Morning Musings

Morning Musings Friday 5 August 2011

Why should Wall Street react negatively to anything going on in government?  I mean, they are in control of government, aren’t they?

And please remind me of why we should be worried about what happens on Wall Street, as opposed to what happens on Main Street.  I mean, on Wall Street they’re just playing with money, right?  On Main Street, they would like to have some money to at least think about playing with it.

Republican Gov Chris Christie, of New Jersey, did something commendable.  He not only appointed a Muslim judge to a court, he stoutly defended his appointment, the qualifications of the judge, and said that all that stuff about Sharia Law is “crap.”He is not backing down.  Do you suppose the president could take some pages from his playbook?  Think:  Dawn Johnsen.  Van Jones.  Elizabeth Warren.  Shirley Chisholm .   Richard Cordray.   Watch Lawrence O’Donnell http://www.msnbc.msn.com/id/21134540/vp/44027940#44028012

They love to chant uncertainty.  It is uncertainty about taxes and regulations that causes big bidness to withhold investment in expansion, hiring, and so forth.   But does anyone even mention uncertainty on Main Street?  Does anyone care?

For once, we can be glad that Congress was in pro forma session this holiday; although the strategy was to prevent the president from making a recess appointment of Richard Cordray to CFPB, ultimately it allowed for a special procedure  to authorize FAA without everyone having to come back to DC.   On the other hand, I was wondering why the airlines hadn’t put the congresspersons on the “No Fly List.”  Although Delta should have been giving them free tickets, because Delta’s employees are not unionized so they supported the Republican goal of gutting union procedures for FAA.

Is anyone talking about GE transferring their entire XRAY department to China?  How many workers lose their jobsE?  And GE’s own CEO Jeffrey Immelt is Obama’s man in charge of creating jobs in America.  I’m sorry, my head is exploding.
Do you suppose US hospitals and doctors could be persuaded to boycott purchase of XRAY machines made in China?

Exxon-Mobil has a display ad:  Exxon Mobil Taking on the World's Toughest Energy Challenges.  Exxon Mobile is proud to be a supporter of the National Math and Science Initiative.  Does this mean they will encourage schools to teach about global warming/climate change, and encourage students to take on the challenge of devising means of combatting the effects of these changes? 

Do we expect the Committee of 12, established to deal with the deficit, to accomplish anything?  The Supercommittee, or Supercongress, as it has been variously dubbed?  Congress already has 45 committees that can't seem to get anything accomplished, we need another?   This committee, to be equally divided between house and senate, and between Republicans and Democrats, is supposed to look at all ways to reduce the deficit, including raising of revenues.  But Speaker Boehner and Senate Minority Leader McConnell have already assured Grover Norquist, who is not an elected official, nor indeed any kind of a government official, that they will not choose anyone for the committee who is "willing to give ground on raising taxes.  Now since the aforementined unelected Grover Norquist has extracted a pledge from Republicans in both houses not ever, under any circumstances, to raise taxes,--specifically, 233 out of 239 representatives have signed the pledge, and 39 out of 46 senators have signed the pledge,--that leaves precious few to appoint to the committee.   Now does that leave the Democratic leaders to appoint only those who will not consider a plan that does not raise revenue/taxes?  Or that will not allow any cuts to Social Security, Medicare, and Medicaid?   Senator Reid wonders if perhaps they should not appoint anyone; Speaker Pelosi says:  "I'm not drawing any lines in the sand.  When  12 clowns are in the ring and a sane person jumps into the ring, he looks like the 13th clown." 

About CFPB

Bill Arnold, of Romney WV, wrote this letter to the editor elucidating what the Consumer Financial Protection Bureau (CFPB) is all about.  He also follows up with some suggestions of other consumer protections that should be in place.  Since he wrote this, we have learned that President Obama, instead of appointing Elizabeth Warren to the post of director of CFPB, has appointed her deputy, Richard Cordray; the GOP has already promised to fight that nomination; indeed, they had previously said they would fight any nomination unless rules are changed to weaken the function of the agency.  As well, theyhave an upcoming bill, which you can google to find more details: 

Consumer Financial Protection Safety and Soundness Improvement Act of 2011 - H.R.1315

This House bill would make it easier to overturn rules and regulations issued by the Consumer Financial Protection Bureau.

Here is Bill's letter:

To the Editor

On July 21 the CFPB (Consumer Financial Protection Bureau) becomes law.  It will inherit consumer protection responsibilities from seven federal agencies and assume powers to police "unfair, deceptive, or abusive" financial services products which rob our pockets, lessening our economy's ability to sustain a demand that can grow us (JOBWISE) out of this Wall Street induced recession.

It will write new rules and enforce existing ones for banks with assets of $10 billion-plus  and the tens of thousands of companies in the “shadow” banking industry who charge outrageous interest (e.g.: payday lenders, student Ioan companies, mortgage brokers, debt collectors and credit card companies). Smaller banks will be subject to CFPB rules, but other regulators like the FDIC will enforce them.

CFPB has authority to write rules affecting mortgage down payments and disclosures, loan modifications, credit card rates and fees, bank overdraft charges, credit score usage, and eligibility for student loans, credit cards, pre-paid cards and more. 

They can impose fines on companies, require restitution to aggrieved consumers, rescind consumer contracts and/or file lawsuits against firms that violate its rules. The intention is to make it easier for consumers to understand the often indecipherable fine print that financial firms throw at us.

It should be no surprise that entrenched financial interests, whose huge incomes depend upon our ignorance, are heavily lobbying inside-the-beltway captives (such as Congress) to disintegrate the CFPB.

Anytime you hear Elizabeth Warren's name (the intended head of CFPB) in the headlines you can expect controversial diatribes to accompany the· entrenched financial establishment's crusade to delegitimize the CFPB, CFPB will cover our back. We've needed it for a long time.

CFPB is only a first step in recreationalizing a new way of life that keeps America's prom­ise valid for our future generations.

Here are others. 

"Benefit Corporations" commit to treating their employees, customers, communities and local environments with the same respect as their shareholders.

Put an independent public director on every board who would advocate for the public's interest.

Tax the short-term speculative activities that dominate/distort financial markets.

Eliminate monopoly protections.

Incorporate state banks to increase avail­ability of public money to local businesses, farmers, homeowners, and college students.

Restrict the doctrine of "limited liability" so investors are liable for bad things their busi­nesses do.

Reward money-managers for "long-term" growth. Make the payout from pension divi­dends tax-free for low/middle income wage-­earners.

Require that publicly traded corporations use only cash surpluses for growth investments.

Bill Arnold

Romney, WVa.