they're all rich,' he said. 'The average American actually is in debt'--a sign to Roubini that housing would only be the catalyst of something larger.

Apr 30, 2009

Bondholders v. Taxpayers

Update: Durbin: Bankers "own" the U.S. Congress

This is an idea gaining increasing currency on making banks healthy, wealthy and lending.

See Reorganising the banks: Focus on the liabilities, not the assets, and Henry Blodget in TechTicker:

From The Business Insider, April 29, 2009:
We are pleased to discover that we're no longer shouting down a rain barrel.

The idea that the government should draw on a massive pot of money available to fix the banks that is NOT coming from the U.S. taxpayer is finally going mainstream!

Today, the NYT's David Leonhardt has devoted an entire column to the idea of making bondholders -- the people who lent the banks the money that they incinerated -- pay for some of the cost of fixing them.

What's more, Leonhardt says that Larry Summers actually mentioned this as a possibility in a TV interview.
Politically, it's not difficult to see how this approach might take the air out of the Republicans' getting all populist on us.

Take this approach combined with the Geithner project, described by Chadwick Matlin as: "A healthy derivative market leads to a healthy bank leads to a healthy economy leads to a healthy life," and you can see some light and a lot of room for Democrats to move right over the Republicans and out of their Battered Wife Syndrome.

Let the Republicans say no, no and get downright abusive and Democrats can get the country moving again.

Apr 27, 2009

Jeffrey Sachs: Geithner Plan Is Unconscionable Rip-Off

This developing, weeks-old story is more scary that a bio-engineered, airborne Swine Flu virus invented by a bio-terrorism novelist.

See John Carney's Jeffrey Sachs: Geithner Plan Is An "Unconscionably Large" Rip-Off in Business Insider, and Sachs' piece at Huffington Post. Read his piece a couple of times.

I hope Sachs is way, way off.

Chadwick Matlin has the knockdown of Sachs' concerns at The Big Money from Slate, which you should probably read about three, four times.

Writes Matlin:

... (L)ast time we checked, functional markets have banks buying and selling things with other banks. If we're trying to return to normalcy, why would we stop the very mundane and typical process of banks buying and selling from other banks? Yes, taxpayer money is involved, but it would be involved with whoever bought the assets. I'd rather bail out the banks a little bit further than enter into new pseudo-bailout contracts with hedge funds, who will make the politically deaf banks look like saints.

Some of the attacks rightfully focus on the possibility of collusion. If the banks are buying from one another, they may agree to set a floor for their bids (60 cents to the dollar, when they're really worth 30 cents, for example), then the assets will still be overpriced. If the assets are still overpriced, then we're back where we started from, with immobile assets stuck on balance sheets, slowly draining the life out of zombie banks.

This, though, jumps the gun in two ways. First, we don't know that the banks are colluding. Profit motives suggest that they would, but political pressures suggest they may not be. And it only takes one rogue bank to underbid the cartel and sabotage the plan.

Second, and more likely, the government could set a ceiling to the price of the assets. To understand what this would entail, think about an eBay auction, in which oftentimes the seller will set a price minimum. The minimum prevents the good from being sold unless the winning bid clears the threshold. The Treasury is conducting a reverse auction, so it would set a price maximum, not a minimum. It would say that an asset could not be purchased for more than, say, 40 percent of its original price.

This would warp the market, certainly, but it would also prevent collusion. Plus, it would allow the banks to start acting like banks, just like they were before the crisis hit. That would be good for everybody's confidence.

One thing is certain: Nothing is clear and certain.

Feb 11, 2009

Obama Needs to Nationalize

Update II: Krugman - "Nationalization is actually as American as apple pie."

Update: Time Magazine - "According to Reuters, there are over 8,300 FDIC-insured banks in America. Last August, dour economist Nouriel Roubini told Barron's that 1,400 banks in the U.S. would eventually fail."

The Obama administration can pivot fast, but there is no doubt that Wall Street and policymakers (some of whom are being earnest) want more specificity on how Obama will manage the bank bailout plan.

As part of the American Recovery and Reinvestment Plan, Obama needs to move decisively on the bank bailout with lots of a details, clear timeliness and delineated scope in a manner that would make project management professionals proud.

Treasury Secretary Timothy Geithner didn't provide any of that yesterday.

As David Mizner at Daily Kos notes, one suggestion that is growing among our top economists is: Nationalize the banks we now subsidize. See Krugman, Stiglitz, Roubini, Taleb, Baker Agree: Nationalize.

The voters don't care about free market ideology (such as it is) and what the pundits will say to nationalization: They want decisive action now as bleeding jobs turn the futures of Americans bleak.

As Krugman writes this morning, "And the argument that our culture won’t stand for nationalization — well, our culture isn’t too friendly towards bank bailouts of any kind. Yet those bailouts are necessary; and even in America they may be more palatable if taxpayers at least get to throw the bums out. Oh, and not a week goes by without the FDIC taking several smaller banks into receivership. Nationalization is actually as American as apple pie."

Sep 22, 2008

Obama on Wall Street Crisis

Update II: Congress, Bush team OK bailout terms; Stocks sink
Update: From ThinkProgress: Question: In 1999, you were one of the senators who helped pass deregulation of Wall Street. Do you regret that now?
McCAIN: No. I think the deregulation was probably helpful to the growth of our economy

"You hear that implosion reverberating through financial markets? It's the sound of decades of conservative ideology collapsing," says Jared Bernstein.

Bernstein could well have said "neo-liberal" ideology as the 1999 repeal of the Glass-Steagall Act, after 12 legislative attempts in 25 years (FrontLine), among other policy and unaddressed market changes, led the way to this epic collapse with Democratic acquiescence..

But Obama has clean hands on this. Not McCain.

The repeal of Glass-Steagall "allows for the merging of banks, securities firms, and insurance companies into huge financial conglomerates," as FrontLine notes.

McCain has been an anti-regulatory advocate for decades.

It is interesting to note, though, that on a critical vote on the S.900: Financial Services Modernization Act of 1999, (that led to the repeal of Glass-Steagall) McCain was the sole Senator not voting on the bill that passed 90-8-1-1.

What's up with that? Was McCain still smarting from his associations with the Keating Five 10 years earlier. Likely.

Senator Obama recently issued his Statement of Principles for the Treasury Proposal. The man sounds a lot like a New Dealer (that's a good thing).

And a reformer calling for a different regulatory framework from neo-liberal and conservative orthodoxies is a good very thing.

Note his "regardless of how we got here," lede-in in second graf:

Statement of Principles for the Treasury Proposal

The era of greed and irresponsibility on Wall Street and in Washington has led to a financial crisis as profound as any we have faced since the Great Depression.

But regardless of how we got here, the circumstances we face require decisive action because the jobs, savings, and economic security of millions of Americans are now at risk. We must work quickly in a bipartisan fashion to resolve this crisis and restore our financial sector so capital is flowing again and we can avert an even broader economic catastrophe.

We also should recognize that economic recovery requires that we act, not just to address the crisis on Wall Street, but also the crisis on Main Street and around kitchen tables across America.

But thus far, the Administration has only offered a concept with a staggering price tag, not a plan.Even if the Treasury recovers some or most of its investment over time, this initial outlay of up to $700 billion is sobering. And in return for their support, the American people must be assured that the deal reflects some basic principles.

• No blank check. If we grant the Treasury broad authority to address the immediate crisis, we must insist on independent accountability and oversight. Given the breach of trust we have seen and the magnitude of the taxpayer money involved, there can be no blank check.

• Rescue requires mutual responsibility. As taxpayers are asked to take extraordinary steps to protect our financial system, it is only appropriate to expect those institutions that benefit to help protect American homeowners and the American economy. We cannot underwrite continued irresponsibility, where CEOs cash in and our regulators look the other way. We cannot abet and reward the unconscionable practices that triggered this crisis. We have to end them.

• Taxpayers should be protected. This should not be a handout to Wall Street. It should be structured in a way that maximizes the ability of taxpayers to recoup their investment. Going forward, we need to make sure that the institutions that benefit from financial insurance also bear the cost of that insurance.

• Help homeowners stay in their homes. This crisis started with homeowners and they bear the brunt of the nearly unprecedented collapse in housing prices. We cannot have a plan for Wall Street banks that does not help homeowners stay in their homes and help distressed communities.

• A global response. As I said on Friday, this is a global financial crisis and it requires a global solution. The United States must lead, but we must also insist that other nations, who have a huge stake in the outcome, join us in helping to secure the financial markets.

• Main Street, not just Wall Street. The American people need to know that we feel as great a sense of urgency about the emergency on Main Street as we do the emergency on Wall Street. That is why I call on Senator McCain, President Bush, Republicans and Democrats to join me in supporting an emergency economic plan for working families – a plan that would help folks cope with rising gas and food prices, save one million jobs through rebuilding our schools and roads, help states and cities avoid painful budget cuts and tax increases, help homeowners stay in their homes, and provide retooling assistance to help ensure that the fuel-efficient cars of the future are built in America.

• Build a regulatory structure for the 21st Century. While there is not time in a week to remake our regulatory structure to prevent abuses in the future, we should commit ourselves to the kind of reforms I have been advocating for several years. We need new rules of the road for the 21st Century economy, together with the means and willingness to enforce them.

The bottom line is that we must change the economic policies that led us down this dangerous path in the first place. For the last eight years, we’ve had an “on your own-anything goes” philosophy in Washington and on Wall Street that lavished tax cuts on the wealthy and big corporations; that viewed even common-sense regulation and oversight as unwise and unnecessary; and that shredded consumer protections and loosened the rules of the road. Ordinary Americans are now paying the price. The events of this week have rendered a final verdict on that failed philosophy, and it is a philosophy I will end as President of the United States,” said Senator Barack Obama

Sep 18, 2008

NYT v CP

For differing perspectives on Wall Street, see:

CounterPunch - "Call centers, IT operations, back-office operations, and manufacturing have long been moved offshore. Now high-value-added proprietary activities such as research and development, engineering, product development, and analytical services are being sent offshore. All that’s left is finance, and it is crumbling before our eyes."
- Paul Craig Roberts, Assistant Secretary of the Treasury in the Reagan administration, former Associate Editor of the Wall Street Journal editorial page, and former Contributing Editor of National Review.

NYT Business Page

Jan 22, 2008

Wall Street Looks with Concern, Fed Action Called "Emergency'


- Breaking Financial News - New York Times -

Update: Fed Cuts Key Interest Rate 3/4% - The Fed's cut in the federal funds rate is the "most dramatic signal it can send that it is concerned about a potential recession in the United States. It marked the biggest one-day move by the central bank in recent memory," reads the Times in a breaking story.

The Chicago Tribune reports:

The Fed decision was taken during an emergency telephone conference with Fed officials on Monday night. Those discussions occurred after global financial markets had plunged Monday as investors grew more concerned about the possibility that the United States, the world's largest economy, could be headed into a recession.

A disastrous, imperial foreign policy, a historically bad fiscal policy, a devastating blow to civil rights, and now a looming recession and downturn in the stock market.

Makes me wonder what god was thinking when, as Bush has attested, god chose Bush to be president.

From AmericaBlog:

Asian and Australian markets fell hard for the second straight day including a 5.6% drop in Tokyo, 7% in Australia, China 7.2% and Hong Kong a brutal 8.7%. The Hong Kong market has lost over 21% in 2008.

European markets collapsed on Monday, though at midday, are slightly down.

Wall Street is pointing in the direction of a painful day with futures down 4%.

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