Common Cause Blog :: A corrupt system soldiers on

A corrupt system soldiers on

By Josh Zaharoff
Posted on Tue Sep 23, 2008 at 05:49:14 PM EST

The LA Times covers the story behind the bailout story today: how the major Wall Street financial institutions spent over $1 billion (that's billion with a 'b') on Washington lobbying and campaign contributions in just the last six years, which not only pushed Congress to treat them with kid gloves--i.e. lax regulation, friendly policies--but is also allowing them to continue pushing for their own best interests in the massive bailout package.

The subheadline says it all: Firms have given lavishly to both parties in Congress. That could help them get the language they want in the bill - as well as block provisions such as homeowner assistance.

That's our political system, rife with corrupting big money, soldiering on to favor the wealthy and powerful industries even in the most dire circumstances. There's no better example of why public financing of campaigns would go a long way towards putting the power back into the hands of the people and allow lawmakers to serve the public interest, not the financial services industry's interest.

Could this happen again? Well, we had the S&L crisis twenty years ago, but apparently that lesson wasn't enough to overcome the campaign cash of Wall Street. Either we change the way we finance our elections in this country or... well, you know the old saying,

the definition of insanity is to do the same thing over and over and expect a different result.

UPDATE (Wednesday): And for a further analysis, see our report out today, "Ask Yourself Why... They Didn't See This Coming."

Tags: money in politics, bailout, financial industry, public financing (all tags)

A corrupt system soldiers on :: 11 Comments

Greed we don't need

When the CEO's pay for the big losses through their 8 digit salaries, then they should ask America to go socialistic instead of remaining capitalistic. We are supposed to revere the capitalistic system aren't we. Let them eat cake!

by Thmase on Thu Sep 25, 2008 at 12:03:02 PM EST

A Culture of Greed is Facilitated by Corruption

Whatever the Executive Branch and Congress have been doing for several years, it hasn't been monitoring or effectively deterring fraud. The breadth, depth, and scope of fraud has been documented by the news media and in Congressional Hearings for years. Each blip on the radar screen results in a knee-jerk response analogous to treating metastatic cancer with a few shots of radiation.

A culture of greed has captured American society. Hints of it were evident many years ago as Harvard and other MBA programs began teaching ethics after the ENRON and Arthur Anderson debacles. Teaching ethics? The curve balls, sliders and change-ups in Corporate America are learned in the course of the young minds' orientation and apprenticeships in their careers. Bottom line considerations are paramount. Advancement is premised upon contributions to improving profitability by whatever means are encouraged tacitly or otherwise. 'Anything goes' isn't new; its just been ignored.

We watch passively as thousands are imprisoned for drug possession and petty thefts while corporate crooks write 6 and 7 figure checks to pay fines and penalties to settle multi-million $$$$ fraud cases. We elect and re-elect corrupt enablers, who turn a blind eye or worse, proactively facilitate the pathways to financial disasters and unjustifiable military adventures.

Through it all, somebodies somewhere are making money on the public's suffering. Healthcare fraud is the most egregious, but mortgage fraud and securities fraud have victimized millions as well.

A snapshot of the epidemic of fraud is available in a recent Washington Business Journal article
http://washington.bizjournals.com/washington/stories/2008/09/15/daily55.html?b=1221451200%5E1701647& amp;ana=e_abd

McCain's cadre of supporters have been among the most transparent greed-merchants and enablers of fraud. Phil Gramm, Newt Gingrich, Bill Frist, Tommy Thompson, Jeb Bush, Tom DeLay, and scores of others in and peripheral to the current administration own different cells within the fabric of cancer of corruption afflicting the nation. They sold American out in various ways by various means. Some of it is more apparent, but however subtle or overt, selling out the public interest they did. And they did it over and over again.

Barack Obama can launch the chemo that kills the metastatic cancer and definitively destroys the roots of corruption. A participative and focused body politic will be necessary. The alternative is self-immolation by default or by continuing to enable a culture of greed to run the society into chronic disasters, which will terminate anything resembling a quality of life as we knew it.

We are being polluted to death, bankrupted by the antics of greed-merchants, and on the path to experiencing healthcare as a luxury commodity only. If America doesn't wake up in this election, they will never wake up.

by TellItLikeItIs on Thu Sep 25, 2008 at 12:10:46 PM EST

New boss same as the old boss!

Profit is the source of prosperity! The age old question is, "how much profit is proper". The consideration of cause and effect are rarely included in the debate.

Yes, we have a culture of greed. It [greed] is the effect of our desire. When desire is unchecked, encouraged beyond realistic limits, profit, or the corporate bottom line, becomes obscene.

It is not that academia teaching ethics is odd, it is that society has stopped caring what is ethical. If I get what I want when I want it that's OK! Corporate America fills the expressed desires of the consumer; Government fills the orders of Corporate America. I ask you this, "Why are there so many gas stations in a town [Santa Barbara] that began the GOO [Get Oil Out] protests? It must be ok for some other guys beach to get oiled, but not Santa Barbara!

In the America past we saw the concept of generational improvement, children succeeding to growing degrees of quality life. Parents sacrificing now for a better future, allowing all to rise with time.

Fast forward, America today is for me, for what I want, the "American Dream" and prosperity - NOW! The moral peril of this is not my concern; damn the torpedoes! Houses, cars, consumer goods, excessive food consumption (it tastes so good), risky health behavior (it feels so good), and a free health care system that "fixes" my ills or millions of dollars in compensation if it fails.

We can try to expose selective law enforcement, rampant in America, as an indicator of our broken moral compass. What we are really saying is "I'm different the law does not apply to me" whether it be immigrants entering the country illegally for a better life our corporate executives selling derivatives to better their life, we as Americans fool ourselves by thinking it's the other guys that are bad; not me!

The list of "greed-merchants and enablers of fraud" is not lacking from either side of the political aisle. The "transparent" nature is only evident for the guys who are not in power.

Consider this; the despised Capitalists of the early 20th century now have "trust fund" babies in Congress. How much do you think the Heinz or Rockefeller corporations are worth? Why is the candidate refusing public funding for office the guy who is going to fix all this? The new boss is same as the old boss.

by dtrader on Fri Sep 26, 2008 at 02:44:44 AM EST
[ Parent ]

Bush speech

Did anyone watch the "Liar in Thief" last night? He is blaming the homeowner for the economic crisis...nothing said about the rising price of gas, groceries, utilities, etc. He just went on about the homeowner defaulting on their loans. I guess I shouldn't be surprised but let's see how many ignorant Americans fall for his phony explanation.

by momo on Thu Sep 25, 2008 at 12:16:58 PM EST

Bailout - If crisis is World Wide then so be it!

Last night our President came on TV and told us the financial crisis was a world financial crisis. Economies are so intertwined that this current debacle is affecting the whole world.

I agree its a world wide crisis but then why is the solution coming only from US Taxpayers pockets?

The Arabs, Chinese and Europeans all bought these bad securities, are we bailing them out also ?

Peter Kelly

by Peter Kelly on Thu Sep 25, 2008 at 12:32:20 PM EST

They saw it coming ...

You're darn tootin' they saw it coming. That's why Congress rewrote the bankruptcy laws, at the direction and for the benefit of the lending industry, to make it harder for wage earners to find protection in bankruptcy from predatory creditors. That should have been a wake up call for everyone, but those who heard it were written off as bleeding hearts.

by Sheila0326 on Thu Sep 25, 2008 at 12:38:48 PM EST

"Tell Wall Street To Go To Hell"

Rep. Marcy Kaptu D-Ohio offers a hard hitting video on how we are getting screwed by the Fed.
http://wakeupfromyourslumber.blogspot.com/2006/02/mother-of-all-myths.html

Rumsfeld Sept 10, 2001: The Pentagon cannot ACCOUNT for $2.3 TRILLION. The day before 9/11/2001. ( just think what $2.3 T would do to put people back to work)
http://www.youtube.com/watch?v=oj1rT4bszWg

America has a Trojan type virus that cannot be patched, quick fixed, or rebooted. We need everyones help to reformat the financial system. The timing is right now to pressure our Legislators to start doing their job to start pro tech America.
Top 50 economic blogs. http://www.c-span.org/resources/blogs.asp

Brazil, WTO to Attack American Farmers
Monday, August 25, 2008

The World Trade Organization has recently ruled in favor of a Brazilian initiative seeking punitive sanctions against U.S. cotton farmers, according to the International Herald Tribune. The United States is proactive in its subsidization of agriculture - including cotton - and for this reason is a leading exporter of agricultural goods.
The United States exports more cotton than any other nation, but the budding economy of Brazil is swiftly rising through the world ranks. Having lost its final appellate attempt, the United States is now open to possible WTO action against its government subsidies.
Chinese Dream" Soars as "American Dream" Crumbles Craig Harrington International Competition
The 20th Century was certainly "The American Century," as the world witnessed the ascent of a mere role-player to the status of a hyper power. The end of the American Century now seems almost tangible, and it will be the Chinese who ascend to replace us, according to The Detroit Free Press.
The greatest bastion of capitalism may fall by the wayside, and in its place we would have the single most (if not only) successful communist state in world history. Unfettered and unregulated trade, fiscal and monetary policies have left the United States with trillions of dollars in outstanding debt. Meanwhile, the closely monitored Chinese economy seems ready to finally make its Great Leap Forward.

Stay Well,

Thomas Moore

by greycloud on Tue Sep 30, 2008 at 03:39:48 PM EST
[ Parent ]

Time to pay the "Piper"

There is enough blame to go around, from Franks and Dodd in 2005 voting against regulating "bad" lending practices, to all those "lenders & borrowers be"! The facts remain 1) there has been over encouragement by Government, Business and Consumers to participate in "bad" borrowing; borrowing without ability to pay back, borrowing to run government and borrowing to buy consumer goods. 2) The "good" borrowing for capitol investment; growing food, developing energy, building infra structure and manufacturing durable goods has been discourage by high capitol gain taxes, corporate taxes [paid by consumers] and high personal income taxes.
Now, if what we are being told is true, there is no one willing to loan more money! I can remember in 2005 my neighbor borrowed $350K from Downey Savings as a home equity loan. I was told by same, "it's my money" and "it [equity] should work for me!". When I asked him if that meant he would use the money to find a job, he got mad! The loan was "packaged" put on the books as an "asset" when the reality was the asset value was unrealistic and the ability for my neighbor to pay it off was also unrealistic. Fast forward to 2008; mortgaged foreclosed and resold for half the 2005 appraised value.
As always, there are many solutions to a problem with some better than others, based solely on perspective; failing to address all concerns. The way I see it the worst solution is a "bailout" by the people who got us into this mess; big government. Congress failed to regulate, the White House failed to demand regulation and they are both feeding at the same trough of "easy money". It is time to tighten our belts and pay the piper! If government wanted to fix this they would suspend capitol gains taxes, suspend corporate taxes and require realistic lender licensing laws, i.e. felons need not apply, and workable reserves for banks based on independent asset assessments!
Throughout my life, I have found the worst enemy for my prosperity and freedom has been government. Consider this, why is it when government fails the only answer is more government?

by dtrader on Thu Sep 25, 2008 at 05:29:08 PM EST

October Surprise is Early-Com Cause Bailout Letter

As you and your colleagues work to come up with a solution to the economic crisis facing our country, I know you will keep the needs of the taxpayers - and not the special interests - foremost in your mind.

I realize that this is an election year, and that many in Congress are eager to adjourn quickly and get back to the campaign trail. However, there is too much at stake to rush to judgment.
---------->>>>>THIS IS A CONSTITUTIONAL CRISIS!!!!!<<<<<<-------------

--->>> SECTION 8 <<<---OF PAULSEN'S PROPOSAL PRECLUDES ANY MEANINGFUL OVERSIGHT OR ACCOUNTABILITY. GIVEN THOSE SNAKE-OIL SPEWING CREDIT "PROTECTION" RACONTEUR- PUSHERS ARE DEMANDING $700 BILLION IMMEDIATELY OR THEIR PONZI-BUBBLE "ECONOMY" BURSTS, AND THAT IS MORE MONEY THAN WE HAVE - AND WE WILL HAVE TO *BORROW IT* (CREDIT MARKET "COLLAPSING"? WHO DO WE BORROW FROM?) OUR TREASURY WILL BE DE FACTO UNDER THEIR SOLE CONTROL "UP TO" $700 BILLION DOLLARS - **FOR NOW*!!! EVER TRY TO RUN A GOVERNMENT WITHOUT MONEY??? WHAT WAS THE **ONLY* LEVERAGE CONGRESS HAD LEFT OVER TROOP DEPLOYMENT IN AN ILLEGAL WAR OF OIL PLUNDER AND OCCUPATION???? GUESS WHAT - SIGN OFF ON THIS - AND **ANY** LEVERAGE CONGRESS HAS OVER THE EXECUTIVE PLUTOCRACY IS **GONE**!!!!!!!!!!!!!!!!!!!!!!!!!! I urge you to take your time in considering the current bailout proposal, even if it means extending your session past this Friday, AND EVERY FRIDAY FROM NOW UNTIL ARMEGEDDON. Specifically, I DEMAND that any bailout bill will:

* Be completely **PUBLICLY* transparent about how *OUR* tax dollars are being used.
* MUST** Include strict oversight over the actions of the Treasury Secretary. The current BLATANTLY UNCONSTITUTIONAL (OBLITERATION OF THE SEPARATION OF POWERS, U.S.C., ARTS. I, II, & III) proposal gives unprecedented, unlimited authority to the Treasury Secretary, and makes his decisions non-reviewable by any court of law or administrative agency. The lack of oversight is what's gotten us into this mess; Congress should not compound the problem.
* Include provisions to help families who are in danger of losing their homes avoid foreclosure.
**REQUIRE FORFEIT ** OF the pay of CEOs AND CRIMINAL FINANCIAL CONFLICT OF INTEREST/ ABDICATION OF FIDUCIARY RESPONSIBILITY OF ANY/ALL SENIOR OFFICERS of the bailed out companies. As ordinary Americans struggle to make ends meet and taxpayers are asked to shoulder this $700 billion bailout, the CEOs responsible for these problems should not be USING OUR TAX DOLLARS IN million-dollar bonuses and golden parachutes.
* Ensure that, when the bailed out companies become profitable again, some portion of those profits will be returned to the public treasury. This cannot turn into a public debt for private profit situation.

Finally, I ask that you not let the negotiations over this bill dissolve into partisan bickering.

** THE SEPARATION OF POWERS IMPLIED IN ARTICLES I, II & III OF THE UNITED STATES CONSTITUTION IS VITAL TO AND ULTIMATELY EVEN MORE IMPORTANT IN THE LONG RUN THAN THE SHORT-TERM financial health and TEMPORARY APPEARANCE OF stability of our nation, and Congress's duty to provide oversight over the handling of taxpayer dollars, must be your first and last consideration.
I know you will do the right things to uphold and defend our Constitution against these self-declared domestic enemies of our Constitutional form of government. It goes without saying - but needs to be said in times like these - PLEASE SHOW THIS AND SIMILAR LETTERS, ALONG WITH A COPY OF THEIR OATH OF OFFICE, THE U.S.C., AND THE FEDERAL STATUTES REGARDING IMPEACHMENT AND TREASON TO REMIND YOUR COLLEAGUES ON BOTH SIDES OF THE AISLE: ANY ELECTED OFFICIAL WHO VOTES FOR SUCH A BLATANTLY EXPLICIT UNCONSTITUTIONAL USURPATION OF OUR TREASURY AS PAULSEN'S "DEAL WE CAN'T REFUSE" IS DIRECT VIOLATION OF THEIR SWORN DUTY IN THE PUBLIC TRUST, TO UPHOILD AND DEFEND THE CONSTITUTION AGAINST ALL ENEMIES, FOREIGN AND DOMESTIC, AND IS THEREFORE SUBJECT TO IMMEDIATE IMPEACHMENT AND SUBSEQUENT INDICTMENT AND PROSECUTION THE HIGH CRIME OF TREASON AGAINST THE UNITED STATES OF AMERICA.

Thankyou
May God help us all.

Peace is justice
...or it is not peace.
Just silence

Peace is justice ...or it is not peace. just silence.

by Thomas Pained on Thu Sep 25, 2008 at 06:57:48 PM EST

If you...

If you buy into the wrong information about payday loans then you are in for an unfortunate situation. Especially when you proceed down a path based on that misinformation. The pluses and minuses of payday loans and the unknown future of the industry often can fall victim to this. Some politicians from all parties are attempting to pass legislation that would restrict or take away your right to get a payday loan. In this growing battle, some politicians have already succeeded in passing their legislation. Some politicians have already outlawed the whole industry in their states. Many of these laws are based on the misinformation that the payday loan industry is exactly the same as loans sharks. Please don't jump to conclusions, and educate yourself, family, and friends on the right to financial independence.
Post Courtesy of Personal Money Store
Professional Blogging Team
Feed Back: 1-866-641-3406
Home: http://personalmoneystore.com/NoFaxPaydayLoans.html
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by Payday Loan Advocate on Tue Sep 30, 2008 at 01:05:12 AM EST

Targets of politicians...

One of the biggest targets for politicians, as far as economics are concerned, is becoming the payday loans industry. Governors across the country are trying to rid their states of the industry altogether, and so far, Georgia, North Carolina, and Oregon have succeeded. The result was that bankruptcies, foreclosures, and also the number of overdraft fees due to bouncing checks went through the roof, which doesn't do anything for the citizens afflicted in these turbulent times, and only is really good for the banking industry. Despite these negative effects, other states are looking to follow the example and do the same. Even at the national level, presidential candidate Barack Obama, is weighing in his own agenda on the issue, and advancing his own intentions on getting rid of the industry in the United States completely. If these measures, both on state levels and nationally, are successful, the results are going to be increased unemployment, more debt, more foreclosures, and an even worse economy.

by Payday Loan Advocate on Fri Oct 03, 2008 at 03:28:00 AM EST

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A corrupt system soldiers on

By Josh ZaharoffPosted on Tue Sep 23, 2008 at 05:49:14 PM EST

By Josh Zaharoff
Posted on Tue Sep 23, 2008 at 05:49:14 PM EST