Category Archives: Banks

Bernie Sanders Lays Out Economic Agenda

Independent Senator Bernie Sanders delivered a fiery speech on the Senate floor Tuesday, laying out his new 12-point plan for rebuilding the middle class. Steve Kornacki speaks to Sanders about his efforts to make his party more progressive as he considers a bid for president.

Big Banks Broke America: Why Now’s the Time to Break Our National Addiction

Why are these guys smiling? Since looting all of us for a generous bailout, you’d have thought they’d all lie low. Here’s what they did instead

Big banks broke America: Why now's the time to break our national addiction

Jamie Dimon, Lloyd Blankfein (Credit: AP/J. Scott Applewhite/Reuters/Natalie Behring/Photo montage by Salon)

By Robert Hennelly

Progressive America Rising via Salon.com

They just can’t help themselves. Like the drunk that ruins family holiday gatherings year after year, the big banks, once they are caught in yet another episode of their serial criminality, feign contrition, pay billions in fines, and swear to go forth and sin no more.

But these repeat offenders know the law does not apply to them. These 21st century pirates of the Caribbean were actually rewarded for sacking and pillaging America. They never have had a greater share of the pie and they have no allegiance other than global wealth accumulation beyond the reach of any social contract.

The one relationship to which they remain faithful is the fee for service one they have with the members of Congress they showered more than $65 million in campaign donations on since 2012.

You would have thought after they peddled hundreds of billions of dollars in worthless toxic mortgage-backed securities to the nation’s pension funds, setting into motion the largest destruction of American household wealth  since the Great Depression, the big banks would have taken their bailout and tried to stay out of the headlines.

But in the years since they took the U.S. economy for a near death spiral spin they have been caught instigating one scam after another. No sooner had the big banks settled with the federal government for perpetrating their massive mortgage fraud and they were back pushing the envelope. Law enforcement and regulatory agencies all scrambled to keep up with these banking behemoths that navigate the line between innovation and criminality with the help of former regulators and prosecutors in their employ.

Continue reading Big Banks Broke America: Why Now’s the Time to Break Our National Addiction

Five Ways Wall Street Continues to Screw Up the Economy for the Rest of Us and How to Fix It

By Robert Kuttner

Beaver County Blue via Huffington Post

July 2, 2014 – The shocking thing about the financial collapse of 2008 is not that Wall Street excesses pushed us into the worst economy crisis since the Depression. It’s that the same financial system has been propped back up and that elites are getting richer than ever, while the effects of that collapse are continuing to sandbag the rest of the economy. Oh, and most of this aftermath happened while a Democrat was in the White House.

Consider:

  • The biggest banks are bigger and more concentrated than ever.
  • Subprime (subprime!) is making a comeback [2] with interest rates of 8 to 13 percent.
  • Despite Michael Lewis’s devastating expose of how high speed trading is nothing but a technological scam that allows insiders to profit at the expense of small investors, regulators are not moving to abolish it [3].
  • The usual suspects are declaring the housing crisis over, even though default and foreclosure rates in the hardest hit cities and states are upwards of 25 percent.
  • The deficit is falling, now just 2.8 percent of GDP [4], thanks to massive cuts in social spending. Isn’t that reassuring?

Meanwhile, back in the real economy, good jobs are far too scarce, incomes are stagnant, while 95 percent of the gains go to the top one percent.

Continue reading Five Ways Wall Street Continues to Screw Up the Economy for the Rest of Us and How to Fix It

Job Builder: Create a Pittsburgh Public Bank

 

North Dakota’s has strengthened the state economy and government finances, explains an attorney

 

By John E. Hemington Jr.

Beaver County Blue via Pittsburgh Post-Gazette

May 25, 2014 – Since the financial crisis in 2008, state, county and municipal governments across the nation, with the notable exception of North Dakota, have found it increasingly difficult to manage their budgetary responsibilities. Pittsburgh and surrounding communities are no exception.

Some are struggling worse than others, yet all are finding it difficult to balance their budgets and provide necessary services and infrastructure upgrades. Tax revenues are down and taxes have been raised to the hilt in many parts of the country.

Most of the cuts in personnel, purchasing, infrastructure maintenance and programs which can be made have been made. Stimulus grants from federal and state agencies which helped for a while are gone or shrinking.

Many governmental bodies have tried privatization as a solution, selling off valuable community assets, but this generally hasn’t worked out as well as its proponents have claimed. Some, as in Detroit and Jefferson County, Alabama, have simply given up and filed for bankruptcy.

Privatization frequently trades a temporary revenue increase for a long-term decline in public services and increased costs of use. Privatized employees are generally paid lower wages and receive few if any benefits, placing an even greater burden on already overstretched local social services while driving less money into local economies.

So where will the money come from? The answer can be found in North Dakota.

Continue reading Job Builder: Create a Pittsburgh Public Bank

This Chart Is The Fate of Housing In America As Student Loans Bankrupt A Whole Generation

By Wolf Richter

Beaver County Blue via Naked Capitalism

May 19, 2014 – A friend of mine is suffering from excruciating anticipatory pain. He’s heading to New York to attend his daughter’s graduation, which should be a glorious moment in life. But her commencement speaker is Fed Chair Janet Yellen. “Gotta find some thorazine to take before the ceremony,” he muttered. He paid for his daughter’s education. Not many students are that lucky.

Student loan balances soared 362% to $1.1 trillion since 2003, during a period when mortgage debt – including the effects of the current Housing Bubble 2 – rose “only” 65% to $8.2 trillion and credit card debt actually declined by 4.2% to $660 billion (chart). The burden of servicing that increasing pile of student loans is eating into other forms of borrowing and spending, such as the American classic, reckless consumption on credit cards, or the purchase of a home. And so the proportion of first-time buyers – the single most important sign of a healthy housing market – has been shrinking for years.

Continue reading This Chart Is The Fate of Housing In America As Student Loans Bankrupt A Whole Generation

Overthrow the Speculators

Why the Progressive Majority Needs a Common Front vs. Finance Capital, War and the Far Right

By Chris Hedges
Beaver County Blue via Common Dreams   

Dec 20, 2013 – Money, as Karl Marx lamented, plays the largest part in determining the course of history. Once speculators are able to concentrate wealth into their hands they have, throughout history, emasculated government, turned the press into lap dogs and courtiers, corrupted the courts and hollowed out public institutions, including universities, to justify their looting and greed.

Today’s speculators have created grotesque financial mechanisms, from usurious interest rates on loans to legalized accounting fraud, to plunge the masses into crippling forms of debt peonage. They steal staggering sums of public funds, such as the $85 billion of mortgage-backed securities and bonds, many of them toxic, that they unload each month on the Federal Reserve in return for cash. And when the public attempts to finance public-works projects they extract billions of dollars through wildly inflated interest rates.

Speculators at megabanks or investment firms such as Goldman Sachs are not, in a strict sense, capitalists. They do not make money from the means of production. Rather, they ignore or rewrite the law—ostensibly put in place to protect the vulnerable from the powerful—to steal from everyone, including their shareholders. They are parasites. They feed off the carcass of industrial capitalism. They produce nothing. They make nothing. They just manipulate money. Speculation in the 17th century was a crime. Speculators were hanged.

We can wrest back control of our economy, and finally our political system, from corporate speculators only by building local movements that decentralize economic power through the creation of hundreds of publicly owned state, county and city banks.

Continue reading Overthrow the Speculators

Banksters Devouring Our Future: Student Loan Crisis is Coming to a Head

BY JESSE JACKSON
Beaver county Blue via Chicago Sun-Times

May 13, 2013 – The student loan burden is reaching crisis proportions. Young Americans are being saddled with unsustainable debts. A New York Federal Reserve Bank study found that a stunning 43 percent of 25-year-olds had student loan debts in 2012. Debt now averages over $25,000 for graduates of four-year colleges.

Student loan debt now is about $1 trillion. The only kind of household debt that continued to rise through the recession, student loans now exceed credit card debt and rank second only to mortgages. The percentage of borrowers who are more than 90 days delinquent has risen to 17 percent, up from 10 percent in 2004.

These are the young people who’ve done everything we told them to do. They worked hard, stayed out of trouble, got admitted to college and sacrificed to succeed. Then they graduated, burdened with staggering debt, into the worst economic crisis since the Great Depression. Many can’t find jobs; those who do often end up with low-wage and part-time work and debts they can’t repay.

Student debt is itself a huge obstacle to the recovery. Unless their parents have money, young Americans who achieve the most can’t begin to save for a down payment on a home, start a business or save for retirement.

This crisis stems from the successful conservative efforts to starve government. Cash-strapped state governments cut the contributions made to public colleges and universities. The cost of college was slowly privatized, with more and more left to the student. Those with affluent parents had no problem; those with working parents had to take on debt.

Now the crisis is coming to a head. The sequester and other budget cuts are forcing further cutbacks.

Continue reading Banksters Devouring Our Future: Student Loan Crisis is Coming to a Head