It Ain't Right!

Century 21 shows me that there is no such thing as an economic recession (It is predicted by 2012 that we will struggle to buy food)
Rent in my neighborhood still exceeds $1000 (that's per person)
The value of my Bachelors Degree finally increased
"Hooking" as an attractive occupation if faced with the threat of lay-offs (meet me at the St. Regis)
Independent stores in New York that have survived the Savings and Loan Crisis and Recession in the 80s and 90s are finally forced to close down
Please read this and re-visit the site, often
"Low Low Prices" at Wal-Mart have driven people in Long Island to reach a new low, can we please detach that place from New York and send it on over to Mumbai
Forcing people to look at a Nativity scene, and not allowing a placard extolling the Winter Solstice to be placed near it is of high importance to some Olympians

Constitutional Act of the Day: Glass-Steagall Act of 1933

Our most beloved constitutional act <3

A.K.A. The Banking Act of 1933

Started the FDIC

Brought about banking reforms to control speculation (the assumption of the risk of loss, in return for the uncertain possibility of a reward)

Established Regulation Q: put interest ceilings on savings accounts, zero interest for checking, and promoted the emergence of N.O.W. and Money Market accounts -the Depository Institutions Deregulation and Monetary Control Act of 1980 later repealed Regulation Q

Established the allocation of currency by the Federal Reserve for the first time ever

Separated bank types: Commercial banking (individuals, small business, large organizations) vs. Investment banking (corporations and municipalities- use of securities)

Arguments for keeping it around:

1)Preventing the same institution from granting credit, setting up provisions for the use of credit, lending, and investing.

2)Depository institutions already have control over other people's money, this act would limit their activity in the market for funds (loans or investments) to ensure stability and healthy competition

3)Securities can bring about substantial losses, and as a result, jeopardize the value of deposits. Since those deposits are guaranteed by the FDIC, government must cough up our money. ***Remember government cannot create money, it can only re-assign (earmark) it

4)Depository Institutions are supposed to manage(minimize) risk.

This act was repealed in 1999 by the Gramm-Leach Bliley Act.

I don't feel like summarizing the arguments against the Glass-Steagull Act.

Let's Meet the Cabinet-Designate: Chief of Staff - Rahm Israel Emanuel

If you know me, you would know that I always vote for Nader. This time around I had to give my vote to the Democratic Party. We knew Barack O'bama was going to win, let's now focus on the people he is going to surround himself with.

Chief of Staff: highest ranking member of the Executive Office, Senior Aide to the President. Kind of like a secretary/office coordinator: oversees everyone else on the Cabinet, makes the Pres.'s schedule, decides who he get's to meet with the Pres. - V.I.P. to the extreme. They advise the Pres. on policy and staffing issues, and they smooze with Congress to help implement the President's agenda as well.

Rahm "Rahm-bo" Emmanuel Run-Down:

Chair of the Democratic Congressional Campaign Committee in 2005

Started out his political career with Illinois Public Action (public interest\consumer rights)

Democratic member of the United States House of Representatives since 2003

Chicago Illinois's 5th Congressional District (close to home for Barack)

Member of the New Democrat Coalition (that makes me a bit worried) Neo-Liberal

Directed Bill Clinton's campaign finance committee, helped Clinton to raise $72 million to fight off Ginnifer Flowers and Vietnam draft character attacks

Senior Advisor to Clinton from 1993 to 1998

Leading Strategist for (failed) Universal Healthcare Clinton initiative (thumbs up for that attempt)

Co-Author of The Plan: Big Ideas for America(2006)
Brother of Ari Emmanuel - Hollywood Agent (think Jeremy Piven & Entourage)
Choreographed the handshake (1993 Rose Garden signing ceremony for the Oslo Accords) between Israeli Prime Minister Yitzhak Rabin and PLO leader Yasser Arafat
Not afraid to put some rotten fish in your mailbox
1998- 2002 Post-White House: Investment banker at Wasserstein Perella (Dresdner Kleinwort)
Made $16.2 million as an Investment banker
Served on the Board of Directors for the Federal Home Loan Mortgage Corporation (Freddie Mac)
Resigned from his Freddie Mac board position to run for Congress in 2001
Pledged in 2006 to support Hillary for the Presidency, but felt torn when Barack told him that he was going to run
Top House recipient in the 2008 election cycle of contributions from hedge funds, private equity firms, and the larger securities/invesment industry
Almost chopped his finger off working for Arby's as a youth

* Let's hope that healthcare is his number one priority and bailing out the financial industry isn't.

CEO of the Day: Richard S. Fuld, Jr.

Richard Severin Fuld, Jr. - Former CEO of Lehman Brothers

I haven't read it all just yet, but jeez, who wrote this man's prepared testimony? There's no way he didn't know for quite some time that his company was going for bust.

Born and raised in New York

M.B.A at NYU's Stern School of Business
ATO frat boy for undergrad at CU-Boulder
Worked for Lehman Brothers for 40yrs
Leader of Lehman Brothers for 15yrs
Served on the Board of Directors for Federal Reserve Bank of New York and the Robin Hood Foundation (It Ain't Right!)
Served on the Board of Trustees for Middelbury College and New York Presbyterian Hospital
Forbes ranked #11 in 2008 for CEO compensation

During questioning by Rep. Henry Waxman it was found that:
Since 2000, He has taken home more than $480 million dollars in company profits
He claims that *for the years that Henry Waxman was asking him about* his cash compensation was *only* close to $60 million, and the rest of what he took out under his options was *only* $250 million - avoiding correction of any actual figures Congress had up on the screen for his compensation

The Next Blog

Have you ever clicked on the next blog option to see what might generate after yours?

http://efinlinson.blogspot.com/
http://carolynfashionnotes.blogspot.com/


Can you say cringeville?

Constitutional Act of the Day: Community Reinvestment Act

Class, before I begin my explanation as to how our nation was plunged into financial ruin by a combination of Wall-Street and both the Democrats and Republicans in the White house from 1999 to 2008 (yes, that includes Golden Boy Bill Clinton), I would like to prep you with some "of the day" lessons.

We will begin with the Community Reinvestment Act:

If you followed the link and did some reading on your own, you would find out the following...

Year Passed: 1977

Who Passed: Jimmy Carter Administration and the 95th U.S. Congress (both chambers were a Democratic Majority)

What it entailed: It encouraged commercial banks and savings associations to stop redlining practices and lend money to their surrounding communities, mainly low-moderate income neighborhoods providing that is it is monitored by the Fed to ensure "safe and sound operation"

Criticism -OR- What it meant to potential exploiters

"distort credit markets" - OR - expansion into risky investing like Securities and Derivatives

"create unnecessary regulatory burden" -OR- Freddie Mac and Fannie Mae to lend financial backing, the chance for government to make(lose) money in the financial sector, and making up a CRA rating system for banks so government could provide an illusion of accountability.

"lead to unsound lending" -OR- pave the way for unregulated predatory lending (What happened to the CRA rating system?)

"cause the governmental agencies charged with implementing the law to allocate credit"-OR- Government was asking for the banks to lend in the first place, and also promising oversight in lending practices. Why wouldn't financial institutions expect a bailout from government, especially with participation from Fannie Mae and Freddie Mac?


Think about it kids.

Mr. Gaffe and the Maverick

*Famous quotes taken from CNN (and the V.P. candidates)

Palin said Obama and company do "too much finger-pointing" to stay true to their focus of change

"There have been huge blunders in the war. There have been huge blunders throughout this administration, as there are with every administration"

"But for a ticket that wants to talk about change and looking into the future, there's too much finger-pointing backwards to ever make us believe that's where you're going," she said.

Biden responded with, "Past is prologue."

To which Sarah Palin responded: "The Bush administration opened up access to the Tongass Forest earlier this year to private corporations to build new roads which will sustain jobs and subsistence for the residents of Southeast Alaska, so I too am Pro-Log."