Monday, September 29, 2008

American Financial Crisis

FINANCIAL MELTDOWN
Minneapolis, Minnesota

Today the stock market took a historic tumble, the biggest single day point drop in its history when it finished down 777 points. Panic ensued as investors sold off stocks after the $700 billion dollar bailout failed to pass the House. The Market lost an estimated $1.2 trillion dollars today.

Warning of "dire consequences" the Republican Administration and House Leadership pressed the Congress to act quickly in passing the bill. The bill was defeated as conservatives who opposed government intervention were joined by many Democrats who had heard from their Constituents. The vote came down mostly along party lines with Democrats voting 140 For and 95 Against, while Republicans voted 65 For and 133 Against.

Election year politics played a significant role as many of the NO votes came from Representatives facing re-election. The package which included a controversial provision that would allow bankruptcy judges to alter Mortgage terms was met with skepticism by many on the Hill who said it was an unacceptable add-on.

It didn't take long for the finger pointing to begin. Rep. Eric Cantor of Virginia said Rep. Pelosi's "failure to listen and failure to lead" was to blame for some Republican defections and Rep. Roy Blunt, the minority whip, said that "a couple" of Republicans said they were offended by the speaker and changed their minds. But he said those lawmakers were already wavering.

Rep. David Obey, a Wisconsin Democrat who stood watching the Republicans criticize Rep. Pelosi, called their remarks "ridiculous." adding, "The President wouldn't have gotten to first base without the cooperation of the Democratic leadership," he said. "Evidently some of these guys would rather lose the economy than lose the election."

The real question being asked by many Americans today is how did this whole mess happen and why should we have to pay for it?

Securities and Exchange Commission Chairman Christopher Cox said today that deregulation was in part to blame for the economic meltdown, citing "voluntary oversight" provisions that were led mostly by Repulican's. Those revisions were driven by insistent lobbying from the five largest investment banks, essentially letting the fox in the hen house.

Of course there is more to the story than that, it was also the greed of investment banks and large mortgage companies who sold risky mortgages by masking them as high grade investments. Some of these thieves even walked away rich. Such as Merrill Lynch's Stanely O'Neal who pocketed a $66 million dollar package or Chuck Prince who left Citigroup with a gift of $16 million.

While all this was going on, the Republicans were cutting taxes for the wealthy and singing the praises of deregulation. The unemployment rate is rising and we are spending $12 billion a month on the war in Iraq in large part due to the failed policies of the Bush Administration.










Courtesy of The Washington Monthly

Saturday, September 27, 2008

Post Debate Analysis

Minneapolis, Minnesota

After the first debate one thing is clear, both Candidates will be prepared and neither is perfect. In what marked the first of three highly anticipated debates Sen. John McCain and Sen. Barack Obama both found themselves on the defensive for their records, experience and judgement.
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For much of the first part of the debate, which was focused on the economy and the looming financial crisis, it was John McCain who was on the defensive. Obama may have missed several opportunities to highlight Senator McCain's role in the current economic crisis as he was one of the biggest deregulators of the past 20 years.
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For John McCain, things became markedly better when the subject of the War in Iraq came up. John McCain talked about the surge and the fact that Sen. Obama did not support it or think it would work and was reluctant afterwards to admit it had worked.
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Foreign policy was another subject that John McCain seemed more comfortable with, but did not score a clear victory on. Obama was able to deftly deflect McCain's attack on his voting record when it came to funding the Troops. Obama pointed out the both he and McCain had voted against funding when the funding was tied to a timeline for withdrawal.
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McCain made a reference to a bracelet he'd been given by the Mother of a fallen soldier and told the story. Obama stated he to had a bracelet with a similar story, but he stumbled on the soldiers name and needed to look at the bracelet to remember it.
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One thing stood out glaringly for most people who watched the debate and that was McCain's lack of eye contact with Obama. Perhaps it is just John McCain's debate style not to look his opponent in the eye, but where I was standing it seemed more like a lack of respect issue. As if McCain, the saavy political veteran, was irritated by the upstart and inexperienced understudy. I think this made McCain look somewhat aloof.
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Before the debate there was considerable talk about Obama's inability to speak without a teleprompter, I think we can put that one to bed now. And while John McCain may be too old for some, he still had a lot of fire for the issues.
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Overall, I think both men missed opportunities to put the other on the ropes and when given the chance felt that discretion was the better part of valor. They were like two heavyweights locked in battle, but reluctant to take a big swing, worried it might miss and leave them open for a big counter. They spent most of the night feeling eachother out and studying the others style. The debate for me was mostly even with a slight edge to Obama who was both deferential and Presidential in his demeanor.

Wednesday, September 24, 2008

Public Hearings - RNC Fallout



September 24, 2008 - Saint Paul, Minnesota

Tonight at the Saint Paul City Hall a public hearing took place as part of an effort to gather stories from people effected by the Republican National Convention. The hearing took place primarily because of the efforts of Councilman Dave Thune who has continously pressed for an investigation into the events surrounding the RNC, including Police conduct.

Saint Paul Mayor Chris Coleman had taken a vacation and was not present. As a matter of record, only four Councilmembers were present, Dave Thune, Lee Helgen, Russ Stark and Melvin Carter. There were members of the Mayor's office in attendance as well as a representative of the Saint Paul Police.

People from business, media and the public all had an opportunity to speak. Speakers from the business community including Sara Ramke, owner of the Black Dog Cafe, said that business was pretty much the same before, during and after the convention.

Media representatives spoke about the suppression of media during the convention and the arrests of over forty journalists including Amy Goodman and others. Andy Driscoll of KFAI Radio drew loud applause when he said "This Council must hold a series of hearings into the breach of Constitutional guarentees." He urged them to act now.

Sara Coffey spoke about the Police raids on their propety in Saint Paul and the conduct of Police in raiding her home. She had video of Officers detaining her without cause. She was handcuffed and held without charge for hours while her home was searched by Police.

Public speakers included Cheri Honkala from the Poor Peoples Economic Rights Campaign who spoke passionately about her experiences which included survailence, visits by the Justice Department months before the RNC and the March itself which ended in Police using rubber bullets, tear gas and pepper spray on Demonstrators that included Children.

Leah Lane, whose now infamous video of Police brutality, spoke about her experiences at the hands of Police at the end of the evening on the fourth day of the RNC.

http://radiofreenation.blogspot.com/2008/08/whats-wrong-with-freedom-in-america.html

Colleen Rowley, former FBI Agent, whistleblower and Senate Candidate spoke about her thoughts on the RNC and the Picnic for Peace which she organized and participated in. She was outraged by the overwhelming Police presence and intimidation.

More than thirty speakers took the mic tonight with stories about Police intimidation, violence and in the case of Elliot Hughes, allegations of torture. Councilman Dave Thune promised additional public meetings, but no promises of police or government accountability were made.

Tuesday, September 23, 2008

The Story Of Leah Lane

Minneapolis, Minnesota
September 23, 2008

The story of Leah Lane is one that stirs the American consciousness. Ms. Lane is a 19 year old woman who took a courageous stand for freedom and discovered what many Americans want to deny, that the Constitution does not protect you.

Lane was participating in a demonstration during the final day of the Republican National Convention. After the Demonstrators were divided and scattered by Riot Police using Tear Gas, Flash Bang Grenades and Mace, a few Demonstrators found themselves isolated on a side street near Sears.

A group of bicycle police advanced and Leah Lane did a funny thing that night, she quit running and started singing. She sang "All you need is love". The Police were NOT amused. They maced her multiple times from three sides. They hit her with their bikes, spraying her with mace again and finally they pushed her down onto the asphalt.

The Police then pulled her into a circle and placed a foot on her face as they arrested her. She called out "I can't breath" but that didn't stop them from treating her like an animal. At least eight Police participated in the arrest.

Regardless of your politics, what Leah Lane did that night in Saint Paul took courage. The sort of moxie you'd expect from big burly Police. It is a sad day for all Americans when those sworn to uphold the law become bullies who callously disregard common human dignity.

Leah Lane isn't angry, she has even gone as far as saying she forgives the Police, but many people are outraged by what they witnessed and want these Police to be held accountable.

Here is a video piece done by the local FOX affiliate and Reporter Trish Van Pilsen.
http://www.myfoxtwincities.com/myfox/pages/News/Detail?contentId=7430234&version=1&locale=EN-US&layoutCode=VSTY&pageId=3.2.1

Sunday, September 21, 2008

The Mother of all BAILOUTS

Minneapolis - The Bush Brain Trust has urged that Congress move quickly to approve the "mother of all bailouts", which is estimated at near 1 trillion dollars.
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Contention over whether to bail out the mortgage debt of large financial institutions is heating up. House Speaker Nancy Pelosi insisted that the proposal "does not include the necessary safeguards" in reference to excessive executive compensation and protection for homeowners.
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The bailout will include billions to large Wall Street financial firms to cover their speculative investments that went bad when the housing crisis hit. Some financial analysts are saying this will be the most expensive "bailout" in the history of the world.
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The American Tax Payer stands to be straddled with this debt for generations to come. These people in Washington write checks as if it weren't their money, because it isn't, its yours. Some calculations have this adding a total of $3 trillion dollars to the $9 trillion dollar current deficit.
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Years and years of propaganda designed to turn Americans into mindless Consumers who overspend, over-extend and live check to check is finally catching up to us. Our Leaders imitate our people. We are shamed in the media and in real life if we don't keep up, so we spend on credit just to keep up. Now we're broke. We need to stop spending, but we're all addicted and don't know how to live any differently.

Wednesday, September 17, 2008

September 17, 2008
Minneapolis, Minnesota

"This is someone who's been in Congress for 26 years. ... Now he tells us that he's the one who will take on the ol' boy network. The ol' boy network? In the McCain campaign, that's called a staff meeting." - Barack Obama

As the rhetoric on the campaign trail heats up, the statement above by Barack Obama might have been the zinger of the election season so far. This will resonate with Democrats and Independents because it speaks to the hypocrisy of politics and it caught the proverbial pot calling the kettle black so to say.

A resurgent McCain campaign has been trying hard to capitalize on the so called "Palin bump" as we enter crunch time. Unfortunately, McCain has the same advisers he had before Palin became part of the ticket and no one thought to tell him that attacking the "ol' boy network" included hitting himself upside the head.

Palin's handlers today announced she would NOT cooperate with an investigation. Her Aides say she won't comply with subpoenas issued by state lawmakers investigating the firing of Alaska's former public safety commissioner because Palin "has declined to participate" in the probe, her attorney general says.

Palin, who pledged to cooperate with the state Legislature's investigation is now doing a 180 as they say. This is bound to become an issue in the campaign and one the Democrats are sure to exploit.

Has it now become common place for those in high political office to refuse a lawfully issued subpoena? What do you think would happen if you or I refused a subpoena?

Tuesday, September 16, 2008

Monday, September 15, 2008

Stock Market Gets Hammered

September 15,2008
Saint Paul, Minnesota

Today the Stock Market had its biggest one day drop since right after 9/11. The cause for this fall was said to be the largest bankruptcy filing in history, that of Lehman Brothers. The filing is connected to risky financial investments, the housing collapse and other bad investments.

The S&P said it would cut its rating on mortgage lender Washington Mutual to JUNK status...their shares fell 27% during trading and another 11% in extended hours trading. Hewlett-Packard said it would cut 24,600 jobs or about 7.5% of its entire workforce. And Merrill Lynch was forced to sell itself to rival Bank of America.

Art Hogan, chief market strategist for Jefferies & Co., stated that the magnitude of the financial industry fallout is unprecedented, and could only be compared to the Great Depression of the 1930s or the railroad bankruptcies of the 1800s.

"We've never witnessed this before, there's no road map for this." said Hogan.

Even though this mess was largely created by greedy banks and ignorant borrowers, the net result has been that the government will step in to bail out Fannie and Freddy at Tax Payer expense and maybe even others. Treasury Secretary Henry Paulson said that he hasn't ruled out additional government bailouts for the future.

This is a Wall Street issue that will impact Main Street, no question. Consumer confidence is low, inflation is rising and many companies have either laid off people or put a freeze on hiring and lenders are not loaning to anyone without very good credit.

Billions of dollars were lost as banks and other financial institutions staked a risky bet on risky mortgages. Many got rich during the boom of the late 90's and early 2000's, including homeowners who cashed out on their equity quickly as banks came calling with low interest rates. "Pay off your credit cards and deduct the interest on the new loan." It sounded good and it was, except for many of these people their homes are now worth less than they owe on them.

With many Americans a pay check away from financial disaster, it was only a matter of time until our out of control spending caught up to us. Sadly, the national debt continued to rise at the same time and so now an entire generation will be strapped with a monumental debt and politicians who are unwilling to speak about, let alone address fixing the problem.

Whether Barack Obama or John McCain wins, expect more economic trouble ahead because the financial problems of America and its consumer addicted society will NOT be fixed by a President.

An interesting article.
http://money.cnn.com/2008/09/14/news/companies/lehman_workers.fortune/index.htm?postversion=2008091507

Saturday, September 13, 2008

Terrorist Puppets

Dateline - Mpls/St.Paul
September 13, 2008

Bill Moyer from http://www.backbonecampaign.org/ appeared on the show tonight and had so many interesting and compelling things to say about the RNC and the our civil liberties. Bill is concerned about the erosion of our Civil Liberties and the unaccountability of our elected officials. He mentioned the best tool in some situations is satire and humor. As serious as our Constitutional Rights are, it seems in the face of overwhleming apathy of our government, all we have sometimes is humor.

I think Bill Moyer explemifies whats best about grass roots activism. He subscribes to the philosophy of non-violent demonstrations and using satire and humor as way to bring attention to the issues of our liberties. He advocates for "small" or "alternative" media as he does NOT believe the American public is being told the truth by "BIG" media.

Unfortunately for most American's who get their news and information from corporate media, many of the important stories are not being told. As a matter of fact it seems truth has taken a back seat to editorialized infotainment. If the press and the people ignore them long enough it seems to me that the REAL stories will never be heard which in turn creates a bad environment for a democracy.

As we saw at the RNC, freedom's guaranteed under the constitution are tenuous at best. Eight hundred American's were jailed during the RNC. Official reports say there were approximately 38 incidents of vandalism and 8 assaults. What the hell were the other 754 people arrested for?

Please take a moment to visit http://www.backbonecampaign.org/