All,
My response to my sister Regina's questions regarding the government's bailout bill for Wall Street or as I like to call it 'Welfare for Billionaires'...
Kofi
Regina,
You're quite right to raise these very important questions and certainly what you've outlined here (and what Obama has also openly acknowledged) is factually true as far as it goes. SOMETHING has to be done. No doubt about it...
HOWEVER, the bailout plan as presently constituted will not and cannot address the major and most important issue actually facing the American taxpayer/worker/citizen/consumer at this point and that is: Who's gonna pay for it and who is going to continue to suffer big time no matter what specific government bailout plan is adopted? And the ugly answer to both questions is you and me--NOT Wall Street, which is to say the greedy profiteering CEOs, corporations, banks, and financial investment houses that specifically determine 'policy' (as in the numbers racket) within the huge gambling casino called Wall Street at this point. This means that no matter what a very severe recession IS going to be the end result in this situation for at least the next 2-3 years in this country and quite possibly/probably 4-5 years at the very least. This means not only higher unemployment, but lower wages, higher prices, and a very stagnant and weak investment sector which will adversely affect education, healthcare, social and technological infrastructure, and taxes for the average worker and consumer.
Wall Street and their ever reliable opportunist and irresponsible protectors--the U.S. government-- is selling the American public a big fat LIE with this legislation. In other words the real problem is not what the stock market does or does not do day to day in terms of ever fluctuating world markets and the like but what happens to the American economy IN GENERAL if the bailout plan is approved. The average person (about 90% of the working public) doesn't have any control over what the stock market does regardless even under the best of financial circumstances, and of course 401K plans, 457 plans, IRAs and Social Security are all in immediate danger anyway because contrary to what both political parties and Wall Street has been telling the public the structural economy that protects these crucial 'safety net' provisions for millions of Americans is ALREADY DEAD.
Now that doesn't mean of course that these established provisions and protections will disappear overnight or that we can't continue to depend upon them in the short term (i.e. the next 2-4 years say) but in the long term (which let's not forget is the reasonably long range 'future'--5-20 years let's say--that we would all like to experience) these and many other social and economic programs will be adversely affected in a decidely negative and destructive way. Which is to say that if we don't collectively demand an entirely different political and economic relationship between corporations, banks, and ordinary working and middleclass citizens and families at the practical level of massive political regulation and nationalized control over wages, prices, pensions, and savings plans generally (and yes-- I'm talking about 'democratic socialism' for everybody--not just the rich, which is what this current bailout/welfare plan absolutely ensures) we will continue to be exploited and economically disenfranchised. In this light check out what the writer, documentary filmmaker, and political activist Michael Moore said in his open letter to his email list yesterday and that I forwarded to you and many others (see sample from Michael's analysis below). Moore is 100% correct and people really need to take what he says very seriously to ensure that we as a country of aware and responsible citizens, workers, and consumers organize to actually CHANGE the direction of this country which first and foremost means we all have to vigorously oppose the political, ideological, and economic domination of the wealthy over the rest of us. The only way to do that is to DEMAND democracy in ALL spheres of the government, the economy, and in our social and cultural institutions. The only way that can happen is through a conscious, well organized, and tenacious GRASSROOTS MASS MOVEMENT. It happened with Civil Rights, it happened with the fight for independent Unions, it happened with the fight for women's rights, it happened in the fight of Gays and Lesbians, it happened in the fights for Social Security, worker protection, tenants rights, and voters rights--hell it even happened to an extraordinary degree in Obama's presidential campaign-- and it MUST happen in the ongoing fight for economic democracy and the average citizen's political control over corporate and financial institutions. It's the next great fight for mass democracy throughout the world and especially here in the United States and it had better happen (much) sooner rather than later because if it doesn't we are ALL through. If corporate capitalism in its present form is allowed to continue we as citizens, workers, and consumers will be ultimately destroyed--no matter what happens on Wall Street...
Kofi
PLEASE NOTE: This is an excerpt from Michael Moore's general statement on the bailout plan that as I mentioned above I forwarded to everyone yesterday:
"The 95 brave Dems who broke with Barney Frank and Chris Dodd were the real heroes, just like those few who stood up and voted against the war in October of 2002. Watch the remarks from yesterday of Reps. Marcy Kaptur, Sheila Jackson Lee, and Dennis Kucinich. They spoke the truth.
The Dems who voted for the giveaway did so mostly because they were scared by the threats of Wall Street, that if the rich didn't get their handout, the market would go nuts and then it's bye-bye stock-based pension and retirement funds.
And guess what? That's exactly what Wall Street did! The largest, single-day drop in the Dow in the history of the New York Stock exchange. The news anchors last night screamed it out: Americans just lost 1.2 trillion dollars in the stock market!! It's a financial Pearl Harbor! The sky is falling! Bird flu! Killer Bees!
Of course, sane people know that nobody "lost" anything yesterday, that stocks go up and down and this too shall pass because the rich will now buy low, hold, then sell off, then buy low again.
But for now, Wall Street and its propaganda arm (the networks and media it owns) will continue to try and scare the bejesus out of you. It will be harder to get a loan. Some people will lose their jobs. A weak nation of wimps won't last long under this torture. Or will we? Is this our line in the sand?
Here's my guess: The Democratic leadership in the House secretly hoped all along that this lousy bill would go down. With Bush's proposals shredded, the Dems knew they could then write their own bill that favors the average American, not the upper 10% who were hoping for another kegger of gold.
So the ball is in the Democrats' hands. The gun from Wall Street remains at their head. Before they make their next move, let me tell you what the media kept silent about while this bill was being debated:
1. The bailout bill had NO enforcement provisions for the so-called oversight group that was going to monitor Wall Street's spending of the $700 billion;
2. It had NO penalties, fines or imprisonment for any executive who might steal any of the people's money;
3. It did NOTHING to force banks and lenders to rewrite people's mortgages to avoid foreclosures -- this bill would not have stopped ONE foreclosure!;
4. It had NO teeth anywhere in the entire piece of legislation, using words like "suggested" when referring to the government being paid back for the bailout;
5. Over 200 economists wrote to Congress and said this bill might actually WORSEN the "financial crisis" and cause even MORE of a meltdown.
Put a fork in this slab of pork. It's over. Now it is time for our side to state very clearly the laws WE want passed. I will send you my proposals later today. We've bought ourselves less than 72 hours."
Michael Moore
On Oct 1, 2008, at 8:21 PM, Regina
What's the alternative...does ANYONE have a better idea...the options seem slim to none to me...either we vote for the "plan" that's on the table or we "freefall" in the banking markets another 777 points.
How does either strategy really help us? It seems to me that Obama is saying..."this is not a perfect plan or not even the plan that we should be voting on, but it is the ONLY plan on the table right now...and since TIME is of the essence, we HAVE to do SOMETHING."
Is there enough time for "Americans" to convene on Washington D.C..and FIGHT the "plan"? If so, what happens to the stock market in the meantime (i.e., our 401K plans, 457 plans, IRA's and Social Security) while we are all heading to Washington D. C.?
I'm not the sharpest tack in the drawer, but I do have questions?????
http://thecaucus.blogs.nytimes.com/2008/10/01/obama-sells-bailout-plan-to-skeptics/
"This financial crisis is a direct result of the greed and irresponsibility that has dominated Washington and Wall Street for years"
--Barack Obama
All,
Obama and McCain both are 100% wrong about this bill--there's absolutely no doubt about it. But the real question at this very latedate is: WHAT ARE THE AMERICAN PEOPLE GONNA DO ABOUT ALL THIS? If there was ever a moment in American history when millions of citizens should be extremely angry, literally up in arms, and organizing huge NATIONAL PUBLIC PROTESTS IN WASHINGTON D.C. against the corporate capitalists and the criminally codependent government who created this bill it is now...
Kofi
October 1, 2008
Obama Sells Bailout Plan to Skeptics
By JEFF ZELENY
New York Times
LA CROSSE, Wis. – Senator Barack Obama intensified his efforts to rally support for the $700 billion financial bailout package on Wednesday, selling the idea to skeptical voters – and members of Congress – as a plan to “safeguard the American economy.”
“This plan is not perfect. Democrats and Republicans in Congress have legitimate concerns about it,” Mr. Obama said. “I know many Americans share those concerns, but it is clear that this is what we must do right now to prevent a crisis from turning into a catastrophe.”
On a crisp fall morning in downtown Lacrosse, where thousands of people gathered not far from the Mississippi River, Mr. Obama sought to explain the need for the economic rescue plan. The light applause from the audience, though, underscored the challenge facing both Mr. Obama and Senator John McCain as they prepare to vote for the bill in on Wednesday night in Washington.
Mr. Obama said the plan had been “misunderstood and, frankly, poorly communicated.” For the second day in a row, he devoted nearly an entire speech to explaining the plan, casting it as essential to warding off a crisis from rippling through the economy. He barely mentioned Wall Street as he presented his argument for the plan, portraying it instead as a necessary challenge for all Americans.
“This is not a plan to just hand over $700 billion of your money to a few banks,” Mr. Obama said. “If this is managed correctly, we will hopefully get most or all of our money back – we might even turn a profit on the government’s investment – every penny of which will go directly back to you, the investor.”
Lacrosse, a city that sits along the western edge of Wisconsin, has long been one of the key battlegrounds in presidential campaigns. Back-to-back commercials from Mr. Obama and Mr. McCain filled morning television programming here, with each of the messages devoted to the economy.
But in a 36-minute speech, Mr. Obama only mentioned his Republican rival by name one time. While politics was hardly off the table, the sharp rhetoric that has defined the campaign took a momentary backseat to a bipartisan call to action on the economic rescue plan, which both candidates now share ownership of.
“Future generations will judge ours by how we respond to this test. Will they say that this was a time when America lost its way and its purpose? When we allowed our own petty differences and broken politics to plunge this country into a dark and painful recession?” Mr. Obama said, steadily drawing his audience into applause. “Or will they say that this was another one of those moments when America overcame? When we battled back from adversity by recognizing that common stake that we have in each other’s success? “
As Mr. McCain made his way to Washington from Missouri on Wednesday, Mr. Obama also was flying back, where he was set to arrive on Capitol Hill in advance of the evening vote scheduled on the Senate floor.
My response to my sister Regina's questions regarding the government's bailout bill for Wall Street or as I like to call it 'Welfare for Billionaires'...
Kofi
Regina,
You're quite right to raise these very important questions and certainly what you've outlined here (and what Obama has also openly acknowledged) is factually true as far as it goes. SOMETHING has to be done. No doubt about it...
HOWEVER, the bailout plan as presently constituted will not and cannot address the major and most important issue actually facing the American taxpayer/worker/citizen/consumer at this point and that is: Who's gonna pay for it and who is going to continue to suffer big time no matter what specific government bailout plan is adopted? And the ugly answer to both questions is you and me--NOT Wall Street, which is to say the greedy profiteering CEOs, corporations, banks, and financial investment houses that specifically determine 'policy' (as in the numbers racket) within the huge gambling casino called Wall Street at this point. This means that no matter what a very severe recession IS going to be the end result in this situation for at least the next 2-3 years in this country and quite possibly/probably 4-5 years at the very least. This means not only higher unemployment, but lower wages, higher prices, and a very stagnant and weak investment sector which will adversely affect education, healthcare, social and technological infrastructure, and taxes for the average worker and consumer.
Wall Street and their ever reliable opportunist and irresponsible protectors--the U.S. government-- is selling the American public a big fat LIE with this legislation. In other words the real problem is not what the stock market does or does not do day to day in terms of ever fluctuating world markets and the like but what happens to the American economy IN GENERAL if the bailout plan is approved. The average person (about 90% of the working public) doesn't have any control over what the stock market does regardless even under the best of financial circumstances, and of course 401K plans, 457 plans, IRAs and Social Security are all in immediate danger anyway because contrary to what both political parties and Wall Street has been telling the public the structural economy that protects these crucial 'safety net' provisions for millions of Americans is ALREADY DEAD.
Now that doesn't mean of course that these established provisions and protections will disappear overnight or that we can't continue to depend upon them in the short term (i.e. the next 2-4 years say) but in the long term (which let's not forget is the reasonably long range 'future'--5-20 years let's say--that we would all like to experience) these and many other social and economic programs will be adversely affected in a decidely negative and destructive way. Which is to say that if we don't collectively demand an entirely different political and economic relationship between corporations, banks, and ordinary working and middleclass citizens and families at the practical level of massive political regulation and nationalized control over wages, prices, pensions, and savings plans generally (and yes-- I'm talking about 'democratic socialism' for everybody--not just the rich, which is what this current bailout/welfare plan absolutely ensures) we will continue to be exploited and economically disenfranchised. In this light check out what the writer, documentary filmmaker, and political activist Michael Moore said in his open letter to his email list yesterday and that I forwarded to you and many others (see sample from Michael's analysis below). Moore is 100% correct and people really need to take what he says very seriously to ensure that we as a country of aware and responsible citizens, workers, and consumers organize to actually CHANGE the direction of this country which first and foremost means we all have to vigorously oppose the political, ideological, and economic domination of the wealthy over the rest of us. The only way to do that is to DEMAND democracy in ALL spheres of the government, the economy, and in our social and cultural institutions. The only way that can happen is through a conscious, well organized, and tenacious GRASSROOTS MASS MOVEMENT. It happened with Civil Rights, it happened with the fight for independent Unions, it happened with the fight for women's rights, it happened in the fight of Gays and Lesbians, it happened in the fights for Social Security, worker protection, tenants rights, and voters rights--hell it even happened to an extraordinary degree in Obama's presidential campaign-- and it MUST happen in the ongoing fight for economic democracy and the average citizen's political control over corporate and financial institutions. It's the next great fight for mass democracy throughout the world and especially here in the United States and it had better happen (much) sooner rather than later because if it doesn't we are ALL through. If corporate capitalism in its present form is allowed to continue we as citizens, workers, and consumers will be ultimately destroyed--no matter what happens on Wall Street...
Kofi
PLEASE NOTE: This is an excerpt from Michael Moore's general statement on the bailout plan that as I mentioned above I forwarded to everyone yesterday:
"The 95 brave Dems who broke with Barney Frank and Chris Dodd were the real heroes, just like those few who stood up and voted against the war in October of 2002. Watch the remarks from yesterday of Reps. Marcy Kaptur, Sheila Jackson Lee, and Dennis Kucinich. They spoke the truth.
The Dems who voted for the giveaway did so mostly because they were scared by the threats of Wall Street, that if the rich didn't get their handout, the market would go nuts and then it's bye-bye stock-based pension and retirement funds.
And guess what? That's exactly what Wall Street did! The largest, single-day drop in the Dow in the history of the New York Stock exchange. The news anchors last night screamed it out: Americans just lost 1.2 trillion dollars in the stock market!! It's a financial Pearl Harbor! The sky is falling! Bird flu! Killer Bees!
Of course, sane people know that nobody "lost" anything yesterday, that stocks go up and down and this too shall pass because the rich will now buy low, hold, then sell off, then buy low again.
But for now, Wall Street and its propaganda arm (the networks and media it owns) will continue to try and scare the bejesus out of you. It will be harder to get a loan. Some people will lose their jobs. A weak nation of wimps won't last long under this torture. Or will we? Is this our line in the sand?
Here's my guess: The Democratic leadership in the House secretly hoped all along that this lousy bill would go down. With Bush's proposals shredded, the Dems knew they could then write their own bill that favors the average American, not the upper 10% who were hoping for another kegger of gold.
So the ball is in the Democrats' hands. The gun from Wall Street remains at their head. Before they make their next move, let me tell you what the media kept silent about while this bill was being debated:
1. The bailout bill had NO enforcement provisions for the so-called oversight group that was going to monitor Wall Street's spending of the $700 billion;
2. It had NO penalties, fines or imprisonment for any executive who might steal any of the people's money;
3. It did NOTHING to force banks and lenders to rewrite people's mortgages to avoid foreclosures -- this bill would not have stopped ONE foreclosure!;
4. It had NO teeth anywhere in the entire piece of legislation, using words like "suggested" when referring to the government being paid back for the bailout;
5. Over 200 economists wrote to Congress and said this bill might actually WORSEN the "financial crisis" and cause even MORE of a meltdown.
Put a fork in this slab of pork. It's over. Now it is time for our side to state very clearly the laws WE want passed. I will send you my proposals later today. We've bought ourselves less than 72 hours."
Michael Moore
On Oct 1, 2008, at 8:21 PM, Regina
What's the alternative...does ANYONE have a better idea...the options seem slim to none to me...either we vote for the "plan" that's on the table or we "freefall" in the banking markets another 777 points.
How does either strategy really help us? It seems to me that Obama is saying..."this is not a perfect plan or not even the plan that we should be voting on, but it is the ONLY plan on the table right now...and since TIME is of the essence, we HAVE to do SOMETHING."
Is there enough time for "Americans" to convene on Washington D.C..and FIGHT the "plan"? If so, what happens to the stock market in the meantime (i.e., our 401K plans, 457 plans, IRA's and Social Security) while we are all heading to Washington D. C.?
I'm not the sharpest tack in the drawer, but I do have questions?????
http://thecaucus.blogs.nytimes.com/2008/10/01/obama-sells-bailout-plan-to-skeptics/
"This financial crisis is a direct result of the greed and irresponsibility that has dominated Washington and Wall Street for years"
--Barack Obama
All,
Obama and McCain both are 100% wrong about this bill--there's absolutely no doubt about it. But the real question at this very latedate is: WHAT ARE THE AMERICAN PEOPLE GONNA DO ABOUT ALL THIS? If there was ever a moment in American history when millions of citizens should be extremely angry, literally up in arms, and organizing huge NATIONAL PUBLIC PROTESTS IN WASHINGTON D.C. against the corporate capitalists and the criminally codependent government who created this bill it is now...
Kofi
October 1, 2008
Obama Sells Bailout Plan to Skeptics
By JEFF ZELENY
New York Times
LA CROSSE, Wis. – Senator Barack Obama intensified his efforts to rally support for the $700 billion financial bailout package on Wednesday, selling the idea to skeptical voters – and members of Congress – as a plan to “safeguard the American economy.”
“This plan is not perfect. Democrats and Republicans in Congress have legitimate concerns about it,” Mr. Obama said. “I know many Americans share those concerns, but it is clear that this is what we must do right now to prevent a crisis from turning into a catastrophe.”
On a crisp fall morning in downtown Lacrosse, where thousands of people gathered not far from the Mississippi River, Mr. Obama sought to explain the need for the economic rescue plan. The light applause from the audience, though, underscored the challenge facing both Mr. Obama and Senator John McCain as they prepare to vote for the bill in on Wednesday night in Washington.
Mr. Obama said the plan had been “misunderstood and, frankly, poorly communicated.” For the second day in a row, he devoted nearly an entire speech to explaining the plan, casting it as essential to warding off a crisis from rippling through the economy. He barely mentioned Wall Street as he presented his argument for the plan, portraying it instead as a necessary challenge for all Americans.
“This is not a plan to just hand over $700 billion of your money to a few banks,” Mr. Obama said. “If this is managed correctly, we will hopefully get most or all of our money back – we might even turn a profit on the government’s investment – every penny of which will go directly back to you, the investor.”
Lacrosse, a city that sits along the western edge of Wisconsin, has long been one of the key battlegrounds in presidential campaigns. Back-to-back commercials from Mr. Obama and Mr. McCain filled morning television programming here, with each of the messages devoted to the economy.
But in a 36-minute speech, Mr. Obama only mentioned his Republican rival by name one time. While politics was hardly off the table, the sharp rhetoric that has defined the campaign took a momentary backseat to a bipartisan call to action on the economic rescue plan, which both candidates now share ownership of.
“Future generations will judge ours by how we respond to this test. Will they say that this was a time when America lost its way and its purpose? When we allowed our own petty differences and broken politics to plunge this country into a dark and painful recession?” Mr. Obama said, steadily drawing his audience into applause. “Or will they say that this was another one of those moments when America overcame? When we battled back from adversity by recognizing that common stake that we have in each other’s success? “
As Mr. McCain made his way to Washington from Missouri on Wednesday, Mr. Obama also was flying back, where he was set to arrive on Capitol Hill in advance of the evening vote scheduled on the Senate floor.
