Posts tagged with 'Brave New Films'
Weekly Diaspora: Why Arizona’s Birthright Bill is Bad for the Economy
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by Catherine A. Traywick, Media Consortium blogger
Arizona lawmakers are expected to introduce an “anchor baby” bill today that would deny birthright citizenship to the U.S.-born children of undocumented immigrants. Modeled after birthright citizenship legislation unveiled by the nativist coalition State Legislators for Legal Immigration (SLLI) earlier this month, the measure is, unabashedly, part of a larger effort on the part of SLLI to challenge existing citizenship law in the United States.
Lawmakers from Georgia, Oklahoma, Pennsylvania and South Carolina have likewise committed to introducing citizenship bills at the state level, while legislators from Nebraska, Indiana, Colorado, Texas and others are determined to implement similarly controversial Arizona-style enforcement measures in their states.
In recent years, communities that implemented harsh anti-immigrant laws have experienced a number of economic and social repercussions which lawmakers continue to overlook in their determination to tighten enforcement. But as nativist policies bleed public coffers and anti-immigrant political speech incites new strains of ethnic violence, the stark consequences of such extremism are becoming harder and harder to ignore.
Devastating local economies
The legal costs of defending constitutionally questionable laws like SB 1070 ought to be obvious. Arizona, which has the rare luxury of drawing from a $3.6 million donor-endowed legal defense fund, spent upwards of $500,000 defending 1070 from legal challenges last year, and could, in the long-term, spend as much $10 million, according to New America Media’s Valeria Fernández. (more…)
Weekly Pulse: Uncovered Abortions, Toxic Mani-Pedis, and Kagan’s a Go
by Lindsay Beyerstein, Media Consortium blogger
Last week, the Obama administration preemptively caved to the anti-choice lobby by declaring that new high-risk insurance pools, a byproduct of recent health care legislation, will not cover abortions, even if states or patients pay for that coverage with their own money. Under health care reform, states must create high-risk insurance pools for people with preexisting conditions. These pools will be phased out in 2014 when the new insurance exchange comes online.
As you may recall, the Nelson amendment to the health care reform bill says that the federal government can’t pay for abortion coverage in the exchanges, but it doesn’t mention the high-risk pools. There is no overarching ban that would preclude federal funds for abortion coverage in the high-risk pools. The Obama administration’s ruling is purely a lack of political courage. In fact, as Jessica Arons explains at RH Reality Check, the pool rules are even stricter than Nelson’s rules for the exchange. (more…)
Weekly Audit: Stop Wall Street’s Economic Rampage
By Zach Carter, TMC Blogger
Over the past year, Wall Street’s excess has helped push the unemployment rate to epic levels and created millions of foreclosures. Yet the rules of the financial road remain unchanged. As 2009 draws to a close, it’s astonishing that so little progress towards financial reform has been made.
President Obama, Congress and federal regulators have not been tough enough on the nation’s financial elite. As Monika Bauerlein and Clara Jeffery emphasize for Mother Jones, the government has committed about $14 trillion in bailout funds to save the banking system without demanding much of anything in return. Goldman Sachs and other big banks are now planning to pay giant bonuses that come straight from taxpayer giveaways rather than invest that money in socially constructive banking.
“Bankers aren’t being rewarded for pulling the economy out of the doldrums,” Bauerlein and Jeffery write. “Nope, they’re simply skimming from the trillions we’ve shoveled at them.”
The major banks are even spending our bailout money to lobby against reform. When President Obama called a meeting for leaders of the nation’s largest banks to scold them for their lobbying, the heads of Morgan Stanley, Goldman Sachs and Citigroup didn’t even bother to show up, as Matthew Rothschild describes in a podcast for The Progressive.
It’s easy to see why the bank execs are so indifferent, Rothschild argues, even to the president. Now that almost all of these banks have repaid the loans they received under the Troubled Asset Relief Program (TARP), Obama has no negotiating leverage and the bankers know it. Even though it represents just a tiny fraction of the $14 trillion bailout, TARP was the only program that attached any strings to that money. Prior to those TARP repayments, Obama could have demanded that banks do more lending to help the economy, work harder to keep troubled borrowers in their homes—or face executive compensation restrictions or other penalties.
And many of the same regulators who helped bring about today’s economic disaster are still in power. As Sen. Bernie Sanders (I-VT) explains for Brave New Films (video below), Federal Reserve Chairman Ben Bernanke blew just about every major policy decision he faced in the years leading up to the crisis. Bernanke, who was recently named person of the year by Time magazine, failed to rein in reckless mortgage speculation, predatory lending or excessive compensation packages. Nevertheless, President Obama has appointed him to another term.
“This recession was precipitated by the greed, recklessness and illegal behavior on Wall Street,” Sanders says. “One of the key responsibilities of the Fed is to maintain the safety and soundness of our financial institutions … The Fed was asleep at the wheel, Bernanke did not do the job.”
Sanders notes that even Bernanke’s financial clean-up operations have been deeply flawed. Bernanke has helped make today’s too-big-to-fail banks even bigger. If we want to stop the lobbying and policy deference that politicians grant to Wall Street, we have to break up the biggest banks into smaller firms that do not endanger the economy if they fail.
Bernanke is not the only holdover from the Bush administration that wields significant economic power under Obama. As I note in a piece for The Nation, John Dugan, the top bank regulator appointed by President George W. Bush, remains in office today, despite failing to ensure the financial health of our largest banks and actively working to undermine consumer protection.
Campaign contributions from the bank lobby will not be enough to counter the voter outrage that President Obama and members of Congress are facing, nor should they. If our leaders want a serious shot at re-election, they need to recognize the need for significant change on Wall Street. That means breaking up the big banks and setting economic policy that helps all of our citizens, not just financiers.
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The Battle for Wall Street Begins
“I’m not talking about a budget deficit. I’m not talking about a trade deficit. I’m not talking about a deficit of good ideas or new plans. I’m talking about a moral deficit . . . . We have a deficit when CEOs are making more in ten minutes than some workers make in ten months; when families lose their homes so that lenders make a profit; when mothers can’t afford a doctor when their children get sick.”
-Sen. Barack Obama, Ebenezer Baptist Church, Atlanta, Jan. 20, 2008
We can drop the “elect” from his title. President Obama is official. Everyone take a deep breath. Let it out slowly. And now let’s focus on the work.
Even before he was sworn in this afternoon, parts of President Obama’s economic platform were already moving through Congress. Overall, the general public remained largely in the dark about his plans for rebuilding the decimated financial system. What needs to be considered as the economic stimulus plan moves forward?
The $350 billion public investment in banks and other finance firms has not spurred banks to make loans that can foster economic recovery, nor has it encouraged them to face up to the huge unrealized losses embedded in their balance sheets. Over at The Washington Independent, Mike Lillis
demonstrates how the current bailout program fails to offer meaningful incentives for banks to direct their public money toward the public good, much less require it.
Moreover, the rescue plan attempts to address a symptom of the U.S. economic malaise—financial turmoil—without directly fixing the bad mortgages that caused the disease. Last week, the Senate gave President Obama the all-clear to deploy another $350 billion for financial rescue purposes, again with no strings attached. Obama and the new National Economic Council Director Larry Summers have pledged to spend up to $100 billion in Troubled Asset Relief Program (TARP) money to avert foreclosures. We should know very soon if they plan to live up to that promise.
For now, the financial system remains perilously close to where it was in September 2008, when a cascade of gigantic firms failed, inciting panic among investors and policymakers alike. The word “nationalization” has been mysteriously sidelined in the U.S. debate over what to do with our Wall Street financiers, despite a major taxpayer commitment of resources. If we want to change bank behavior, the best way to do it is through straightforward government takeovers, as William Greider explains in a piece for The Nation.
“Without such a move, the taxpayers will essentially be financing the slow death of failed institutions while getting nothing in return,” Greider writes.
Greider invokes problems at Citigroup, which inked an agreement to receive an additional $7 billion in taxpayer funds last week, on top of $45 billion it accepted in 2008. Based on the $3.50 closing price of Citi’s stock on January 16, the stock market values the entire company at roughly $19 billion. If any company is too big to fail, Citigroup certainly qualifies, but it is increasingly clear that Citi cannot keep pace with its losses– more than $8 billion in the fourth quarter alone. If we’re on the hook for the company’s collapse anyway, we might as well nationalize them to make sure they go down the right way, and end its predatory lending practices in the process.
Beyond matters of sheer practicality, it’s important to remember that these companies are being bailed out because they completely screwed up. Their errors were not restricted to bad bets on home values, either. Huge U.S. institutions undertook systematic efforts to fleece consumers for every penny they were worth on everything from credit cards to home purchases. In this video spot, Brave New Films details some of the abuses at Bank of America, which received another bailout of its own on Friday.
The Bush administration itself continued to encourage predatory, anti-borrower policies through to its final day in office, thanks to an almost surreal caveat for loan work-outs administered through mortgage giants Fannie Mae and Freddie Mac. This fall, Treasury Secretary Henry Paulson rolled out a loan modification effort at Fannie and Freddie, touting the plan as a major new effort to curb foreclosures. What he didn’t advertise was the fact that borrowers have to sign away all of their legal rights to contest any aspect of their mortgage to be eligible for lower monthly payments.
“In plain English, the waivers mean a borrower can’t sue the lender that originated the mortgage if the loan modification goes bad, or for any other lending abuses concerning their loan,” Mary Kane writes for The Colorado Independent, highlighting Congressional testimony on the program from Julia Gordon of the Center for Responsible Lending.
This legal absurdity is beyond reckless, given that Paulson was trying to solve a problem created by gouging consumers for the benefit of big finance companies.
But even if Obama rights the Bush administration’s bizarre programs and enforces corporate responsibility on Wall Street, a mountain of equally important economic work will still face Team Obama. Writing for AlterNet, Charlie Cray emphasizes that TARP and other salvage plans will not fix imbalances in the drastically insufficient financial regulatory structure. A sweeping overhaul of the nation’s regulatory architecture is absolutely necessary, but will face much stiffer opposition from the bank lobby than, say, a $350 billion giveaway.
While Obama’s economic stimulus proposal enjoys broad public support and will likely be enacted—Steve Benen presents some persuasive statistics on that topic at The Washington Monthly—it will be harder to garner up public support for technical and complex regulatory issues. When was the last time you heard anybody get riled up about how the Federal Reserve is funded?
Fortunately, the stimulus package offers a major opportunity to enact other badly neglected, longer-term projects to update the U.S. economy. OneWorld.net highlights analyses from leading think-tanks revealing that investments in renewable energy create far more jobs than pouring money into environmentally destructive coal-fired power plants, and leave future generations with a stronger social infrastructure.
There is room for hope. Amid a barrage of increasingly grim economic figures, Obama appears to understand what needs to be fixed and how much is at stake. He is certainly aware of the dangers posed by drastic economic inequality. Danny Schechter’s News Dissector blog features a post of Obama’s speech one year ago on Dr. Martin Luther King Jr. and the quest for economic justice. It’s inspirational stuff, particularly on the day the first black U.S. president is being sworn into office.
This post features links to the best independent, progressive reporting about the economy. Visit Economy.NewsLadder.net for a complete list of articles on the economy, or follow us on Twitter. And for the best progressive reporting on critical health and immigration issues, check out Healthcare.NewsLadder.net and Immigration.NewsLadder.net. This is a project of The Media Consortium, a network of 50 leading independent media outlets, and was created by NewsLadder.