Category Archives: Wall Street

Bernie Sanders Lights a Fire under Pennsylvania Democrats at Keystone Progress’s Annual Summit in Harrisburg

By Carl Davidson

BeaverCountyBlue.org

Feb 8, 2015, Harrisburg, PA. If the vote were taken for the Democratic presidential candidate at the Harrisburg Hilton on Saturday, Feb. 7, Senator Bernie Sanders, Independent of Vermont, would likely have won by a landslide.

That was the spirit in the hotel ballroom as Sanders addressed the 800 people gathered for the PA Progressive Summit. The annual meeting, sponsored by Keystone Progress, brought together progressive activists—community and trade union organizers, women’s right and civil rights groups, hopeful candidates and door knockers—all of whom made up the democratic wing of the Democratic Party, from all across the Keystone State.

“I’m going to try something a little different this morning,” said Sanders to start things rolling, “I’m going to tell you the truth.” He got a wave of laughter and cheers from people who often got something else from politicians.

Sanders with Tina Shannon
Sanders with Tina Shannon

Sanders started off with the ‘Citizen United’ Supreme Court decision taking limits off the superrich in funding elections and candidates. “It will go down is history as one of the worse ever made in modern times” Sanders said by way of description. “By a five-to-four vote, it undermined the very foundations of democracy. I know you think the situation is bad, believe me, it’s worse than you think it is.” Billionaires are not satisfied with owning the economy, he explained. They were buying government as well.”

The Koch Brothers, with 85 billion in wealth, were taken as the case in point. Sanders explained that they alone intended to spend over 900 million dollars on the 2016 election—more than the combined total of Obama and Romney in 2012. This meant these “counter-revolutionaries with a far right agenda” would wield more power than both political parties in the recent past.

Turning to the economy, Sanders said while the economy was clearly in better shape than when Obama, first took office, it was still clearly in bad shape. He explained the different meanings of official unemployment figures, with 5.8 percent being the most common number cited, but double that, near 12%, was more accurate.

Then he broke it down further: “We talk a lot about Ferguson, as we should. But we also need to talk more about Black youth unemployment, which is 30 percent. Nobody should be satisfied with where we are today. We have 45 million people living in poverty, another word we need to talk more about today.”

For those worried about deficits, Sanders noted that they had been reduced under Obama. But he also insisted that if they were truly concerned about deficits, they would have stood up against the Iraq war. This remark got wild cheers and everyone out of their seats.

Unfair Impact of Technological Change

Sanders went on to examine ‘the explosion in technology,’ not only i-Phones and i-Pads, but robotics in factories. “All of this has led to a tremendous growth in productivity on the part of American workers.” Such changes logically might suggest workers were paid more or worked shorter hours, he added, “but all of you know, tens of millions of Americans today are working longer hours for less pay.”

This meant anger and stress among workers—impacting both men and women, even if in slightly different ways—needed discussion as a national issue. There was a time, “ancient history” said Sanders, when one worker could work 40 hours and support a family reasonably well. Now women were working along with men, sometimes at two or three jobs, at long hours and low pay, to hobble together enough to support a family. “This causes a lot of anger, and often it’s being angry at the wrong people for the wrong reasons,” he added. “The average male worker, right in the center of the economy, now makes $800 a year less in inflation adjusted dollars than he did 40 years ago. The average female worker in the center makes $1300 a year, even less. They have a lot to be angry about. They want to know why, and our job is to explain it to them.”

Continue reading Bernie Sanders Lights a Fire under Pennsylvania Democrats at Keystone Progress’s Annual Summit in Harrisburg

Advertisements

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

Progressive ‘Back to Work’ Budget Wins Praise for Anti-Austerity Approach

‘A reminder that we don’t need to cut teachers and school lunches when we can eliminate wasteful giveaways to fossil fuel corporations.’  Watch Rep. Keith Ellison introduce the budget here:

By Jon Queally 
Beaver County Blue via CommonDreams.org

March 14, 2013 – In the midst of ongoing hysteria about a ‘non-existent deficit crisis’ in Washington, the Congressional Progressive Caucus on Wednesday unveiled an alternative approach to destructive austerity economics by releasing their ‘Back to Work Budget’ plan for 2014.

Pushing back specifically on the dominant talking point of inside-the-Beltway elites, the budget challenges the idea that cutting programs, reducing corporate tax rates, and slashing investments is a pathway to economic prosperity. Its proponents argue the US does not have "a deficit crisis"—as those pushing for steep cuts suggest—but rather, "a jobs crisis."

Presented by CPC co-chairs Reps. Raúl M. Grijalva and Keith Ellison and backed by members of the caucus’ Budget Task force—Reps. Jim McDermott, Jan Schakowsky, Barbara Lee and Mark Pocan—the plan describes how smart investments, not deep cuts to key programs, would create almost 7 million jobs over the first year of its implementation.

“Americans face a choice,” Grijalva and Ellison said. “We can either cut Medicare benefits to pay for more tax breaks for millionaires and billionaires, or we can close outdated tax loopholes and invest in jobs. We choose investment.”

They continue:

    The Back to Work Budget invests in America’s future because the best way to reduce our long-term deficit is to put America back to work. In the first year alone, we create nearly 7 million American jobs and increase GDP by 5.7%. We reduce unemployment to near 5% in three years with a jobs plan that includes repairing our nation’s roads and bridges, and putting the teachers, cops and firefighters who have borne the brunt of our economic downturn back to work. We reduce the deficit by $4.4 trillion by closing tax loopholes and asking the wealthy to pay a fair share. We repeal the arbitrary sequester and the Budget Control Act that are damaging the economy, and strengthen Medicare and Medicaid, which provide high quality, low-cost medical coverage to millions of Americans when they need it most. This is what the country voted for in November. It’s time we side with America’s middle class and invest in their future.

Received as a breath of fresh air of economic sanity, the plan was praised by a variety of individuals and groups.

Continue reading Progressive ‘Back to Work’ Budget Wins Praise for Anti-Austerity Approach

It’s Official: Banks Too Big to Fail are Too Big to Jail

 

By Robert Borosage
Beaver County Blue

March 7, 2013 – For years, the Obama Administration has been pummeled for failing to bring criminal charges against a single major Wall Street bank or a single leading Wall Street banker for what the FBI termed an “epidemic of fraud” that blew up the entire economy.  Investigations revealed the banks committed routine fraud in peddling mortgage securities they knew were garbage, trampled basic property laws, laundered money from Iran, Libya and Mexican drug lords, conspired to game the basic measure of interest rates and more.  Yet, time after time, the Justice Department and regulatory agencies settled for sweetheart deals, with no admission of guilt, no banker held accountable, and fines that were the equivalent in earnings of a speeding ticket to the average family.

Yesterday Attorney General Holder stated openly what was already apparent.  The Justice Department believes that Too Big to Fail Banks are Too Big to Jail.  Criminal indictments against banks or leading bankers might endanger the economy and thus were too big a risk.

Here’s what Holder said

“I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy,” he said. “And I think that is a function of the fact that some of these institutions have become too large.”

Holder was responding to questions by Republican Senator Charles Grassley about why the Justice Department brought no criminal charges against the large British bank HSBC after it admitted laundering money for parties in Iran, Libya and Mexican drug lords. 

Continue reading It’s Official: Banks Too Big to Fail are Too Big to Jail

Usurious Credit and Debt as Our Prison Cages

Breaking the Chains of Debt Peonage

By Chris Hedges
Truthdig.com

Feb 3, 2013 – The corporate state has made it clear there will be no more Occupy encampments.

The corporate state is seeking through the persistent harassment of activists and the passage of draconian laws such as Section 1021(b)(2) of the National Defense Authorization Act—and we will be in court next Wednesday to fight the Obama administration’s appeal of the Southern District Court of New York’s ruling declaring Section 1021 unconstitutional—to shut down all legitimate dissent.

The corporate state is counting, most importantly, on its system of debt peonage to keep citizens—especially the 30 million people who make up the working poor—from joining our revolt.

Workers who are unable to meet their debts, who are victimized by constantly rising interest rates that can climb to as high as 30 percent on credit cards, are far more likely to remain submissive and compliant.

Debt peonage is and always has been a form of political control. Native Americans, forced by the U.S. government onto tribal agencies, were required to buy their goods, usually on credit, at agency stores. Coal miners in southern West Virginia and Kentucky were paid in scrip by the coal companies and kept in perpetual debt servitude by the company store. African-Americans in the cotton fields in the South were forced to borrow during the agricultural season from their white landlords for their seed and farm equipment, creating a life of perpetual debt. It soon becomes impossible to escape the mounting interest rates that necessitate new borrowing.

Continue reading Usurious Credit and Debt as Our Prison Cages