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Bankster Scorecard

I asked subscribers to the Bankster list to rate the bank reform bill that just passed Congress. I appreciate the fact that some folks took the time to rank the three parts of the bill, which include: 1) the Consumer Financial Protection Bureau; 2) the derivatives chapter, and; 3) our favorite "too big to fail" section.

Those that took the time to rate all three sections of the bill averaged a "B" for consumer protection, "C" for derivatives, "F" for too big to fail. However, most Bankster subscribers gave the whole bill an "F." There was general agreement that the bill would not prevent the next crisis because it did not do enough about the financial institutions whose size, power and influence pose a threat to our economy. Bankster subscribers have always cared the most about the "too big to fail" issues and supported the reinstatement of Glass-Steagall, hard size caps on the big banks and other measures to break up the banks.

Fight Over Fracking

The state of New York has some of the cleanest drinking water in the country, but natural gas drilling is threatening water resources there. At issue is whether drilling companies know enough about how to protect groundwater sources from contamination by a drilling procedure called "fracking," the term used for the hydraulic fracturing of rock formations to make them produce more gas. Citizens also doubt whether existing rules and regulations can assure drilling companies will do enough to protect water sources, and whether there are enough qualified staff people to enforce current and future drilling regulations. In the Gulf of Mexico, drilling technology outpaced the industry's knowledge of how to cap an out-of-control well and clean up an environmental disaster caused by drilling activities. Similar problems exist with the natural gas drilling. Increasingly, land owners report that exposure to fracking chemicals has made them sick and that fracking contaminated streams and drinking water wells on their property, rendering them unusable. Gas companies fight having to reveal the secret cocktail of chemicals that make up their proprietary "fracking fluids," and fracking was exempted from the national Safe Drinking Water Act during the George W. Bush Administration, so there is little help for citizens trying to stop drilling companies from using the procedure. A Web site called "Clean Water Not Dirty Drilling" is urging people to contact the New York State Senate to ask for a "time out" on drilling until more is known about how to make the activity safer.

Health Insurers Leaning on State Insurance Commissioners to “Reform” Reform

The nation's biggest insurers -- not happy with provisions of the four-month-old health care reform law that would force many of them to spend more of the money they collect in premiums for their policyholders' medical care -- are pressuring regulators to disregard what members of Congress intended when they wrote the law, so that they can keep raking in huge profits for their Wall Street owners. If they are successful, many policyholders will soon be shelling out even more than they do today to enrich insurance company shareholders and CEOs. Billions of dollars are at stake, which is why the insurers and their symbiotic allies are pulling out all the stops to gut a key part of the law that would require them to spend at least 80 cents of every premium dollar they take in for medical care.

Get Serious About The Deficit and Cut Military Spending

military spendingDemocrats and Republicans agree that the federal deficit is a serious problem for the stability of American economy. But over the past few weeks, both parties have fought major battles on how to address this problem. The Democrats won the first round when last week, when President Obama signed a six-month extension of emergency unemployment benefits, surmounting Republican objections that the $34 billion measure would add too much to the deficit. The conflict this week is over the extension of the Bush tax cuts, which are set to expire December 31. As expected, Republicans are fighting for extension of the entire package while many Democrats, including President Obama, vowed to keep them for families making less than $250,000 a year. It is estimated that keeping the tax cuts for households that make more than $250 thousand a year will cost about $40 billion a year. Treasury Secretary Timothy Geithner argued that tax increases on the richest Americans are necessary "to make some progress bringing down our long-term deficits." $34 billion and $40 billion are surely not trivial sums. But if Congress and the Administration are sincere about tackling the deficit, it should confront the biggest expense of federal funds: military spending.

Gavin Newsom Hopes to Leave His Sludge in San Francisco

Last month, I wrote Chez Sludge, the first inside report on the sewage sludge scandal unfolding in San Francisco, based on internal documents obtained by the Food Rights Network and now online in the Toxic Sludge wiki on SourceWatch.

San Francisco, under its "green mayor" Gavin Newsom, has since 2007 perpetrated a greenwashing scam upon city gardeners. The city, known for its environmentally sound practices and commitment to a precautionary principle approach to dealing with environmental hazards, has deceptively and fraudulently been giving away free "organic Biosolids compost," that is actually nothing but toxic sewage sludge from San Francisco and eight other counties, "composted" by the giant waste handler Synagro.

"Big Shopping Malls" and "No Humanitarian Crisis in Gaza"

GazaRecently, the newest batch of Israel-related hasbara was released on a mass scale by the Israeli news website, Ynetnews, which is the online English language news website of Yedioth Ahronoth, Israel's most-read news source. It is akin to the New York Times or the Washington Post of the United States, and one of Israel's news sources of prominent distinction.

"There Is No Humanitarian Crisis in Gaza"

The Prime Minister of Israel, Benjamin Netanyahu and Israel hasbara-extraordinaire, Felix Frankfurter, Professor of Law at Harvard Law School, and Alan Dershowitz, are both on the record as saying that "there is no humanitarian crisis in Gaza." They are not outliers in holding that opinion. Indeed, former neo-conservative Speaker of the House Newt Gingrich, the current Foreign Minister of Israel, Avigdor Lieberman, Washington Post columnist Charles Krauthammer, Israeli Ambassador to the United States Michael Oren, as well as Netanyahu spokesman Mark Regev, are all on the record sharing these sentiments.

Unsafe From Any Gulf

America's voracious oil consumption is criticized for many reasons in the media today, but three reasons seem to dominate the headlines. First, the Gulf oil disaster has galvanized public outrage at oil companies and led to questioning of our energy needs which push oil rigs out into treacherous deep waters. Second, climate change attracts significant attention, as academy award-winning films are made on the topic and the manufactured "Climategate"; scandal fills news articles with tales of espionage. Finally, as the Iraq War drags on and tensions with Iran remain high, every politician is giving lip service to the national security threat created by "our dependence on foreign oil." But what often gets ignored is perhaps the most obvious and persistent problem involved with oil use: air pollution.

The Blame Game Double Standard

Michael SteeleRepublican National Committee (RNC) Chairman Michael Steele's latest gaffe turned a lot of heads when, speaking at an RNC fundraiser, Steele stated that the war in Afghanistan is "a war of Obama's choosing" that the American public does not want. It is obviously ludicrous to assert that the war in Afghanistan, which began in October of 2001, when Barack Obama was a state senator, was somehow chosen by the sitting president. The statement caused conservative firebrand William Kristol to call for Steele's resignation. A dismayed Kristol stated that Steele's blunder put him "at odds with 100% of the Republican Party." Unfortunately, Kristol is totally wrong to say that all Republicans disagree with Steele. While Steele's statements may be extreme, they fall in line with a widespread pattern of conservative efforts to blame Obama for problems created by President Bush.

Taxpayers Owed Big Bucks Under the Bailout, Little Help for Homeowners Facing Foreclosure

The June update of federal government expenditures in the Wall Street bailout by the Center for Media and Democracy shows that the multi-trillion dollar legacy of the financial crisis largely remains on the government's balance sheet. Our calculations put the total bailout expenditure at $4.74 trillion and the total outstanding balance at $2 trillion.

These numbers are much higher than what is reported in the media because CMD's Wall Street Bailout Cost Table takes into account all 35 government programs, not just the Troubled Asset Relief Program (TARP) managed by the U.S. Treasury Department. Still unpaid: $568 billion in TARP money and $1.4 trillion in Federal Reserve loans and investments.

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