Ellen Brown: The Detroit bankruptcy is looking suspiciously like the scene in Cyprus in 2013, which is now becoming the model globally.
Marcy Winograd: Create the New Economy Now! Launch a global movement for pension money investment in local communities. October 20th, LA City Hall.
Robert Reich: Blanche Lincoln wants to force the banks to put their derivatives into separate entities that aren’t subsidized by you and me. This is just common sense. Her move would also end the big banks’ monopoly over derivatives, thereby reducing their risk to the financial system. It would also cut dramatically into the big banks’ profits.
Robert Reich: So why is the FTC nosing around Apple and not around Wall Street? Because the Federal Trade Commission Act allows the agency to stop “unfair methods of competition” almost anywhere in the economy except in the financial sector. Banks are explicitly excluded. Another reason for financial reform.
Robert Reich: As long as the big banks are allowed to remain big, their political leverage over Washington will remain big. And as long as their political leverage remains big, the taxpayer and economic tab for the next mess they create will be big. By all means, give regulators resolution authority and also impose the tightest regulations possible. But Congress and the White House shouldn’t stop there. Limits should be placed on how big big banks can become.
The No and Know Nothing Party, aka the Greedy Obstructionist Prevaricators, started building their latest successful Corporate Ponzi Scheme by using their upside-down pyramid assault (trickle up) on America. Some 30 years ago with the onset of Ronald Reagan, the Conservatives and mega Corporations realized what they offered the people needed to be disguised, since [...]
Robert Reich: Rather than defending the outsized paychecks of Dimon, Blankfein, and the rest of Wall Street as part of the free market system, the President needs to demand that Wall Street help homeowners on Main Street. The Obama White House should have made this a condition of getting the giant bailouts in the first place. The least it can do now is to is to make the free market system work for everyone.
Fridays the LA Progressive features a comment that was particularly noteworthy. This week we are featuring a comment submitted by Robert Illes responding to comments on his article, Obama, Never Mind FDR, How about JKP?, by Ianam. Here’s Robert’s comment: Idiot responds: The point of the article was that Polk, the only President in history [...]
The $75 billion federal program designed to bribe banks to modify mortgages has been a bust. No one knows the exact number of mortgages that have been modified (that will be reported next month) but housing experts I’ve talked with say it’s a tiny fraction of the number of homeowners in trouble. Seems that the big banks can’t be bothered.
The public doesn’t know what’s going on because the national media would rather report on the sexual escapades of famous people or social trends or high finance (a recent Pew study of economic reporting shows the vast majority of stories about the Great Recession have focused on Wall Street rather than Main Street).
I don’t know whether Bank of America shareholders will oust Ken Lewis from his chairmanship this week. I don’t know if Treasury Secretary Timothy Geithner will eventually do it, either. What really worries me is I don’t know who would actually be responsible for doing the deed, or by what criteria. When it comes to [...]