Puget Sound Liberals Weekly Newsletter #222

Enhancing Freedom, Opportunity and Cooperation in Puget Sound and Beyond

Through informing and networking Liberals and Liberal Organizations.

 

Our vision is hundreds of thousands of well-informed Puget Sound Liberals working together.

 

          3500 members                                April 16, 2010                   formerly Lake Hills Liberals                

 

 

 

 

                                                     

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              Table of Contents      * Featured Articles

 

Opportunities

Petitions

 

Communication to Our Members

How Do Conservatives Ignore Corporate Abuses?*

 

Commentaries from Our Members

Donald Smith: Tax the Wealthy to Pay Their Fair Share*

 

Liberals and Democrats Links to the Beef

Health Care Reform

Job Creation**

Regulating Wall Street

Fiscal Responsibility

Reducing Carbon Emissions

 

State and Local Links to the Beef

Larry Kalb Runs to Replace Representative Rick Larsen

EOI Proposes a State Supplemental SS Benefit

Another Obvious Case of Police Brutality

 

Nation and World Links to the Beef

Featured Advocacy Group: Americans for Financial Reform

Stock Market Doesn’t Reflect What’s Good for Our Economy

 

Our Liberal Spirit

Some Freedoms and Opportunities Are Temptations To Do Wrong*

 

Recommended Books

 

 

 

 

Our Political Values

 

Our Political Priorities

 

·       Fair Clean Elections and Open Government

·       Fair Taxes and Competent Spending

·       Investment for Productivity

·       Quality Health, Education, Jobs, Income

·       Environmental Protection and Energy Independence

·       Security and Equal Rights

·       Justice and Peace Everywhere

·       International Cooperation and Leadership

 

Conservatives oppose all of these

 

     Let’s End Our National Nightmare

 

         Let’s Restore Our American Dream

 

More on Conservative opposition to our American Dream

 

Washington State’s 5 Major Needs

·       Federal Funding for Health and Education

·       Public Campaign Financing

·       Substituting a Progressive Income Tax

·       Replacing Conservative Legislators

·       Stopping Corporate Abuse

 

Quote of the Week

Lead me not into temptation.  Matthew 6:13

 

 

 

 

 

 

 

 

 


Health Care Reform

Job Creation

Regulating Wall Street

Fiscal Responsibility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calendar of Events

Attend a Coal-Free Town Meeting, sponsored by the Sierra Club.

  Sunday, April 18 at 7 PM at Olympic View Church of the Brethren (425 NE 95th Street, Seattle)

  Monday, April 19 at 7 PM at Old Redmond Schoolhouse (18800 NE 166th Street, Redmond)

  Tuesday, April 20 at 7 PM at Islandwood (4450 Blakely Avenue NE, Bainbridge Island)

  Wednesday, April 21 at 7 PM at The Water Center (4600 SE Columbia Way, Vancouver)

 

Monday, April 19 at 7 PM at Landes Room in City Hall (600 4th Avenue, Seattle) - SEATTLE SUNNY SIDE UP: GROSS NATIONAL HAPPINESS FROM BHUTAN TO VICTORIA TO THE EMERALD CITY

What if happiness were the bottom line for our economy and our policies? What would Seattle look like then? How would our schools run? What would be workplace policy? How would the struggle for justice be given a boost? How would businesses be successful? Would we trust our government more? Be healthier?  Take better care of the environment?  On April 19th we’re launching a campaign to make Seattle a happiness city, with activities leading up to the Green Festival in June and beyond.  Come to the first happiness event and help shape the new campaign!

 

Michael Pennock of the Vancouver Island Health Authority, an expert in data research from Victoria BC worked with the tiny Himalayan nation of Bhutan when the Bhutanese decided to make happiness a bottom line. He helped them develop a Happiness Survey they now use to determine policy, including whether to join the WTO (they didn't).  Now that survey is being used all over the world.

Gross National Happiness (GNH) is a framework for decision making that puts people and planet in the mix with profits. In Brazil it's being applied so far in a university, a municipality and a corporation.

 

How could GNH help us here? Learn about the Pennock happiness survey and what happened in Victoria when the city took the survey and created a Happiness Index.  You can take the survey yourself there. For a summary of the Victoria results.

   

Join with other Seattleites in figuring out how a Gross National Happiness Campaign might work in our city and what's already underway.  Hear some happiness stories, enjoy some art and music and learn what international research has to say about what really makes us happy.  Become part of the new movement in Seattle that could help your own GPH... gross (overall) personal happiness.  We’ll be forming committees to get a happiness survey going in Seattle and build future events that will make our city a leader in this great international effort!  John deGraaf

 

Saturday, April 24 at 6:30 PM at Jule and Candace Sullivan’ home (1140 Alki Ave. SW, Apt. 505, Seattle) - InspireSeattle Potluck and Discussion concerning helping children at risk.

 

Friday, April 30 - May 2 at Seattle Pacific University in Seattle - Wellstone Action Campaign Management Fundamentals, including:

·       Activist track:  For people interested in citizen lobbying, issue advocacy, and community organizing, this track provides skills in how to win on issues.

·       Campaign track: This track focuses on how to be an effective staff or volunteer member of a winning progressive campaign.

·       Candidate track: This is for people who have made the decision to run for office.

Varying cost.  To register.

 

 

 

Calendars of Events                             

 

King County Democrats - LD Meetings            Some 2008 Legislature Lobby Days

Thurston County Progressive Net                  Western Washington Fellowship of Reconciliation

Alliance for Democracy                                Democratic Underground.Com                          

Sierra Club Cascade Chapter Calendar           Cool State Washington

Washington Public Campaigns Calendar          Town Hall Seattle Calendar

Washington State Labor Council                    Whatcom County Peace and Justice Calendar 

Conversation Cafe      Drinking Liberally          Seattle NOW          

Wallingford Neighbors for Peace and Justice – Friday Night Movies      Liberal films on PBS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Opportunities

About Puget Sound Liberals

Basic Training

Commentaries that have addressed major issues

Helpful websites

 

Obtain a free ‘Corporations Are Not People’ bumper sticker.

 

Petitions

Tell your congress members to pass the Student Non-Discrimination Act to protect GLBT students.

Tell President Obama and your senators to choose a supreme court nominee who will oppose efforts by activist Conservative justices to increase the power of corporations.

Tell your senators to support strong clean energy and climate legislation.

Tell President Obama to refuse to recognize the legitimacy of Sudan’s elections.

 

Communication To Our Members

 

How Do Conservatives Ignore Corporate Abuses?

 

I continually experience abuse by large corporations. 

 

While I greatly benefit from using Microsoft windows, office, outlook and internet browsing software, Microsoft uses its monopoly power to charge too much for this software, uses planned obsolescence to pressure people to purchase updates and creates default and other features which most users can’t change without paying an expert.

 

When I tried to upgrade from an ATT dial up internet connection to an ATT broadband connection, I found it wouldn’t work with M.S. Outlook and so cancelled it.  ATT nevertheless billed my credit card for it and it took me repeated attempts before the credit card company took my side on the matter.

 

Fry’s Electronic lied to me about whether my laptop could be quickly repaired, about one of their laptops and about the compatibility of Office 2003 with Windows Vista, with the result that I wasted $1000 on inferior products that I didn’t need to buy.

 

After Eagle Hardware, Seafirst Bank and Fred Meyer were bought out by Lowes, Bank of America and Kroeger, their inventories and services were reduced to only the most profitable ones. 

 

I have often been promised rebates that never arrived.  Most recently, Lowes promised a rebate on a portion of the price that I paid for a Washington machine that didn’t arrive.  Those promising a rebate never indicate what documentation will be needed if the rebate is applied for, but doesn’t arrive.  And they often indicate that the rebate won’t arrive for a month or more, so it is difficult to know when to begin a follow-up after they clearly haven’t sent it, but before their system treats the inquiry as too delayed to require a response.

 

Amazon Books promised that if I would pay them $79, I wouldn’t have to pay shipping and handling charges.  I paid the $79, but no reduction in shipping and handling changes is occurring.

 

I might also mention the continued abuse that commercial advertizing imposes.  Much of it is untrue or at least deceptive and involves demeaning women. 

 

I doubt that these corporate abuses are targeted at me and perhaps other Liberals.  I assume that Conservatives suffer these same corporate abuses.    If they do suffer from these same abuses, how can they continue to trust corporations and believe that they should not be regulated to curb these abuses?  It seems strange that ideological commitments can override person experiences, but obviously they frequently do.

 

Commentaries From Our Members

 

Donald Smith: Tax the Wealthy to Pay Their Fair Share

 

Donald Smith forwarded the following commentary:

 

Dear Donald, tax Day is approaching. Last year, the emergent Tea Party dominated the media conversation about taxes with their "shrink government, cut taxes" message. Will you help us change the message?

 

We should be all angry at the tax system. Here's why:  According to our new IPS report, Shifting Responsibility, for 50 years Congress has been cutting taxes for the very wealthy and global corporations. During the same period, the middle class has consistently paid the same share of their income in taxes. Yep, you heard us right: Over half a century, Presidents John F. Kennedy, Ronald Reagan, and George W. Bush talked about "tax reform" and "tax relief," pushing through massive tax cuts. Yet nothing has changed for the taxpayer in the middle since 1960.

 

It's time for the wealthy and tax dodging corporations to pay their fair share. It's time to rebalance the tax code.

 

Take Action. Write a letter to the editor, using our handy letter writing system. The more personalized the better! Click below, enter your zip code, choose a newspaper and either edit our sample letter or insert your own.

·       If your income is under $250,000, click here.

·       If your income is over $250,000 a year, join the Wealth for the Common Good by signing our petition to end tax cuts on high-income households and click here to send a letter to the editor.

Want more TALKING POINTS? Read our IPS Tax Day Talking Points and join the public conversation. Call your local talk show. Debate your neighbor. Write an op-ed. You can also check out our report, Shifting Responsibility: How 50 Years of Tax Cuts Benefited the Wealthiest Americans. And please, join our partnership at the OTHER 95 PERCENT to educate the public about the tax breaks that the bottom 95% got last year (that only 12% of the public knows about!).

 

Recent News

Group Advocates Raising Taxes on Wealthiest Americans
April 7 - During the past 50 years and specifically the past decade, America's highest earners benefited most from tax cuts, according to a new study released by Wealth for the Common Good, an organization of high-net worth individuals and business leaders calling for tax increases for those with incomes above $250,000.
On The Money, The Hill

Wealth for the Common Good

April 6 - "What's crystal clear in this well-documented report -- whose title might have been 'The Real Story Behind Today's Unfair Economy' -- is that the middle class has largely been shafted by both Republicans and Democrats, whose campaign coffers are equally greased by wealthy donors."
Editor's Cut blog, The Nation

Tycoon Tax Bite Down by Two-Thirds Since 1955
April 7 - "The [Wealth for the Common Good's report] authors assert, 'Our nation has borrowed money to pay for the tax cuts that have gone and continue to go to America's wealthy, a reality that will have future generations of mostly middle-income taxpayers footing the bill -- with interest -- for these tax cuts.'" Forbes

 

Chuck Collins and the Program on Inequality and Common Good staff

 

Liberals and Democrats

 

Due to the stimulus-recovery measure, most tax payers will receive 10% more tax refund.

 

Contrary to Republican claims, Democrats have provided tax cuts to 95% of Americans, all except the highest income ones.

 

Education Department announces first winners of education reform funds.

 

Health Care Reform

 

Health care reform will cut deficits, but Conservatives and the commercial media deny this.

 

Consumers are struggling to understand how health care reform will affect them.  The Obama Administration’s attempts to explain the effects of health care reform will have a receptive audience.

Health and Human Services Secretary Kathleen Sebelius has written a letter to the National Association of Insurance Commissioners (NAIC) requesting their assistance in defining medical loss ratio (MLR) standards in the new health care law and has issued two formal requests for public comment on how best to define the term and implement reform’s rate review provisions.

 

Job Creation

 

To quickly create Main Street jobs, action is required by our:

·       Federal government.  It should enact stimulus-recovery measures, including direct hiring of young people as President Roosevelt did, paying more for health and education so that states and local governments aren’t pressured to reduce employment in these areas, investing in badly needed infrastructure maintenance, investing in conservation and other measures to reduce green house gas emissions, and augmenting incomes of un employed, under-employed and people employed in low income jobs so that these people will spend to create demand for jobs.  To be fiscally responsible, these stimulus recovery measures should be paid for by increasing taxes on Wall Street speculators and other high income people and by reducing subsidies to and wasteful purchases from military-industrial, agricultural, energy, health care insurers, pharmaceuticals, and other powerful special interests.

·       State and local governments should examine and adopt the best practices of those which are adding jobs.  They could thus assist entrepreneurs to create jobs without adding to our deficits.

·       Individual people should shift their dealings and assets from Wall Street speculators and others which threaten jobs to non-abusive companies and smaller local financial companies which will then loan to qualified entrepreneurs and consumers who seek to finance personal investments.

 

Our recovery is proceeding much more slowly than necessary, because our federal government isn’t taxing Wall Street and other rich people to pay for stimulus-recovery measures.  Nor is our federal government eliminating wasteful spending and subsidies for which powerful companies lobby.  Because our state and local governments are typically taking no responsibility for creating jobs.  And because as individuals, we are seduced or coerced by Wall Street speculators and abuse corporations into dealing with them instead of shifting to deprive them of resources and provide resources to non-abusive firms and to local and banks and credit unions that will make loans to stimulate employment.

 

Producing local fruits and vegetables creates more jobs than producing corn and soybeans.

More jobs isn’t enough.  We need more good paying jobs.

Besides helping reduce green house emissions, green jobs produce mining and manufacturing jobs.

House speaker Nancy Pelosi argues for job stimulus spending.

 

Regulating Wall Street

 

IRS is failing to audit large corporations to ensure they are paying their taxes.

 

Liberal Democrats support forcing Republicans to vote for or against strong Wall Street regulation.

 

Congress should mandate breaking up large financial corporations that pose a risk to our economy, not leave this to regulators.

 

Large financial corporations that pose a risk to our economy should pay a tax to motivate them to avoid risky speculation.

 

Republicans will harm themselves if they oppose regulating Wall Street.

 

Fiscal Responsibility

 

Hedge fund managers receive enough income to hire 680,000 teachers who would serve 13 million students.  It’s time to tax the hedge fund managers and use the revenue to hire the teachers.

 

Higher taxes for Wall Street and other high income Americans are necessary to reduce deficits.

 

Ten ways to force our wealthy to pay their fair share of taxes.

 

Many tax breaks should be eliminated.  Others should be tax credits instead of tax deductions, so that less wealthy also benefit.

 

Reducing Carbon Emissions

 

Time to pass a strong climate bill is running out.

 

People should be encouraged to cut their home carbon emissions by conserving electricity.

 

Here’s the Beef

Liberal Jennifer Brunner is running against Conservative Republican Senator George Voinovich of Ohio.

Ohio’s senate race may reflect Democratic congressional prospects this fall.

Progressive Democrats of America promote Pennsylvania Medicare for All health care reform.

Three reasons why President Obama should nominate a Liberal Supreme Court justice.  For more.

Alternet offers 10 visionary ideas for Liberals.

For differing reasons, Republicans, Liberal Democrats and Independents oppose President Obama.

To Republican dismay, Tea Party Conservatives are angry with Wall Street speculators.

Republicans oppose regulating Wall Street speculators, siding with them against Main Street.

As Conservative ideology has collapsed, pained Conservatives simply lash out against Liberals.

Conservatives stimulate seditious activity.

Newt Gingrich wants to shut down the government like he tried unsuccessfully to do in 1994.

Moderate Republicans who will sometimes vote with Democrats may win senate seats in November.

Four Republican senators: Scptt Brown of Massachusetts, George V. Voinovich of Ohio and Susan Collins and Olympia J. Snowe of Maine vote with Democrats to extend unemployment compensation.

New Hampshire Democratic Representative Paul Hodes introduces constitutional amendment to reverse Supreme Court ‘Citizens United’ decision.

Liberals should be discriminating in which businesses they oppose or support.

 

State and Local

 

Larry Kalb Formally Launches Campaign

 to Replace 2nd CD Representative Rick Larsen

 

Before an enthusiastic crowd that packed the Blue Horse Gallery Friday night

Larry Kalb formally announced his intention to take back the Second Congressional seat from

incumbent Rick Larsen with a strong progressive Democratic agenda which promotes more local

green jobs, healthcare for all, and an end to U.S. involvement in overseas wars.

 

Kalb followed his campaign kickoff event with appearances Saturday at both the San Juan

and Whatcom County Democratic conventions. Reflecting Kalb's long involvement in both

progressive causes and the Democratic party, Kalb’s kickoff event was attended by an

enthusiastic, full-house audience, which included several members of the Bellingham City

Council, Democratic activists and rank-and-file voters.

 

In his remarks to the gathering at the Blue Horse and to the conventions, Kalb said that

while the public is "clamoring for change, Congress is not delivering.” He outlined a bold

agenda to address the problems the nation is facing, including a "Green New Deal" that would

simultaneously put Americans back to work and assure a clean energy future.

 

"Rick Larsen boasts of his laser focus on jobs, but has done little to bring jobs to our

District,” Kalb said. “In fact, because of his support for NAFTA and other trade agreements, he

has lost us jobs. The stimulus package was supposed to produce green jobs and it did, but many

of them were outsourced to foreign manufacturers. In one giant wind energy project, 84 percent

of the jobs created were foreign jobs, mostly in China. If the U.S. Government can't 'Buy

American,’ what hope is there for the American worker? Kalb continued, “I am running for Congress to help the people put an end to such folly. In contrast to the incumbent, I will serve you, not the corporations--the public interest, not special interests.”

 

There were many other stark differences between what Kalb and Larsen stressed in their

convention appearances. Kalb called for bringing our troops home quickly from Iraq and

Afghanistan. "The sooner we bring them home, the more of them we will bring home," he said.

Kalb also called for an overall reduction of 20 percent in defense spending. "That money is

needed at home." (See more discussion at the campaign website: www.kalbforcongress.com)

By contrast Larsen did not mention the wars and has consistently voted for additional war

funding and wasteful weapons programs.

 

Larsen devoted much of his time to extolling the recently passed health insurance reform bill

and the need to defend it from Republican efforts to repeal it. Kalb emphasized that he will push

for real healthcare reform that will provide equal access to quality care. "We need Medicare For

All. The majority of Americans want an option to buy in to Medicare, but Rick Larsen opposes

such an option,” Kalb said. “The best way to defend healthcare reform is to truly reform it. The

recent legislation is easy to attack because the people know it is a giant giveaway to insurance

companies -- the largest corporate giveaway in American history."

 

Kalb further stated, "I strongly favor public financing of Congressional election campaigns.

This will reduce the corrupting influence of corporations over legislation. I am hardly unique.

Four out of five Democrats and even 65 percent of all Republicans favor public campaign

financing. Rick Larsen was a lobbyist before he sought elected office. Perhaps, that explains why

he opposes public campaign finance."

 

The primary will be held Tuesday, August 17, 2010. Under current Washington state

election law the top two vote-getters, regardless of party affiliation, will appear on the ballot in

the General Election in November.

 

EOI Proposes a State Supplemental Social Security Benefit

 

Economic Opportunity Institute comments that a state supplemental social security program would benefit both current Social Security beneficiaries and future retirees. All current recipients of Social Security (more than one million people) would immediately begin receiving an annual lump sum payment of $250, for an approximate $252 million outlay per year. New and future retirees, accumulating at approximately 71,000 a year (estimated as 2.5% of the workforce), would receive annual payments ranging from $350 a year to $1500 a year, with increased payments a function of how long the worker paid into the SSS/TDI/FLI fund. (This takes into account expected mortality and growth in the workforce and retiree cohorts.)

 

Paying into the fund for up to one year would result in a $350 annual benefit, for between one year and two years a $450 annual benefit, for between two years and three years a $550 annual benefit, etc. Once a worker has paid in the fund for twenty-two years or more, upon retirement, they would receive quarterly payments of $375, for as long as they live. Beneficiaries: All current retirees receiving Social Security; all other beneficiaries receiving Social Security; and all future retirees.

 

Economic Stimulus and Jobs

The proposed revenue structure would accumulate more than $893 million in surplus in the first year, $1.8 billion in the second year, $2.7 billion in the third year, and $3.6 billion in the fourth year. The surplus would peak in year 24 at $14.4 billion, and fall to $1.8 billion in Year 50. This surplus could:

·       Fund infrastructure development, school construction, and rapid transit throughout the state of Washington

·       Fund a state-based tuition loan program, with interest rates for Washington residents at below-market rates

·       Expand the Housing Trust Fund by an order of magnitude, greatly accelerating the development of affordable housing

 

Another Obvious Case of Police Brutality

 

Another obvious case of police brutality has been photographed and publicly disseminated, this time in Prince George’s County, Maryland.  One policeman begins beating an innocent bystander and three others join in, with no policeman interfering to stop the beating or even protesting.  The resulting publicity can inflame resentment that may motivate some to strike back against policemen, regardless of whether the attacked policemen would have joined in or protested brutality by their fellow officers.  Dave Thomas

 

Here’s the Beef

Washington State lawmakers may approve increasing school energy efficiency.

Washington State lawmakers may refuse to pass needed environmental measures.

Some states are supporting corporations which write social responsibility into their charters.

 

Nation and World  

 

Featured Advocacy Group

---------------------------- Americans for Financial Reform ------------------------

 

The fight to win strong and effective financial reform legislation is a “David vs. Goliath” match that pits Wall Street’s bazillions of dollars against the public’s deep and growing anger, Heather Booth, executive director of the coalition Americans for Financial Reform said today. In a briefing for bloggers today at the AFL-CIO in Washington, D.C., Booth said. “Since last year and though this year, [Big Banks] are spending $1.4 million a day in lobbying and political expenses to fight reform. But the people are not divided over this. They want the banks to be reined in.”

 

The U.S. Senate is expected to act in the coming weeks on the financial reform bill that the Senate Banking, Housing and Urban Affairs Committee approved last month. AFL-CIO Policy Director Damon Silvers said the fight is fundamentally about who runs the economy. Is the financial system the servant or the master of the economy?

 

Silvers said the Senate bill, like the House bill approved in December, is going in the right direction but needs to be strengthened. He told the group that while there will be attempts to both weaken and strengthen the bill; the public is looking for tough new regulations not mushy compromises. Meaningful financial reform will only be achieved by putting forth a strong bill and then fighting for it. The public is demanding accountability.

He said the bill must include a strong, independent Consumer Financial Protection Agency with authority to protect working families from dangerous financial products and practices.

It also must set new rules to bring transparency to the “shadow market” of derivatives, hedge funds and private equity instead of the near rule-free, Wild West world that led to the meltdown of the housing market and the near collapse of the economy.

 

Silvers said the legislation needs to create a new, fully public systemic risk regulatory body that would set capital and liquidity requirements that become increasingly strict as financial institutions get larger and more risky. That would end the “too big to fail” philosophy that led to the $750 billion Big Bank bailout that put money in the pockets of people who blew up their own companies.

 

A Framework for Financial Services Regulatory Reform

In the face of a full-blown global economic crisis, bold action is needed now by leaders in Congress, the Administration and the federal government to repair our nation’s broken financial system, establish integrity in the financial markets, and facilitate productive economic activity that benefits all segments of our communities. It is only in doing these things that we can meaningfully address the public’s shattered confidence in the fairness of the financial marketplace and establish a healthy, robust and productive economy.

 

The good news is that a framework for the needed financial services regulatory reform already is in front of us: the “Special Report on Regulatory Reform,” released on January 29, 2009, by the Congressional Oversight Panel identifies the key principles essential for meaningful financial reform. Chaired by Professor Elizabeth Warren, the Panel was established by Congress to monitor the bailout and to help ensure that aid to the financial sector is accompanied by meaningful market reforms. The January report concluded that “the present regulatory system has failed to effectively manage risk, require sufficient transparency and ensure fair dealings.” It proposes principles calling for reforms to:

·       more closely regulate financial institutions that pose systemic risk;

·       limit excessive leverage in key financial institutions;
increase supervision of the shadow financial system;

·       create a new system for federal and state regulation of mortgages and other consumer credit products;

·       put in place executive pay structures that discourage excessive risk taking;

·       reform the credit rating system;

·       establish a global financial regulatory floor; and

·       start planning now for dealing with the next crisis.

 

These principles provide an excellent framework for regulation that will constrain market excess and protect our nation’s economic health. As consumers, we need financial products that are fair and reliable. We need to know that financial institutions are in compliance with laws meant to protect our civil and consumer rights and that an unequal, two-tiered financial system that puts low- and moderate-income and minority consumers at risk no longer exists. We need to preserve and modernize laws that serve communities and their access to credit. We need to be confident that there is proper oversight of the financial markets. As workers, we need our country’s financial assets invested prudently.

 

We need productive economic activity that:

Creates good jobs, supports arrangements for security in retirement

Provides the goods and services that we need and want

Is sustainable over the long-term.

 

As investors, we need full and accurate information that allows us to:

·       Understand risk

·       Make informed decisions

·       Invest our savings prudently.

 

The era of blind adherence to self-regulated financial markets and the unquestioning deference to the demands of special interests must end. That route has been travelled for well over a decade now, and the results have been nothing short of disastrous. Only when we establish a rational and well-functioning financial system that works in the interests of consumers, investors and workers will we have a sound and efficient financial system and productive economic activity.

It is clear that this is too big a job to be left only to the “experts” and market players who brought about the current state of affairs in which we find ourselves. The undersigned organizations – as representatives of consumers, workers and investors — have come together to ensure that our evolving financial system serves the interests of all Americans.

 

Americans for Financial Reform supports the above-listed principles for reform. It will work to educate and engage the American public, elected officials, and others in support of these principles in order to build the confidence of American consumers, workers and investors and to establish a vibrant, trustworthy and healthy financial system

 

More Resources Needed To Fight Financial Crimes

Americans for Financial Reform, a coalition of over 200 groups, called upon Congress to support the “Financial Crisis of 2008 Criminal Investigation and Prosecution Act of 2009” authored by Congresswoman Marcy Kaptur (D-OH). The bill is directed at giving the Department of Justice, the Federal Bureau of Investigation and the Securities and Exchange Commission the resources they need to fight financial crime and bring successful prosecutions. Among other things, the bill authorizes the Director of the FBI to hire 1,000 more agents and additional forensic experts.

 

“In the eighteen months since fraudulent and corrupt business practices, in the mortgage area and on Wall Street, collapsed the economy – costing taxpayers millions of jobs and trillions in lost wealth and savings – it is the brashness of the impropriety and deceit that is so appalling. We must make real systems changes and hold those accountable who created the problem.” said Heather Booth of Americans for Financial Reform.    AFR has taken the lead in fighting to strengthen the law in areas including consumer and investor protections, regulation of the shadow markets and preventing another financial crisis.

 

“After all this time, it is difficult to point to any successful prosecutions of major players in the financial crisis. Without this type of serious and sustained effort to book the crooks and hold the big banks accountable, Wall Street will not learn its lesson and will surely lead us down this path again,” said Mary Bottari, of the Center for Media and Democracy and BanksterUSA.org. Citizens can send an email to the FBI on this topic at www.BanksterUSA.org.

 

“Recent revelations about Lehman Brothers show that accounting fraud was at the heart of the Wall Street meltdown with staggering consequences for the global economy. But where are the indictments? Where is the follow up? The FBI needs to get cracking,” said Tom Matzzie of Accountable America.

After the Savings and Loan (S&L) crisis of 20 years ago, no less than 1,072 S&L officials were jailed. Over 500 of these were top officers.

 

Click here to see the letter AFR sent Congress supporting Representative Kaptur’s bill.

-------------------------------------------------------------------------------------------------------------------

 

Stock Market Doesn’t Reflect What’s Good for American Economy

 

Stock market averages are up.  But they don’t reflect what’s good for our economy.  For example, the Dow Jones Industrial average includes oil companies that benefit from higher oil prices which harm our economy.  It also includes large financial companies which are profiting from speculation which harms our economy.  Dave Thomas

 

Here’s the Beef

U.S. disregards Israel’s violation of nuclear non-proliferation.

Berkeley, California may divest funds from two companies that provide arms to Israel.

 

Our Liberal Spirit

 

Some Freedoms and Opportunities Are Temptations to Do Wrong

 

We desire more freedoms and opportunities.  But our freedoms and Opportunities must be limited by the need to protect freedoms and opportunities for other.  Our freedoms and Opportunities should be balanced among all of our people. 

 

Wall Street speculation is a clear example as when Wall Street financial firms speculate especially with other people’s money and entice others to speculate, bubbles are created which hurt innocent and naively complicit Main Street people.  If indulged in, such freedoms and opportunities result in reduction of freedoms and opportunities. 

 

We should avoid such temptations.  We should follow the principle of not viewing freedoms and opportunities that if indulged in will reduce freedoms and opportunities as not being freedoms and opportunities. 

 

Recommended Books – See our list of books for liberals

 

Robert Pozen, 2010, Too Big to Save? How to Fix the U.S. Financial System

 

During the last 18 months, I have read several dozen books about our housing-credit bubbles and crashes, which often refer to previous bubbles and crashes.  These books take up about 2 feet of shelf space.  In spite of reading them, I still fail to understand many of the details of the features and activities of Wall Street speculation.  But generally these books fall into two categories:

1.      Those who regard speculation as offering virtually no benefits while posing great dangers to our economy.  These commentators generally want to eliminate speculation and recommend ways to do so.  Joe Stiglitz, Robert Kuttner, Paul Volcker, James Galbraith, Dean Baker, Nomi Prins and I fall in this category.

2.      Those who regard speculation as offering benefits such that instead of eliminating it, measures should be adopted to limit the dangers which it occurs.  Richard Posner (reviewed three weeks ago), Robert Pozen and Nicole Gelinas (to be reviewed next week) fall in this category.

 

The books written by authors in the first category are usually easier to read because they make clear recommendations with few qualifications.  The books written by authors in the second category make much more complicated recommendations to limit but not necessarily greatly reduce speculation. 

 

Robert Pozen presents the most detailed recommendations, which due to their technical detail I have found difficult to understand.  But it is clear that if you want to only limit speculation, there are a great number of things to be understood and dealt with, including particularly accounting and other measures to force speculators to reveal the extent of their speculation and the dangers which it poses to the speculator, other speculators and non-speculators.  I thus found ‘Too Big to Save’ very educational, even though I disagree with many of its qualified recommendations.