Credit, money and the economy

[Christine Baker]

I noticed that NO politician is talking about the fact that the subprime crisis was caused deliberately by the American governments, both federal and state, by encouraging lenders to ignore all lending laws and by refusing to investigate complaints about lenders.

Nobody talks about the fact that through credit reporting and credit scoring the banks are redistributing assets from the working people and poor to the wealthy.

Nobody talks about the facts that the banks create money as debt, have the nerve to charge 26% interest to people with perfect credit for money they CREATED and that the interest to pay the debt does not exist.

Nobody talks about the fact that the tax payers pay the interest on a $9 trillion national debt and that the government COULD simply create the money and NOT pay interest to banks and (often foreign) investors.

I just reviewed http://kucinich.us/ and found nothing about the WORLD's most important issues.

Why are money, credit and the economy taboo?

[Gail]

From the kucinich.us website Issues pages:

http://kucinich.us/index.php?option=com_content&task=category&sectionid=4&id=83&Itemid=48

http://kucinich.us/index.php?option=com_content&task=view&id=1686&Itemid=48

[Christine Baker]

Thanks, Gail.  The second link has nothing to do with the issues, but the first link is quite telling.

Edited:  Actually, there are a few things in the 2nd link about the Federal Reserve and the government PAYING INTEREST on money CREATED by the PRIVATE Federal Reserve.  Exactly WHY would the government allow the banks to create money so that WE have to pay interest to the banks? 

Why doesn't the government CREATE the money and NOT pay interest because it's not a debt?

From http://kucinich.us/index.php?option=com_content&task=view&id=1724&Itemid=48:

"It is time we listen to community groups like ACORN that have taken a lead in raising concerns about predatory lending."

ACORN is a corrupt organization. 

In fact, ACORN made the subprime crisis possible.  It sold out to Ameriquest and other lenders which subsequently defrauded many thousands of home owners.

I was lucky, I only got lied to by Ameriquest.  I sued, incorrectly assuming that lying was illegal.  And I did some research and found the link between ACORN and Ameriquest and other lenders.

ACORN claims to be a non profit, but it refuses to disclose its financials. 

Here is how it works:

ACORN organizes protests.  Sometimes they are successful establishing a living wage or otherwise help the poor to get a few more dollars.  Most of those dollars are immediately transferred to bankers and credit bureaus.

Has anyone here NOT noticed that the poor get poorer and the rich get richer?

ACORN makes it possible.

ACORN pursues banks for predatory lending.  Lots of great publicity, more donations come in.  ACORN settles with the banks and gets LOTS of settlement money from the banks.  Where does all the money go? 

You tell me. 

It is ACORN's job to PACIFY the people, to mislead them into believing that they have rights and the power to make a difference.

You might recall how Americans once had slaves and eventually there was the Civil War and incidentally, the slaves were freed.  How about INSTEAD of freeing the slaves, you make a law requiring every slave owner to feed the slaves twice a day?  We could still have slaves today, maybe by now give them 3 meals a day and medical care.

That is exactly how ACORN operates.

"We can all urge Congress to pass such legislation to put the interests of homeowners ahead the interests of loan sharks and put a stop to efforts in the executive branch to deny states and cities the right to protect their own homeowners. I believe we must greatly expand the capacity of the FTC to penalize offenders."

The FTC is another corrupt organization, working ONLY on behalf of the industry. 

Every action the FTC takes against a major corporation is merely a good show for the fools who don't read the settlement agreements.

CLUE: consumers are NOT industry and don't bribe FTC officials.

ANOTHER CLUE: The FTC board is APPOINTED by the administration who ordered the FTC to no longer publish opinion letters on credit and collection practices and to let the industry regulate itself.

I've sued the FTC too, for its refusal to investigate my complaints.  I'm not a lawyer and of course they were dismissed, along with the Federal Reserve Bank of Richmond and its VP and senior legal counsel James McAffee.  This was about Capital One's refusal to report the credit limits.   

ALL regulators refused to investigate my complaints.

Judge Wake in Phoenix federal court agreed that my FICO scores were lowered due to the missing credit limits, but he dismissed all my claims summarily, stating that the Fair Credit Reporting Act did not specifically state that credit limits have to be reported.  He ignored the legal requirement to report "complete and accurate."  Crooks in robes ... 

I've been waiting for the 9th circuit court of appeals decision for almost a year.  Since last summer, Capital One is reporting the credit limits, not  because of my suits, but because finally several class actions were filed.  Millions of consumers with Capital One credit cards now have substantially higher credit scores, but in the meantime, credit bureaus, banks and Fair Isaac came up with many other systemic abuses to lower the scores.

I've wasted MANY thousands of hours on this since 2001. 

The stress and frustration, 14/7/360, year after year.  No money for health insurance.   No money for anything other than food and barely paying the bills.  I'm 50 years old and I don't qualify for social security or even disability because I have not earned enough income.

I've been doing the LEGISLATORS' job and I didn't get paid one penny.

The bottom line:  After 6 years, I got what I wanted at a cost much higher than ANYONE should have to pay.  Yeah, I'm all for people DOING, but nobody should ever have to go through this agony.  Especially since it would have literally only taken a few hours of ONE legislator's time to get the same end result.

And while I finally got ONE systemic credit reporting problem fixed, there are many more NEW problems!

No legislator noticed that all these wonderful consumer protection laws are not enforced? 

They don't notice that the banks and credit bureaus control the totally corrupt legal system?

I have given up on the politicians, especially since even Dennis Kucinich ignored my pleas for help.

Would a pearl have fallen out of Dennis Kucinich's crown if he had made a public statement, stating that Capital One can NOT deliberately lower consumer credit scores by refusing to report the credit limits?

Clearly, we have to help ourselves.   

I now advocate that near judgment-proof consumers STOP paying their unsecured debt.

VOTE WITH YOUR MONEY!

My three Open Letters to the banks I STOPPED PAYING are at http://mylitigation.net

There will be more letters.   I'm probably going to default on anther $40,000.

I started building a house in 2006, financed with credit cards.  Most had a regular rate of about 10% and I got many 0% balance transfer offers.

My plan was to build the house, then sell my old place, use the proceeds to pay down the credit cards and get a mortgage on the new house to pay off the remaining balances.

I started building, ran out of credit, sold the old place, but got a lot less than expected since prices had gone down and I needed a quick sale. 

Due to the wonderful legislators who decided that banks should no longer make loans to people like me (perfect credit, stated income, no doc), there is no chance of getting a mortgage anymore.  THANK YOU!

And in the end, it's probably a good thing.  Yeah, my perfect credit is ruined.  But, just like I by myself with no legal knowledge and no funds at all was able to finally get Capital One to report the credit limits, I might be able to speed up the implosion of America by encouraging others to vote with their money too.  And THEN we might get the chance at building a system for the people instead of for the bankers and industrialists.

Now is the time to stock up on food, fuel, etc. and to prepare for rough times. 

I've been raised to feel guilty for not paying money I owe.  But I have proven many times that the entire American system is so corrupt - from the legislators to the regulators to the legal system to the crooks in robes -- fully documented, the thousands of court filings are at http://forum.creditcourt.com/cgi-bin/discus/discus.pl. 

I am the world's most experienced credit and FICO scoring expert and I can no longer make a living because the credit bureaus refuse to correct their reporting, no matter how many times my clients submit their written disputes.

Again, this is fully documented in my current litigation against credit bureau Trans Union.  All filings and my discovery requests are posted at http://forum.creditcourt.com/discus/messages/10357/10357.html.  I don't have the money for depositions and it is quite likely that Trans Union will be dismissed or that I have to dismiss because I can no longer afford the litigation.

I now feel guilty when I DO pay a bank and knowingly support the exploitation of the working people.

And that's especially true since I watched The Money Masters and read Web of Debt.

At my new RESISTANCE site at http://creditfactors.com/resistance/viewforum.php?f=2 are the links to several entirely free documentaries on the monetary system.  If you want to know how money is created and why we have a $9 trillion national debt, watch the online documentaries.

Frontline's Secret History of the Credit Card  is also very enlightening and it documents the corruption of the federal regulators such as the OCC.  The City of San Francisco brought down Providian, while the OCC, its federal regulator, was desperately trying to protect it. 

It is shocking that even I didn't know the full extent of the bankers' power over the world (not just America) until just a few months ago. 

The few politicians who stood up to the bankers and were considered a serious threat paid for their courage with their lives.  I can't blame anyone for not wanting to die.  But, I'd appreciate a little honesty, the admission that nothing can be done until AFTER the economy completely collapsed, that the bankers are too powerful and that the people need to fend for themselves.

I support both Ron Paul and Dennis Kucinich for Congress, it's nice to have those two dissenting votes. 

It's not surprising that the free market and anti regulation Ron Paul doesn't care about incorrect credit reporting and artificially low FICO scores, but I am surprised by the complete LACK of interest by Dennis Kucinich.

It doesn't take a rocket scientist to realize that most consumers were forced into subprime loans by artificially low FICO scores, due to documented bugs in the scoring formula at http://creditlegislation.org and/or incorrect data in the credit reports. It's THE way to redistribute assets from the working people to the wealthy. 

And nobody cares. 

[ty]

Kucinich did discuss the Federal Reserve when he was interviewed on PBS. Kucinich opposes private control of money creation.

Yes all government agencies have become corrupt because Corporate interests have almost complete control over the government including regulatory agencies.

[Conservative4Peace]

Kucinich did discuss the Federal Reserve when he was interviewed on PBS. Kucinich opposes private control of money creation.

Yes all government agencies have become corrupt because Corporate interests have almost complete control over the government including regulatory agencies.

Is that why OSHA hassles business over minor infractions? I can tell you from experience that Government is ALWAYS in the way of growth. I'm not talking just OSHA but Government feeds on itself. It is always looking for a new way to tax and grow. It's officials need work to keep their salaries.

Every wonder why Government employees aren't paid a net wage with no taxes due unless they have outside income?

[Christine Baker]

Could somebody PLEASE move the totally off topic post by Conservative4Peace?

Ty wrote:

"Kucinich did discuss the Federal Reserve when he was interviewed on PBS. Kucinich opposes private control of money creation"

If that's true, why isn't there a bill to take back the money supply and eliminate fractional reserve lending?  I'm sure Ron Paul would sign it and I'd like to get a statement with the reason for opposition from every legislator not signing it.

What are they going to say?

"We love the way the Federal Reserve has caused the great depression, inflation and repeated recessions and having tax payers bail out banks is wonderful.  My constituants want me to ensure that the rich get richer and the poor get poorer."

For starters, it would be nice if Dennis Kucinich wouldn't just express his views on PBS, but if he had the guts to put that on his election site and congressional page.

I doubt that he gets many contributions from the bankers. I'm guessing that "they" threatened him and he's afraid they'll kill him too.  And I can't blame anyone for wanting to live and compromising principles to ensure the safety of family. After being ignored and ignored and ignored, I can only draw conclusions.

[Gail]

The topic here is titled "Credit, money and the economy."  That appears to be a broad topic to me.  Perhaps if you want a more limited discussion, you may want a more specific topic title.

[Christine Baker]

And what exactly does OSHA and the government "hassling" business have to do with credit, money and the economy?

Gail, why are not only Kucinich, but all his supporters ignoring the world's most important issues?

I'm sure you're aware that I didn't post here because I have nothing else to do, but because I'm writing a book about how the world as we know it is destroyed by people who COULD make difference and choose not to.  There are the thugs and there are the people who condone their atrocities.

Of course Dennis Kucinich can ignore me just like every other politician.  There is no law requiring anyone to care.  I can't change anything, I can only document the extent of the corruption and encourage people to take appropriate actions and to remove themselves from this corrupt system before it kills them.

[Gail]

Well Christine, I am certainly no financial expert.  That's for sure.  In fact, I wish we didn't even have money.  I think money is basically the conduit for more evil in the world than good.  But then, I am also a no killing ever not even self defense person.

I hope you can ignore posts you do not want to use for information.  From what I do know about money, some folks think it is good when government has a lot of it and spends it on us.  Others think that the private sector should have the money and government should leave business alone.

I think that corporate America has ruined this country.  I like big government but I want my government to spend the money for good programs for all of us, like universal health care and whole child education, and not spend any money on war

[Conservative4Peace]

And what exactly does OSHA and the government "hassling" business have to do with credit, money and the economy?

Gail, why are not only Kucinich, but all his supporters ignoring the world's most important issues?

I'm sure you're aware that I didn't post here because I have nothing else to do, but because I'm writing a book about how the world as we know it is destroyed by people who COULD make difference and choose not to.  There are the thugs and there are the people who condone their atrocities.

Of course Dennis Kucinich can ignore me just like every other politician.  There is no law requiring anyone to care.  I can't change anything, I can only document the extent of the corruption and encourage people to take appropriate actions and to remove themselves from this corrupt system before it kills them.

My post was answering the below quote:

"Yes all government agencies have become corrupt because Corporate interests have almost complete control over the government including regulatory agencies."

I commented because "Big Business" seems to be the punching bag for some when it really is "Big Government" that slows the economy. Anyone who sits through a local variance meeting will get a taste of Government over regulation and corruption. If you have never been to a variance meeting I encourage you to go to one. Mind you, that is ONLY on a local level. Compound the $$$ and power involved for what you get on a National Level or even Global level.

Why does this matter on the economy? Because Government is always in the way. Government officials typically aren't smart enough to make it in the real world yet they often feel they can micro manage the free market. I often say, "I can compete with the big Corps, but I can't beat City Hall!" Government should structure a basic playing field and then get out of the way and let the Community compete.

We don't do that. Our officials (although well meaning) slant the rules constantly to micro manage cities and award cronies benefits. The artificially kill competition with ordinances and even brag about over regulating so that citizens need to bargain with them for what they need.

Government artificially sets minimum wages. Government officials hassle businesses over silly infractions. This all has to do with the economy.

While there are Corporations that jockey for favor in most un-ethical ways, it is the responsibility of Government to uphold the ethics of "Serving the People" yet many times people spend more time bashing Corporations when the blame can equally if not more be placed on Government!
This all effects the economy.

[ty]

Big Government China has the highest economic growth in the world yet most of the people there are very poor. No, I'm not praising China. Just pointing out that Big Government isn't what prevents economic growth. The other point is that economic growth doesn't mean anything unless the large majority of the population is benefiting from the growth.

I agree Kucinich should include monetary reform in his platform.

I think credit cards were probably invented for the purpose of putting the masses in debt by encouraging fiscal irresponsibility.

[Conservative4Peace]

Big Government China has the highest economic growth in the world yet most of the people there are very poor. No, I'm not praising China. Just pointing out that Big Government isn't what prevents economic growth. The other point is that economic growth doesn't mean anything unless the large majority of the population is benefiting from the growth.

I agree Kucinich should include monetary reform in his platform.

I think credit cards were probably invented for the purpose of putting the masses in debt by encouraging fiscal irresponsibility.

Who do people in China work for? Themselves or the Government?

Sure you can have economic growth with Big Government but the profits are going to go into things most of us wouldn't put them into if it were "our" money. The $$$ will go into whatever corrupt project some pinhead official thinks is a good idea.

Credit Cards are credit cards.

They are like food. Some can handle eating and some can't.

[mrsovereign]

I read with great interest the solution proferred by Dennis regarding this current financial challenge and I was surprised that Dennis thought that FDR saved capitalism? Oh well so much for his history knowledge! FDR not only committed fraud but treason against this once great nation also and stole all the gold from the US population and gave it to the fraudulent Federal Reserve Bank, a bank that is not part of the Constitutional Government and is no more Federal than Federal Express!
This, readers, is why we are in the mess we are in! Until we get rid of the Federal Reserve and the "power elite" that runs it and us we are doomed to enslave all future generations along with ourselves of course.
The debt based fiat money system is what is the cause of this world decline! Abolish the "central banking system" of the one world odor elitists and we may have a chance for freedom otherwise we are totally doomed to a one world odor! Yes it really stinks! But it doesn't seem anyone other that a very few can smell it, can you? Ron Paul sure does!
I'm not sure if this post will be deleted as it may be to truthful for the forum admin but we have to know the TRUTH before we can set ourselves free! Watch this video on how money is created

http://survivemartiallaw.com/money.html

then you will know why no solution other than the abolishment of the Federal Reserve and the power elite will ever work!
Great success in that we do in His name!
mrsovereign

[Christine Baker]

Oh yeah, immediately buy his book!

Send a check of money for $22.57 order to:
SML
6516 Monona Dr #220
Monona WI  53716

This forum proves beyond any doubt that America cannot be saved.

You delete MY totally factual and on topic posts and then move SPAM into the most important topic in this entire forum.

Did you determine that buying a book on surviving martial law is the solution?

[trueblue]

The one thing they need to do is to strengthen the FDIC. 

Keeping the money in the hands of the people will ensure a quick recovery of the economy. 

Taking it all to purchased overpriced assets will only take it out of circulation and reward wall street for creating this mess in the first place.

A strong FDIC will keep us afloat far better than risking all to possibly bail out a questionable, failing trading firm.

[bstewart]

Today's Guardian has an insightful article (below) that indicates that even by the measure of other bank bailouts, this one is unconscionable.

B

----------------------------------
Not so much bail-out as rip-off : The US Treasury's purchase of bad debt will benefit shareholders at the taxpayers' expense – and worse, won't work
by Nouriel Roubini
guardian.co.uk, Monday September 29 2008 13:33 BST

Whenever there is a systemic banking crisis there is a need to recapitalise the banking/financial system to avoid a destructive credit contraction. But purchasing toxic/illiquid assets of the financial system is not the most effective and efficient way to do this.

Such government-led recapitalisation – via the use of public resources – can occur in a number of ways: by purchasing bad assets or loans; an injection of preferred shares; an injection of common shares; a purchase of subordinated debt; an issuance of bonds to be placed on the banks' balance sheet; an injection of cash; credit lines extended to the banks and government assumption of government liabilities.

A recent IMF study (pdf) of 42 systemic banking crises across the world shows how different crises were resolved.

     (BS note ; access full IMF report at:
      http://www.guardian.co.uk/commentisfree/2008/sep/29/wallstreet.useconomy   )

In only 32 of the 42 cases was there any government financial intervention of any sort; in 10 cases systemic banking crises were resolved without any such action. Of the 32 cases where the government did recapitalise the banking system, only seven included a programme of purchase of bad assets/loans (like the one proposed by the US Treasury).

In 25 other cases there was no state purchase of such toxic assets. Even in cases where bad assets were purchased – as in Chile – dividends were suspended and all profits and recoveries had to be used to repurchase the bad assets. Of course, in most cases multiple forms of government recapitalisation of banks were used.

But government purchase of bad assets was the exception rather than the rule. It was used only in Mexico, Japan, Bolivia, Czech Republic, Jamaica, Malaysia, and Paraguay. Even in six of these seven cases, purchase of bad assets such recapitalisation was combined with such moves as government purchase of preferred shares or subordinated debt.

In the Scandinavian banking crises (Sweden, Norway, Finland) which are a model of how a banking crisis should be resolved, most of the recapitalisation occurred through various injections of public capital rather than a government purchase of bad assets.

Purchase of toxic assets – in most cases in which it was used – made the fiscal cost of the crisis much higher and expensive (as in Japan and Mexico).

Thus the claim by the Fed and Treasury that spending $700bn of public money is the best way to recapitalise banks has absolutely no factual basis or justification. It is a total rip-off that will mostly benefit – at a huge expense for the US taxpayer – the common and preferred shareholders and even the unsecured creditors of the banks.

Even the late addition of some conditions is a fig leaf of dubious value, as they are totally vague and fuzzy.

With $700bn of public cash the pockets of reckless bankers and investors have been made fatter under the fake argument that bailing out Wall Street was necessary to rescue Main Street from a severe recession. The rescue could have been achieved with a cheaper and better use of public money.

Indeed, neither does the plan address the need to recapitalise those financial institutions. This could have been done via public injections of preferred shares into these firms; via required matching injections of tier one capital by current shareholders to make sure that such shareholders take first-tier loss; via suspension of dividends payments or via a an unsecured debt-for-equity swap.

All these actions would have implied much lower fiscal costs, and they would have been cheaper and shared the burden of responsibility more equitably.

For example if the private sector had done its fair share, only $350bn of public money would have been required; and of this $350bn, half could have taken the form of purchase of bad assets and the other half should have taken the form of injection of public capital in these financial institutions.

So instead of purchasing (most likely at an excessive price) $700bn of toxic assets, the government could have achieved the same result, or better, by spending only $175bn in the direct purchase of toxic assets.

And even after the government bail-out, banks that have not yet provisioned for such losses and writedowns will be even more undercapitalised than before. So this plan does not even achieve its basic objective.

The treasury plan also does not explicitly include an HOLC-style programme to reduce the debt burden of the distressed household sector. Without such a component, the debt overhang of the household sector will continue to depress consumption spending and will exacerbate the current economic recession.

Thus, the treasury plan is a disgrace: a bail-out of reckless bankers, lenders and investors that provides little direct debt relief to borrowers and financially stressed households and that will come at a very high cost to the US taxpayer. And the plan does nothing to resolve the severe stress in money markets and interbank markets that are now close to a systemic meltdown.

It is pathetic that Congress did not consult any of the many professional economists that have presented – many on the RGE Monitor Finance blog forum – alternative plans that were more fair and efficient.

This is again a case of privatising the gains and socialising the losses; a bail-out and socialism for the rich, the well-connected and Wall Street. And it is a scandal that even Congressional Democrats have fallen for this treasury scam that does little to help millions of distressed, debt-saddled home-owners.

[bstewart]

As we debate the almost $700 B for Wall St, we have difficulty understanding that amount of money. It seems to be an outrageous single expenditure for our gov't.
 
But it is LESS than what the Iraq war has cost thus far. ($3.5 B per week!)
 
It is LESS than the $612 billion defense authorization bill just for 2009 passed without significant debate on Sept.24, and the supplemental bills to be produced to cover true Iraq war costs in only a few months.
 
In the debate, McCain talked of effecting a swath of cuts to all aspects of gov't spending, explicitly excluding defense spending.
 
We need a debate not only on the handout to Wall St but the costs of carrying a military industrial complex.
 
Johnson (below), the author of the Blowback trilogy that foretold 9/11, has lengthy expertise. And Andrew Bacevich (see his new book - Limits of Power & his Bill Moyers interview) would be great reads on this topic for those who wish to become conversant.
 
http://www.tomdispatch.com/post/174982/chalmers_johnson_the_pentagon_bailout_fraud

Tom Dispatch   posted 2008-09-28 19:33:23
Tomgram: Chalmers Johnson, The Pentagon Bailout Fraud

B

[bstewart]

a sad sorry but essential read  - from a NYC anti-poverty activist
the statistics, especially for NY State, are sobering.
NY Democrats should be hanging their heads in shame.
(bold is my addition)
B
 
=======================================
Washington Post
No Rescue for the Hungry
By Joel Berg
Sunday, September 28, 2008; B07

When social services advocates like me hear that the cost of the federal bailout of the finance sector might top a trillion dollars, we're not quite sure how to process such a massive figure.

Our country has been told that a gargantuan government rescue of the private sector is necessary because the collapse of major financial institutions would lead to unthinkable outcomes for society. Almost as if by magic, our nation's leaders conjure up vast sums to respond to this crisis.

Yet when advocates point out that our nation is facing an altogether different kind of crisis, one of soaring hunger and homelessness, and that a large-scale bailout is needed to prevent social service providers nationwide from buckling under the increasing load, we are told that the money these agencies need just doesn't exist.

In 2006, fully 35.5 million Americans, 4 million more than in 1999, lived in households that couldn't afford enough food, according to the Agriculture Department. Those households included more than 12 million children.

Last December, the U.S. Conference of Mayors reported that out of 23 major American cities, 80 percent had an increase in people using emergency soup kitchens and food pantries and 43 percent had an increase in the number of homeless children. All that happened between November 2006 and November 2007.

How did the federal government respond? It didn't.

The only federal program that provides cash to both emergency feeding programs and homelessness prevention services, the Federal Emergency Management Agency's Emergency Food and Shelter Program, wasn't expanded by a penny. Even though the program enables thousands of nonprofit agencies (many of which are faith-based) to aid millions of struggling people nationwide, its budget hasn't been increased for six years. Given that costs for food and housing have skyrocketed over that time, the program has, in effect, suffered from massive cuts; the charities that depend on this money are reeling from the strain, many teetering on the verge of collapse.

Even the farm bill's much-touted increase in federal nutrition assistance funding was nominal. The bill provided an extra billion dollars in funding annually, but that works out to less than $30 per year for every hungry American, an amount already lost to the spike in food prices. When we ask members of Congress and lobbyists to help obtain serious funding increases to meet the soaring needs, we are patronizingly praised for our good work but told that times are just too tough to increase budgets. Maybe there will be more money when the economy improves, they tell us, oblivious to the reality that funding for our programs is most needed when the economy is weakest.

In New York, where I live and work, the situation is bleak. The number of meals served by city-supported soup kitchens and food pantries was up 9 percent in the spring from a year earlier. While the City Council rebuffed Mayor Michael Bloomberg's proposal to cut funding to these agencies in June, Gov. David Paterson has persuaded the state Legislature to cut funding for emergency feeding programs twice in the past six months.

The state slashed funding for community-based feeding agencies 16 percent in April and an additional 6 percent in August, after having ruled out a plan to avoid these and other cuts in social services by restoring previous levels of taxation on New Yorkers who earn more than $1 million per year. Other states are making similar budget choices.

We're told to simply accept these cuts because everyone is suffering. But that's just not true. According to Forbes, there are 64 billionaires in New York City with a combined net worth of $344 billion, a staggering 469 percent more than the collective worth of the city's billionaires two years ago.

Federal tax cuts are a major reason the net worth of billionaires is still astronomical nationwide. Surely, if some of those tax cuts were rescinded and the money was used to reduce the hunger and homelessness of their fellow Americans, those billionaires would somehow manage to muddle through.

Just as it is unthinkable for the country to allow financial giants to go belly up, it should be unthinkable to look the other way as tens of millions of low-income Americans (the types of people who clean the offices of AIG and Fannie Mae at night) go without food or shelter. It's time to get our priorities in order.

Joel Berg is executive director of the New York City Coalition Against Hunger and author of the forthcoming book "All You Can Eat: How Hungry Is America?"

[Mareen]

Welcome to the forum bstewart and thank you for the informational posts.  

[Mareen]

Welcome to the forum trueblue. 

I agree with you, especially since the money they squandered came from us anyway.

[Mareen]

I am happy to announce the Bail Out was voted out.  At least for now.

[Coach Ross]

I am happy to announce the Bail Out was voted out.  At least for now.

I'll save you a spot in the soup line.

[Mareen]

You might be in the soup line Coach Ross but I am resourceful and will make my own soup.

[1marilyn1]

The following is a quote that I find interesting. I'm new at this, so cut me some slack. Looks like a good idea, at least far better than giving what's left of America to Wall Street and the Bushes...

I'm against the $85,000,000,000.00 bailout of AIG.
Instead, I'm in favor of giving $85,000,000,000 to America in
a We Deserve It Dividend.
To make the math simple, let's assume there are 200,000,000
bonafide U.S. Citizens 18+.
Our population is about 301,000,000 +/- counting every man, woman
and child. So 200,000,000 might be a fair stab at adults 18 and up..
So divide 200 million adults 18+ into $85 billon that equals $425,000.00.
My plan is to give $425,000 to every person 18+ as a
We Deserve It Dividend.
Of course, it would NOT be tax free.
So let's assume a tax rate of 30%.
Every individual 18+ has to pay $127,500.00 in taxes.
That sends $25,500,000,000 right back to Uncle Sam.
But it means that every adult 18+ has $297,500.00 in their pocket.
A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?
Pay off your mortgage - housing crisis solved.
Repay college loans - what a great boost to new grads
Put away money for college - it'll be there
Save in a bank - create money to loan to entrepreneurs.
Buy a new car - create jobs
Invest in the market - capital drives growth
Pay for your parent's medical insurance - health care improves
Enable Deadbeat Dads to come clean - or else
Remember this is for every adult U S Citizen 18+ including the folks
who lost their jobs at Lehman Brothers and every other company
that is cutting back. And of course, for those serving in our Armed Forces.
If we're going to re-distribute wealth let's really do it...instead of trickling out
a puny $1000.00 ( "vote buy" ) economic incentive that is being proposed by one of our candidates for President.
If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!
As for AIG - liquidate it.
Sell off its parts.
Let American General go back to being American General.
Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.
Here's my rationale. We deserve it and AIG doesn't.
Sure it's a crazy idea that can "never work."
But can you imagine the Coast-To-Coast Block Party!
How do you spell Economic Boom?
I trust my fellow adult Americans to know how to use the $85 Billion
We Deserve It Dividend more than I do the geniuses at AIG or in Washington DC .
And remember, The Birk plan only really costs $59.5 Billion because $25.5 Billion is returned
instantly in taxes to Uncle Sam.

[DrNostrand]

Hi.

I hope that messages here get back to Dennis and his staff. The contact congress server has been down for some time now.

I think that Dennis and other progressive members of congress should take the lead in writing a new financial bill to replace the DOA bill from the Secretary of the Treasury.

ANY BILL should be designed to protect the citizens and legal residents of the United States.

Such a bill should aim to:

1. Keep people in their homes. This means helping out owner-occupants, but not real estate speculators.
2. Tenants should have the option to assume ownership with generous terms.
3. The recent bankruptcy law should be immediately repealed and the old law subsdtituted.
4. Bankruptcy judges should be empowered to negotiate terms of resolution for owner occupants.
5. All other properties should be handled in a manner similar to the resolution of the S&L crises several years ago.
6. The financial markets should be immediately re-regulated.
7. Corporations receiving financial assistance should have their executive salaries capped at no more than General Services salaries for organizations of comparable size. Further, "golden parachutes" should be cancelled. If companies don't have to honor pension plans and similar contracts with employees, then they certainly don't have to pay out effective salaries in excess of one million dollars a day such as paid to the last president of Washington Mutual.
8. The Alternative Minimum Tax kick in level, The Maximum Salary from which Social Security is deducted, and the FDIC limit should all be immediately doubled AND then Inflation Indexed.
9. Corporate Civil Rights should be immediately repealed. Corporations should not have the right to lie. The fourteenth amendment to the constitution was never intended to grant corporations superior status to actual citizens.
10. Corporate treason should be punishable. Corporations have in the past engaged in business practices which can be viewed as treasonous.

Oh well. My little experiment in participatory democracy for today.

GOOD LUCK DENNIS!! GO GET THEM!!

[Gail]

Welcome to the forum,  DrNostrand.  We are the Re-Elect Congressman Kucinich website and thus are prohibited by FEC and House Ethics rules from conducting any congressional business or contacting congressional staff.

If you have ideas and information that you want considered by congressional staff who work with Dennis on legislation, then you need to send it to the congressional office.

Congressman Dennis J. Kucinich
Congressional Office
14400 Detroit Avenue
Lakewood, Ohio 44107

Phone (202)225-5871
Fax (202)225-5745

[Gail]

Welcome to the forum,  1marilyn1.  That email you posted has been all over the internet.  I know nothing about economics and financial stuff; but someone commenting on that email said the math was wrong.  Like I said, I wouldn't know

[Mareen]

Welcome to the forum 1marilyn1.  

[amaram]

The FED is repeating what it did around 1914.  It spent a few years putting lots of cash in circulation wiht low interest rates and no checks on credit worthiness and now it has pulled it back out to forsce the banks and fincial institutions into bankrupcy.  This is an effort to own more and more of our homes and businesses and it is working.
see http://hideyourride.com/MAD / and themoneymasters.com.
There are very few politicians with the guts to even bring up this subject.

[Mareen]

Welcome to the forum amaram. 

One of those politicans is Congressman Dennis Kucinich.