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In the first week of talks over a financial regulatory reform bill, Democratic lawmakers — in some cases with apparent White House backing — have been defeating or delaying reforms to protect individual investors. Instead, they are catering to corporate interests that prefer the status quo — and write big campaign checks.
At its most basic, this bill is supposed to restore stability and fairness to the markets and give Americans some confidence that their efforts to save and invest will not be undone — over and over again — by the destructive excesses of banks and corporations.
Those goals are being undermined by cynical maneuvers. Here is the damage assessment:
- Cooking the Books
- Keeping Corporate Boards Safe For Cronies
- Shortchanging the SEC Read more.
Since taking office, Obama proved himself a machine politician, not a man of the people, an earlier article explaining it this way:
He promised peace and delivered war; real health and financial reform, not same old, same old; help for millions losing jobs, homes, hope and futures, not handouts to Wall Street and other industry favorites; regulatory oversight, not the usual incestuous government-industry ties, making disasters like in the Gulf possible, and when they happen conspiring with offenders in coverup, distortion, lies, and a total disregard for the environment, wildlife, and way of life for thousands - let alone permanent damage to a vital ecosystem.
At the same time, Big Oil gets billions in subsidies, special tax breaks and other financial benefits, besides being free to operate recklessly in a regulatory-free environment. Little wonder that a disaster now threatens to become the greatest ecological one ever, gushing oil that's potentially unstoppably from multiple sea floor ruptures, worsened apparently by BP fix attempts done as PR stunts, the company and administration knowing they wouldn't work but used them anyway as a charade to fool the public.
In addition, for nearly two months, company officials:
The White House is intervening at the last minute to come to the defense of multinational corporations in the unfolding conference committee negotiations over Wall Street reform.
A measure that had been generally agreed to by both the House and Senate, which would have affirmed the SEC's authority to allow investors to have proxy access to the corporate decision-making process, was stripped by the Senate in conference committee votes on Wednesday and Thursday. Five sources with knowledge of the situation said the White House pushed for the measure to be stripped at the behest of the Business Roundtable. The sources -- congressional aides as well as outside advocates -- requested anonymity for fear of White House reprisal.
The White House move pits the administration against House Speaker Nancy Pelosi (D-Calif.), who told Barney Frank (D-Mass.) to stand strong against the effort.
"I met with the Speaker today and she said, 'Don't back down. I'll back you up,'" Frank, the lead House conferee, told HuffPost. "Maxine Waters is very upset, as are CalPERS and others."
Advocates said that the corporations fought the issue primarily over executive compensation concerns. Given proxy access, investors could rein in executive salaries. The Business Roundtable is a lobby of corporate CEOs. Read more.
The National Center on Family Homelessness (NCFH) studies and reports on the phenomenon, including its causes and consequences. On March 10, 2009, it launched a Campaign to End Child Homelessness, and on the same day released "America's Youngest Outcasts: State Report Card on Child Homelessness." It discovered one in 50 homeless children annually (about 1.5 million), saying it's dedicated to ending the problem - now even greater than during the timeline of the study, largely preceding the current economic crisis.
Whether homeless "by economic hardship, domestic violence," war, or other reasons, affected families lose more than homes. They lose health, safety, and the ability to support themselves, their children especially impacted.
Data from 2005 - 06 was the most complete available for the report. Selected 2007 - 08 data was used when possible, including for minimum wage and Fair Market Rent. The last National Survey of Children's Health was completed in 2003.
Though perceived as an urban issue, rural homelessness is some of the most hidden - complicated by limited access to services, transportation, and affordable housing. Some families move in with relatives or friends. Many others find shelter in abandoned shacks, vehicles, campgrounds, or dilapidated structures on private land. Overall, an estimated 9% of homeless people are rural. Their lower visibility, however, "suggests that this subgroup is not fully represented (in the study) and may contribute to a significant undercount."
Brown Bag Lunch Vigils at 100 congress members' local offices on Wednesday, June 16, will carry the message "Hands Off Medicare and Social Security." Organizer and National Director of Progressive Democrats of America Tim Carpenter explains: "Cuts to Medicare and Social Security will not balance the budget, but ending the wars assuredly will."
This national day of events comes as the House of Representatives is considering for passage $33.5 billion to escalate an unpopular war in Afghanistan, the U.S. economy is faltering, and a presidential commission is working on what most observers expect will be a proposal to slash Social Security and Medicare. "This is not a debate over the size of our government," said Carpenter, "but over what we will use our government for-killing or saving lives."
Participating organizations include Progressive Democrats of America (PDA), the California Nurses Association/National Nurses Organizing Committee, Democrats.com, WarIsACrime.org, Healthcare NOW!, Unions for Single Payer, United for Peace and Justice, CODEPINK, and the Backbone Campaign. Brown Bag Vigils have been ongoing since January, on the third Wednesday of the month.
Brownbaggers are asking members of the House to publicly commit to voting No on any bills that fund wars, to publicly urge their colleagues and the House leadership to make the same commitment, and to protect Medicare and Social Security. This position necessarily includes opposition to the proposed $33.5 billion supplemental expected in the coming days to fund an escalation of the war in Afghanistan.
Congress members' commitments are tracked at http://defundwar.org
Complete information on Brown Bag Vigils is available online: http://tinyurl.com/brownbagvigil
Progressive Democrats of America was founded in 2004 to transform the Democratic Party and our country. We seek to build a party and government controlled by citizens, not corporate elites--with policies that serve the broad public interest, not just private interests. PDA is a grassroots PAC operating inside the Democratic Party, and outside in movements for peace and justice. Our inside/outside strategy is guided by the belief that a lasting majority will require a revitalized Democratic Party built on firm progressive principles.
By Charles M. Young
Last March I went to the Left Forum in New York, which is a yearly gathering of liberals, progressives, anarchists, socialists, communists, hippies, punks, mystics, conspiracy theorists and anti-conspiracy theorists who are all trying to figure out how to get to a decent future from the indecent present. Nobody, of course, knows how to do that. There may not even be a path to a decent future from the indecent present, but I always find the Left Forum hopeful because a few thousand people in one place are at least putting their minds to the problem.
Washington Post, Some Perks For Wall Street Execs Have Gone UP
"Some of the nation's biggest financial firms have increased the perks and benefits they pay their chief executives, despite the glaring spotlight from a public fed up with handsome bonuses at bailed-out Wall Street banks."
I was among those raving in wonder at the the passage of the financial reform bill. And now, having figured out how little has been done, I am just raving.
"Unbelievable," said one advocate who hoped for the best but expected the worst. He was amazed it even passed. The wise men in the media immediately began making comparisons with the New Deal. The pundits praised the President and the fact that a handful of Republicans did not just say no this time.
Somehow, even the most hard-headed among us realized that something had to be done to bring Wall Street in line if only because the mood in the country on this issue is practically insurrectionary. Read more.
Michael Clauer is a captain in the Army Reserve who commanded over 100 soldiers in Iraq. But while he was fighting for his country, a different kind of battle was brewing on the home front. Last September, Michael returned to Frisco, Texas, to find that his homeowners' association had foreclosed on his $300,000 house—and sold it for $3,500. This story illustrates the type of legal quagmire that can get out of hand while soldiers are serving abroad and their families are dealing with the stress of their deployment. And fixing the mess isn't easy.
Michael went on active duty in February 2008 and was sent to Iraq. After he shipped out, his wife May slipped into a deep depression, according to court documents. "A lot of people say that the deployment is more stressful on the spouse than the actual person who's being deployed," Michael, 37, says in an interview with Mother Jones. May Clauer had two kids to take care of—a ten-year-old and a one-year-old with a serious seizure-related disorder. In addition, she was worried sick about her husband. Michael's company was doing convoy security in Iraq—an extremely dangerous job. "It was a pretty tough year for the whole company," he says. "We had IEDs, rocket attacks and mortar attacks, and a few soldiers that were hurt pretty bad and had to be airlifted back to the States."
Seeking to avoid hearing about the situation in Iraq, May stopped watching the news. She rarely answered the door, and Michael says he couldn't tell her when he went "outside the wire"—off-base. May also stopped opening the mail. "I guess she was scared that she would hear bad news," says Michael. That was why she missed multiple notices from the Heritage Lakes Homeowners Association informing her that the family owed $800 in dues—and then subsequent notices stating that the HOA was preparing to foreclose on the debt and seize the home. Read more.
The world economic crisis has ended the taboo on referring to Marx. More and more works are being published on the author of Das Kapital, and the press is publishing special sections on him.
A discussion with Edgar Morin, the philosopher and sociologist, emeritus research director at the CNRS who holds honorary doctorates from many universities around the world and with André Tosel, the philosopher and specialist in Karl Marx and Marxism, professor at the University of Nice.
Although all of the many publications dedicated to Marx lately are not of the same quality, one can nevertheless only be surprised by this sudden increase in interest in him. When such magazines as le Nouvel Observateur and le Point, each according to its political orientation, look into Marx, it is at the very least indicative of certain splits in the mainstream media, whose ideological horizon remains limited to that of capitalist society.
"It may very well be that what we are witnessing is not simply the end of the Cold War or a particular post-war phase, but the end of history as such: (...) the universal adoption of Western liberal democracy as the definitive form of human government," Francis Fukuyama, the American leader of this school of thought, wrote in 1989, the year when the Berlin Wall fell. Almost twenty years on, in October 2008, New Yorkers were demonstrating in front of the Wall Street Stock Exchange and waving signs saying "Marx was right!"
Is his "return" the automatic result of the fall of the idols of neo-liberalism? To remain at this level of thought would be to see in Marx only another conception of the finality of history, "a free and classless society," a simple alternative to Fukuyama's conceptions, which has at long last been recognized as faulty. However, that postulate of the finality of history was used a great deal to legitimize authoritarian power in the days of "really existing socialism." Read more.
Federal prosecutors will not bring criminal charges against current and former American International Group Inc. executives for their role surrounding financial contracts that nearly brought down the insurer about two years ago, according to people familiar with the matter.
The decision brings to a close a criminal investigation that, while mostly under wraps, was widely followed. The September 2008 bailout of AIG was one of the biggest and most shocking of the financial crisis, as trading by a noninsurance unit brought down one of the most iconic financial companies world-wide.
The probe focused on Joseph Cassano, who headed a London-based unit of AIG called Financial Products, people familiar with the matter have said. Other executives at the unit, Andrew Forster and Tom Athan, also were targets of the investigation, these people said.
"The system worked," said lawyers F. Joseph Warin and Jim Walden of Gibson, Dunn & Crutcher LLP, who represent Mr. Cassano, in a statement on Friday. "The large group of federal agents and prosecutors was diligent and professional throughout the investigation, and our client is grateful that they did their jobs by following the facts to the end." Read more.
Financial Lobbyists: Five for Every Member of Congress
By Steve Carpinelli | Center for Public Integrity
Businesses, trade groups and other interests hired more than five lobbyists for each member of Congress to influence financial regulatory reform legislation pending before the Senate, according to a Center for Public Integrity analysis.
More than 850 banks, hedge funds, companies, associations, and other organizations hired 3,000-plus lobbyists to work on the reform bills, according to the Center’s examination of lobbying disclosure data for all of 2009 and the first quarter of 2010. However, public outrage over Wall Street’s role in the 2007-09 financial meltdown blunted industry attempts to win loopholes in the measure now before the U.S. Senate. Read more.
TomDispatch: Putting the Pentagon on a Diet, Will Bad Times and a Bad Economy Finally Discipline the Pentagon?
An expert on the Pentagon budget asks the crucial question -- are the military's free-spending days coming to an end?: Christopher Hellman, "Putting the Pentagon on a Diet, Will Bad Times and a Bad Economy Finally Discipline the Pentagon?"
For years, the Pentagon's ever more bloated budget has been sacrosanct in Washington. In fact, since all discussion of a post-Cold War "peace dividend" disappeared amid increased military spending in the 1990s, points out Christopher Hellman of the National Priorities Project, Pentagon spending has gone wild. Now, he writes, "after a decade and a half of unparalleled budget growth, top Defense Department officials are finally talking about the possible end of their spending spree. And they’re not alone." Is this, then, the moment when economic bad times edges the Pentagon budget into the ever fiercer spending debate in Washington?
Hellman vividly describes just how ridiculously "overmatched" the Pentagon is versus any other military force on earth, cleverly using the words of Secretary of Defense Robert Gates to make the point. ("All told, the displacement of the U.S. battle fleet -- a proxy for overall fleet capabilities -- exceeds, by one recent estimate, at least the next 13 navies combined, of which 11 are our allies or partners. And, at 202,000 strong, the Marine Corps is the largest military force of its kind in the world and exceeds the size of most world armies.") He also considers Congressional opposition to Pentagon budget cuts and the growing realization of top Pentagon officials that they simply won't be able to spend forever as if there were no tomorrow.
Hellman concludes this way: "Make no mistake, Gates has no intention of contributing Pentagon dollars to reducing the debt. His efforts are merely an acknowledgement of our nation’s weak economy, and the fact that fewer dollars will be available for any government program, even favored military ones. This type of Pentagon re-budgeting has been likened to rearranging deck chairs on the Titanic... The mere fact that even Defense Department officials are beginning to discuss fewer dollars for the Pentagon, however, offers an opportunity for Americans intent on reining in rampant military spending. It is a chance that has been a long time coming, is finally on the national agenda, and, if missed, might be an even longer time in coming again."
This is an important piece which, like the Pentagon budget, should be on the media agenda. Read it now.
WASHINGTON, May 20 – Sen. Bernie Sanders (I-Vt.) issued the following statement after the Senate tonight voted 59 to 39 for a major Wall Street reform bill:
“As a result of the greed, recklessness and illegal behavior of Wall Street, this country was plunged into a horrendous recession. While this bill does not go as far as I would like, it is a strong beginning in the effort to reregulate huge financial institutions and to bring transparency to their often nefarious activities.
“I am especially proud that in this bill there is a major provision I authored which, for the first time, will lift the veil of secrecy at the Federal Reserve and give the American people an understanding of where trillions of their tax dollars went in the Wall Street bailout.
“I am disappointed that we could not garner the necessary votes to lower interest rates on credit cards or to begin the process of breaking up the largest financial institutions in this country which are the cause of so many of our problems. I intend to continue that effort until we succeed.”
Click "Read more" below right for more reactions and videos.
The Financial Crisis Is A Game Of 3 Card Monte
You Always Think You Are Going To Win Until You Lose
By Danny Schechter | PlunderTheCrimeOfOurTime.com
We live in a three card monte world. Follow the money as it moves from one shell to another. Now guess where it is. Most of us don’t know the hand can be quicker than the eye. That’s why mostly everyone who has ever been suckered into playing ends up losing except those who are allowed to win to keep the hustle going. We miss the tricks of the trade even as we swear we know where the winning card or money or ball is.
Phase one (Courtesy of Good Tricks): Begin by showing the cards and explaining the game. Do a fair throw, mix the cards on the table slowly, and then turn over the winner. Do this a few times. Without any warning or any change in your pace or handling, do a fake throw and mix the cards slowly on the table. Point to the actual winner, and say something like "You saw it end up over here, right?" They will, of course, disagree with you. Turn it up.
On Tuesday night, Americans were watching the “super primary” in which campaigns in three states supposedly showed which was the 2010 election would go. In one a Tea Party backed candidate, Rand Paul, son of a well known Congressman prevailed, declaring “We will take our government back.”
Presumably he meant from the politicians, and from the major parties, but not from Wall Street which at the very hour of his great triumph in the latest Kentucky Derby was burning the midnight oil, trashing what’s left of financial reform especially the effort to regulate derivatives.
“It’s a bad sign,” bemoans the New York Times, “that there are so many unresolved issues...virtually every effort to weaken the bill involves watering down or undoing these reforms either explicitly or by or by adding fiendishly convoluted language that obscures the bill’s purpose.”
When was the last time you saw the word “FIENDISHLY” in the New York Times?
The U.S. Senate is moving forward with a 59-billion-dollar spending bill, of which 33.5 billion dollars would be allocated for the war in Afghanistan.
However, some experts here in Washington are raising concerns that the war may be unwinnable and that the money being spent on military operations in Afghanistan could be better spent.
”We're making all of the same mistakes the Soviets made during their time in Afghanistan from 1979 to 1989, and they left in defeat having accomplished none of their purposes,” Michael Intriligator, a senior fellow at the Milken Institute, said Monday at a half-day conference hosted by the New America Foundation and Economists for Peace and Security.
”I think we're repeating that and it's a history we're condemned to repeat,” he said.
Intriligator also argued that the real, long-term cost of the war in Afghanistan may completely overshadow the current spending bill.
Nobel Prize-winning economist Joseph Stiglitz and Harvard professor Linda Bilmes estimated that the long-term costs - taking into account the costs of taking care of wounded soldiers and rebuilding the military - of the war in Iraq will ultimately cost three trillion dollars.
Intriligator suggested that a similar calculation for the costs of the war in Afghanistan would indicate a long-term cost of 1.5 to 2.0 trillion dollars.
”Why are we putting money into Afghanistan to fight a losing war and following the Soviet example rather than putting money into [our] local communities?” he asked. Read more.
TomDispatch: The Relentless Pursuit of Extreme Energy, A New Oil Rush Endangers the Gulf of Mexico and the Planet
From TomDispatch this afternoon, a striking analysis of what the BP oil-leak disaster in the Gulf of Mexico really means, and a reminder that it signals the grim beginning of a new oil rush in an onrushing age of "tough oil" -- Michael T. Klare, "The Relentless Pursuit of Extreme Energy, A New Oil Rush Endangers the Gulf of Mexico and the Planet."
"Yes, the oil spewing up from the floor of the Gulf of Mexico in staggering quantities could prove one of the great ecological disasters of human history," begins energy expert and author of Rising Powers, Shrinking Planet Michael Klare. "Think of it, though, as just the prelude to the Age of Tough Oil, a time of ever increasing reliance on problematic, hard-to-reach energy sources. Make no mistake: we’re entering the danger zone. And brace yourself, the fate of the planet could be at stake."
Klare is one of our foremost analysts on the coming age of tough oil and of natural resource scarcity. In his latest TomDispatch.com post, he reminds us of a simple fact when it comes to the explosion of the Deepwater Horizon drilling rig on April 20th in the Gulf of Mexico: "Whether or not the immediate trigger of the explosion is ever fully determined, there can be no mistaking the underlying cause: a government-backed corporate drive to exploit oil and natural gas reserves in extreme environments under increasingly hazardous operating conditions."
This is a subject on which Klare has been a pioneer in his analysis. Here he focuses on the new oil rush in search of energy reserves into some of the most difficult areas of the planet -- the deep waters of the Gulf of Mexico and the Atlantic Ocean as well as the Arctic which, by their very nature, involve an ever increasing risk of human and environmental catastrophe -- something that has been far too little acknowledged.
Klare concludes his important new piece on what the BP ecological disaster really portends this way: "The Deepwater Horizon explosion, we assuredly will be told, was an unfortunate fluke: a confluence of improper management and faulty equipment. With tightened oversight, it will be said, such accidents can be averted -- and so it will be safe to go back into the deep waters again and drill for oil a mile or more beneath the ocean’s surface. Don’t believe it... The ultimate source of the disaster is big oil’s compulsive drive to compensate for the decline in its conventional oil reserves by seeking supplies in inherently hazardous areas -- risks be damned. So long as this compulsion prevails, more such disasters will follow. Bet on it." This is a major piece of analysis. Don't miss it. Read it now.
A mixture of union representatives and anti-mining activists gathered outside a historic Richmond hotel Tuesday morning to protest against a common foe — Massey Energy Co.
Hundreds of people sang songs, chanted and held signs across the street from the Jefferson Hotel, while Richmond-based Massey's board opened its annual stockholders meeting inside. Their protests were focused on Massey CEO Don Blankenship, calling for him to resign or to be prosecuted on environmental and workplace safety issues.
The meeting has attracted more attention than usual because it comes six weeks after 29 miners died in an explosion at Massey's Upper Big Branch mine in West Virginia. The blast is the nation's worst coal mining disaster in 40 years and has prompted an outpouring of criticism of Massey.
At least two people were arrested inside the hotel by Richmond police. Hotel officials declined to comment, and police did not immediately identify who was arrested or why.
Environmental group Rising Tide DC said group members Kate Finneran, 22, and Oscar Ramirez, 25, were arrested after unfurling a 10-by-10 hand-painted banner that read "Massey: Stop Putting Profits Over People" from the mezzanine above the grand foyer in the hotel. They were charged with trespassing and were expected to be released Tuesday afternoon. Read more.
On June 26, 2009, HR 2454: American Clean Energy and Security Act of 2009 (ACESA) passed, purportedly "To create clean energy jobs, achieve energy independence, reduce global warming pollution and transition to a clean energy economy."
In fact, it lets energy polluters raise prices for huge windfall profits and gives Wall Street a bonanza through carbon trading derivatives speculation. Catherine Austin Fitts' Solari.com blog explained it last July in her article titled, "The Next Really Scary Bubble" is coming, saying:
"If you think the housing and credit bubble diminished your financial security and your community, or the bailouts, or the rising gas prices did as well, hold on to your hat" for what's ahead. "Carbon trading is gearing up to make the housing and derivative bubbles look like target practice," or in other words, be the mother of all scams, courtesy of administration, House and Senate collaboration with Wall Street and the energy giants.
Now the Senate version - a clean energy bill? Not according to the Center for Biological Diversity calling it:
"a disaster for our climate and planet. (The Kerry-Lieberman) proposal moves us one baby step forward and at least three giant steps back in any rational effort to address the climate crisis. (Their bill) would entrench our addiction to fossil fuels by offering incentives for increased oil and gas drilling just days after what appears to be the worst offshore oil disaster in American history."
Their proposal includes "no safeguards....to make offshore oil safe. (It) echoes greenhouse pollution reduction targets that scientists recently called 'paltry' and inadequate to prevent the worst impacts of climate change....The Kerry-Lieberman (bill) is not the answer because it asks the wrong questions."
America has achieved its objectives in Afghanistan: al-Qaeda has been dispersed, the Taliban has been punished, an anti-terrorism message has been sent. But Washington’s broader attempt at nation-building has been far less successful, despite the expenditure of nearly 1,000 American lives more than $220 billion. For all this, Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, calls the situation in Afghanistan “deteriorating.”
There is no better time than the present for Washington to learn humility. The U.S. cannot impose liberty, prosperity, democracy, and stability on Afghanistan. The Obama administration should focus on protecting Americans from terrorism while leaving nation-building in Afghanistan to the Afghan people.
The easiest way for an American to fly into Afghanistan is on Kam Air from Dubai. But it appears that only Americans fly into Afghanistan on Kam Air from Dubai. Almost, anyway.
The vast majority of passengers on my flights into and out of Kabul were white males, many with military-style haircuts and several with military tattoos. A few may be on active duty. Most probably are private security consultants. As in Iraq, contractors have come to play an increasing role in the way America fights wars.
More significant, though, is the appearance that this is America’s, not Afghanistan’s, war. Afghans are doing most of the dying, of course. But the conflict is what it is because of American (and Western) men and money.
As a city of several million, Kabul is most definitely Afghan. Nevertheless, the city’s organization—to the extent that it exists—is Western. Traffic, commerce, government, and much else revolves around foreign soldiers, diplomats, consultants, aid workers, journalists, and other outsiders who typically show up during war.
Taliban attacks in the capital are few, but no one feels safe. The airport is ringed by barbed wire; the road leading in is filled with concrete blocks and checkpoints. Travelers face multiple bag and body checks. Humvees topped with machine guns stand guard.
Note: The author, Doug Bandow, is the Robert A. Taft Fellow at the American Conservative Defense Alliance, advisor to Campaign for Liberty, and a Senior Fellow at the Cato Institute. He is also a former Special Assistant to President Ronald Reagan. Read more.
Wall Street to K Street to Capitol Hill - One Big Revolving Door
By George Goehl, Executive Director, National People's Action | Huffington Post
Big bank CEOs make their most lucrative moves not from their offices on Wall Street but from their DC addresses on K Street and Capitol Hill.
The report, "Big Bank Takeover,"...documents a revolving door where former Members of Congress and federal employees soon become bank lobbyists who work to undermine democracy and further the interests of Wall Street at the expense of the American people.
The report documents how during the financial reform debate, the financial industry has hired over 70 former Members of Congress and 940 former federal employees to lobby on their behalf. Members of both parties are guilty.
One of the key findings is that the six biggest banks - Goldman Sachs, Bank of America, JP Morgan, Citigroup, Morgan Stanley, and Wells Fargo - account for a disproportionate share of the activity. This provides the answer to why the U.S. Senate has failed to move on the most critical component of financial reform: breaking up the big banks whose size and reach put our entire economy (not to mention our democracy) at risk. Read more.
European optimists hope the way to save the eurozone will be to complete the project by agreeing much closer fiscal and political union between the single currency members. In future, the hope is Germany would no more allow Greece to get into this mess than it would Bavaria.
Yet recognising how interconnected our economies have become does not in itself lessen the risks. In many respects, the credit crunch which began in 2007 has just jumped another firebreak: what began as a private sector banking problem has mutated into a sovereign debt disaster as nation states try to help, and is now becoming a supranational headache instead as the few remaining stable authorities, such as the EU and International Monetary Fund, get dragged in too.
Understandably, many are now again questioning the role that banks and traders have played in this saga – not least as a government-spurred recovery in bank profits once again drives personal bonuses to record levels.
In Europe, anger at the financial system is directed particularly towards London and New York, where most of the world's currency traders and debt investors hang out. The EU is already working on plans to form its own credit rating agencies as an answer to what many see as an American hegemony....
Satisfying, and just, as it may be to turn fire back on the financiers, the complicating factor is that indebted countries have never needed them more. Perhaps only a root-and-branch reassessment of our financial system itself can save us now. Read more.
Listen Tonight! KBOO Special Report: The Insanity Of Our Oil Addiction - Connecting The Dots In The BP Oil Disaster - Tonight 6-7 PM Pacific Time
KBOO Special report: The insanity of our oil addiction - connecting the dots in the BP Oil Disaster
Air date: Wed, 05/12/2010 - 6:00pm - 7:00pm Pacific Time
Featuring radical Texas populist Jim Hightower, renowned author and activist Antonia Juhasz (The Tyranny of Oil), discussing the real issues behind the BP oil spill currently gushing into the Gulf of Mexico.
Jim Hightower is a national radio commentator, writer and public speaker who has spent three decades battling the Powers That Be on behalf of the Powers That Ought To Be - consumers, working families, environmentalists, small businesses, and just-plain-folks.
Twice elected Texas Agriculture Commissioner, Hightower believes that the true political spectrum is not right to left but top to bottom, and he has become a leading national voice for the 80 percent of the public who no longer find themselves within shouting distance of the Washington and Wall Street powers at the top. Click here for his website.
Also on the show will be Antonia Juhasz, whose book The Tyranny of Oil has been called the hardest-hitting exposé of the oil industry in decades, examining today's most pressing energy questions:
- Why do oil and gasoline prices rise and fall so quickly?
- How much oil is left?
- How far will Big Oil go to get it?
- And at what cost to the economy, environment, human rights, worker safety, public health, democracy, and Americas place in the world?
After Oil Rig Blast, BP Refused to Share Underwater Spill Footage
Message Control A Key Industry Focus During Oil Disaster Drills
By Matthew Mosk, Avni Patel, John Solomon, and Aaron Metha | ABC News And Center For Public Integrity | May 12, 2010
"The technology that's being used on the surface is over 30 years old," said Jerome Milgram, a professor of marine technology at the Massachusetts Institute of Technology. "I can say this. I don't see any practical effect for putting out booms when the sea conditions are such that the booms are totally ineffective."
BP's "worst case" scenario for a huge oil spill in the Gulf relies heavily on being able to boom and skim a half million barrels a day, according to the oil spill response plan the company filed with federal regulators.
During a series of dry-run exercises, where the U.S. Coast Guard, other agencies and oil companies practiced their response to major oil spill disasters, industry executives repeatedly pressed federal regulators to give them more say on what information would be released to the public if disaster struck.
Reports obtained in a joint investigation by ABC News and the Center for Public Integrity show oil companies targeted the potential release of "confidential" information as a key concern.
That behind-the-scenes lobbying effort helped foretell a tug of war this week over images that BP America did not want the public to see as the company struggled to try and contain the massive spill unleashed after one of the company's offshore oil rigs exploded in the Gulf of Mexico.
Throughout the clean-up effort, BP has monitored the spill site around the clock using submarine-mounted cameras at the mouth of the spill. An official at Oceaneering International, the company that operates the submarines under a contract with BP, told ABC News he "could walk right down the hall and watch it, but I can't share it without BP's express permission." Read more.
Billions of oil barrels spilled reminiscent of Exxon Valdez catastrophe
“The Fed can no longer operate in virtual secrecy,” declared Vermont independent Bernie Sanders Tuesday after the Senate voted 96-0 to add his "Audit the Fed" amendment to the financial regulatory reform bill.
The Senate amendment is not as muscular as the bipartisan legislation backed by the House, which was sponsored by Florida Congressman Alan Grayson, an aggressive progressive, and Texas Congressman Ron Paul, an equally agressive conservative with libertarian leanings. The Grayson-Paul bill authorizes audits by the Government Accountability Office of every item on the Federal Reserve’s balance sheet, including all credit facilities and all securities purchase programs; there would be exemption only for unreleased transcripts, minutes of closed-door meetings and the most recent decisions of the central bank. The Senate measure is narrower in its focus, but it would require the GAO to scrutinize some several trillion dollars in emergency lending that the Fed provided to big banks after the September, 2008, economic meltdown.
The actual amount of public money that has been set aside for private banks is not known. That's one reason why this audit is so important. But there can be no doubt that the figure is astronomical. The Center for Media and Democracy’s Wall Street Bailout Tally shows that since 2008, the U.S. government has flooded Wall Street banks and financial institutions with $4.7 trillion dollars in taxpayer money, mostly in the form of loans from the Fed reserve. The Fed has never told us which firms got these loans and what type of collateral American taxpayers got in return. This will now be revealed. We will also get an accounting of the Fed’s “stealth” bailout of Fannie Mae and Freddy Mac. Read more.
Protesters called out "BP kills" and waved signs denouncing the British energy giant Tuesday as the US Congress opened its first hearing into the catastrophic oil spill in the Gulf of Mexico.
"BP kills wildlife, BP kills people, BP kills the planet," two of the demonstrators, members of the anti-war group Code Pink, called out moments before the Senate Energy and Natural Resources began the session.
The protesters also waved signs that read "BP = Bad People," and one wore a T-shirt with a crudely painted "power to the people."
A second group of protesters staged a more quiet show of opposition in black T-shirts emblazoned with "Energy Shouldn't Cost Lives," applying make-up in the shape of black tears.
(PressTV) – BP dome fails to stop oil leak
British Petroleum (BP) has failed in its first attempt to contain oil leaking into the Gulf of Mexico with a metal box as crystallized gas fills the structure. Read More Here
- (McClatchyDC) – Video: Since spill, feds have given 27 waivers to oil companies in gulf. Since the Deepwater Horizon oil drilling rig exploded on April 20, the Obama administration has granted oil and gas companies at least 27 exemptions from doing in-depth environmental studies of oil exploration and production in the Gulf of Mexico. Video Link Here
- Video: Southern Boys Show US Government How to Clean Up Oil With Hay! – Video Link Here
- (MediaConsortium) – Weekly Mulch: Slick of Oil Industry Cash Gummed up Regulatory Works
- The Deepwater Horizon oil spill in the Gulf of Mexico is worse than anyone thought, and the crisis will likely go on for months. British Petroleum (BP) is tripping over itself to say it’ll cover the costs of the clean-up, yet before the spill, the company spent its time and money pushing back against government regulation and safety measures. Read More Here
- (Spiegel) – Expert Recommends Killing Oil-Soaked Birds A German biologist says that efforts to clean oil-drenched birds in the Gulf of Mexico are in vain. For the birds’ sake, it would be faster and less painful if animal-rescue workers put them under, she says. Studies and other experts back her up. Kill, don’t clean,” is the recommendation of a German animal biologist, who this week said that massive efforts to clean oil-soaked birds in Gulf of Mexico won’t do much to stop a near certain and painful death for the creatures Read More Here
- (Guardian) – Chevron wins access to film-maker’s Amazon pollution footage
- Crude, released last year, focuses on the 17-year legal battle between Chevron and 30,000 Ecuadorians who say their land, rivers, wells, livestock and own bodies were poisoned by decades of reckless oil drilling in the rainforest. Read More Here
- (AP) – Oil spill may endanger human health, officials say
- With a huge and unpredictable oil slick drifting in the Gulf of Mexico, state and federal authorities are preparing to deal with a variety of hazards to human health if and when the full brunt of the toxic mess washes ashore. Read More Here
(GreenPeace) – BP working hard to keep the damage hidden – Read More Here