Posts tagged “U.S. Congress”

Quotable: Sen. Jim Bunning

While grilling Federal Reserve Chairman Ben Bernanke during his reconfirmation hearing:

Rather than making management, shareholders, and debt holders feel the consequences of their risk-taking, you bailed them out. In short, you are the definition of moral hazard.Senator Jim Bunning
(R-Kentucky)

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Sen. Sanders puts hold on Bernanke renomination

Sen. Sanders Unfiltered: Hold On Bernanke

Sen. Sanders to Bernanke: Will you tell the American people to whom you lent 2.2 trillion of their dollars?

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Bernie Sanders wants to break up the banks. Let’s help!

Senator Bernie Sanders: “too big to fail” = “too big to exist”


Take a moment and read the two (2) page Too Big to Fail, Too Big to Exist Act, about to be offered by Senator Bernie Sanders (I-VT) in the United States Senate (PDF) and then read and sign the petition to Treasury Secretary Timothy Geithner. Don’t forget to tweet and facebook this as well. Unlike Saturday’s legislative abomination, this is something citizens of all stripes should be able to get behind.
Petition to Treasury Secretary Timothy Geithner

Too Big to Fail is Too Big to Exist

Financial institutions that are “too big to fail” played a major role in undermining the American economy and driving our country into a severe recession.

Financial institutions that are “too big to fail” put taxpayers on the hook for a $700 billion bailout and more than $2 trillion from the Federal Reserve in virtually zero interest loans.

Huge financial institutions have become so big that the four largest banks in America (JP Morgan Chase, Bank of America, Wells Fargo, and Citigroup) now issue one out of every two mortgages; two out of three credit cards; and hold $4 out of every $10 in bank deposits in the country.

Just five banks in America (JP Morgan Chase, Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley) own a staggering 95% of the $290 trillion in derivatives held at commercial banks. Derivatives are risky side bets made by Wall Street gamblers that led to the $182 billion bailout of AIG, the $29 billion bailout that allowed JP Morgan Chase to acquire Bear Stearns, and the collapse of Lehman Brothers.

The concentration of ownership in the financial services industry has resulted in higher bank fees and interest rates that consumers are forced to pay for credit cards, mortgages and other financial products.

No single financial institution should be so large that its failure would cause catastrophic risk to millions of American jobs or to our nation’s economic well-being.

No single financial institution should have holdings so extensive that its failure could send the world economy into crisis.

We believe it is time to break up the banks and insurance companies which are too big to fail.

We believe that passage of The Too Big to Fail, Too Big to Exist Act (PDF) is essential for a strong American economy and a secure future for ourselves, our children, and our grandchildren.

We urge the immediate enactment of the Too Big to Fail, Too Big to Exist Act, which directs the treasury secretary to compile a list of those financial institutions that are too big to fail in the next 90 days, and to break up these banks and insurance companies a year after the legislation is signed into law.Sign this petition!

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Quotable: Neil Garfield

Neil Garfield on the Kansas Supreme Court Decision that blocks many foreclosures in the state of Kansas and sets precedent for the rest of the country:

This is one state, but it is likely to serve as the basis for most appellate opinions rendered on securitized loans. The tide has turned. The moral of the story is that those encumbrances (mortgages) don’t exist in most cases, the foreclosures were all fatally flawed, the people who have been chased out of their homes, still own those homes, and the parties seeking to enforce the note can do so only as unsecured creditors and only if they prove that they lent the money that funded the loan and only if they are willing to be subject to counterclaims, cross claims, affirmative defenses and defenses of the borrower relating to predatory lending, appraisal fraud, securities fraud, rescission under all available theories of law, damages, treble damages, punitive damages, exemplary damages and consequential economic damages.Neil Garfield
Attorney and Homeowner Advocate

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The lost armada of consumerism

The ghost fleet lingers off the coast of Singapore

Image: Richard Jones/Sinopix

Thousands of ships float off the coast of Singapore and Malaysia. Never before photographed, this armada exceeds the U.S. and British navies combined.


You are looking at the largest and most secretive gathering of ships since humans returned to the seas. Well, that is the impression of the Daily Mail’s Simon Parry in his fascinating article and I’m hard-pressed to argue. They are parked off the coast of Singapore and Malaysia, crewed by solitary Indian sailors, rusting away while the world economy languishes. This is the hidden reality politicians and economists don’t like to share: things are not getting better. If they were, these ships would be underway.

First we find out about the trash continent, now we have this lost armada of consumerism. What else is just languishing out in the ocean, hidden in plain sight?

Thanks, Jill!

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Factoid: S&L Retribution vs. Bailout Retribution

…between 1990 and 1995 no less than 1,852 S&L officials were prosecuted, and 1,072 placed behind bars. Another 2,558 bankers were also jailed, often for offenses which were S&L-linked too.Gillian Tett
Assistant Editor, Financial Times

This, according to a Department of Justice report. How many jail sentences have you seen meted out to bankers during the last couple years? I can only think of one, Bernie Madoff. I am willing to admit some escaped the radar, but this is hardly justice. The S&L crisis cost taxpayers roughly $124 billion and netted thousands of incarcerations. My how our society has changed.

Via Jon Taplin’s blog

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Please read Matt Taibbi’s latest article. It’s very important.

I cannot overestimate how important it is that all of us, from the young to the old, National Review readers to Bravo watchers, read this article. The reach of its material touches each and every one of us, no matter how engaged in the broader world we think we might (or might not) be. Ostensibly, it is about the investment bank Goldman Sachs. In reality, it highlights the task ahead if we, as human beings, are to overcome the megalithic obstacles placed in front of us. You’ll laugh, you’ll cry, you will definitely want to punch someone in the face.

As Taibbi says,

It’s not always easy to accept the reality of what we now routinely allow these people to get away with; there’s a kind of collective denial that kicks in when a country goes through what America has gone through lately, when a people lose as much prestige and status as we have in the past few years. You can’t really register the fact that you’re no longer a citizen of a thriving first-world democracy, that you’re no longer above getting robbed in broad daylight, because like an amputee, you can still sort of feel things that are no longer there.Matt Taibbi
Rolling Stone

You simply must read this excellent piece of Journalism. That is all.

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Visualizing the credit crisis

The Crisis of Credit Visualized, Part 1

There have been many attempts to make the financial meltdown understandable, but The Crisis of Credit Visualized, by Jonathan Jarvis, is far and away the best I’ve seen. This is the kind of information that broadcast journalists should be drooling over, desperately trying to get their grubby little hands on it to fill up the precious moments between ad cycles. Instead, on my nightly news last night, I got to hear a story about a horse crapping on the side of the road and a dalmatian that rides a tricycle, literally back to back, in the middle of the newscast. I wonder why ad revenue for local broadcasters has dropped while Google continues to soar?

Even if you understand the credit crisis, it is worth taking a few minutes to watch the video above and Part 2, after the jump.

Thanks, Kevin!
Read the rest of this entry »

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“Secret” Congressional reports leak; free information wins!

The resources of Congress are now at <em>your</em> fingertips!

The resources of Congress are now at your fingertips!

Wikileaks received a momentous leak last week. 6,780 reports, current as of this month, comprising over 127,000 pages of material on some of the most contentious issues of the day (U.S. – Israel relations, financial collapse, etc.) found their way into the public’s hands through the site.

Nearly 2,300 of the reports were updated in the last 12 months, with the oldest dating to 1990. The release represents the total output of the Congressional Research Service (CRS) electronically available to Congressional offices.

Although all CRS reports are legally in the public domain, they are quasi-secret because the CRS, as a matter of policy, makes the reports available only to members of Congress, Congressional committees and select sister agencies such as the GAO.Wikileaks

This is a huge deal. Unfortunately, the MSM hasn’t uttered a peep about it as far as I can tell. This information has been purposefully kept from public eyes for years by the likes of Ted Stevens and his ilk. This major resource now rests in the hands of the public. Let’s see what we can do with it.

A couple of my favorite reports thus far: State Unemployment Fund Data and Would a Housing Crash Cause a Recession? You can download the entire report via this torrent or you can download a 2.2 GB zip file directly from here. More download options are available here.

Take a moment to cast an eye towards what Congress actually knows. It might surprise you just how far astray they lead us.

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Quotable: Chief Maquinna

On the American Indian, Sustainable Banking System:

Once I was in Victoria, and I saw a very large house. They told me it was a bank and that the white men place their money there to be taken care of, and that by and by they got it back with interest. We are Indians and we have no such bank; but when we have plenty of money or blankets, we give them away to other chiefs and people, and by and by they return them with interest, and our hearts feel good. Our way of giving is our bank.Chief Maquinna
Nootka Tribe

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