The Overdogs Bite Back

Our corporate lords are a sensitive lot. They want it all. They want total control of the government and they want love and appreciation.

Who can blame them for being upset? They spend all that money to buy the government, hire all those lobbyists, all those PR people.

It’s true the politicians help them out when business is bad, but do they everything just the way the corporate overlords want? Apparently not.

Who knew?

And we don’t express enough love for them, or appreciate them enough for all the good things they say they do.

Instead, we brats just want them to pay more taxes, or put another way, the same rate of taxes they used to.

Even one of their own, Warren Buffet, tries to make them look bad by suggesting maybe they could afford to pay a little more in taxes.

Now the CEOs are mad as hell and they’re not going to take it any more.

And they've created a new more loveable name for themselves:  job creators? Who wouldn’t love a job creator?

They want to make sure they’re getting their message across about how swell they are. It’s called, wonderfully enough, the Job Creators Alliance.

In an odd coincidence, their message bears a striking resemblance to pure Republican propaganda. Even the tiniest speck of regulation appearing on the horizon, for example Dodd-Frank financial regulation, causes the job creators to tremble and quake, and stop doing the only thing they really care about – creating jobs.

The Job Creators Alliance doesn’t blame the deep recession or the lack of demand for unemployment. They blame Dodd-Frank. This mild bit of financial regulation is blasted while the CEOs tote out one of the Republicans’ favorite phony themes – the financial collapse wasn’t caused by Wall Street greed, fraud and carelessness, but by Fannie Mae and Freddie Mac.

And the other big problem? You guessed it. Mandated health insurance.

Because both Dodd-Frank and mandated health insurance tamper with one of the job creators’ real sacred cows – the free market system.

As staunch defenders of the free market system, the CEO’s web site ought to be aflame with their righteous anger at the bailout and the Federal Reserve’s secret trillions in loans that propped up so many businesses in the wake of the economic collapse. But in what I’m sure is just an oversight, the job creators’ haven’t gotten around to posting about it yet.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mr. President, Keep Your Promise

President Obama got generally high marks earlier this month for “getting it” after he struck a populist tone in his speech at Osawatomie, the Kansas town where he evoked the progressive spirit of former president Teddy Roosevelt.

But if he really wants to do something about the economic pain Americans continue to suffer, the president could start by keeping a campaign promise he made – to lead a fight to reform bankruptcy laws to allow judges to modify mortgage loans in their courts.

Under heavy pressure from bankers, the Senate defeated such a proposal in 2009, while the president and his administration remained silent on the sidelines.

At the time, Illinois Sen. Dick Durbin said bitterly, referring to Congress, the big banks “frankly own the place.”

The administration’s refusal to address the foreclosure crisis remains one of the sorriest aspects of its consistent underestimation of the depth of the economic crisis.

Earlier this month, the non-profit investigative journalism outfit Pro Publica filled in the details on how the administration pooped out on the president’s campaign promise. It turns out that many on the president’s bank-friendly economic team were never enthusiastic about cram-down.

The idea behind judicial cram-downs is to treat mortgage debt the same as other debts which bankruptcy judges are permitted to reduce as part of a bankruptcy.

The impact would be to encourage bankers to reduce principal on mortgages before they ever got to bankruptcy court. Judicial cram-down would be far more effective than the Obama administration’s previous failed programs intended to address the foreclosure crisis, which offered banks insufficient incentives to voluntarily modify loans with inadequate government oversight.

Part of the reason the president can’t hammer the Republicans for their lack of any plan to address foreclosures is that he hasn’t come up with a decent plan of his own – and that he didn’t fight hard enough for a solution like cram-down, which lost by six votes in the Senate, including 12 members of the president’s own party.

In addition, 11 Republicans who represent states among the hardest hit by the foreclosure crisis also voted against cram-down.

Couldn’t a tougher, savvier, more committed fight by the president come up with the seven or so votes needed to win this fight?

As the  president takes on the big banks. he may take encouragement from these words from the predecessor he evoked so successfully at Osawatomie:

“The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”

 

Too Big For Justice

The too big to fail banks are still in cahoots with their regulators. That’s the message coming loud and clear from the Justice Department’s highly touted $315 million deal with Bank of America to settle racial discriminatory lending charges.

The charges stem from the actions of Countrywide, the subprime lending giant, which was bought by Bank of America after the housing collapse.

The Justice Department’s publicity offensive, labeling the deal “historic” can’t hide the stink emanating from it. Shame on the New York Times for swallowing the Justice Department’s propaganda whole.

The Justice Department concluded that Countrywide charged 200,000 minority borrowers across the country higher rates and fees than white borrowers. Countrywide also steered 10,000 minority borrowers into costlier subprime loans when similar white borrowers got traditional loans.

While $315 million sounds big in a headline, for the bankers, it’s just part of the cost of doing business, less a punishment than the latest favor in the bailout that doesn’t end.

Bank of America, which received $45 billion in bailout funds, admits no wrongdoing in the deal. Victims would get between $1,000 and $1,600 apiece under the deal.

The deal also allows Bank of America to hire its own monitor to keep track of whether the bankers live up to their Justice Department agreement.

Regulators typically whine that they just don’t have the resources to take on the banks at trial.

Regulators argue that they could never get their targets to settlements if they had to wring admissions of wrongdoing from their targets, because those admissions would be used against those targets by other litigants in future lawsuits.

Without the settlements, the crack Justice Department lawyers would be forced to, horror of horrors, try their case in court.

The reasonable response from taxpayers should be: So what? Life is hard. Do your job, which is to hold lawbreakers accountable, not make their lives easier.

The Bank of America deal is only the latest to highlight the lower standard of justice prosecutors have applied to banks. Prosecutors have become part of the government’s team whose main goal Is propping up the banks. Meanwhile, the Obama administration has yet to come up with a decent, functioning program to stem the ongoing fraud in foreclosures, or to help the substantial numbers of homeowners facing foreclosure.

According to news reports, the Justice Department has another six discriminatory lending investigations cooking. This agency would be a good target for future actions

The Bank of America deal also highlights why a strong Occupy movement is needed, outside the traditional political system: neither party, nor the president, will fight for one of the most basic notions of democracy: that lawbreakers, especially the most powerful, should not receive favorable treatment from authorities.

You can read a slightly more sympathetic rundown of the Bank of America deal here, a more skeptical take here.

 

 

Slamming the Door on Democracy

Revolving door just no longer cuts it to describe how large corporate interests have swallowed up the government officials that are supposed to be working in our interest.

First Street, a D.C. insiders’ guide to people, policy and influence peddling, recently published a guide to lobbyists. The highest paid lobbyists were former elected officials, with an average take of $178,000 a year, the next highest paid group was former staffers, with an average take of more than $144,000 a year. Both left the professional lobbyists far behind in their value to their clients.

In public, our corporate leaders use polite language describing themselves in glowing terms like “job creators.”  Republicans wring their hands over regulations; Democrats weep crocodile tears over the plight of the middle class. Meanwhile the politicians feast at the public trough and prepare for lucrative payoffs, I mean careers, in the private sector.

Revolving door implies that these officials are somehow going back and forth between serving the public interest and the corporate interests that lobby them, pay for their campaigns if they’re elected, and then hire them when they’re ready to cash out.

But that’s not what’s happening.

The door doesn’t revolve, it only swings one way. And what’s happening to our government deserves much stronger language than the description of a door.

We have to face up to the fact that under our present system, election to public office, or appointment to key regulatory posts, is for the vast majority is the entryway into a world of legalized prostitution, where major corporations wield nearly absolute power over our government.

At WheresOurMoney.org we’ve proposed a constitutional amendment, 28A, to undo Citizens United, the awful U.S. Supreme Court ruling that unleashes even more unrestricted and unreported corporate money into our political system. That won’t curb lobbying. But rallying around the reversal of Citizens United will focus attention on the culture of legalized corruption that has overtaken our government.

 

 

 

 

 

 

 

Confessions of a Conflicted Occupier

When the LAPD stormed into Los Angeles City Hall Park after midnight my first reaction was fear.

They flooded into the park without warning through the doors of City Hall, a massive masked army in riot gear, batons raised.

Where was our order to disperse?

The raid was just the latest deterioration in the city government’s relationship with Occupy. First they welcomed us with open arms, the City Council invited us to stay, the police stood by with commendable restraint. Then, six weeks in, City officials launched a propaganda campaign stressing the problems of the encampment. The campaign was designed to erode public support, making it imperative that they move in.

I was in the park that night in solidarity with a movement for which I have great hopes, and somesgivings. Partly, it’s me. I’m not by nature a joiner. I spent years as a newspaper reporter and editor, doing my best to conceal my biases and not take sides.  By temperament as well as training, it’s natural for me to see both sides of an issue and poke holes in arguments, rather than come up with solutions. I’m better at asking questions than having to come up with answers.

But after eight years of disastrous policies during the Bush era, and severe disappointment with President Obama and the Democrats’ embrace of Wall Street, weak financial reform and tepid leadership in focusing on the main problems facing the economy – unemployment, foreclosure, widening income disparity and attacks on the middle class – I was more than ready for a movement that wanted to focus on those problems.

My wife and I visited Zucotti Square a week into Occupy Wall Street and were buoyed by people of all ages who had showed up from all over the country to figure out how to work together to deal with the issues. When I first head the human mic, in which the crowd repeats everything that a speaker says, phrase by phrase, I thought I had stumbled into a street theater performance. It took me a few minutes to realize that this was a meeting, the general assembly.

The next night, back home in downtown Los Angeles, we walked our dog Billie through the park at City Hall. Occupy needs to be happening here, I said, and it should be at City Hall.

A bunch of activists I didn’t know at the time was way ahead of me: they had been organizing for a couple of weeks. That very night, when we got home from our walk, the announcement that Occupy LA would begin the following day appeared on my Facebook page.

The next morning a thousand people marched from Pershing Square to City Hall, and a hundred of them set up tents.

I have a schizophrenic relationship to Occupy. The charms of the General Assembly have eluded me. All the crazy talk—like proposals to get money from the City to build a giant flower pot, complete with giant flower, on the grounds of City Hall, in which people would live. This scheme was met by an objection— a hard block. But the objector never questioned the sanity or practicality of the proposal; rather they had ideological issues with taking money from the Man aka the City. When the talk wasn’t bonkers, it was endless. I could also see conditions at the camp were deteriorating, with more and more people camped out to party and smoke pot, not to build a new social and political movement. Sometimes the wild mess of people was bracing and inspiring, but sometimes it was just heartbreaking.

One of the first nights I was there a guy pulled up with a card table and a pot of chili and started ladling it out. It was some of the most delicious chili I ever tasted. I got inspired and started making pots of vegan lentils and black beans to take to the camp. But then I would get another whiff of the increasingly squalid conditions in the camp and want it gone. Can’t the movement just evolve to the next step in which camping out would no longer be its most visible image and most important product?

I refused to make them soup, but then my wife, Stacie Chaiken, who helped organize an interfaith clergy group at Occupy, would give me a hard time and I would go back to making soup.

I saw what the Occupy meant to her, how she understood it in a way that went beyond the encampment and the endless meetings. I saw what it meant to my friend, a special-ed teacher, who has been in despair watching the corporatization of public education. I made new friends at Occupy who had a much higher tolerance for the mess and the meetings, who found at Occupy connections to other people and pieces of themselves that had been for such a long time missing.

I fell in with a group that was meeting with City officials, initially about logistics, and then about an attempt to conclude the encampment at City Hall, with the possibility that the City might turn over a patch of land and some office space to a nonprofit created by Occupy. The discussions eventually came to naught, in part because neither the City nor our group could deliver. Controversy erupted because a faction of Occupiers who have not been involved in the talks with City officials objected to our engaging in “secret” discussions because that went against the Occupy principle of complete transparency. If the Mayor and Police Chief wanted to talk to us, they should come to the General Assembly and get on stack, meaning they should wait in line like everyone else for their turn to speak.

Maybe those who objected were right. But I strongly doubt that City and police officials would have showed up at the General Assembly to discuss issues with—and submit to the verbal slings and arrows of the Occupiers, as many of them wished. And I found the discussions with the Police and Mayor’s office a fascinating experiment, very much in keeping with the open-ended spirit of Occupy. The conversations also served to prolong the Occupation at City Hall Park long after it would have doubtless have been shut down.

The night of the raid, there were about 100 people who had decided to get arrested in acts of civil disobedience. They were all people who had been trained in non-violence. I was not one of them. When the police arrived in their shock and awe attack, I was right in the middle of the park. I scampered through the maze of tents, out of the park onto to First Street. I encountered a police line, and asked the officers—wearing helmets, carrying weapons of non-lethal destruction—how I might safely exit the perimeter. They stared at me, stone-faced.

I told the police that if there were orders being given, we couldn’t hear them. Rumors swept through the street that everyone within the perimeter were about to be arrested.

Finally I made my way up Main Street to Temple, across the Triforium and down onto Los Angeles Street. I was able to walk west on Second Street, where I found my way to the Redwood for a stiff drink before last call at 2am, where I watched the rest of the proceedings broadcast live on KTLA.

I didn’t like the way it went down that night. It was inconsistent with the LAPD’s previous restraint and with the respect the City had expressed for this important free speech movement. After I got over my initial fear, I understood why the police—in their fear of potential violence from antisocial people in the encampment— reacted in the way they did.

None of this qualifies me for the Occupy Hall of Fame. Unlike some of those I’ve met in this movement, I don’t claim to have all the answers.

I do have more questions:

Has the Occupy movement really changed the national debate, as some occupiers have claimed, or has it taken a first baby step onto the national stage? Yes, I hear the president’s populist-sounding speeches, but I have yet to hear him propose a massive jobs program or even an adequate program to address foreclosures, let alone withdraw his support from the disastrous focus on austerity instead of getting the economy going.

Is this really a movement of the 99 percent, or is it a movement of the self-selected few—activists, anarchists, bohos, hippies and others who can camp on the lawn for weeks at a time, and stand through a General Assembly?

Should the heart and soul of a movement really be that endless meeting? The General Assembly seems more like a necessary evil than a true solidarity-building exercise. How about some dancing, or singing or poetry, or praying?

Can this movement evolve beyond the symbolic taking of public space and public debate into a forum we so badly need, to including a broader spectrum of people, that can take on the bread-and-butter issues of the distressed majority?

Where is the path out of City Hall Park into the heart of the City?