and Spawned a Global Crisis

{ Cross-posted at Blue Mass Group }

Excerpted from THE MONSTER: How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America–and Spawned a Global Crisis by Michael W. Hudson. Published in November by Times Books, an imprint of Henry Holt and Company, LLC. Copyright (c) 2010 by Michael W. Hudson. Reprinted with permission of Times Books. All rights reserved.

Introduction: Bait and Switch

A few weeks after he started working at Ameriquest Mortgage, Mark Glover looked up from his cubicle and saw a coworker do something odd. The guy stood at his desk on the twenty-third floor of downtown Los Angeles’s Union Bank Building. He placed two sheets of paper against the window. Then he used the light streaming through the window to trace something from one piece of paper to another. Somebody’s signature.

Glover was new to the mortgage business. He was twenty-nine and hadn’t held a steady job in years. But he wasn’t stupid. He knew about financial sleight of hand-at that time, he had a check-fraud charge hanging over his head in the L.A. courthouse a few blocks away. Watching his coworker, Glover’s first thought was: How can I get away with that? As a loan officer at Ameriquest, Glover worked on commission. He knew the only way to earn the six-figure income Ameriquest had promised him was to come up with tricks for pushing deals through the mortgage-financing pipeline that began with Ameriquest and extended through Wall Street’s most respected investment houses.

Continue reading How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America…

I don’t ordinarily pass around online petitions. They’re of dubious efficacy, and too often reek of slactivism.

But I know that this one comes with a strong real-time effort behind it. It’s the real deal. And I’m especially impressed in that it adheres to my dictum, “for every `no,’ a `yes'”–meaning that every time we oppose something, we offer up a viable alternative. Peter Vickery’s editorial in The Daily Hampshire Gazette–you can read it here–does just that:

So, if you live in MA–I’d urge that you read the editorial, and read, sign, and FORWARD (to EVERYONE you possibly can) the following petition:

CLICK HERE FOR PETITION”  

Continue reading Support Efforts to Turn Coal-Burning Power Stations Into Cleaner-Eneregy Suppliers

“Make a financial pledge to our station in the next hour if you support Single Payer Health Care!,” is a popular line that listeners hear to drum up the number of ringing phones during a fund drive.

A local NPR affiliate is preparing a pledge drive soon.  Because voters in the 4th Berkshire District approved the non-binding ‘single payer’ health care question by the second highest margin in the state last year, with well over 70% approval, it’s a sure bet that the affiliate will dedicate several hours of pledging to the issue.

I attempted recently to find out from the station how many additional pledges are generated during the time slots that are devoted to ‘single payer’ health care, but it didn’t seem that any records like that are kept.  Without such data to communicate to lawmakers and advocates the pledge drive has little real effect in advancing the legislation which the callers presumably favor.  The fundraisers certainly know that support for the issue is strong, though.  They will reasonably continue with this tactic as long as it is viewed to bolster fund-raising.

As several of us in the Green-Rainbow Party are planning to participate with MassCare in “Lobby Day” on Beacon Hill, which is devoted to securing legislative co-sponsors for the single payer health care bill, it got me thinking …

Continue reading A Tectonic Pledge

Hat tip to Shirley for this great news

According to the Boston Business Journal:

The Massachusetts Department of Revenue estimates that a drop in the state’s corporate tax rate will save corporations $148.5 million in the current fiscal year.

The corporate tax rate dropped to 8.25 percent as of Jan. 1, down from 8.75 percent. The DOR estimated that 35,000 Massachusetts-based businesses will benefit from the reduction. In a statement, Gov. Deval Patrick said the tax cut aims to free up money that could be used for job creation and business development at Bay State corporations.

It’s the second year in a row that the state’s corporate tax rate has gone down. The rate fell from 9.5 percent to 8.75 percent last year. It’s also scheduled to decline further next year, to 8 percent.

The DOR estimates the tax relief to corporations will reach a total of $411 million spread over fiscal years 2010, 2011 and 2012. The reductions are the result of corporate tax reform signed by Patrick in July 2008.

Happy new year, indeed! (and next year too!)  

Continue reading Happy new year, Massachusetts corporations!

A radio host asked me on the air last month what I thought of a voting reform known as “Open Primaries.”  I didn’t have enough knowledge at the time to comment one way or another, but I followed up with some research and herewith offer to continue the discussion.

As I understand it, the ‘open primary’ that was referenced would place all candidates for an office on the same primary ballot and allow all voters to cast ballots in the primary, regardless of the voters’ or the candidates’ party affiliations.  The top two candidates in the primary would advance to the general election.  City elections in Massachusetts, which are non-partisan, are held in this way with a ‘preliminary election’ whenever more than two candidates for the same office secure a place on the ballot.  The ‘Open Primaries’ reform would amend the Commonwealth’s election laws so that races which are presently partisan would be administered in the same manner.

Continue reading Voters Choosing