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Isaiah J. Poole's picture

Rob Johnson: Make Politicians Afriad Of Wall Street Cash

Economist Robert Johnson says progressive activists are going to have to fight more aggressively against the forces on Capitol Hill and the White House who are working on behalf of the financial services industry to block financial reform, given the kinds of deals now being cut by the Obama White House and some Democrats in Congress.

Johnson says that while there is some good news in the recent moves toward creating a financial consumer protection agency, legislative proposals to curb the behavior of so-called "too-big-to-fail" banks remain seriously flawed. We ask Johnson how ordinary citizens can fight back against the corporate cash that is diluting reform.

Terrance Heath's picture

Building the New Economy: Conference Highlights

Elected officials and leaders from labor, business and academia are at our Washington conference outlining the industrial and trade policies we need to ensure a broad prosperity based on good American jobs. Check out these highlights from the conference.

Isaiah J. Poole's picture

Beyond Chicago: The Showdown Shifts To D.C.

Now that thousands of demonstrators confronted bankers at the "showdown in Chicago" during the American Bankers Association convention there this week, activist energy is now urgently shifting to Washington and to communities across the country.

James Mumm, the director of organizing for National People's Action, in this interview declared that the Chicago demonstrations were a success, with about 5,000 people at the concluding rally Tuesday in front of the convention demanding that the banks stop lobbying against a consumer protection agency and regulatory reform.

At that rally, Service Employees International Union president Anna Burger didn't mince words:

“The big bankers came here to Chicago to celebrate because they think they’ve won again. They got their bailouts, they are raking in profits, and they think they can continue to use taxpayers as their personal ATM.

“That’s why, this week, we are launching a national call to action.

“We cannot rest until we begin to break the power that big banks and corporations have over our economy. They have spent decades rigging a system so that no matter what they do, they will always win at our expense.

"We know who the architects of our economic collapse are—Goldman Sachs CEO Lloyd Blankfein. JPMorgan Chase CEO Jamie Dimon, Bank of America CEO Ken Lewis, Wells Fargo CEO John Stumpf, and others.

"We have to investigate them and, if necessary, we have to prosecute them for what they've done to our country."

Mumm also discusses in the interview one of the highlights of the three days of demonstrations, an address Monday from Federal Deposit Insurance Corporation chair Sheila Bair.

Bow, with the Obama administration late Tuesday proposing legislation to rein in so-called "too big to fail" banks and with a comprehensive financial reform bill, in Hamm's words, limping out of the House Financial Services Committee, activists have a lot of work to do.

Mumm says that the financial services industry, having been extended a $17 trillion taxpayer lifeline to bail them out of their reckless behavior, is committing millions of dollars to fighting financial reform, and so it will take "constant messages to members of Congress" to counter that lobbying onslaught. The message to Congress, Hamm said, is, "It is time to choose between the American people and real financial reform or you can stay on the side of the big banks. There is a risk there; on the one side is a bunch of money and on the other side is a bunch of people. But it is time to choose."

There will also be grassroots actions around the country, including a community meeting Sunday outside Boston with Federal Reserve Board Chairman Ben Bernanke and other Fed staff members. That meeting would be the climax of a series of community meetings NPC has held around this country since early summer.

The Showdown in Chicago website will remain active in the coming weeks as a resource for people interested in getting involved, as will the National People's Action site.

Bill Scher's picture

Analyzing Reid's Public Option Move

During today's Bill Dwight Show airing on WHMP, I analyzed the substance and politics of Sen. Majority Leader Harry Reid's move to put a public option, with an "opt-out" provision, in the Senate bill he sends to the floor.

Bill Scher's picture

Building The New Economy: The Interview

On yesterday's The LiberalOasis Radio Show -- broadcast by WHMP -- OurFuture.org blogger Dave Johnson previews the Oct. 29 Building The New Economy conference, outlining the economic challenges posed by a shrinking manufacturing base and an unfair trading regime, and how public investment and enforcement of rules would position America to thrive in a 21st century, balanced global economy.

Bill Scher's picture

Moving Away From A Service Economy ... By Yourself

On The LiberalOasis Radio Show, which airs on WHMP in Western MA, "My River Chronicles" author Jessica DuLong tells her story of how she left her dotcom job to become a fireboat engineer, and what she learned by seeing the American economy from those two starkly different vantage points.

Isaiah J. Poole's picture

Thomas Frank Exposes Washington's "Wrecking Crew"

Thomas Frank, the author of "What's the Matter with Kansas," explains what's the matter with Washington in his new book, "The Wrecking Crew," at a talk at the National education Association headquarters in Washington.

The book is an expose of the wreckage caused by decades of conservative government in Washington and how progressives can undo the damage. Frank says that the anti-government bent of the conservative movement is not a recent phenomenon and is not, as some conservatives claim, a reflection of Bush administration incompetence or closet liberalism. When regulators literally allowed the Wall Street implosion to unfold before their eyes, Frank says, "They were asleep at the switch because they were supposed to be."

Frank encourages progressives to more forcefully press the ideological contrast between the ideology of the common good and the conservative worship of an unbridled free market.

Also at the event, David Donnelly of the Public Campaign Action Fund said that "The Wrecking Crew" points out the need for public financing of campaigns, so that elected officials are not dependent on money from the interests that "The Wrecking Crew" is serving.

Isaiah J. Poole's picture

Nomi Prins: No More 'Too Big To Fail'

Nomi Prins, a senior fellow at Demos, tells the Economic Policy Institute that in the year since the climax of the Wall Street economic meltdown the country's economy is even more vulnerable to "too big to fail" banks and their high-risk behavior. The fact that the banking sector is moving so quickly back to profitability, and to talk of big executive bonuses, while the Main Street economy remains so crippled is a reflection of how far behind the curve we've fallen in implementing a reform agenda.

Prins, whose new book, "It Takes a Pillage," has just been released, makes the case for breaking up "too-big-to-fail" banks and instituting a new Glass-Steagall act, which would reinstitute the wall between retail banking and investment businesses that was torn down by conservatives during the 1980s, leading to the creation of today's financial behemoths.

Isaiah J. Poole's picture

G-20 And The New Economy

Ohio Sen. Sherrod Brown and Jeff Madrick, director of policy research at The New School’s Schwartz Center for Economic Policy Analysis, join Institute for America's Future co-director Robert Borosage in calling for President Obama to champion fairer global trade policies that safeguard American jobs at the G-20 summit in Pittsburgh. Both Brown and Madrick applauded Obama's decision to put a tariff on tires imported from China, and they both encouraged Obama to dismiss fears that the action would lead to a trade war. Governments should not confuse legitimate actions to support domestic businesses with "protectionism," Brown says.

Brown also says that climate change legislation currently pending in the Senate will not pass without assistance for American manufacturers. (The Hill publishes details.)

Isaiah J. Poole's picture

Financial Crisis Probe Gets Under Way

The Financial Crisis Inquiry Commission, the panel created by Congress to investigate the causes of last year's financial market meltdown, held its inaugural meeting September 17 as the nation observed the one-year anniversary of the nadir of the Wall Street economic collapse. Commission Chairman Phil Angelides said that the commission will craft and execute an ambitious schedule to get the facts behind the economic crisis, and would strive for consensus among the members of the committee, which include strong progressives and conservatives. The panel's members set out their expectations for that the panel would accomplish during its 15-month charter.