What Wall St Costs America: New subprime boom, same old scam. Now people have stopped paying their auto loans
After the subprime mortgage fraud scam exploded, Wall Street was left scrambling for new securities machines that would generate the same guaranteed record profit. They looked for and found other corners of the loan industry to infect. One of these chosen dark corners is the auto industry. The greed mentality of Wall Street coupled with the lack of any serious punishment for wrong doing drives fraud even to the point of collapsing the economy. Since Wall Street has repeatedly demonstrated it's devoid of any consideration of public good, we must create alternatives that are dedicated to it: Public Banks.
As Bloomberg calls it, the scam is "classic subprime: hasty loans, rapid defaults, and at times outright fraud."
Dealers partnered with financing engines, such as the partnership Fiat Chrysler made with Banco Santander, to create powerful subprime machines.
Predictably, Wall Street rewarded loans given without verifying incomes or jobs.Read more
Sarah Westhall, host of the national radio show "Business Game Changers," recently interviewed PBI Chair Ellen Brown on her show to discuss the shape of our economy.
“Every 20 or 30 years we have changed the monetary system. We can and we will change it again. That’s what the Federal Reserve did in 2008 ... they started just lending free money to the banks, which they hadn’t done before, and called it Quantitative Easing. ...
"If [the Chinese] have some bad loans, they just write them off. Because nobody’s hurt — nobody actually put up the money. The money was just created as an accounting entry, so you can write off those accounting entries if you need to, to save your economy. You don’t need to force austerity on people who didn’t do it, who weren’t liable for it, who weren’t at fault. We pretend like money is actually owed to someone, but it’s not. It was created as credit on the books — it can be written off.
PBI is pleased to introduce a new member of our national leadership with the appointment of Daniel Hicks as Director of Media Relations. Daniels’s role with PBI will be to build deeper ties with the media and produce new materials that expand the understanding of Public Banking and its relevance to the national media discussion.
Daniel is a journalist, economist, TV producer, world traveler and dual faculty member at the University of Miami. He managed network coverage from Los Angeles for NBC News, MSNBC, CNBC and other network channels and graduated from Columbia University’s School of Journalism. His list of travel experiences is dizzying.
Such deep media experience should be valuable to PBI’s mission ...Read more
As the winter rains fell in the Pacific Northwest, PBI Board Members Nichoe Lichen and Ellen Brown met in Tacoma last Thursday, Nov 9 with the State of Washington's Infrastructure and Public Depository Bank Task Force to present PBI’s evaluation of the nuts and bolts for establishing a Public Bank for the State of Washington.
Ellen and Nichoe were impressed by the expertise and commitment of those Washington legislators and bank representatives serving on the task force and how much progress they had made. Perhaps it will it be the State of Washington that enables the first Public Bank in the US in 98 years!Read more
We are thrilled to launch our new Facebook page to help connect with, educate, and inspire more people on the value of a Public Bank.
To celebrate and highlight all the amazing work being done around the country, we call on our Public Bank supporters to send us photos!
The next time your Public Banking group gets together, please gather for a fun group photo in front of an iconic scene in your city and hold up a sign or small banner that says #YesPublicBanks.
Send them to email@example.com.Read more
Phil Murphy’s win in NJ has caught the attention of the banking industry. Banking financial services magazine American Banker contacted PBI the day after the election to ask us how we were seeing the success. The resulting article by Laura Alix provides a balanced and overall positive assessment and highlights that the Murphy win “is being seen as a much-needed shot in the arm for the broader public-bank movement.”
Once community banks understand how a Public Bank can partner with them to overcome regulatory and capital burdens, PBI believes Public Banks are likely to gain many more banker allies.Read more
Local news outlet NJ Spotlight points out that few people in New Jersey had even heard of Gov-elect Phil Murphy before he jumped into the governor’s race, and the same could be said about one of Murphy’s core proposals: a plan to launch a state-run Public Bank.
Now that he has won, Murphy has a chance to “set off a national revival for state banks, an idea that had its heyday nearly 200 years ago but has been rediscovered amid an era of corporate greed and rising income inequality."Read more
BREAKING: Phil Murphy wins New Jersey's governor's race. But it's not only a win for Murphy, it's also a win for Public Banks. As John Nichols of The Nation put it today, "Public banking is on the ballot today—not as the sort of statewide referendum issue ... but in the form of a candidate who knows a thing or two about banking."
Phil Murphy describes Public Banking as “the type of big thinking we need to get back on track.” He wants to do even more with a NJ state bank than the successful model of the Bank of North Dakota. “This is money that belongs to the taxpayers of New Jersey, so it should be invested in them.”Read more
California State Treasurer John Chiang today released a report containing his Cannabis Working Group's recommendations for how the state can help address the banking needs of the soon-to-be-legal CA pot industry. One of his four main recommendations is:
Conducting a feasibility study on creation of a state-owned bank to provide financial services to the cannabis industry. The study should include costs, benefits, risks, and legal and regulatory issues including capitalization, deposit insurance and access to interbank transfer systems.
Chiang's recommendation is important because it allows the state to move forward on a feasibility study quickly without needing the legislature to approve it.Read more
CA Treasurer Chiang unveils recommendations on cannabis banking after year-long study: livestream Tues Nov 7
The banking needs of the cannabis industry have been a pressing concern of CA state and city leaders as they deal with a rapidly growing state industry shut out of national banks and forced to operate businesses only in cash. Leaders are seriously inquiring how state or city Public Banks could potentially meet these needs. On Tuesday, Nov 7 at 10:00 am PST, CA State Treasurer John Chiang will hold a press conference in Sacramento to release a report on the steps California can take to address the lack of banking services that makes an entire industry resort to duffel bags full of dollars as standard business operations.
Federal law making marijuana illegal creates a legal grey zone for states who have legalized it. Because of the need to process payments and interact with the rest of the financial system, banks must have an account with one of the nation's 12 regional Federal Reserve banks, which default to follow national law. Will the Federal Reserve Bank of San Francisco take a different approach from the Federal Reserve Bank of Kansas City, for instance? It's not a settled question, but it's a battle worth fighting.Read more