2/28/11
More Money in Your Wallet Than B.O.A. pays in Federal Taxes
Today, hundreds of thousands of people comprising a Main Street Movement — a coalition of students, the retired, union workers, public employees, and other middle class Americans — are in the streets, demonstrating against brutal cuts to public services and crackdowns on organized labor being pushed by conservative politicians. These lawmakers that are attacking collective bargaining and cutting necessary services like college tuition aid and health benefits for public workers claim that they have no choice but than to take these actions because both state and federal governments are in debt.
But it wasn’t teachers, fire fighters, policemen, and college students that caused the economic recession that has devastated government budgets — it was Wall Street. And as middle class workers are being asked to sacrifice, the rich continue to rig the system, dodging taxes and avoiding paying their fair share.
In an interview with In These Times, Carl Gibson, the founder of US Uncut, which is organizing some of today’s UK-inspired massive demonstrations against tax dodgers, explains that while ordinary Americans are being asked to sacrifice, major corporations continue to use the rigged tax code to avoid paying any federal taxes at all. As he says, if you have “one dollar” in your wallet, you’re paying more than the “combined income tax liability of GE, ExxonMobil, Citibank, and the Bank of America“:
[Gibson] explains, “I have one dollar in my wallet. That’s more than the combined income tax liability of GE, ExxonMobil, Citibank, and the Bank of America. That means somebody is gaming the system.”
Indeed, as politicians are asking ordinary Americans to sacrifice their education, their health, their labor rights, and their wellbeing to tackle budget deficits, some of the world’s richest multinational corporations are getting away with shirking their responsibility and paying nothing. ThinkProgress has assembled a short but far from comprehensive list of these tax dodgers — corporations which have rigged the tax system to their advantage so they can reap huge profits and avoid paying taxes:
- BANK OF AMERICA: In 2009, Bank of America didn’t pay a single penny in federal income taxes, exploiting the tax code so as to avoid paying its fair share. “Oh, yeah, this happens all the time,” said Robert Willens, a tax accounting expert interviewed by McClatchy. “If you go out and try to make money and you don’t do it, why should the government pay you for your losses?” asked Bob McIntyre of Citizens for Tax Justice. The same year, the mega-bank’s top executives received pay “ranging from $6 million to nearly $30 million.”
- BOEING: Despite receiving billions of dollars from the federal government every single year in taxpayer subsidies from the U.S. government, Boeing didn’t “pay a dime of U.S. federal corporate income taxes” between 2008 and 2010.
- CITIGROUP: Citigroup’s deferred income taxes for the third quarter of 2010 amounted to a grand total of $0.00. At the same time, Citigroup has continued to pay its staff lavishly. “John Havens, the head of Citigroup’s investment bank, is expected to be the bank’s highest paid executive for the second year in a row, with a compensation package worth $9.5 million.”
- EXXON-MOBIL: The oil giant uses offshore subsidiaries in the Caribbean to avoid paying taxes in the United States. Although Exxon-Mobil paid $15 billion in taxes in 2009, not a penny of those taxes went to the American Treasury. This was the same year that the company overtook Wal-Mart in the Fortune 500. Meanwhile the total compensation of Exxon-Mobil’s CEO the same year was over $29,000,000.
- GENERAL ELECTRIC: In 2009, General Electric — the world’s largest corporation — filed more than 7,000 tax returns and still paid nothing to U.S. government. They managed to do this by a tax code that essentially subsidizes companies for losing profits and allows them to set up tax havens overseas. That same year GE CEO Jeffery Immelt — who recently scored a spot on a White House economic advisory board — “earned total compensation of $9.89 million.” In 2002, Immelt displayed his lack of economic patriotism, saying, “When I am talking to GE managers, I talk China, China, China, China, China….I am a nut on China. Outsourcing from China is going to grow to 5 billion.”
- WELLS FARGO: Despite being the fourth largest bank in the country, Wells Fargo was able to escape paying federal taxes by writing all of its losses off after its acquisition of Wachovia. Yet in 2009 the chief executive of Wells Fargo also saw his compensation “more than double” as he earned “a salary of $5.6 million paid in cash and stock and stock awards of more than $13 million.”
In the coming months, politicians across the country are going to tell Americans that the only way to stave off huge deficit and balance the budgets is by gutting programs for the poor, eviscerating support for the middle class, eliminating labor rights, and decimating the government’s ability to serve the public interest. This is a lie. The United States is the richest country in the history of the world, and income inequality is higher now than it has been at any time since the 1920′s, with the top “top 1 percentile of households [taking] home 23.5 percent of income in 2007.”
It is simply unfair for Main Street Americans who’ve already been battered by one of the worst economic crises in our history to have to continue to sacrifice while the rich and well-connected continue to rip off taxpayers and avoid paying their fair share. That’s why a Main Street Movement consisting of Americans who are fed up with the status quo is rocking the nation, and one of its first targets should be tax dodgers like Bank of America and Boeing.
http://thinkprogress.org/2011/02/26/main-street-tax-cheats/
But it wasn’t teachers, fire fighters, policemen, and college students that caused the economic recession that has devastated government budgets — it was Wall Street. And as middle class workers are being asked to sacrifice, the rich continue to rig the system, dodging taxes and avoiding paying their fair share.
In an interview with In These Times, Carl Gibson, the founder of US Uncut, which is organizing some of today’s UK-inspired massive demonstrations against tax dodgers, explains that while ordinary Americans are being asked to sacrifice, major corporations continue to use the rigged tax code to avoid paying any federal taxes at all. As he says, if you have “one dollar” in your wallet, you’re paying more than the “combined income tax liability of GE, ExxonMobil, Citibank, and the Bank of America“:
[Gibson] explains, “I have one dollar in my wallet. That’s more than the combined income tax liability of GE, ExxonMobil, Citibank, and the Bank of America. That means somebody is gaming the system.”
Indeed, as politicians are asking ordinary Americans to sacrifice their education, their health, their labor rights, and their wellbeing to tackle budget deficits, some of the world’s richest multinational corporations are getting away with shirking their responsibility and paying nothing. ThinkProgress has assembled a short but far from comprehensive list of these tax dodgers — corporations which have rigged the tax system to their advantage so they can reap huge profits and avoid paying taxes:
- BANK OF AMERICA: In 2009, Bank of America didn’t pay a single penny in federal income taxes, exploiting the tax code so as to avoid paying its fair share. “Oh, yeah, this happens all the time,” said Robert Willens, a tax accounting expert interviewed by McClatchy. “If you go out and try to make money and you don’t do it, why should the government pay you for your losses?” asked Bob McIntyre of Citizens for Tax Justice. The same year, the mega-bank’s top executives received pay “ranging from $6 million to nearly $30 million.”
- BOEING: Despite receiving billions of dollars from the federal government every single year in taxpayer subsidies from the U.S. government, Boeing didn’t “pay a dime of U.S. federal corporate income taxes” between 2008 and 2010.
- CITIGROUP: Citigroup’s deferred income taxes for the third quarter of 2010 amounted to a grand total of $0.00. At the same time, Citigroup has continued to pay its staff lavishly. “John Havens, the head of Citigroup’s investment bank, is expected to be the bank’s highest paid executive for the second year in a row, with a compensation package worth $9.5 million.”
- EXXON-MOBIL: The oil giant uses offshore subsidiaries in the Caribbean to avoid paying taxes in the United States. Although Exxon-Mobil paid $15 billion in taxes in 2009, not a penny of those taxes went to the American Treasury. This was the same year that the company overtook Wal-Mart in the Fortune 500. Meanwhile the total compensation of Exxon-Mobil’s CEO the same year was over $29,000,000.
- GENERAL ELECTRIC: In 2009, General Electric — the world’s largest corporation — filed more than 7,000 tax returns and still paid nothing to U.S. government. They managed to do this by a tax code that essentially subsidizes companies for losing profits and allows them to set up tax havens overseas. That same year GE CEO Jeffery Immelt — who recently scored a spot on a White House economic advisory board — “earned total compensation of $9.89 million.” In 2002, Immelt displayed his lack of economic patriotism, saying, “When I am talking to GE managers, I talk China, China, China, China, China….I am a nut on China. Outsourcing from China is going to grow to 5 billion.”
- WELLS FARGO: Despite being the fourth largest bank in the country, Wells Fargo was able to escape paying federal taxes by writing all of its losses off after its acquisition of Wachovia. Yet in 2009 the chief executive of Wells Fargo also saw his compensation “more than double” as he earned “a salary of $5.6 million paid in cash and stock and stock awards of more than $13 million.”
In the coming months, politicians across the country are going to tell Americans that the only way to stave off huge deficit and balance the budgets is by gutting programs for the poor, eviscerating support for the middle class, eliminating labor rights, and decimating the government’s ability to serve the public interest. This is a lie. The United States is the richest country in the history of the world, and income inequality is higher now than it has been at any time since the 1920′s, with the top “top 1 percentile of households [taking] home 23.5 percent of income in 2007.”
It is simply unfair for Main Street Americans who’ve already been battered by one of the worst economic crises in our history to have to continue to sacrifice while the rich and well-connected continue to rip off taxpayers and avoid paying their fair share. That’s why a Main Street Movement consisting of Americans who are fed up with the status quo is rocking the nation, and one of its first targets should be tax dodgers like Bank of America and Boeing.
http://thinkprogress.org/2011/02/26/main-street-tax-cheats/
Regulation Lax as Gas Wells’ Tainted Water Hits Rivers
Kevin Moloney for The New York Times
By IAN URBINA
The American landscape is dotted with hundreds of thousands of new wells and drilling rigs, as the country scrambles to tap into this century’s gold rush — for natural gas.
MultimediaRelated
Spreadsheet: Contaminants in Samples From More Than 200 Wells (Microsoft Excel File)
Todd Heisler/The New York Times
The gas has always been there, of course, trapped deep underground in countless tiny bubbles, like frozen spills of seltzer water between thin layers of shale rock. But drilling companies have only in recent years developed techniques to unlock the enormous reserves, thought to be enough to supply the country with gas for heating buildings, generating electricity and powering vehicles for up to a hundred years.
So energy companies are clamoring to drill. And they are getting rare support from their usual sparring partners. Environmentalists say using natural gas will help slow climate change because it burns more cleanly than coal and oil. Lawmakers hail the gas as a source of jobs. They also see it as a way to wean the United States from its dependency on other countries for oil.
But the relatively new drilling method — known as high-volume horizontal hydraulic fracturing, or hydrofracking — carries significant environmental risks. It involves injecting huge amounts of water, mixed with sand and chemicals, at high pressures to break up rock formations and release the gas.
With hydrofracking, a well can produce over a million gallons of wastewater that is often laced with highly corrosive salts, carcinogens like benzene and radioactive elements like radium, all of which can occur naturally thousands of feet underground. Other carcinogenic materials can be added to the wastewater by the chemicals used in the hydrofracking itself.
While the existence of the toxic wastes has been reported, thousands of internal documents obtained by The New York Times from the Environmental Protection Agency, state regulators and drillers show that the dangers to the environment and health are greater than previously understood.
The documents reveal that the wastewater, which is sometimes hauled to sewage plants not designed to treat it and then discharged into rivers that supply drinking water, contains radioactivity at levels higher than previously known, and far higher than the level that federal regulators say is safe for these treatment plants to handle.
Other documents and interviews show that many E.P.A. scientists are alarmed, warning that the drilling waste is a threat to drinking water in Pennsylvania. Their concern is based partly on a 2009 study, never made public, written by an E.P.A. consultant who concluded that some sewage treatment plants were incapable of removing certain drilling waste contaminants and were probably violating the law.
The Times also found never-reported studies by the E.P.A. and a confidential study by the drilling industry that all concluded that radioactivity in drilling waste cannot be fully diluted in rivers and other waterways.
But the E.P.A. has not intervened. In fact, federal and state regulators are allowing most sewage treatment plants that accept drilling waste not to test for radioactivity. And most drinking-water intake plants downstream from those sewage treatment plants in Pennsylvania, with the blessing of regulators, have not tested for radioactivity since before 2006, even though the drilling boom began in 2008.
In other words, there is no way of guaranteeing that the drinking water taken in by all these plants is safe.
That has experts worried.
“We’re burning the furniture to heat the house,” said John H. Quigley, who left last month as secretary of Pennsylvania’s Department of Conservation and Natural Resources. “In shifting away from coal and toward natural gas, we’re trying for cleaner air, but we’re producing massive amounts of toxic wastewater with salts and naturally occurring radioactive materials, and it’s not clear we have a plan for properly handling this waste.”
The risks are particularly severe in Pennsylvania, which has seen a sharp increase in drilling, with roughly 71,000 active gas wells, up from about 36,000 in 2000. The level of radioactivity in the wastewater has sometimes been hundreds or even thousands of times the maximum allowed by the federal standard for drinking water. While people clearly do not drink drilling wastewater, the reason to use the drinking-water standard for comparison is that there is no comprehensive federal standard for what constitutes safe levels of radioactivity in drilling wastewater.
Drillers trucked at least half of this waste to public sewage treatment plants in Pennsylvania in 2008 and 2009, according to state officials. Some of it has been sent to other states, including New York and West Virginia.
Yet sewage treatment plant operators say they are far less capable of removing radioactive contaminants than most other toxic substances. Indeed, most of these facilities cannot remove enough of the radioactive material to meet federal drinking-water standards before discharging the wastewater into rivers, sometimes just miles upstream from drinking-water intake plants.
In Pennsylvania, these treatment plants discharged waste into some of the state’s major river basins. Greater amounts of the wastewater went to the Monongahela River, which provides drinking water to more than 800,000 people in the western part of the state, including Pittsburgh, and to the Susquehanna River, which feeds into Chesapeake Bay and provides drinking water to more than six million people, including some in Harrisburg and Baltimore. So energy companies are clamoring to drill. And they are getting rare support from their usual sparring partners. Environmentalists say using natural gas will help slow climate change because it burns more cleanly than coal and oil. Lawmakers hail the gas as a source of jobs. They also see it as a way to wean the United States from its dependency on other countries for oil.
But the relatively new drilling method — known as high-volume horizontal hydraulic fracturing, or hydrofracking — carries significant environmental risks. It involves injecting huge amounts of water, mixed with sand and chemicals, at high pressures to break up rock formations and release the gas.
With hydrofracking, a well can produce over a million gallons of wastewater that is often laced with highly corrosive salts, carcinogens like benzene and radioactive elements like radium, all of which can occur naturally thousands of feet underground. Other carcinogenic materials can be added to the wastewater by the chemicals used in the hydrofracking itself.
While the existence of the toxic wastes has been reported, thousands of internal documents obtained by The New York Times from the Environmental Protection Agency, state regulators and drillers show that the dangers to the environment and health are greater than previously understood.
The documents reveal that the wastewater, which is sometimes hauled to sewage plants not designed to treat it and then discharged into rivers that supply drinking water, contains radioactivity at levels higher than previously known, and far higher than the level that federal regulators say is safe for these treatment plants to handle.
Other documents and interviews show that many E.P.A. scientists are alarmed, warning that the drilling waste is a threat to drinking water in Pennsylvania. Their concern is based partly on a 2009 study, never made public, written by an E.P.A. consultant who concluded that some sewage treatment plants were incapable of removing certain drilling waste contaminants and were probably violating the law.
The Times also found never-reported studies by the E.P.A. and a confidential study by the drilling industry that all concluded that radioactivity in drilling waste cannot be fully diluted in rivers and other waterways.
But the E.P.A. has not intervened. In fact, federal and state regulators are allowing most sewage treatment plants that accept drilling waste not to test for radioactivity. And most drinking-water intake plants downstream from those sewage treatment plants in Pennsylvania, with the blessing of regulators, have not tested for radioactivity since before 2006, even though the drilling boom began in 2008.
In other words, there is no way of guaranteeing that the drinking water taken in by all these plants is safe.
That has experts worried.
“We’re burning the furniture to heat the house,” said John H. Quigley, who left last month as secretary of Pennsylvania’s Department of Conservation and Natural Resources. “In shifting away from coal and toward natural gas, we’re trying for cleaner air, but we’re producing massive amounts of toxic wastewater with salts and naturally occurring radioactive materials, and it’s not clear we have a plan for properly handling this waste.”
The risks are particularly severe in Pennsylvania, which has seen a sharp increase in drilling, with roughly 71,000 active gas wells, up from about 36,000 in 2000. The level of radioactivity in the wastewater has sometimes been hundreds or even thousands of times the maximum allowed by the federal standard for drinking water. While people clearly do not drink drilling wastewater, the reason to use the drinking-water standard for comparison is that there is no comprehensive federal standard for what constitutes safe levels of radioactivity in drilling wastewater.
Drillers trucked at least half of this waste to public sewage treatment plants in Pennsylvania in 2008 and 2009, according to state officials. Some of it has been sent to other states, including New York and West Virginia.
Yet sewage treatment plant operators say they are far less capable of removing radioactive contaminants than most other toxic substances. Indeed, most of these facilities cannot remove enough of the radioactive material to meet federal drinking-water standards before discharging the wastewater into rivers, sometimes just miles upstream from drinking-water intake plants.
Todd Heisler/The New York Times
Drilling Down
The Waste ProblemArticles in this series will examine the risks of natural-gas drilling and efforts to regulate this rapidly growing industry.
Lower amounts have been discharged into the Delaware River, which provides drinking water for more than 15 million people in Philadelphia and eastern Pennsylvania.
In New York, the wastewater was sent to at least one plant that discharges into Southern Cayuga Lake, near Ithaca, and another that discharges into Owasco Outlet, near Auburn. In West Virginia, a plant in Wheeling discharged gas-drilling wastewater into the Ohio River.
“Hydrofracking impacts associated with health problems as well as widespread air and water contamination have been reported in at least a dozen states,” said Walter Hang, president of Toxics Targeting, a business in Ithaca, N.Y., that compiles data on gas drilling.
Problems in Other Regions
While Pennsylvania is an extreme case, the risks posed by hydrofracking extend across the country.
There were more than 493,000 active natural-gas wells in the United States in 2009, almost double the number in 1990. Around 90 percent have used hydrofracking to get more gas flowing, according to the drilling industry.
Gas has seeped into underground drinking-water supplies in at least five states, including Colorado, Ohio, Pennsylvania, Texas and West Virginia, and residents blamed natural-gas drilling.
Air pollution caused by natural-gas drilling is a growing threat, too. Wyoming, for example, failed in 2009 to meet federal standards for air quality for the first time in its history partly because of the fumes containing benzene and toluene from roughly 27,000 wells, the vast majority drilled in the past five years.
In a sparsely populated Sublette County in Wyoming, which has some of the highest concentrations of wells, vapors reacting to sunlight have contributed to levels of ozone higher than those recorded in Houston and Los Angeles.
Industry officials say any dangerous waste from the wells is handled in compliance with state and federal laws, adding that drilling companies are recycling more wastewater now. They also say that hydrofracking is well regulated by the states and that it has been used safely for decades.
But hydrofracking technology has become more powerful and more widely used in recent years, producing far more wastewater. Some of the problems with this drilling, including its environmental impact and the challenge of disposing of waste, have been documented by ProPublica, The Associated Press and other news organizations, especially out West.
And recent incidents underscore the dangers. In late 2008, drilling and coal-mine waste released during a drought so overwhelmed the Monongahela that local officials advised people in the Pittsburgh area to drink bottled water. E.P.A. officials described the incident in an internal memorandum as “one of the largest failures in U.S. history to supply clean drinking water to the public.”
In Texas, which now has about 93,000 natural-gas wells, up from around 58,000 a dozen years ago, a hospital system in six counties with some of the heaviest drilling said in 2010 that it found a 25 percent asthma rate for young children, more than three times the state rate of about 7 percent.
“It’s ruining us,” said Kelly Gant, whose 14-year-old daughter and 11-year-old son have experienced severe asthma attacks, dizzy spells and headaches since a compressor station and a gas well were set up about two years ago near her house in Bartonville, Tex. The industry and state regulators have said it is not clear what role the gas industry has played in causing such problems, since the area has had high air pollution for a while.
“I’m not an activist, an alarmist, a Democrat, environmentalist or anything like that,” Ms. Gant said. “I’m just a person who isn’t able to manage the health of my family because of all this drilling.”
And yet, for all its problems, natural gas offers some clear environmental advantages over coal, which is used more than any other fuel to generate electricity in the United States. Coal-fired power plants without updated equipment to capture pollutants are a major source of radioactive pollution. Coal mines annually produce millions of tons of toxic waste.(more on this @ The New York Times)
In New York, the wastewater was sent to at least one plant that discharges into Southern Cayuga Lake, near Ithaca, and another that discharges into Owasco Outlet, near Auburn. In West Virginia, a plant in Wheeling discharged gas-drilling wastewater into the Ohio River.
“Hydrofracking impacts associated with health problems as well as widespread air and water contamination have been reported in at least a dozen states,” said Walter Hang, president of Toxics Targeting, a business in Ithaca, N.Y., that compiles data on gas drilling.
Problems in Other Regions
While Pennsylvania is an extreme case, the risks posed by hydrofracking extend across the country.
There were more than 493,000 active natural-gas wells in the United States in 2009, almost double the number in 1990. Around 90 percent have used hydrofracking to get more gas flowing, according to the drilling industry.
Gas has seeped into underground drinking-water supplies in at least five states, including Colorado, Ohio, Pennsylvania, Texas and West Virginia, and residents blamed natural-gas drilling.
Air pollution caused by natural-gas drilling is a growing threat, too. Wyoming, for example, failed in 2009 to meet federal standards for air quality for the first time in its history partly because of the fumes containing benzene and toluene from roughly 27,000 wells, the vast majority drilled in the past five years.
In a sparsely populated Sublette County in Wyoming, which has some of the highest concentrations of wells, vapors reacting to sunlight have contributed to levels of ozone higher than those recorded in Houston and Los Angeles.
Industry officials say any dangerous waste from the wells is handled in compliance with state and federal laws, adding that drilling companies are recycling more wastewater now. They also say that hydrofracking is well regulated by the states and that it has been used safely for decades.
But hydrofracking technology has become more powerful and more widely used in recent years, producing far more wastewater. Some of the problems with this drilling, including its environmental impact and the challenge of disposing of waste, have been documented by ProPublica, The Associated Press and other news organizations, especially out West.
And recent incidents underscore the dangers. In late 2008, drilling and coal-mine waste released during a drought so overwhelmed the Monongahela that local officials advised people in the Pittsburgh area to drink bottled water. E.P.A. officials described the incident in an internal memorandum as “one of the largest failures in U.S. history to supply clean drinking water to the public.”
In Texas, which now has about 93,000 natural-gas wells, up from around 58,000 a dozen years ago, a hospital system in six counties with some of the heaviest drilling said in 2010 that it found a 25 percent asthma rate for young children, more than three times the state rate of about 7 percent.
“It’s ruining us,” said Kelly Gant, whose 14-year-old daughter and 11-year-old son have experienced severe asthma attacks, dizzy spells and headaches since a compressor station and a gas well were set up about two years ago near her house in Bartonville, Tex. The industry and state regulators have said it is not clear what role the gas industry has played in causing such problems, since the area has had high air pollution for a while.
“I’m not an activist, an alarmist, a Democrat, environmentalist or anything like that,” Ms. Gant said. “I’m just a person who isn’t able to manage the health of my family because of all this drilling.”
And yet, for all its problems, natural gas offers some clear environmental advantages over coal, which is used more than any other fuel to generate electricity in the United States. Coal-fired power plants without updated equipment to capture pollutants are a major source of radioactive pollution. Coal mines annually produce millions of tons of toxic waste.(more on this @ The New York Times)
Foreclosure-Gate 4.0
matthewstoller. Cross posted from New Deal 2.0
If NFL fans are demanding negotiations be opened up, why are homeowners kept in the dark?
Zach Carter wrote a good piece on homeowners’ demands of the big banks. National People’s Action has coordinated thousands of homeowners in asking for an aggressive settlement with the banks on their handling of foreclosures. Iowa Democratic Attorney General Tom Miller, who is heading the 50-state investigation, is one of their prime targets.
But it’s this video that makes it interesting.
Here’s the transcript, starting at around :53 into it.
The backstory here is that Miller had exuberantly vowed jail time for bankers to Iowa citizens, before backtracking on his commitment. This level of deception by high officials is now routine when it comes to cracking down on lawbreaking by big banks.
It’s not obvious to me why Miller backtracked. I don’t think he ever had any intention of charging any bankers with any criminal charges, that’s just not how law enforcement works these days. My guess is that he didn’t realize that his initial promise to Iowa voters would be taken seriously, and then it blew up in the press. So he decided to stop talking and do the negotiating in secret.
This is not reasonable. If the NFL is being asked to open its books and NFL fans are asking that the negotiations between the players and owners take place in the open, surely the talks over foreclosure fraud can be done with some ability for the public to know what is happening.
Tom Miller may not realize that keeping homeowner victims in the dark while negotiating with the perpetrators is the wrong way to approach criminal activities. But the rest of us do.
Posted: 27 Feb 2011 12:55 AM PST
By Matt Stoller, a fellow at the Roosevelt Institute. His Twitter feed is http://www.twitter.com/If NFL fans are demanding negotiations be opened up, why are homeowners kept in the dark?
Zach Carter wrote a good piece on homeowners’ demands of the big banks. National People’s Action has coordinated thousands of homeowners in asking for an aggressive settlement with the banks on their handling of foreclosures. Iowa Democratic Attorney General Tom Miller, who is heading the 50-state investigation, is one of their prime targets.
But it’s this video that makes it interesting.
Here’s the transcript, starting at around :53 into it.
Iowa citizen Mike McCarthy: How close are we to a settlement? And with the settlement, will we have mandatory modifications? Will we have mandatory principal reductions? Will we have restitution for families who were fraudulently kicked out of their home? And also we want to see that these bank officials who were responsible for committing mortgage or foreclosure fraud brought up on criminal charges. I’m gonna ask you again, like I did on December 14. Are we gonna put some people in jail?Look at what he’s saying. Miller has decided that he will keep the public in the dark about the negotiations over how banks will deal with the homeowners they hurt. They can’t know when decisions will be made. They can’t know if they will have principal reduced. They can’t know if they will get loan modifications. They can’t know if they will get restitution if they’ve been illegally kicked out of their homes. Miller will not even speak to criminal prosecutions of bankers over mortgage fraud because he is still negotiating with the criminals over whether to bring charges.
Iowa Attorney General Tom Miller: We’re really getting close to negotiations. I’m not gonna talk about, I really feel I shouldn’t talk about what’s gonna be in the agreement, what’s not gonna be in the agreement. That’s something we have to hammer out with the Justice Department, and the Federal people, and the banks in a negotiating session. So in terms of talking to you or to the press, we’re pulling back on specific details.
The backstory here is that Miller had exuberantly vowed jail time for bankers to Iowa citizens, before backtracking on his commitment. This level of deception by high officials is now routine when it comes to cracking down on lawbreaking by big banks.
It’s not obvious to me why Miller backtracked. I don’t think he ever had any intention of charging any bankers with any criminal charges, that’s just not how law enforcement works these days. My guess is that he didn’t realize that his initial promise to Iowa voters would be taken seriously, and then it blew up in the press. So he decided to stop talking and do the negotiating in secret.
This is not reasonable. If the NFL is being asked to open its books and NFL fans are asking that the negotiations between the players and owners take place in the open, surely the talks over foreclosure fraud can be done with some ability for the public to know what is happening.
Tom Miller may not realize that keeping homeowner victims in the dark while negotiating with the perpetrators is the wrong way to approach criminal activities. But the rest of us do.
Governors Scramble to Rein In Medicaid Wall Street Journal. So we are gonna kill people to avoid raising taxes on the rich? That is ultimately what this amounts to. And in case you forget why it’s called “public health”, unhealthy people and a stripped down medical system make for great disease vectors.
Foreclosure-Gate 4.0
Via : Naked Capitalism
Now we already know that that isn’t the case. Since the robosigning scandal broke, foreclosure activity has been down. RealtyTrac reported that foreclosures in January were up only 1% over December levels, which was down 17% from the year prior.
But RealtyTrac captures every foreclosure filing in that particular report, so it is a mix of new foreclosure filings plus additional filings for foreclosures already underway (the number of filings required varies by state, but the minimum number is three, and the number can also be increased if a borrower gets a foreclosure suspended, say by entering into a payment catchup plan, and then has the process restarted later on).
Lynn Syzmoniak of Fraud Digest provides a snapshot for January 1 through January 26 in two counties in Florida, Lee County and Palm Beach County:
Her tally for US Bank over the same period covered only Lee County, but showed similar results: 42 new foreclosures for 2011 versus 143 for 2010.
Now merely eyeballing this sample, and assuming it is representative of Florida (Syzmoniak says other counties show similar patterns), it’s clear the decline is bigger than the 33% fall that LPS mentioned for the fourth quarter of 2010 or the 17% figure from RealtyTrac.
There are reasons why Florida might show a steeper fall than other states. First, the state AG has been investigating all the major foreclosure mills in the state. Some, like the Law Offices of David Stern, have effectively folded. So there could be a bit of disarray simply due to the loss of some processing capacity.
Second, Florida, like New York, has implemented a rule requiring that attorneys verify information provided in foreclosures. That might seem to be merely ceremonial, since lawyers are already responsible for the accuracy of information provided to the court. But I am advised that this measure is more than mere belt and suspenders; it apparently would have the effect of lowering the bar for opposing counsel calling for Rule 11 sanctions if he thought the foreclosing attorney was submitting bogus documents or information. That rule did became effective February 11, 2010 (hat tip Lisa Epstein), and the foreclosure mills have tried to escape compliance. I’d imagine in the wake of the robo signing scandal, their clients are becoming less tolerant of this sort of thing.
If this pattern holds across at least across judicial foreclosure states, it suggests what we have long argued: that failures to convey loans as required by securitization documents are widespread, if not pervasive. Now that servicers and foreclosure mills are finding that a lot of judges no longer take them at their word, which means they increasingly have to provide documentation, they may be finding that a lot of their records do not pass muster. And while document fabrication was once an easy way out, that strategy is a lot riskier than it used to be.
Reader input welcome. Do you have any local data on the level of new foreclosures in 2011 versus same period 2010?
Via : Naked Capitalism
Posted: 28 Feb 2011 01:25 AM PST
There has been evidence here and there of a marked fall in new foreclosure filings. Lender Processing Services, which handles more than half of the loans serviced in the US, said its revenues in its Default Services Group were down in the final quarter of the year. Why? Its revenues are tied to initial foreclosure filings, and its were off 33%, no doubt in large measure due to the robo signing scandal. Recall that it led many banks to halt foreclosures (some all over the US, others in judicial foreclosure states only) while they inspected the state of play and scrambled to revamp procedures. Banks piously claimed that they found no problems in the correctness of foreclosure actions and that ex making the changes needed to assure affidavits were proper, they were going to be back to business as usual post haste.Now we already know that that isn’t the case. Since the robosigning scandal broke, foreclosure activity has been down. RealtyTrac reported that foreclosures in January were up only 1% over December levels, which was down 17% from the year prior.
But RealtyTrac captures every foreclosure filing in that particular report, so it is a mix of new foreclosure filings plus additional filings for foreclosures already underway (the number of filings required varies by state, but the minimum number is three, and the number can also be increased if a borrower gets a foreclosure suspended, say by entering into a payment catchup plan, and then has the process restarted later on).
Lynn Syzmoniak of Fraud Digest provides a snapshot for January 1 through January 26 in two counties in Florida, Lee County and Palm Beach County:
Her tally for US Bank over the same period covered only Lee County, but showed similar results: 42 new foreclosures for 2011 versus 143 for 2010.
Now merely eyeballing this sample, and assuming it is representative of Florida (Syzmoniak says other counties show similar patterns), it’s clear the decline is bigger than the 33% fall that LPS mentioned for the fourth quarter of 2010 or the 17% figure from RealtyTrac.
There are reasons why Florida might show a steeper fall than other states. First, the state AG has been investigating all the major foreclosure mills in the state. Some, like the Law Offices of David Stern, have effectively folded. So there could be a bit of disarray simply due to the loss of some processing capacity.
Second, Florida, like New York, has implemented a rule requiring that attorneys verify information provided in foreclosures. That might seem to be merely ceremonial, since lawyers are already responsible for the accuracy of information provided to the court. But I am advised that this measure is more than mere belt and suspenders; it apparently would have the effect of lowering the bar for opposing counsel calling for Rule 11 sanctions if he thought the foreclosing attorney was submitting bogus documents or information. That rule did became effective February 11, 2010 (hat tip Lisa Epstein), and the foreclosure mills have tried to escape compliance. I’d imagine in the wake of the robo signing scandal, their clients are becoming less tolerant of this sort of thing.
If this pattern holds across at least across judicial foreclosure states, it suggests what we have long argued: that failures to convey loans as required by securitization documents are widespread, if not pervasive. Now that servicers and foreclosure mills are finding that a lot of judges no longer take them at their word, which means they increasingly have to provide documentation, they may be finding that a lot of their records do not pass muster. And while document fabrication was once an easy way out, that strategy is a lot riskier than it used to be.
Reader input welcome. Do you have any local data on the level of new foreclosures in 2011 versus same period 2010?
Posted: 27 Feb 2011 09:34 PM PST
By Matt Stoller, a fellow at the Roosevelt Institute. His Twitter feed is http://www.twitter.com/Obama had a brief appearance on the Oscars, and received no applause from an audience that surely would have treated him differently two years ago. The politics of the night belonged to Charles Ferguson, who won the Oscar for Best Documentary for Inside Job. He said at the end of his acceptance speech:
Forgive me, I must start by pointing out that three years after a horrific financial crisis caused by massive fraud, not a single financial executive has gone to jail and that’s wrong.”Ferguson has a very mild manner, but he is utterly fearless. He wants prosecutions, and he used one of the biggest stages in the world to ask for them. Ferguson has gone after the Obama administration and spares no one, as when he called Eric Holder and Andrew Cuomo “partners in crime.
Ouch. There were several shout-outs to unions tonight, including the one by “Inception” cinematographer Wally Pfister. Backstage, he said:
“I think that what is going on in Wisconsin is kind of madness right now,” Pfister says. “I have been a union member for 30 years and what the union has given to me is security for my family. They have given me health care in a country that doesn’t provide health care and I think unions are a very important part of the middle class in America all we are trying to do is get a decent wage and have medical care.”Hollywood was torn apart by a strike a few years ago, so this is not surprising.
Ferguson really stood up and made his case. It would be interesting if people started asking President Obama, Attorney General Holder, current New York Attorney General Eric Schneiderman, former Attorney General Andrew Cuomo, and others in power where they think he’s gone wrong.
Update (by Yves) 3:00 AM: Curious, no mention of Inside Job in the New York Times’ story on the Oscars, when they did mention the foreign language film, makeup and best score recipients.
Workers' Uprising: Madison Capitol Protesters Ignore Gov. Walker's Order to Leave, Key Wisconsin Republicans Defect
The protests in Wisconsin continue into their second week, with thousands holding strong in the capitol in Madison, a huge showing of support for the economic rights of union members and the restoration of a strong middle class. The following is a collection of updates and items on what's happening in Wisconsin and the rest of the country.
Update: Yesterday police allowed protesters to stay in the Capitol past the 4 PM deadline set for their removal. Wisconsin Capitol Police Chief Charles Tubbs said that officers are trying to persuade the remaining protesters to leave voluntarily, but did not say when police would resort to forcible removal. Protesters have vowed to stand their ground. Possibly hundreds could be arrested, reports the AP:
It's unclear how many protesters plan to be arrested rather than disperse, but the number could be in the hundreds. Protest leaders say they plan to cooperate fully and are urging everyone to remain calm.
Update: In an op-ed in the NYT Mayor Michael Bloomberg defends unions' right to collective bargaining:
But unions also play a vital role in protecting against abuses in the workplace, and in my experience they are integral to training, deploying and managing a professional work force. Organizing around a common interest is a fundamental part of democracy. We should no more try to take away the right of individuals to collectively bargain than we should try to take away the right to a secret ballot.
Update:
The AP profiles the volunteer organizers in Madison who have kept the protests going:
Nearly two weeks after the start of massive protests against Gov. Scott Walker's proposal that would strip nearly all public employees of their collective bargaining rights erupted, a network of volunteers has emerged as the skeleton that keeps the daily demonstrations alive. ... In a third-floor room where the UW-Madison Teaching Assistants Association has based its support operations, a wood conference table is dwarfed by a mountain of bedding supplies, while posters organizing protests, rides and class coverage for absent TAs line the walls. "I think in general having a sense of humor in all of this has been important," said Kevin Gibbons, TAA co-president. "You have some students I've been talking to reflecting on it and they say, `Everybody sort of seems happy, this is a serious protest.' But it is needed to sustain this kind of energy."
Update:
The New York Times reports on efforts made by the police and other authorities to quell the protests from inside the Madison capitol:
In recent days, the Capitol police have made it harder for protesters to spend the night by banning sleeping bags and containers of food from being brought inside and by gradually forcing people to move from upper floors to lower floors. “They have been trying to condense us,” said Michela Torcaso, who has spent six nights in a row inside.
Update:
AlterNet's Joshua Holland on the latest events on Sunday afternoon in Madison, Wisc:
According to reports via Twitter, Republican state senator Dale Schultz has withdrawn his support for Governor Scott Walker's union-busting bill. Last week Schultz, a veteran lawmaker who's served in the senate for 20 years, offered a "compromise" proposal in an attempt to break the deadlock, but it was rejected by Walker and panned by the protesters.Two other GOP members would have to join Schultz and break ranks with their party in order to kill the bill. Journalist Micah Uetricht reports via Twitter that a huge sign at the capitol reads, "we need 3 courageous senators," and protesters are now changing the number to 2 to deafening cheers.
Earlier, Scott Walker had ordered that the capitol be closed and the protesters removed at 4pm CST but they said they wouldn't leave, setting up a standoff.But the hour came and went, and now there are multiple reports via Twitter, yet unconfirmed, that police have announced that protesters would be allowed to spend the night in the capitol. Micah Uetricht reports that an earlier pizza embargo has been lifted, and food has arrived on the scene.
Advertisement
Update:
Read Daniel Denvir's rundown on the Rally for the American Dream that took place on Saturday:
Thousands rallied nation-wide on Saturday, with MoveOn putting the total at over 100,000 people in Madison and 50,000 in other state capitols and major cities. Protests at state capitols were also a warning shot to governors around the country: workers will fight major cuts to social programs and attacks on unions.The protests in Wisconsin have now sparked a nation-wide movement. They are a clear demonstration of unity against the Tea Party's cruel agenda to break the back of union representation, and a rejection of the notion that deficits and government spending are the country's biggest problem.
Update:
AlterNet has a great collection of photos sent in by readers and our reporters from rallies across the country.
Update:
Read Joshua Holland's interviews with attendants of Saturday's rally in San Francisco, and Sarah Seltzer's account of the protests in New York City.
Update:
This weekend, AlterNet's Adele Stan reported on how Rupert Murdoch's media empire is giving a big assist to the Koch brothers' assault on Wisconsin, explaining that while Fox News feeds its rabble the anti-union line, Murdoch's Wall Street Journal columnists front for Koch's Americans for Prosperity and coddle elite investors. Read the article here.
4 pm
Tomgram: Andy Kroll, The Spirit of Egypt in Madison
Posted by Andy Kroll at 6:29pm, February 27, 2011.
Right now, at the invaluable Antiwar.com website -- overflowing with blazing headlines -- you can see two worlds of trouble awkwardly intertwined. The first is a Middle East newly afire, one in which Muammar Qaddafi’s rotting, mad regime is shrinking to the size of Libya’s capital, Tripoli, while the rest of the region continues to light up with protest. In Iraq, tens of thousands of demonstrators ignored government warnings and curfews to attend a nationwide “day of rage” for a better life, “storming provincial government offices in several cities” and forcing government officials to resign, even as they faced tear gas, batons, and in some cases real bullets.
Elsewhere nervous rulers were moving to placate their restless, angry populations, including 87-year-old Saudi King Abdullah, a sclerotic, American-backed autocrat who just announced a massive $36 billion package of benefits (think: bribe) aimed at his own people, lest they, too, get out of hand. Nonetheless, as an Antiwar.com headline tells us, the King -- according to a New York Times report, so “popular” as to be almost invulnerable to “democracy movements” -- now faces Facebook threats of the first “day of rage” in his kingdom. The U.S. is still betting that its Persian Gulf autocrats and oil sheiks will emerge as winners, but hold onto your hats. In a crunch, the Saudi king’s popularity may prove all-too-Mubarakian, meaning that Washington would again find itself on the wrong side of history.
Unfortunately for such regimes right now, acts of repression only enrage, and so expand, the opposition, while any concessions are seen (quite rightly) as signs of weakness.
At the same time, consider the headlines from that other (increasingly beside-the-point) world, the one where American imperial adventures take place. Yes, yet another American aircraft has gunned down Afghan civilians. Yes, yet more CIA drone aircraft launched yet more Hellfire missiles in the Pakistani borderlands, killing yet more unknown people who may or may not be “terrorists.”
Yes, the Pakistani police have picked up yet another American of unknown provenance, this time in those same borderlands, whose visa had “expired.” It's likely he'll turn out to be one of the scores or even hundreds of CIA operatives and Agency contractors who have entered Pakistan in recent months to pursue Washington's covert war there. Yes, we have yet another “runaway” American general in Afghanistan who evidently organized psy-ops squads to shape the malleable minds of visiting congressional representatives. Yes, despite repeated claimed of "progress" in the Afghan War, a U.N. official now insists that security in the country has fallen to its worst level since 2001. Yes, yet another Afghan valley which the best American military minds long claimed “vital” for the U.S. to garrison is being abandoned. (It’s called “realigning to provide better security for the Afghan people.”) And yes, even though the training of Afghan security forces is supposedly going swimmingly, “attrition” reportedly remains sky-high, with the Afghan Army losing 32% of its forces annually, mainly through desertion, in this Groundhog Day version of war.
You get the idea -- and so, evidently, does Secretary of Defense Robert Gates, who just told an audience of West Point cadets that, as far as he was concerned, there should be no future Afghan-style American ground wars on the Asian continent or in the Middle East.
Meanwhile, in far-off Wisconsin, the protesters who massed for a huge rally Saturday evidently know instinctively which side of history they're on; unlike the Obama administration, they identify with those organizing the “days of rage” in the Middle East, not with its autocrats. American demonstrators may still be focused on issues of immediate self-interest, but remember, only yesterday no one thought a non-Tea-Party-type would ever again take to an American street shouting protest slogans.
And keep in mind as well, if you stay out in the streets long enough, sooner or later you’ll move beyond an imperious and manipulative governor and run smack into imperial power itself -- into, that is, our obtuse, time-warped wars which take their toll here, too. If the protests continue to spread, so will the subject matter, and then it will be clearer, as TomDispatch associate editor Andy Kroll reports from Madison, just how close we're coming to Cairo. Tom
Elsewhere nervous rulers were moving to placate their restless, angry populations, including 87-year-old Saudi King Abdullah, a sclerotic, American-backed autocrat who just announced a massive $36 billion package of benefits (think: bribe) aimed at his own people, lest they, too, get out of hand. Nonetheless, as an Antiwar.com headline tells us, the King -- according to a New York Times report, so “popular” as to be almost invulnerable to “democracy movements” -- now faces Facebook threats of the first “day of rage” in his kingdom. The U.S. is still betting that its Persian Gulf autocrats and oil sheiks will emerge as winners, but hold onto your hats. In a crunch, the Saudi king’s popularity may prove all-too-Mubarakian, meaning that Washington would again find itself on the wrong side of history.
Unfortunately for such regimes right now, acts of repression only enrage, and so expand, the opposition, while any concessions are seen (quite rightly) as signs of weakness.
At the same time, consider the headlines from that other (increasingly beside-the-point) world, the one where American imperial adventures take place. Yes, yet another American aircraft has gunned down Afghan civilians. Yes, yet more CIA drone aircraft launched yet more Hellfire missiles in the Pakistani borderlands, killing yet more unknown people who may or may not be “terrorists.”
Yes, the Pakistani police have picked up yet another American of unknown provenance, this time in those same borderlands, whose visa had “expired.” It's likely he'll turn out to be one of the scores or even hundreds of CIA operatives and Agency contractors who have entered Pakistan in recent months to pursue Washington's covert war there. Yes, we have yet another “runaway” American general in Afghanistan who evidently organized psy-ops squads to shape the malleable minds of visiting congressional representatives. Yes, despite repeated claimed of "progress" in the Afghan War, a U.N. official now insists that security in the country has fallen to its worst level since 2001. Yes, yet another Afghan valley which the best American military minds long claimed “vital” for the U.S. to garrison is being abandoned. (It’s called “realigning to provide better security for the Afghan people.”) And yes, even though the training of Afghan security forces is supposedly going swimmingly, “attrition” reportedly remains sky-high, with the Afghan Army losing 32% of its forces annually, mainly through desertion, in this Groundhog Day version of war.
You get the idea -- and so, evidently, does Secretary of Defense Robert Gates, who just told an audience of West Point cadets that, as far as he was concerned, there should be no future Afghan-style American ground wars on the Asian continent or in the Middle East.
Meanwhile, in far-off Wisconsin, the protesters who massed for a huge rally Saturday evidently know instinctively which side of history they're on; unlike the Obama administration, they identify with those organizing the “days of rage” in the Middle East, not with its autocrats. American demonstrators may still be focused on issues of immediate self-interest, but remember, only yesterday no one thought a non-Tea-Party-type would ever again take to an American street shouting protest slogans.
And keep in mind as well, if you stay out in the streets long enough, sooner or later you’ll move beyond an imperious and manipulative governor and run smack into imperial power itself -- into, that is, our obtuse, time-warped wars which take their toll here, too. If the protests continue to spread, so will the subject matter, and then it will be clearer, as TomDispatch associate editor Andy Kroll reports from Madison, just how close we're coming to Cairo. Tom
Cairo in Wisconsin
Eating Egyptian Pizza in Downtown Madison By Andy Kroll
The call reportedly arrived from Cairo. Pizza for the protesters, the voice said. It was Saturday, February 20th, and by then Ian's Pizza on State Street in Madison, Wisconsin, was overwhelmed. One employee had been assigned the sole task of answering the phone and taking down orders. And in they came, from all 50 states and the District of Columbia, from Morocco, Haiti, Turkey, Belgium, Uganda, China, New Zealand, and even a research station in Antarctica. More than 50 countries around the globe. Ian's couldn't make pizza fast enough, and the generosity of distant strangers with credit cards was paying for it all.
Those pizzas, of course, were heading for the Wisconsin state capitol, an elegant domed structure at the heart of this Midwestern college town. For nearly two weeks, tens of thousands of raucous, sleepless, grizzled, energized protesters have called the stately capitol building their home. As the police moved in to clear it out on Sunday afternoon, it was still the pulsing heart of the largest labor protest in my lifetime, the focal point of rallies and concerts against a politically-charged piece of legislation proposed by Wisconsin Governor Scott Walker, a hard-right Republican. That bill, officially known as the Special Session Senate Bill 11, would, among other things, eliminate collective bargaining rights for most of the state's public-sector unions, in effect eviscerating the unions themselves.
"Kill the bill!" the protesters chant en masse, day after day, while the drums pound and cowbells clang. "What's disgusting? Union busting!"
One World, One Pain
The spark for Wisconsin's protests came on February 11th. That was the day the Associated Press published a brief story quoting Walker as saying he would call in the National Guard to crack down on unruly workers upset that their bargaining rights were being stripped away. Labor and other left-leaning groups seized on Walker's incendiary threat, and within a week there were close to 70,000 protesters filling the streets of Madison.
Six thousand miles away, February 11th was an even more momentous day. Weary but jubilant protesters on the streets of Cairo, Alexandria, and other Egyptian cities celebrated the toppling of Hosni Mubarak, the autocrat who had ruled over them for more than 30 years and amassed billions in wealth at their expense. "We have brought down the regime," cheered the protesters in Cairo's Tahrir Square, the center of the Egyptian uprising. In calendar terms, the demonstrations in Wisconsin, you could say, picked up right where the Egyptians left off.
I arrived in Madison several days into the protests. I've watched the crowds swell, nearly all of those arriving -- and some just not leaving -- united against Governor Walker's "budget repair bill." I've interviewed protesters young and old, union members and grassroots organizers, students and teachers, children and retirees. I've huddled with labor leaders in their Madison "war rooms," and sat through the governor's press conferences. I've slept on the cold, stone floor of the Wisconsin state capitol (twice). Believe me, the spirit of Cairo is here. The air is charged with it.
It was strongest inside the Capitol. A previously seldom-visited building had been miraculously transformed into a genuine living, breathing community. There was a medic station, child day care, a food court, sleeping quarters, hundreds of signs and banners, live music, and a sense of camaraderie and purpose you'd struggle to find in most American cities, possibly anywhere else in this country. Like Cairo's Tahrir Square in the weeks of the Egyptian uprising, most of what happens inside the Capitol's walls is protest.
Egypt is a presence here in all sorts of obvious ways, as well as ways harder to put your finger on. The walls of the capital, to take one example, offer regular reminders of Egypt's feat. I saw, for instance, multiple copies of that famous photo on Facebook of an Egyptian man, his face half-obscured, holding a sign that reads: "EGYPT Supports Wisconsin Workers: One World, One Pain." The picture is all the more striking for what's going on around the man with the sign: a sea of cheering demonstrators are waving Egyptian flags, hands held aloft. The man, however, faces in the opposite direction, as if showing support for brethren halfway around the world was important enough to break away from the historic celebrations erupting around him.
Similarly, I've seen multiple copies of a statement by Kamal Abbas, the general coordinator for Egypt's Center for Trade Unions and Workers Services, taped to the walls of the state capitol. Not long after Egypt's January Revolution triumphed and Wisconsin's protests began, Abbas announced his group's support for the Wisconsin labor protesters in a page-long declaration that said in part: "We want you to know that we stand on your side. Stand firm and don't waiver. Don't give up on your rights. Victory always belongs to the people who stand firm and demand their just rights."
Then there's the role of organized labor more generally. After all, widespread strikes coordinated by labor unions shut down Egyptian government agencies and increased the pressure on Mubarak to relinquish power. While we haven't seen similar strikes yet here in Madison -- though there's talk of a general strike if Walker's bill somehow passes -- there's no underestimating the role of labor unions like the AFL-CIO, the Service Employees International Union (SEIU), the American Federation of State, County, and Municipal Employees, and the American Federation of Teachers in organizing the events of the past two weeks.
Faced with a bill that could all but wipe out unions in historically labor-friendly states across the Midwest, labor leaders knew they had to act -- and quickly. "Our very labor movement is at stake," Stephanie Bloomingdale, secretary-treasurer of Wisconsin's AFL-CIO branch, told me. "And when that's at stake, the economic security of Americans is at stake.”
“The Mubarak of the Midwest”
On the Sunday after I arrived, I was wandering the halls of the Capitol when I met Scott Graham, a third-grade teacher who lives in Lacrosse, Wisconsin. Over the cheers of the crowd, I asked Graham whether he saw a connection between the events in Egypt and those here in Wisconsin. His response caught the mood of the moment. "Watching Egypt's story for a week or two very intently, I was inspired by the Egyptian people, you know, striving for their own self-determination and democracy in their country," Graham told me. "I was very inspired by that. And when I got here I sensed that everyone's in it together. The sense of solidarity is just amazing."
A few days later, I stood outside the capitol building in the frigid cold and talked about Egypt with two local teachers. The most obvious connection between Egypt and Wisconsin was the role and power of young people, said Ann Wachter, a federal employee who joined our conversation when she overheard me mention Egypt. There, it was tech-savvy young people who helped keep the protests alive and the same, she said, applied in Madison. "You go in there everyday and it's the youth that carries it throughout hours that we're working, or we're running our errands, whatever we do. They do whatever they do as young people to keep it alive. After all, I'm at the end of my working career; it's their future."
And of course, let’s not forget those almost omnipresent signs that link the young governor of Wisconsin to the aging Hosni Mubarak. They typically label Walker the "Mubarak of the Midwest" or "Mini-Mubarak," or demand the recall of "Scott 'Mubarak.'" In a public talk on Thursday night, journalist Amy Goodman quipped, "Walker would be wise to negotiate. It's not a good season for tyrants."
One protester I saw on Thursday hoisted aloft a "No Union Busting!" sign with a black shoe perched atop it, the heel facing forward -- a severe sign of disrespect that Egyptian protesters directed at Mubarak and a symbol that, before the recent American TV blitz of “rage and revolution” in the Middle East, would have had little meaning here.
Which isn't to say that the Egypt-Wisconsin comparison is a perfect one. Hardly. After all, the Egyptian demonstrators massed in hopes of a new and quite different world; the American ones, no matter the celebratory and energized air in Madison, are essentially negotiating loss (of pensions and health-care benefits, if not collective bargaining rights). The historic demonstrations in Madison have been nothing if not peaceful. On Saturday, when as many as 100,000 people descended on Madison to protest Walker's bill, the largest turnout so far, not a single arrest was made. In Egypt, by contrast, the protests were plenty bloody, with more than 300 deaths during the 29-day uprising.
Not that some observers didn't see the need for violence in Madison. Last Saturday, Jeff Cox, a deputy attorney general in Indiana, suggested on his Twitter account that police "use live ammunition" on the protesters occupying the state Capitol. That sentiment, discovered by a colleague of mine, led to an outcry. The story broke on Wednesday morning; by Wednesday afternoon Cox had been fired.
New York Times columnist David Brooks was typical of mainstream coverage and punditry in quickly dismissing any connection between Egypt (or Tunisia) and Wisconsin. On the Daily Show, Jon Stewart spoofed and rejected the notion that the Wisconsin protests had any meaningful connection to Egypt. He called the people gathered here "the bizarro Tea Party." Stewart's crew even brought in a camel as a prop. Those of us in Madison watched as Stewart's skit went horribly wrong when the camel got entangled in a barricade and fell to the ground.
As far as I know, neither Brooks nor Stewart spent time here. Still, you can count on one thing: if the demonstrators in Tahrir Square had been enthusiastically citing Americans as models for their protest, nobody here would have been in such a dismissive or mocking mood. In other parts of this country, perhaps it still feels less than comfortable to credit Egyptians or Arabs with inspiring an American movement for justice. If you had been here in Madison, this last week, you might have felt differently.
Pizza Town Protest
Obviously, the outcomes in Egypt and Wisconsin won’t be comparable. Egypt toppled a dictator; Wisconsin has a democratically elected governor who, at the very earliest, can't be recalled until 2012. And so the protests in Wisconsin are unlikely to transform the world around us. Still, there can be no question, as they spread elsewhere in the Midwest, that they have reenergized the country's stagnant labor movement, a once-powerful player in American politics and business that's now a shell of its former self. "There's such energy right now," one SEIU staffer told me a few nights ago. "This is a magic moment."
Not long after talking with her, I trudged back to Ian's Pizza, the icy snow crunching under my feet. At the door stood an employee with tired eyes, a distinct five o'clock shadow, and a beanie on his head.
I wanted to ask him, I said, about that reported call from Cairo. "You know,” he responded, “I really don't remember it." I waited while he politely rebuffed several approaching customers, telling them how Ian's had run out of dough and how, in any case, all the store’s existing orders were bound for the capitol. When he finally had a free moment, he returned to the Cairo order. There had, he said, been questions about whether it was authentic or not, and then he added, "I'm pretty sure it was from Cairo, but it's not like I can guarantee it." By then, another wave of soon-to-be disappointed customers was upon us, and so I headed back to the capitol and another semi-sleepless night.
The building, as I approached in the darkness, was brightly lit, reaching high over the city. Protestors were still filing inside with all the usual signs. In the rotunda, drums pounded and people chanted and the sound swirled into a massive roar. For this brief moment at least, people here in Madison are bound together by a single cause, as other protesters were not so long ago, and may be again, in the ancient cities of Egypt.
Right then, the distance separating Cairo and Wisconsin couldn’t have felt smaller. But maybe you had to be there.
Andy Kroll is a reporter in the D.C. bureau of Mother Jones magazine and an associate editor at TomDispatch.com. He will never again sleep on the frigid stone floor of a state capitol.
Copyright 2011 Andy Kroll
2/26/11
Confirmed: Union-Bashing Right Wing Media Stars O'Reilly, Hannity, and Rush Limbaugh are AFL-CIO Union-Affiliated Members WTF?!
In spite of their criticism of unions in Wisconsin, AlterNet has confirmed that leading right-wing pundits are American Federation Television and Radio Artists union members.
When it comes to the Wisconsin union fights, right-wing pundits Bill O'Reilly, Sean Hannity and Rush Limbaugh have a couple of things in common. For starters, have all voiced their opposition to the plight of public employee unions in the state.
On Feb. 18, Limbaugh said on his radio program, "We are either on the side of the Wisconsin protesters or we are on the side of our country." Hannity has featured several guests critical of the union and its supporters, including Wisconsin Gov. Scott Walker, on his Fox News television and radio shows.
On the Feb. 18 edition of "The O'Reilly Factor," O'Reilly stated, "Governments can't afford to operate" because of "union wages and benefits." But it turns out that opposing workers' rights isn't the only thing these blowhards have in common.
As it turns out, all three of them belong to the American Federation Television and Radio Artists union (AFTRA), which is the AFL-CIO affiliate for television and broadcast workers.
Yes, you read that right. While Hannity, O'Reilly and Limbaugh have been railing against union workers in Wisconsin, all three of them belong to an AFL-CIO affiliate union.
A report voted to the front page of Reddit Friday claimed that Hannity, Limbaugh and O'Reilly were union members, as well as Glenn Beck, Sarah Palin and Ann Coulter. Right-wing blogger Michelle Malkin called it the "stupid lie of the week," insisting that neither she nor the "other Fox News personalities being accused of 'hypocrisy' belong to the union." As one might expect, Malkin didn't know what she was talking about and the liberals were right (she herself, as just a frequent guest on the network, is not a member of the union).
A representative from Beck's camp denied the claim, but a source within AFTRA confirmed to AlterNet Friday that O'Reilly, Limbaugh and Hannity were indeed union members.
When asked, AFTRA reps wouldn't state whether the three were members, but it did say in an official statement (see the entire statement below):
"[N]otwithstanding the union's publicly stated position on a given issue, including the attack on public sector union members currently unfolding in Wisconsin and elsewhere around the nation AFTRA fully supports the First Amendment right to free speech of all Americans, including that of any AFTRA member who wishes to express an opinion that may differ from that of AFTRA."
AFTRA also said in a separate statement that some staff at local Fox affiliate stations are represented by the union. According to its Web site, AFTRA "is a national labor union representing over 70,000 performers, journalists and other artists working in the entertainment and news media."
It "negotiates and enforces over 300 collective bargaining agreements that guarantee minimum (but never maximum) salaries, safe working conditions and health and retirement benefits." Republicans in Wisconsin voted early Friday to strip public union workers of their collective bargaining rights.
In the same segment where O'Reilly blamed government financial woes on union benefits, he not only said he was an AFTRA member, but that his membership had benefited him in the past. "On a personal note, I'm a member of a union, AFTRA, and when I was working at 'Inside Edition' some years ago, the King World company tried to renege on pension benefits," said O'Reilly. "AFTRA took them to court and the case was settled. If the shop had been non-union, we might have been stiffed."
Multiple attempts to reach representatives for Hannity, Limbaugh and O'Reilly for comment were not returned.
Here's the full text of the two statements AFTRA sent AlterNet:
"As a matter of policy, AFTRA does not reveal whether or not an individual is a member of AFTRA unless specifically authorized to do so by that individual. We take very seriously our members' right to privacy in this and in other regards. As the unfortunate situation in Wisconsin makes clear, all too often union members are the target of vicious attacks either from their employer (or prospective employer) or the public, and it is the union's responsibility to protect our members to the greatest extent possible.
Continue reading page 2 of this article.
http://www.alternet.org/news/150054/confirmed:_union-bashing_right-wing_media_st...'reilly_are_afl-cio_union-affiliated_members?page=1
When it comes to the Wisconsin union fights, right-wing pundits Bill O'Reilly, Sean Hannity and Rush Limbaugh have a couple of things in common. For starters, have all voiced their opposition to the plight of public employee unions in the state.
On Feb. 18, Limbaugh said on his radio program, "We are either on the side of the Wisconsin protesters or we are on the side of our country." Hannity has featured several guests critical of the union and its supporters, including Wisconsin Gov. Scott Walker, on his Fox News television and radio shows.
On the Feb. 18 edition of "The O'Reilly Factor," O'Reilly stated, "Governments can't afford to operate" because of "union wages and benefits." But it turns out that opposing workers' rights isn't the only thing these blowhards have in common.
As it turns out, all three of them belong to the American Federation Television and Radio Artists union (AFTRA), which is the AFL-CIO affiliate for television and broadcast workers.
Yes, you read that right. While Hannity, O'Reilly and Limbaugh have been railing against union workers in Wisconsin, all three of them belong to an AFL-CIO affiliate union.
A report voted to the front page of Reddit Friday claimed that Hannity, Limbaugh and O'Reilly were union members, as well as Glenn Beck, Sarah Palin and Ann Coulter. Right-wing blogger Michelle Malkin called it the "stupid lie of the week," insisting that neither she nor the "other Fox News personalities being accused of 'hypocrisy' belong to the union." As one might expect, Malkin didn't know what she was talking about and the liberals were right (she herself, as just a frequent guest on the network, is not a member of the union).
A representative from Beck's camp denied the claim, but a source within AFTRA confirmed to AlterNet Friday that O'Reilly, Limbaugh and Hannity were indeed union members.
When asked, AFTRA reps wouldn't state whether the three were members, but it did say in an official statement (see the entire statement below):
"[N]otwithstanding the union's publicly stated position on a given issue, including the attack on public sector union members currently unfolding in Wisconsin and elsewhere around the nation AFTRA fully supports the First Amendment right to free speech of all Americans, including that of any AFTRA member who wishes to express an opinion that may differ from that of AFTRA."
AFTRA also said in a separate statement that some staff at local Fox affiliate stations are represented by the union. According to its Web site, AFTRA "is a national labor union representing over 70,000 performers, journalists and other artists working in the entertainment and news media."
It "negotiates and enforces over 300 collective bargaining agreements that guarantee minimum (but never maximum) salaries, safe working conditions and health and retirement benefits." Republicans in Wisconsin voted early Friday to strip public union workers of their collective bargaining rights.
In the same segment where O'Reilly blamed government financial woes on union benefits, he not only said he was an AFTRA member, but that his membership had benefited him in the past. "On a personal note, I'm a member of a union, AFTRA, and when I was working at 'Inside Edition' some years ago, the King World company tried to renege on pension benefits," said O'Reilly. "AFTRA took them to court and the case was settled. If the shop had been non-union, we might have been stiffed."
Multiple attempts to reach representatives for Hannity, Limbaugh and O'Reilly for comment were not returned.
Here's the full text of the two statements AFTRA sent AlterNet:
"As a matter of policy, AFTRA does not reveal whether or not an individual is a member of AFTRA unless specifically authorized to do so by that individual. We take very seriously our members' right to privacy in this and in other regards. As the unfortunate situation in Wisconsin makes clear, all too often union members are the target of vicious attacks either from their employer (or prospective employer) or the public, and it is the union's responsibility to protect our members to the greatest extent possible.
Continue reading page 2 of this article.
http://www.alternet.org/news/150054/confirmed:_union-bashing_right-wing_media_st...'reilly_are_afl-cio_union-affiliated_members?page=1
An Open Letter To The World
We stand at a unique time in our history, the rise of the internet and computer technology have contributed to an unparallelled rate of prosperity for the First World. We have created for ourselves and empire unlike any other, a global network of constant trade and communication, a new age of technological advancement. We have come a long way from our humble roots in the Industrial Revolution and the days of Manifest Destiny. We are now pioneers on new digital frontiers expanding our domain from the quantum world to the far reaches of space.
And yet, the empire faces a crisis, a global recession, growing poverty, rampant violence, corruption in politics, and threats to personal freedom. As it was before in other times of crisis, the old stories have begun to repeat themselves. The half truths, this time repeated nightly on cable news and echoed through a series of tubes onto the internet: the empire is strong, change is unwise, business as usual is the answer. In times of uncertainty there are those who seek to add to the confusion, to prey on our insecurities and fears. Those who would seek to keep us divided for their own gain. The pervasive strategy takes many very convincing forms: Liberals and Conservatives, Christians and Muslims, Black and White, Saved and sinner.
But something unexpected is happening. We have begun telling each other our own stories. Sharing our lives, our hopes, our dreams, our demons. Every second, day in day out, into all hours of the night the gritty details of life on this earth are streaming around the world. As we see the lives of others played out in our living rooms we are beginning to understand the consequences of our actions and the error of the old ways. We are questioning the old assumptions that we are made to consume not to create, that the world was made for our taking, that wars are inevitable, that poverty is unavoidable. As we learn more about our global community a fundamental truth has been rediscovered: We are not so different as we may seem. Every human has strengths, weaknesses, and deep emotions. We crave love, love laughter, fear being alone and dream for a better life.
You must create a better life.
You cannot sit on the couch watching television or playing video games, waiting for a revolution. You are the revolution. Every time you decide not to exercise your rights, every time you refuse to hear another view point, every time you ignore the world around you, every time you spend a dollar at a business that doesn't pay a fair wage you are contributing to the oppression of the human body and the repression of the human mind. You have a choice, a choice to take the easy path, the familiar path, to walk willingly into your own submission. Or a choice get up, to go outside and talk to your neighbor, to come together in new forums to create lasting, meaningful change for the human race.
This is our challenge:
A peaceful revolution, a revolution of ideas, a revolution of creation. The twenty-first century enlightenment. A global movement to create a new age of tolerance and understanding, empathy and respect. An age of unfettered technological development. An age of sharing ideas and cooperation. An age of artistic and personal expression. We can choose to use new technology for radical positive change or let it be used against us. We can choose to keep the internet free, keep channels of communication open and dig new tunnels into those places where information is still guarded. Or we can let it all close in around us. As we move in to new digital worlds, we must acknowledge the need for honest information and free expression. We must fight to keep the internet open as a marketplace of ideas where all are seated as equals. We must defend our freedoms from those who would seek to control us. We must fight for those who do not yet have a voice. Keep telling your story. All must be heard.
All content on this website is automatically licensed under a Creative Commons Attribution license. You are free to redistribute and/or remix it, but you have to credit the author, or, if the author is unknown ("Anonymous"), place a backlink to the corresponding page on AnonNews and attribute it to "Anonymous".
How Anonymous Hacked the Security Firm Hacker
Even as the FBI was conducting its ongoing campaign of surveillance and armed raids against those of us involved in the Anonymous activist collective, that and other "law enforcement" agencies were simultaneously providing resources and work opportunities to a collection of federal contractors, which were themselves engaged in a variety of reckless and unethical activities to which they are now being held to account by the press, if not the government. Anyone who had written up such a situation as fiction would rightfully be thrown out of a publisher's office for having produced a work of fiction with such a ludicrous plot.
On the Saturday before last, an article appeared in Financial Times in which a certain Aaron Barr, head of US federal contractor HBGary Federal, claimed to have identified by name what he termed Anonymous's "leadership". We responded with a press release conceding defeat. The next day, our hackers infiltrated Barr's personal data as well as that of HBGary Federal and its parent company HBGary, thereafter releasing tens of thousands of company emails, as well as the very document that Barr had planned to sell to the FBI – a document that turned out to be both hilariously inaccurate and not-so-hilariously destined to get some undetermined number of innocents raided by government agents, despite them not having any connection to Anonymous whatsoever. We then released all of these materials ourselves, and in doing so revealed documents that included plans to collect information on the family members of political opponents of the US Chamber of Commerce, as well as a proposal to attack WikiLeaks and key supporter Glenn Greenwald by means of a range of unethical and possibly illegal tactics now being reported by media outlets world wide.
This farrago of embarrassments doesn't end there: shortly after the attack, I spoke to Barr via phone (the conversation is on record), during which the clearance-possessing federal contractor made misleading statements to me about his intentions in collecting information about activists who were meanwhile involved in providing assistance to pro-democracy campaigners in Tunisia, Egypt and elsewhere. Later, as we and reporters went through the acquired emails and other data, we began to discover the full extent of the plans for surveillance and dirty tricks. We were left with an abiding sense of the sickness that plagues institutions that already spend millions on public relations lest they be considered on their merits.
As the story unfolds, Anonymous will continue to conduct the investigation that, in a more perfect world, would be immediately pursued by law enforcement agencies. Anonymous will likewise continue to work with the press and independent observers to reveal the truth of what US taxpayer dollars and corporate "emergency response" funds actually go to produce. Meanwhile, our opponents and antagonists will continue to lie to you. All we ask is that you compare our words and actions with theirs, and decide which of these two factions your conscience would prompt you to support.
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