This document presents the argument for establishing a public bank. It begins by outlining budget problems faced by states and municipalities, noting that the Federal Reserve will not bail them out. It then discusses why a public bank, like North Dakota's, is a solution. North Dakota's bank earns profits for the state while supporting community banks and economic growth. In contrast, large private banks engage in risky derivatives trading and do not significantly support local communities through lending. The document advocates for states to establish their own public banks as a safer alternative.
This document presents four multi-trillion dollar paths to a thriving America based on the book "America is Not Broke". The four paths are: 1) Sovereign Money, which argues the government should create debt-free money; 2) Land Value Taxation, which advocates taxing the value of land; 3) Public Banking; and 4) Ending Government Financial Asset Hoarding. The document focuses on explaining Sovereign Money and Land Value Taxation in more detail. It argues that governments could fund public services through collecting $5.3 trillion in economic rent from land rather than through other taxes.
The document proposes four multi-trillion dollar paths to a thriving America: 1) Sovereign money or debt-free money, 2) Land value taxation (Georgism), 3) Public banking, and 4) Ending government financial asset hoarding. Each path is estimated to be worth over $1 trillion per year. The document then provides more details on sovereign money, land value taxation, and public banking. It argues that sovereign money could fund infrastructure and social programs without inflation. It explains how land value, not buildings, determines home values and proposes taxing land values instead of wages and sales. It also outlines the benefits of public banking compared to private banks, using the Bank of North Dakota as an example
This document presents a slideshow about case studies in New York City property development. It examines development projects in NYC and the economic benefits provided by the city to encourage development. It discusses issues like vacant and underused land, including parking lots and low-rise "taxpayer" buildings near subway stations. It analyzes specific properties in Manhattan and Brooklyn that are assessed at much lower values than comparable properties, suggesting property owners are benefitting from low tax assessments. The slideshow argues that raising land value tax assessments would not reduce affordable housing and would incentivize more efficient use of land.
Slideshow presented November 22, 2013 & February 5, 2014, at the Henry George School. Shows the effect of under-taxing land and over-taxing buildings and improvements. Based on the Henry George Single Tax theorem.
1. The document discusses the impacts of tightened lending standards and increased savings rates in the US following the financial crisis. While prudent on an individual level, some argue this will slow economic recovery by reducing credit availability and consumer spending.
2. Lenders have tightened standards due to high default rates, while individuals have increased savings and paid down debt in response to job losses and economic uncertainty. However, experts want more lending and spending to stimulate growth.
3. The debate centers around whether continued conservative lending and spending habits will prolong the recession or lead to sustainable recovery. Both sides make reasonable arguments about the role of credit in fueling economic activity in the short and long term.
An open letter to the us treasury regarding the recent discussions with nar, ...Ralph 刘冶民 Liu
This document is an open letter from Ralph Liu to Jeffrey Goldstein, Deputy Treasury Secretary for Domestic Finance, discussing Liu's SwapRent proposal for an alternative housing finance system. Liu provides background on presenting the proposal to government agencies in 2007 before the financial crisis. He notes that while the proposal has received interest, no public stance or action has been taken. Liu urges Goldstein and his colleagues to publicly address the over 3-year old SwapRent proposals, as industry groups are also interested but waiting for government leadership. He believes continuing conventional policies will further damage the economy and hopes his proposal can be seriously considered to help economic recovery.
This document contains a proposed bill that would allow American citizens to modify their existing home mortgages to a 4% interest rate without changing lenders. This is intended to help stimulate the economy by decreasing unemployment, preventing foreclosures and bank-owned homes, stabilizing the housing market, increasing tax revenues, and helping household budgets. The bill is supported by findings that banks are lending little due to losses on home loans, the slow job and housing market recovery since 2007, the problem of "zombie foreclosures" lingering for years in process while damaging home values, and forecasts of a continued difficult year for the mortgage industry in 2014 due to new regulations.
This presentation on privatization and TIFs was given to Theresa Amato's public interest law class at the Loyola Law School. The audio is 47 minutes long. If you'd like a copy, please email tom@civiclab.us.
This document presents four multi-trillion dollar paths to a thriving America based on the book "America is Not Broke". The four paths are: 1) Sovereign Money, which argues the government should create debt-free money; 2) Land Value Taxation, which advocates taxing the value of land; 3) Public Banking; and 4) Ending Government Financial Asset Hoarding. The document focuses on explaining Sovereign Money and Land Value Taxation in more detail. It argues that governments could fund public services through collecting $5.3 trillion in economic rent from land rather than through other taxes.
The document proposes four multi-trillion dollar paths to a thriving America: 1) Sovereign money or debt-free money, 2) Land value taxation (Georgism), 3) Public banking, and 4) Ending government financial asset hoarding. Each path is estimated to be worth over $1 trillion per year. The document then provides more details on sovereign money, land value taxation, and public banking. It argues that sovereign money could fund infrastructure and social programs without inflation. It explains how land value, not buildings, determines home values and proposes taxing land values instead of wages and sales. It also outlines the benefits of public banking compared to private banks, using the Bank of North Dakota as an example
This document presents a slideshow about case studies in New York City property development. It examines development projects in NYC and the economic benefits provided by the city to encourage development. It discusses issues like vacant and underused land, including parking lots and low-rise "taxpayer" buildings near subway stations. It analyzes specific properties in Manhattan and Brooklyn that are assessed at much lower values than comparable properties, suggesting property owners are benefitting from low tax assessments. The slideshow argues that raising land value tax assessments would not reduce affordable housing and would incentivize more efficient use of land.
Slideshow presented November 22, 2013 & February 5, 2014, at the Henry George School. Shows the effect of under-taxing land and over-taxing buildings and improvements. Based on the Henry George Single Tax theorem.
1. The document discusses the impacts of tightened lending standards and increased savings rates in the US following the financial crisis. While prudent on an individual level, some argue this will slow economic recovery by reducing credit availability and consumer spending.
2. Lenders have tightened standards due to high default rates, while individuals have increased savings and paid down debt in response to job losses and economic uncertainty. However, experts want more lending and spending to stimulate growth.
3. The debate centers around whether continued conservative lending and spending habits will prolong the recession or lead to sustainable recovery. Both sides make reasonable arguments about the role of credit in fueling economic activity in the short and long term.
An open letter to the us treasury regarding the recent discussions with nar, ...Ralph 刘冶民 Liu
This document is an open letter from Ralph Liu to Jeffrey Goldstein, Deputy Treasury Secretary for Domestic Finance, discussing Liu's SwapRent proposal for an alternative housing finance system. Liu provides background on presenting the proposal to government agencies in 2007 before the financial crisis. He notes that while the proposal has received interest, no public stance or action has been taken. Liu urges Goldstein and his colleagues to publicly address the over 3-year old SwapRent proposals, as industry groups are also interested but waiting for government leadership. He believes continuing conventional policies will further damage the economy and hopes his proposal can be seriously considered to help economic recovery.
This document contains a proposed bill that would allow American citizens to modify their existing home mortgages to a 4% interest rate without changing lenders. This is intended to help stimulate the economy by decreasing unemployment, preventing foreclosures and bank-owned homes, stabilizing the housing market, increasing tax revenues, and helping household budgets. The bill is supported by findings that banks are lending little due to losses on home loans, the slow job and housing market recovery since 2007, the problem of "zombie foreclosures" lingering for years in process while damaging home values, and forecasts of a continued difficult year for the mortgage industry in 2014 due to new regulations.
This presentation on privatization and TIFs was given to Theresa Amato's public interest law class at the Loyola Law School. The audio is 47 minutes long. If you'd like a copy, please email tom@civiclab.us.
This document provides an abstract and introduction for a research paper about the causes of the Great Recession. The paper will examine the housing and credit bubbles that contributed to the recession and study how improving financial literacy could help prevent future crises. The introduction discusses the motivation for the research and provides background on the bursting of the housing bubble and credit crunch. It analyzes the impacts of deregulation that allowed riskier lending and the merger of banks and insurance companies. The document will review literature on these topics and survey students' financial knowledge to understand how awareness could impact financial crises.
Tom Tresser presented at a forum of privatization and the Chicago Infrastructure Trust at SEIU's Chicago HQ on Saturday, June 23, 2012. Visit http://www.civiclab.us. Contact Tom = tom@civiclab.us
This paper is a summary of press clippings gleaned from Internet during the period April to July 2008. This exercise was performed to provide a quick summary of the US credit crisis at that particular point in time / 2nd quarter 2008. The paper was presented to a non native English speaking European audience consisting primarily of insolvency judges July 3rd 2008 in Paris.
The document summarizes topics related to the global financial markets, including the rising federal debt in the US, state budget deficits, sovereign debt issues in European countries, and economic indicators in countries like China, Germany, and the US. It also discusses issues like the housing market crisis, unemployment rates, and healthcare spending in the US.
This document summarizes an article that discusses the financial crisis and proposed bailout. It provides background on how the housing bubble and subsequent bust led to losses for banks. Mortgage-backed securities spread risk but also enabled excessive leverage. Potential losses total hundreds of billions of dollars. While actual losses so far are smaller, future losses could be larger if housing prices decline further. The bailout aims to prevent cascading bank failures but risks moral hazard by rewarding past poor decisions.
This document provides a summary of the economic crisis that began in 2007. It discusses how the increasing integration of global markets led to growth but also vulnerability. The crisis that started in 2007 was more than a recession, as the housing market collapse in the US continued through 2009, exacerbating problems of high household debt levels. Government and central bank efforts to inject liquidity and spend on stimulus programs struggled to stop the economic downward spiral. Major banks remained fundamentally insolvent despite government capital injections, and credit creation broke down. By the end of 2008, the US government had committed over $7 trillion to bailouts, and deficits were rapidly rising.
The document discusses how the recession has impacted consumer spending habits and how consumers will pay for goods going forward. It notes that consumers are deleveraging and taking on less debt due to job losses and stagnant wages. While credit card usage fueled spending for decades, consumers will now likely shift to debit cards and alternative payment methods. This change creates opportunities for new payment companies and technologies to fill the gap left by reduced credit availability and help consumers continue to purchase goods and services.
This document discusses how Oregon's Elderly Persons and Persons with Disabilities Abuse Prevention Act (EPDAPA) can apply to securities law cases involving financial exploitation of elders.
The EPDAPA allows for treble damages, attorney fees, and other substantial remedies in elder abuse claims. While family members are often the perpetrators of elder financial abuse, one-third of abusers in Oregon are strangers involved in investment schemes. Contemporary schemes increasingly involve investments presented as securities like real estate interests, annuities, and life insurance products.
For an EPDAPA claim to apply in a securities case, the investment at issue must meet the definition of a security. Oregon courts use the Howey
Larry Ellison of Oracle and Kurt Matsumoto of Pulama Lāna'i are developing 150 rental homes on Lāna'i island, with 49% being market rate and 51% being affordable housing. The development will include both affordable rental homes for those earning below the area median income, as well as market rate rentals and homes available for purchase. Affordable housing continues to be an important issue in Hawaii, where housing costs are among the highest in the nation and many workers cannot afford market rate housing costs even when working full time.
The document summarizes three major current economic problems in the United States: the national debt, unemployment, and healthcare. It discusses how the national debt grew to $17 trillion due to deficit spending by recent presidential administrations. Unemployment remains high with many Americans unable to find living-wage jobs. Access to affordable, quality healthcare is also a challenge as costs continue rising. Solutions proposed include reducing government spending, raising taxes, and promoting policies to support job growth and medical freedom.
Westchester Guardian October 28, 2010 EditionMauricio Godoy
This document is a newspaper from Westchester County, New York dated October 28, 2010. It contains articles on local politics, education, development projects, and reviews. The main article discusses ongoing political and fiscal issues in Yonkers, criticizing Mayor Phil Amicone for multiple failed projects and questionable use of funds. It alleges legal and financial problems with the mayor's redevelopment plans and suggests the city council should not approve the mayor's latest $90 million budget request.
The Washington Post's Coverage of the Financial Crisisagrand905
The document summarizes The Washington Post's coverage of the financial crisis from 2004-2008. It discusses how the Post provided early warnings of the housing bubble and recession. It also covers the Post's analysis of the crisis's impact on Wall Street, Main Street, government policy responses, and key events like the use of TARP funds to bail out automakers. The document examines the Post's balanced and fact-based approach to explaining the complex financial issues facing the economy.
The document summarizes the global financial crisis that began with the subprime mortgage crisis in the United States. Low interest rates and easy credit led many borrowers who could not qualify for prime loans to receive subprime loans. When housing prices declined and borrowers defaulted, banks suffered huge losses writing off subprime loans. This credit crunch spread globally as banks became wary of lending, slowing economies worldwide. The crisis demonstrates the need for regulatory frameworks to prevent unchecked greed from negatively impacting billions of lives.
The ultra-wealthy elite, consisting of roughly 147 corporations and financial institutions, control a significant portion of the global economy. They exert influence through their ownership of major banks and corporations, secret societies, think tanks, charities, and by dominating politics through lobbying and campaign donations. They also influence society through their control of major media corporations and the education system. This small group of elitists is able to indirectly control government policy and global institutions like the IMF to benefit their own interests.
The document discusses several topics related to banking and financial regulation:
1) Bradley Leimer of Santander Bank predicts major changes to the banking business model as fees and interchange revenues decline.
2) The CFPB has grown significantly since its creation in 2011, with over 1,400 employees currently.
3) Obama is requesting budget increases for the SEC and CFTC to further enforce Dodd-Frank regulations, setting up debates with Republicans who want to revise the law.
5 Shocking Truths About Human Trafficking in AmericaInstant Checkmate
Did you know the Super Bowl is the single largest human trafficking event in the United States? Human trafficking isn't a foreign problem — and it's a massive issue. Instant Checkmate compiled 5 shocking truths you have to see to believe.
If you or someone you know may be a victim of human trafficking, contact the National Human Trafficking Resource Center (NHTRC) hotline at 1-888-373-7888 or text HELP or INFO to BeFree (233733).
For more information about human trafficking, read more here: https://www.instantcheckmate.com/crimewire/10-shocking-truths-about-human-trafficking-in-america/
The 2012 Missoula Housing Report provided the following key points:
1) Housing development increased in 2011 with building permits up 65% over 2010, driven entirely by multi-family construction as single-family permits declined.
2) Population in Missoula County grew 14% from 2000 to 2010, now exceeding 100,000, with concentrations of baby boomers and echo boomers.
3) Home sales decreased 3% in 2011 to 877 sales while median home prices increased 2% after three prior years of declines totaling 9%.
4) Housing affordability was challenging in 2011, with the median home price only affordable by a 4-person household earning $59,100, while significant shares
The document summarizes the evolution of home ownership and mortgage finance in the United States, leading up to the financial crisis of 2008. It describes how government intervention during the Great Depression made home ownership more accessible through longer-term, fixed rate mortgages. It then discusses how further government actions and policies in subsequent decades continued expanding home ownership but also contributed to riskier lending practices and eventual housing bubble. The crisis began with the collapse of the subprime mortgage market in 2007 and led to the failures of major financial firms like Lehman Brothers and government bailouts of Fannie Mae, Freddie Mac, and AIG in 2008.
This document is a slideshow presentation on public banking. It discusses three main topics: 1) the budget problem faced by states and municipalities, with limited options for resolving budget shortfalls, 2) why establishing a public bank could help address budget issues by creating money through lending, and 3) what actions could be taken to establish public banks. Some key points made include that public projects spend a large portion of their budgets on interest payments to private banks, and that states with more community banks have fewer foreclosures and more lending during economic downturns compared to states dominated by large banks.
This document discusses options for addressing budget shortfalls faced by state and local governments. It argues that creating public banks owned by states is a viable alternative to cutting services, raising taxes, or relying on borrowing. The Bank of North Dakota is presented as a successful model, having maintained strong credit ratings and returned profits to the state treasury for over 20 years. Establishing public banks could allow states to leverage their existing liquid assets to generate loans and income, similarly to how private banks operate, in order to stabilize revenues without federal assistance or taking on high interest debt.
This document provides an abstract and introduction for a research paper about the causes of the Great Recession. The paper will examine the housing and credit bubbles that contributed to the recession and study how improving financial literacy could help prevent future crises. The introduction discusses the motivation for the research and provides background on the bursting of the housing bubble and credit crunch. It analyzes the impacts of deregulation that allowed riskier lending and the merger of banks and insurance companies. The document will review literature on these topics and survey students' financial knowledge to understand how awareness could impact financial crises.
Tom Tresser presented at a forum of privatization and the Chicago Infrastructure Trust at SEIU's Chicago HQ on Saturday, June 23, 2012. Visit http://www.civiclab.us. Contact Tom = tom@civiclab.us
This paper is a summary of press clippings gleaned from Internet during the period April to July 2008. This exercise was performed to provide a quick summary of the US credit crisis at that particular point in time / 2nd quarter 2008. The paper was presented to a non native English speaking European audience consisting primarily of insolvency judges July 3rd 2008 in Paris.
The document summarizes topics related to the global financial markets, including the rising federal debt in the US, state budget deficits, sovereign debt issues in European countries, and economic indicators in countries like China, Germany, and the US. It also discusses issues like the housing market crisis, unemployment rates, and healthcare spending in the US.
This document summarizes an article that discusses the financial crisis and proposed bailout. It provides background on how the housing bubble and subsequent bust led to losses for banks. Mortgage-backed securities spread risk but also enabled excessive leverage. Potential losses total hundreds of billions of dollars. While actual losses so far are smaller, future losses could be larger if housing prices decline further. The bailout aims to prevent cascading bank failures but risks moral hazard by rewarding past poor decisions.
This document provides a summary of the economic crisis that began in 2007. It discusses how the increasing integration of global markets led to growth but also vulnerability. The crisis that started in 2007 was more than a recession, as the housing market collapse in the US continued through 2009, exacerbating problems of high household debt levels. Government and central bank efforts to inject liquidity and spend on stimulus programs struggled to stop the economic downward spiral. Major banks remained fundamentally insolvent despite government capital injections, and credit creation broke down. By the end of 2008, the US government had committed over $7 trillion to bailouts, and deficits were rapidly rising.
The document discusses how the recession has impacted consumer spending habits and how consumers will pay for goods going forward. It notes that consumers are deleveraging and taking on less debt due to job losses and stagnant wages. While credit card usage fueled spending for decades, consumers will now likely shift to debit cards and alternative payment methods. This change creates opportunities for new payment companies and technologies to fill the gap left by reduced credit availability and help consumers continue to purchase goods and services.
This document discusses how Oregon's Elderly Persons and Persons with Disabilities Abuse Prevention Act (EPDAPA) can apply to securities law cases involving financial exploitation of elders.
The EPDAPA allows for treble damages, attorney fees, and other substantial remedies in elder abuse claims. While family members are often the perpetrators of elder financial abuse, one-third of abusers in Oregon are strangers involved in investment schemes. Contemporary schemes increasingly involve investments presented as securities like real estate interests, annuities, and life insurance products.
For an EPDAPA claim to apply in a securities case, the investment at issue must meet the definition of a security. Oregon courts use the Howey
Larry Ellison of Oracle and Kurt Matsumoto of Pulama Lāna'i are developing 150 rental homes on Lāna'i island, with 49% being market rate and 51% being affordable housing. The development will include both affordable rental homes for those earning below the area median income, as well as market rate rentals and homes available for purchase. Affordable housing continues to be an important issue in Hawaii, where housing costs are among the highest in the nation and many workers cannot afford market rate housing costs even when working full time.
The document summarizes three major current economic problems in the United States: the national debt, unemployment, and healthcare. It discusses how the national debt grew to $17 trillion due to deficit spending by recent presidential administrations. Unemployment remains high with many Americans unable to find living-wage jobs. Access to affordable, quality healthcare is also a challenge as costs continue rising. Solutions proposed include reducing government spending, raising taxes, and promoting policies to support job growth and medical freedom.
Westchester Guardian October 28, 2010 EditionMauricio Godoy
This document is a newspaper from Westchester County, New York dated October 28, 2010. It contains articles on local politics, education, development projects, and reviews. The main article discusses ongoing political and fiscal issues in Yonkers, criticizing Mayor Phil Amicone for multiple failed projects and questionable use of funds. It alleges legal and financial problems with the mayor's redevelopment plans and suggests the city council should not approve the mayor's latest $90 million budget request.
The Washington Post's Coverage of the Financial Crisisagrand905
The document summarizes The Washington Post's coverage of the financial crisis from 2004-2008. It discusses how the Post provided early warnings of the housing bubble and recession. It also covers the Post's analysis of the crisis's impact on Wall Street, Main Street, government policy responses, and key events like the use of TARP funds to bail out automakers. The document examines the Post's balanced and fact-based approach to explaining the complex financial issues facing the economy.
The document summarizes the global financial crisis that began with the subprime mortgage crisis in the United States. Low interest rates and easy credit led many borrowers who could not qualify for prime loans to receive subprime loans. When housing prices declined and borrowers defaulted, banks suffered huge losses writing off subprime loans. This credit crunch spread globally as banks became wary of lending, slowing economies worldwide. The crisis demonstrates the need for regulatory frameworks to prevent unchecked greed from negatively impacting billions of lives.
The ultra-wealthy elite, consisting of roughly 147 corporations and financial institutions, control a significant portion of the global economy. They exert influence through their ownership of major banks and corporations, secret societies, think tanks, charities, and by dominating politics through lobbying and campaign donations. They also influence society through their control of major media corporations and the education system. This small group of elitists is able to indirectly control government policy and global institutions like the IMF to benefit their own interests.
The document discusses several topics related to banking and financial regulation:
1) Bradley Leimer of Santander Bank predicts major changes to the banking business model as fees and interchange revenues decline.
2) The CFPB has grown significantly since its creation in 2011, with over 1,400 employees currently.
3) Obama is requesting budget increases for the SEC and CFTC to further enforce Dodd-Frank regulations, setting up debates with Republicans who want to revise the law.
5 Shocking Truths About Human Trafficking in AmericaInstant Checkmate
Did you know the Super Bowl is the single largest human trafficking event in the United States? Human trafficking isn't a foreign problem — and it's a massive issue. Instant Checkmate compiled 5 shocking truths you have to see to believe.
If you or someone you know may be a victim of human trafficking, contact the National Human Trafficking Resource Center (NHTRC) hotline at 1-888-373-7888 or text HELP or INFO to BeFree (233733).
For more information about human trafficking, read more here: https://www.instantcheckmate.com/crimewire/10-shocking-truths-about-human-trafficking-in-america/
The 2012 Missoula Housing Report provided the following key points:
1) Housing development increased in 2011 with building permits up 65% over 2010, driven entirely by multi-family construction as single-family permits declined.
2) Population in Missoula County grew 14% from 2000 to 2010, now exceeding 100,000, with concentrations of baby boomers and echo boomers.
3) Home sales decreased 3% in 2011 to 877 sales while median home prices increased 2% after three prior years of declines totaling 9%.
4) Housing affordability was challenging in 2011, with the median home price only affordable by a 4-person household earning $59,100, while significant shares
The document summarizes the evolution of home ownership and mortgage finance in the United States, leading up to the financial crisis of 2008. It describes how government intervention during the Great Depression made home ownership more accessible through longer-term, fixed rate mortgages. It then discusses how further government actions and policies in subsequent decades continued expanding home ownership but also contributed to riskier lending practices and eventual housing bubble. The crisis began with the collapse of the subprime mortgage market in 2007 and led to the failures of major financial firms like Lehman Brothers and government bailouts of Fannie Mae, Freddie Mac, and AIG in 2008.
This document is a slideshow presentation on public banking. It discusses three main topics: 1) the budget problem faced by states and municipalities, with limited options for resolving budget shortfalls, 2) why establishing a public bank could help address budget issues by creating money through lending, and 3) what actions could be taken to establish public banks. Some key points made include that public projects spend a large portion of their budgets on interest payments to private banks, and that states with more community banks have fewer foreclosures and more lending during economic downturns compared to states dominated by large banks.
This document discusses options for addressing budget shortfalls faced by state and local governments. It argues that creating public banks owned by states is a viable alternative to cutting services, raising taxes, or relying on borrowing. The Bank of North Dakota is presented as a successful model, having maintained strong credit ratings and returned profits to the state treasury for over 20 years. Establishing public banks could allow states to leverage their existing liquid assets to generate loans and income, similarly to how private banks operate, in order to stabilize revenues without federal assistance or taking on high interest debt.
The Benefits of a Public Bank for New York State; the Derivatives explosion (nominal value of $1.2 quadrillion); The joint FDIC-Bank of England Proposal to forcibly swap deposits (incl. state deposits) for equity in a failing bank; The Public Banking model based on the Bank of North Dakota; The specific state bill for New York state; What the Fed can and can't (or won't) do to save municipalities
The document provides an update on the state of Maryland community banks in the 2nd and 3rd quarters of 2009. It summarizes that bank profits declined sharply, with many banks receiving enforcement actions or requiring government assistance. Several banks are identified as being in poor financial condition and at risk of failure. The update concludes by previewing topics to be covered in the next issue, including strategies for 2010 and an upcoming interview.
NPR provided effective coverage of the financial crisis by simplifying complex economic issues for average listeners. They broke coverage into short segments using clear language and definitions. Sources from credible institutions provided different perspectives. While coverage could have started sooner, NPR overall informed listeners through relatable explanations of terminology and impacts.
NPR provided effective coverage of the financial crisis by simplifying complex economic issues for average listeners. They broke coverage into short segments using clear language and definitions. Sources from credible institutions provided different perspectives. While coverage could have started sooner, NPR overall informed listeners through relatable explanations of terminology and impacts.
NPR provided concise and accessible coverage of the financial crisis for average listeners. They simplified complex terminology, provided historical context and perspectives from various experts. While coverage could have begun earlier, NPR effectively explained the unfolding events and potential impacts on Main Street. Sources admitted unknowns and coverage was generally balanced and relatable to non-finance audiences.
NPR provided concise coverage of the financial crisis that was accessible to average listeners. They simplified complex terminology, provided historical context and perspectives from various experts. While coverage could have begun earlier, NPR effectively explained the key events and potential impacts of the crisis over time. Personal stories and descriptions of how policies might affect everyday citizens helped relate the coverage to audiences.
Banks are looking at the downside of a digital dollar. Would a digital dollar hurt banks? Such an entity could end up sucking out bank deposits and putting a lot of banks out of business.
https://youtu.be/XyGteJzhngo
Econ315 Money and Banking: Learning Unit 19: Banking Industry and Regulationsakanor
This document provides an overview of the historical development and regulation of the banking industry in the United States. It discusses the unique characteristics of the US system including the dual banking system with both federal and state charters, and multiple regulatory agencies. It also covers the evolution of banking from many small local banks to consolidation and creation of large money center banks and super-regional banks through mergers and acquisitions.
This document provides an overview of the banking industry and regulation in the United States. It discusses the historical development of the banking system including the creation of the Federal Reserve System. It also describes the unique dual banking system and multiple regulatory agencies in the US. The document outlines the evolution of the banking industry including consolidation, financial innovation, and the decline of traditional banking activities. It discusses various regulations put in place to promote stability, such as deposit insurance through the FDIC.
It's time for an Illinois public bank! Take a look at the Bank of North Dakota (http://banknd.nd.gov), which makes the money of the people of North Dakota work FOR them! Join us at http://www.illinoispublicbanking.org.
The document discusses the failing of American banks since the 2008 financial crisis. While larger banks have received most attention, many smaller community banks continue to fail, with 90 failing so far in 2012 compared to 138 in 2011. Experts cite factors like inadequate management of large loan exposures, low capital bases, and reduced interbank lending as reasons for the community bank failures. The future of American banks remains uncertain as the ongoing European debt crisis poses risks if it worsens or contagion spreads. Experts call for Europe to resolve its problems within the next 6 months to avoid potential further crisis.
Improving Americans' Financial Security: The Importance of a CFPB DirectorObama White House
This document discusses the importance of appointing a director to the Consumer Financial Protection Bureau (CFPB). It notes that while the Dodd-Frank Act established strong new consumer protections and the CFPB to enforce them, the CFPB cannot fully exercise its authorities without a director. This leaves gaps in oversight of non-bank financial institutions like payday lenders that interact with tens of millions of American families. Fully empowering the CFPB is critical to protecting consumers from predatory practices and ensuring the financial system supports economic growth and stability.
Underbanked and Unbanked Consumers in the U.S.: Successfully Targeting Consum...MarketResearch.com
This document provides an in-depth analysis of underbanked and unbanked consumers in the U.S. It finds that 26% of U.S. households are underbanked or unbanked, relying heavily on alternative financial services like check cashing, payday loans, and money orders. The economic downturn since 2007 increased financial insecurity and pushed more households to these alternative services. The report examines how banks and alternative financial service providers are targeting this growing demographic through expanded products, locations, and new technologies.
The rapid ascent of peer to peer and online direct lending models: the impact...James by CrowdProcess
This document summarizes an article from The Capco Institute Journal of Financial Transformation titled "The Rapid Ascent of Peer-to-Peer and Online Direct Lending Models: The Impact on Banking". It discusses the growth of peer-to-peer and online direct lending as alternatives to traditional banking. Key points include:
- P2P lending platforms like Lending Club and Prosper have grown rapidly and now provide over $250 million in loans per month.
- Institutional investors are increasingly investing in the P2P lending asset class for higher yields.
- Online direct lending is a broader category than P2P lending and has significant potential to further develop the alternative lending industry.
- The growth of crowdf
This document discusses the flaws of private banking systems and promotes public banking as a sustainable alternative. It argues that private banks create money through lending at interest, which means more debt is always required to pay the interest, making exponential growth unsustainable. In contrast, public banks were historically profitable while providing low-cost loans, experiencing few defaults, and returning profits to the public. The document uses the Bank of North Dakota as a model and argues that establishing public banks could cut infrastructure costs and make economies more stable by removing the need for interest payments.
Similar to Return to prosperity With Comments (17)
The patent pending Ball Anti-Mine (BAM) drone.
There are 110 million land mines worldwide and current technology and personal can't keep up. The simple BAM uses AI and possibly flying drone to sweep across suspected minefields, blowing up anti-personal/anti-tank mines at it goes.
"IMPLAND: AN ALIEN UTOPIA
A 40th Anniversary Retrospective"
Scott Baker Manuscript (46 pp.)
KIRKUS BOOK REVIEW
In this illustrated SF book, a writer revisits the alien world that he imagined and built throughout his childhood.
Baker first conceived of the Imps when he was only 3 years old. These intriguing aliens, who reach all of 1 foot as adults, somewhat resemble beans, with noses almost as long as their spindly legs. They live inside a climate-controlled cavern in "Imp World"-one of the 25 moons of the planet Obor in the Milky Way galaxy. In this volume, the author looks back at different "editions" of his Imp writings, dating from when he was a child in the 1960s through his early 20s. He compiles old, sketched diagrams of spaceships and Imp World as well as typewritten specifics on the aliens' biology, ecology, government, and transportation system. Much of the material is gleefully inventive; all Imps are born female, and those whose eggs are fertilized eventually turn male. They are various colors, although "Color Changing Tanks" allow an Imp to choose a different one. The author's drawings are wonderfully and meticulously detailed, from the Imps' anatomy to the layout of the Surface Center, which rests between a subterranean city and Imp World's surface. But in other instances, this world mirrors familiar sights on Earth. Additional creatures on Imp World, for example, include the electric snake, the striped bird, and tyris, which are fish. Imps get around in floating trucks and buses and even simple boats and submarines. Baker cohesively ties together all of the alien facts and diagrams and earnestly discusses his decadeslong creation. But his retrospection comes with a bit of welcome humor, as when he notes the parts he ""never got around to doing,"" and some clear sources of inspiration (for instance, maglev trains and the author's fascination with caverns). In the end, Baker has the foundation of an SF saga that's waiting for a story and a hero.
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Investor Summary for the RiverArch.
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1. 3/19/14
1
Presented by:
To:
Date:
Scott Baker, NY State Coordinator,
Public Banking Institute
SSBAKER305@YAHOO.COM
Occupy: Alternate Banking Group
March 23, 2014
1. The Budget Problem
2. Why A Public Bank?
3. What Can Be Done
The Budget Problem
“We don’t have the money!”
An all too familiar refrain.
Options have been limited to:
• Cut spending
• Raise taxes
• Sell off public assets
This argument is getting old!
This presentation is in three parts.
2. 3/19/14
2
The Budget Problem
Federal Option is off the table.
Wall Street Journal, January 8, 2011:
“We have no expectation or intention to get
involved in state and local finance,” Mr.
Bernanke said in testimony before the Senate
Budget Committee. The states, he said later,
“should not expect loans from the Fed.“
In January 2009, President Obama said the Fed might
bail out hard-hit state and municipal governments. But
the Fed says they are on their own.
The Budget Problem
Federal Option is off the table
NO RESCUE
FOR YOU!
$191B would
Rescue all the
states…
$16T has gone to
the banks - 2012
audit of the
Federal Reserve
The Budget Problem
“We don’t have the money!”
Solutions have been limited to:
• Cutting spending
• Raising taxes
• Selling off public assets
No federal rescue.
But now, there’s a new option:
• Invest in our own citizens
The public can own its own bank!
Actually, the Federal Reserve CANNOT legally
involve itself in buying up state, municipal, or
city debt, even if it wanted to.
$16T, based on summer 2012 audit of the Federal
Reserve, revealed by Senator Bernie Sanders,
among others.
…Or, $29T if revolving loans are counted,
according to L. Randall Wray of the University of
Missouri – these loans have never been repaid,
just rolled over - http://www.huffingtonpost.com/
l-randall-wray/bernankes-obfuscation-
con_b_1147291.html
3. 3/19/14
3
Why A Bank?
Community banks
Dividends
(Interest)
Which system is more risky?
Don’t forget community banks! In North Dakota, which has
the country’s only State Bank, there hasn’t been a bank
failure in over 20 years. Nationwide, there have been over
500 bank failures just since 2000 (FDIC).
For a city-based Public Bank, substitute “City” for “State”
and add Community Banks in between City Bank and City
Projects.
Source: Center for the Study of Innovation report on State
Bank possibilities in Washington State.
The Public Banking Story is also a Community Bank story.
Notice how lending by North Dakota’s community banks has
pulled away from that of otherwise comparable states, even
during the crisis years!
It’s not just oil & gas:
Fracking did not significantly increase production in North
Dakota until 2005, and loans per capita were higher than
comparable states well before then.
From the Center for State Innovation - State Bank
Legislative Guide, pg. 59:
“It seems likely that larger, mostly out of state, banks were
the big loan generators for the oil and gas exploration
companies as they ramped up operations in the state; thus
the effect on smaller, in-state banks (the Bank of North
Dakota’s target partners) was minimal….CSI analysis shows
that banks in North Dakota reduced lending 33%-45% less
than comparable states, and we believe that this is in no
small part due to the stabilizing effects of its state bank.”
I’m going to approach Public Banking a bit differently
today, by looking at community banking first…
4. 3/19/14
4
A typical Systemically
Important Financial
Institution (SIFI) like JP
Morgan has just a 31%
Loan to Asset ratio – less
than ½ of ND’s community
banks. SIFIs don’t make
most of their money by
making loans!
The States with the Most Community Banks Generally
have the fewest Foreclosures…and Vice Versa
Foreclosure Rates for the U.S.
January 2014
U.S.: 1 in every 1058
Worst 5 States:
Florida: 1 in every 346
Nevada: 1 in every 533
Maryland: 1 in every 543
Illinois: 1 in every 603
New Jersey: 1 in every 619
Best 5 States:
North Dakota: 1 in 106,489
Vermont: 1 in 26,854
Mississippi: 1 in 13,851
Nebraska: 1 in 12,654
Montana: 1 in 10,698
Banks with low levels of loans to asset ratios, like
JPMorgan Chase & Co., where loans are 31% of assets,
have more diversified sources of revenue, including
from investment banking, asset management, and
derivatives.
Source: http://www.valueline.com/Tools/
Educational_Articles/Stocks/
Getting_To_Know_A_Bank_With_Financial_Ratios.aspx
The TBTF banks are called Systemically Important
Financial Institutions by the Fed and the FSB, but
“important” to whom, and for what reasons???
Again, the Public Banking case is the Community Bank case.
States with low community bank per capita ratios, like
California, Florida, Nevada, and to a somewhat lesser
extent, New York (mollified somewhat because of the
unique nature of New York City), all had high foreclosure
rates. States with lots of community banks per capita, like
South Dakota, Minnesota, and most especially, North
Dakota, the only state with a Public Bank, had low
foreclosure rates.
None of the 5 worst states have more than 47% (Illinois)
community banks.
None of the 5 best states have less than 45% (Mississippi)
community banks.
But North Dakota has 4X lower foreclosure rate than the
next best state, Vermont. It also has the most community
banks per capita (81%), and a State Public Bank! The best of
both worlds!
Sources: U.S. Real Estate Trends & Market Info - http://
www.realtytrac.com/statsandtrends/foreclosuretrends
5. 3/19/14
5
Small Banks are Disappearing
Common definition: Total assets < $1 billion
The Big Banks get Bigger…but do not increase
their Percentage of Loans to the Community
Small Banks’ Share of Assets Continues to Decline
The largest 25 domestically chartered
banks in the country control about
two-thirds of all the assets held by
domestically chartered banks.
There were 2,118 U.S. banks with less
than $100 million of assets at Sept.
30, 2013, down from more than
3,000 at the end of 2008 - FDIC
"Fifteen years ago, the assets of the six largest banks in this
country totaled 17 percent of GDP…The assets of the six
largest banks in the United States today total 63 percent of
GDP.” Senator Sherrod Brown on Sunday, April 25th, 2010 in
an interview on ABC’s "This Week.”
OK, small banks are good for the community. So, how
have they been faring?
Small banks have consolidated and disappeared due to
regulations, acquisitions, and (some) economies of
scale, but mostly bankruptcies.
Source: FDIC Report -
community_banking_by_the_numbers_clean-1.pdf
The Loan to Asset Ratio is only getting worse for the Big
Banks, even while they soak up more and more assets.
What is all that money good for?
The number of small banks has continued to plummet
since 2009.
A recent American Banker article called the community
bank model “not sustainable” - http://
www.americanbanker.com/bankthink/what-small-banks-
can-learn-from-the-us-postal-service-1066302-1.html
Sources: http://seekingalpha.com/article/310644-while-
small-banks-disappear-big-banks-get-bigger
http://finance.fortune.cnn.com/2013/09/13/too-big-to-
fail-banks/
http://www.americanbanker.com/issues/179_35/ranks-
of-tiny-banks-shrinking-as-challenges-
mount-1065734-1.html
6. 3/19/14
6
And what do these Big Banks do with the Bulk of their Assets?
The biggest banks are
now even bigger than
ever.
Are they still Too Big To
Fail…or will they actually
Fail next time?
The operations of the TBTF
banks have been compared to
a Casino, but this is unfair…
to Casinos! In a Casino, you
have consistent rules, and if
you go bust, you don’t get
bailed out, you get thrown out.
New option: Create a state-owned bank
North Dakota owns its own bank –
and therefore it creates its own credit.
As a result, North Dakota’s options are to:
• Expand public services
• Lower taxes
• Increase their bank’s capital, to make even
more credit available to the people of North Dakota
No need for a federal rescue.
From the Office of the Comptroller of the Currency:
Just in case you have forgotten what kinds of things the TBTF
banks are speculating upon…Note the multi-trillion dollar
notional value of derivatives of the top 9 banks trading in that
space. Don’t forget to add 6 zeros. The Total Credit Exposure
to Capital of the Big 5 banks is greater than 100%. Even with
hedging, assuming it is working – a bad assumption in the last
crisis – it would only take a 5% default in such a large portfolio
of derivatives to completely wipe out the Large Banking
sector.
Source: Office of the Comptroller of the Currency, 3 qtr, 2013
report:
http://www.occ.treas.gov/topics/capital-markets/financial-
markets/trading/derivatives/dq313.pdf
The TOTAL size of the Derivatives market? As high as $1.2
Quadrillion: http://www.dailyfinance.com/2010/06/09/risk-
quadrillion-derivatives-market-gdp/
Think about this the next time a large commercial bank says
there’s no need for a State Bank because they have
“everything under control.” Where do you think the state’s
money is safer?
Does anyone still believe the TBTF Money Center Banks (SIFIs)
are a safe place to store the public’s money? (A show of
hands)
If the current system is systemically dangerous,
what can we do?
7. 3/19/14
7
The North Dakota experience:
• State-owned bank established 1919
• State budget surpluses 2008-2009
• Lowest unemployment in U.S.
• Lowest foreclosure rate
• The most local banks per capita
• No bank failures in over 20 years*
• Bank funds economic growth, from Main Street
to high tech to oil production
* Proper risk analysis should include more than that for the Public Bank itself.
North Dakota has had no bank failures in over 20 years, while there were 517
bank failures through the end of Sept, 2013 nationwide since 2000, says the
cash-strapped FDIC, which has to pick up the pieces.
Why a Public Bank?
Profit the People
• The Bank of North Dakota (BND) earns 20+% annual
return on equity by investing within the state.
• BND’s profits ($300M over 10 years) go to the state
treasury, reducing tax burdens while supporting
public services.
Why are our tax dollars supporting Wall Street?
Why not invest in-state? For education? Higher
education? Renewable energy? Tech startups?
Infrastructure?
Rating and Staffing: Learning from the
Bank of North Dakota
• Standard & Poor's (S&P) maintained Bank of North
Dakota's (BND) credit ratings in its latest review of the
Bank released July 23, 2013. Its long-term issuer credit
rating remained "AA-" and its short-term issuer credit
rating to "A-1+”
• What about “key man” risk? What is the risk of key
executives leaving and what does that portend for the
safety of the bank? Maybe this is an over-rated fear.
While Jamie Dimon makes millions running JP
Morgan Chase, the president of the Bank of North
Dakota – a Civil Servant - earns about $300 thousand
a year. Which is the safer, better-run bank?
JP Morgan recently paid over $20 billion in fines for
multiple Civil violations (not criminal…so far). The
BND has never been found guilty of securities or
bank fraud.
What are we paying for?
It’s not just an oil & gas story:
Other similar states, like Alaska, have oil too, but also more
than double the unemployment – Alaska’s unemployment in
2012 was 7.1%, North Dakota’s was 3.1%
North Dakota’s oil/gas boom started in 2005.
In the 1990s, with crude oil and farm prices continuing to fall,
the state's chamber of commerce, the Greater North Dakota
Association, undertook a statewide effort of town meetings
and planning sessions to create a strategy to improve North
Dakota's future. The state was actually LOSING per capita
income until they set up an aggressive BND-sponsored
development program in the 1990s -- and it worked:
In 1991 the state legislature passed a $21 million budget for
economic development for the period 1991 to 1993. This
amount was four times larger than any previous development
budget (Department of Economic Development & Finance).
The funds came from earnings of the state-owned Bank of
North Dakota. This economic development legislative
package was a set of policies and programs that was known
as “Growing North Dakota" (Patrie).
Sources: http://banknd.nd.gov/about_BND/
prairie_public_history_of_BND/growing_north_dakota.html
Definition of 'Return On Equity - ROE'
The amount of net income returned as a percentage of shareholders
equity. Return on equity measures a corporation's profitability by
revealing how much profit a company generates with the money
shareholders have invested.
ROE is expressed as a percentage and calculated as:
Return on Equity = Net Income/Shareholder's Equity
Shareholders, in the case of the Bank of North Dakota, are the taxpayers,
since they are where almost all of the deposits come from, in the form of
taxes.
Read more: http://www.investopedia.com/terms/r/
returnonequity.asp#ixzz2CxwjEqGw
California is alone at the bottom at A-minus and is the only state to
dip to the worst possible rating, BBB, during a recent 11-year
period. That happened in 2003, during a state budget crisis so
severe that then-Gov. Gray Davis was recalled. The highest rating
California achieved during the period, A-plus, came in 2006, at the
height of a speculative housing boom that then went bust.
New York State has a AA to AAA rating on its debt, about what the
Bank of North Dakota has for itself.
Additional questions: Are ratings agencies reliable? What was their
record during the crisis? When they were giving California an A-
plus rating in 2006, did they predict they would lower it to A-minus
just a few years (2012) later? If not, can we believe anything they
say?
Read more here: http://blogs.sacbee.com/
capitolalertlatest/2012/07/california-has-nations-worst-credit-rating-
pew-study-finds.html
Sources: http://www.motherjones.com/mojo/2014/01/jpmorgan-jamie-
dimon-raise-regulators, http://banknd.nd.gov/
financials_and_compliance/credit_rating.html, http://www.fdic.gov/
bank/individual/failed/banklist.html
8. 3/19/14
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Why a Public Bank?
Invest in Our Own Citizens
Meanwhile, public pension funds in most states have lost
billions of dollars.
What if these funds were used to own a state bank?
And invested in their own citizens, as North Dakota does?
What are Our Assets Right Now?
Check the Comprehensive Annual Financial Reports…
$164 billion in NY State Net Assets Restricted for Pensions and
other Purposes (March, 2013 CAFR)
$139 Billion in NY City Net Assets Restricted for Benefits
Payments (June, 2013 CAFR)
There are 10s of billions in other liquid funds too
What if 10% of these liquid funds were reallocated to a Public Bank?*
OK, these assets are not quite a Money Tree, but they
are money that can be loaned into the community,
often with higher expectations of return than
investments on Wall Street.
Remember: it is not under-funding that hurts pension
fund reliability, it is under-performance and volatility.
* By comparison, the Bank of North Dakota has only $6.4B in assets.
Other Municipalities are Investigating
Alternate Investment strategies
22 States* are considering some form
of State Banking Legislation – and
many municipalities are too. Many of
these proposals look to fund a Public
Bank with State and city funds.
• By law, all taxes from North Dakota and
the Chickasaw Indian Nation Banc2 in
Oklahoma, go first to these regions’
Public Banks.
• Philadelphia, PA is considering a Public
Bank.
Existing Public Banks in Green:
North Dakota: Bank of North Dakota
Oklahoma: Chickasaw-owned Bank2 of Oklahoma City.
Is it a better local fiscal solution to reallocate some
existing funds into a Public Bank?
* http://www.nytimes.com/roomfordebate/2013/10/01/should-states-operate-public-banks/many-states-see-the-potential-of-
public-banking - citing the National Conference of State Legislatures (NCSL)
These rainy day and pension funds – detailed in CAFRs – total 10s
of trillions, nationwide. They could be partly invested in Public
Banks, eliminating the need to float a bond to form a bank, adding
even more debt.
The assets of pension funds swing wildly due to market gyrations.
In New York State alone, the pension fund has gone from $156
billion (2007) to just $110 billion a year later (2008), and then back
to where it started - $153 billion, at the end of 2011 - all while
pensioners required only $4.5 - $8.9 billion, net of contributions.
It’s the investments that cause havoc, not the demands for outlays!
Sources: http://www.osc.state.ny.us/finance/index.htm, http://
comptroller.nyc.gov/reports/comprehensive-annual-financial-
reports/
The Vermont Chapter of the Public Banking Institute has made
progress:
Vermont’s Senate Bill 204 would expand the Vermont Economic
Development Authority (VEDA) to become a state bank and would
start out by depositing 10% of Vermont’s unrestricted money into
the state bank. The bank would be able to
leverage this money by means available only to banks to bolster
the economy of the state and cut down on the interest payments
and fees that are presently paid to out-of-state financial
institutions and other entities.
The bank would not engage in retail banking and would not
compete with community banks; it would work with community
banks to maintain their viability and expand their ability to help
create better economic outcomes for Vermonters by partnering
with them in projects they would not be able to engage in on their
own. In a show of direct democracy that also exposed the
citizenry's desire for a more localized and responsible banking
system, fifteen of nineteen towns passed the resolution during
'Town Meeting Day'— an annual event in which voters choose local
officials, approve municipal budgets, and make their voices heard
on a number of measures.
Sources: Detroit is Not Broke: http://
www.opednews.com/articles/Detroit-is-Not-Broke-by-Scott-
Baker-130805-986.html
See also the article and video about funding a Public Bank for
Philadelphia here:
http://www.opednews.com/Diary/Using-Existing-
Government-by-Scott-Baker-Banking-Crisis_Banks_Public-
Banking_Public-Banks-140119-408.html
9. 3/19/14
9
Why a Public Bank?
Free up Funds
• Banks have unlimited low-interest credit
lines with the Fed
• States and municipal governments have
no credit line with the Fed
So they must create large “rainy day funds”—
public money that sits, earning little interest.
Why a Public Bank?
Level the Playing Field
Federal law and the banking system give banks huge
advantages and place states at a financial disadvantage.
• Banks borrow at rates as low as 0.2% (overnight Fed
funds rate) to 1.27% (6-month CD)
• States borrow at much higher rates
Our state is paying too much for credit.
• Banks face new regulatory & compliance issues with
Dodd-Frank. A State Public Bank could help community
banks comply.
Why a Public Bank?
Control Rising Credit Costs
• States are now hit with lower credit ratings,
making borrowing even more expensive
• A year ago, California was rated BBB, barely
higher than bankrupt Greece
What is OUR state’s credit rating?
New York’s rating is AA+ to AA– (2013)
There is $71 billion in a single California Treasury “rainy day
fund” alone (http://www.huffingtonpost.com/ellen-brown/
the-mysterious-cafrs-how_b_585011.html) that could be
invested in a state bank, creating opportunities and jobs.
How bad is it?: In 2012, California had a $17 billion deficit,
owed the federal government $14 billion, and owed the
California public school system $10 billion. Bloomberg:
California and its localities have paid out 8.9% this year
(2012), according to S&P data.
States with poor credit can pay as much as 9% for money
they borrow, all while the commercial banks that hold the
State’s tax revenues, invest everywhere BUT the State – e.g.
overseas, in risky bonds (some below investment grade),
even in shorts and options!
Also, Dodd-Frank has, ironically, made life harder for
community banks and easier for the Largest Banks. Dodd-
Frank Law has made the process of mortgage origination
much more complex and costly for community banks.
These banks approached the BND about helping with this
process which the BND has agreed to provide. The result is
that the community banks can make mortgage loans
without having to absorb the added costs and burdens
required by the Dodd-Frank law. If not for this assistance,
some of these banks might have stopped doing mortgages.
10. 3/19/14
10
Why a Public Bank?
Urgent Need: Affordable Credit
What about municipal governments?
Don’t they borrow by issuing bonds?
Yes, at “market rates”— but these rates are being
driven up, increasing the cost of money.
The issue is not just available credit, but affordable
credit.
What Can Be
Done?
What Can Be Done
Today, state and local governments are:
• Investing their capital (pension funds), and
• Depositing their tax revenues (our money!)
on Wall Street
Translation: They are handing over their huge
credit generating power to the same big banks that
got us into this mess in the first place.
They are investing in Wall Street, not Main Street.
Does this make sense to you?
Usury –
In law, the crime of charging an unlawfully high rate of
interest.
In Old English law, the taking of any compensation
whatsoever was termed usury.
With the expansion of trade in the 13th century, the
demand for credit increased, necessitating a modification
in the definition of the term.
In 1545 England fixed a legal maximum interest, a practice
later followed by other Western nations. Generally,
anything above 8% has historically been considered
usury….and states like California are paying 8.9%!
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What Can Be Done
Banking in the Public Interest
Deposits begin the creation of credit in a bank.
This credit is an asset of the bank.
If a state deposits funds in a Wall Street bank, it
is giving away its power to create credit.
This credit rightfully belongs to the public,
not to private banks.
Our state and cities should be managing that
credit in a public bank—serving the public
interest by investing in our own Main Street.
What Can Be Done
Invest in Main Street Through a Public Bank
• Keeps our tax money working within the
state, city, or borough
• Keeps our credit from leaving the state, city,
or borough
• Strengthens our community banks
• Demonstrates that our elected officials are
working for us and not for Wall Street
• Helps our communities return to prosperity in
a nonpartisan way
Recap: Solution Choices
• Raise taxes
• Cut services
• Sell assets
• Invest in our own citizens by creating
a public bank
There are no other choices.
Will we continue having our tax payments
sent to Wall Street banks?
What Can Be Done
There are other choices at the Federal level, but
states are limited by:
1. Being constitutionally obligated to balance their
budgets every year
2. Being unable to “coin Money” under Article 1,
Section 8, as the Federal Government can.
We could easily create a Public Bank of Manhattan,
or Brooklyn, or…. It could be larger than the Bank of
North Dakota.
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What Can Be Done
Next Steps
Refine and pass a resolution: “Return to
prosperity by forming a state-owned bank.”
Tell your state representative that keeping tax
revenues in our state is vital—an urgent need.
Find “natural allies” to speak with one voice
for public banking in the public interest.
Natural Allies
• Community leaders whose budgets are being gutted by the state
• Enlightened legislators
• Enlightened Media & Reporters
• Public employees and unions faced with state and city budget
cuts: teachers, firefighters, construction workers, etc.
• Community bankers wanting to originate loans
• Unemployed and under-employed people
• Small business owners burdened by high credit card APRs to pay
for inventory
• Activist groups like Occupy Alt.banking
Research, Approach, Petition (RAP)
R - Join online groups:
https://groups.google.com/forum/#!forum/public-banking (219 members) and
https://groups.google.com/forum/?hl=en#!forum/pbivolunteers (141 members)
https://www.facebook.com/groups/publicbanking/ (236 members)
R - Download this slideshow: http://www.slideshare.net/ScottOnTheSpot/return-to-prosperity
and http://www.slideshare.net/ScottOnTheSpot/return-to-prosperity-6-slides-per-page
R - Begin a study of benefits of a Public Bank in your community, city, state, compare funding
alternatives and current investments (will require experts!).
A - Hold a Press Conference or public event: https://vimeo.com/68244964
A - Cultivate the Press: “What North Dakota’s Public Bank Does for Small Businesses”
http://boss.blogs.nytimes.com/2014/03/13/what-north-dokotas-public-bank-does-for-small-businesses/
P - Demand that your Assembly Member, City Council member, State Senator, support Public
Banking. 10 co-sponsors already support the Sandy Galef bill, above. Get them to sign the
Resolution in favor of the bill in the Files section of this Facebook page:
https://www.facebook.com/groups/publicbanking/
P - Sign onto the petition to support a State Public Bank - study bill A01696 - and gather
more signatures:
http://www.change.org/petitions/support-a-public-state-bank-for-new-york-state
A thousand signatures hand-delivered in each district would make a big difference!
What else can be done…?
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Approach Members of the Banking Committee
to Co-Sponsor the Galef Bill: A01696
New York State Assembly Banking Committee:
http://assembly.state.ny.us/comm/?sec=mem&id=4
Chair: Annette Robinson
Members: Peter Abbate; Jr. Joseph Borelli; Karim Camara; Brian
Curran; Patricia Fahy; Andrew Garbarino; Mark Gjonaj; Michael
Kearns; Micah Kellner; William Magee; Nicole Malliotakis;
Michael Miller Walter Mosley; N. Nick Perry; Andrew Raia; Robert
Rodriguez; Gabriela Rosa; Sean Ryan; William Scarborough; Luis
Sepúlveda; Aravella Simotas; Dan Stec; Claudia Tenney;
Raymond Walter; Harvey Weisenberg; David Weprin
All Co-Sponsors: O'Donnell; Steck; Rosenthal; Mosley; Skartados; Quart;
Buchwald; Gottfried; Jacobs; Mayer
Approached in Red Agreed to Co-Sponsor in Green
How will the members in Red react when a
thousand-signature petition is presented to
them? Will they turn Green?