Daily Archives: October 11, 2011


Occupy Wall Street shifts from protest to policy phase

Occupy Wall Street shifts from protest to policy phase by Michael Hiltzik is an analysis from outside the movement, I believe.  However, I think this analysis gets many things right.  Just a small sample follows below:

Progressives plainly hope that Occupy Wall Street will help give concrete form to a political narrative that so far has remained abstract in the public mind: That the financial industry has so far gotten a pass on its responsibility for the 2008 crash and escaped sufficiently stringent regulation, while government assistance to banks and Wall Street firms has left consumers in the dust.

For one thing, the concerns of the protesters are considerably more focused than their critics acknowledge. They involve the extreme inequality of wealth and income that has hobbled the U.S. economy over the last few decades, the imbalance between the government assistance given big banking institutions and that offered the homeowners who are their customers, and the failure to implement meaningful reform on elaborate financial strategies and instruments.

Implicit in the protests is the idea that the banks have resumed their old practices with barely a hiccup, while pleading that the modest regulatory changes that have been passed have somehow hobbled their ability to do business. How do we know this plaint is a sham? One only has to look at the handsome resurgence of profits in the financial industry since 2008. According to the government’s bureau of economic analysis, those profits reached an annualized $438.9 billion in the second quarter this year, up from $122.2 billion in calendar 2008.

More telling, they accounted for nearly 32% of all U.S. corporate profits in the second quarter, up from 13.4% in 2008. That’s important, because it documents an unhealthy domination of economic activity in the U.S. by financial transactions, many of which, as we’ve come to learn, contribute little to economic productivity. That ratio is not only too high, incidentally, it’s way out of line with the historical norm, which is closer to the range of 8% to 12%.

 


Elizabeth Warren, Speak Up, I Can’t Hear You

I posted to Elizabeth Warren’s Facebook Page,

The forces that the Occupy Wall Street movement is fighting are exactly the forces Elizabeth Warren has been fighting – for her whole career. As TARP watchdog and as inventor of the Consumer Finance Protection Bureau, this is Warren’s cause and her natural constituency. If she cannot speak up strongly for this fight, why are we to assume that she is more than just empty words?

And I posted

Why can’t Elizabeth Warren respond to the Occupy Wall Street movement as forthrightly as Senator Bernie Sanders has?

Instead of responding to what the whole world is talking about, Elizabeth Warren’s web site and Facebook page are full of the news that she raised $3.5 million for her campaign.  This sounds very Marie Antionette like, the people are starving, and have no bread and she wonders why they don’t just eat cake, or get excited about her campaign fund raising?

Speak up forcefully now, and the funds will follow.  Fail to speak up now and the votes may not follow.


Scores arrested at Occupy Boston protest site

Scores arrested at Occupy Boston protest site comes from The Toronto Sun.

“Civil disobedience will not be tolerated,” Boston Mayor Thomas Menino told the local Fox News affiliate in an interview early Tuesday.

What an appropriate outlet for the mayor to use to get his message out.  One way to measure the difference between the Occupy … movement and the Tea Party is to look at which people get nervous about the movement.

I guess the politicians and their benefactors have two choices.  They can either spend their money on police to hold down the level of protest or they can spend the money fixing the causes for protest.  I guess I’ll state the obvious before someone else does.  At the moment it seems to be a lot cheaper to spend the money on police.  At least it gives someone a job.


Here is a tweet that I retweeted.

jtsmaggie maggie by Steve13565
@Occupy_Boston It’s ok for Wall Street corruption to disrupt life across America for years…but you guys can’t camp in a park! Insanity!

In the previous post, William Black: Why Nobody Went to Jail During the Credit Crisis, I quote Black, “…with a million plus cases of fraud a year…” describing what was going on in the mortgage market by mortgage brokers and bank executives.  I suppose Mayor Menino is just as adamant at stopping this civil disobedience, NOT!

If the government vigorously prosecuted the banker’s civil disobedience, there would be no need for the civil disobedience of the Occupy … movement.