Tag Archives: Wall Street

Energy: Crude Profits


The cost of filling up a gas tank has shot up in recent weeks as oil trades at unusually high prices for this time of year. Oil prices have come down slightly since hitting a high of $106.95 a barrel two weeks ago — the highest price for a barrel since the record 2008 oil price hike — but early trading today has already pushed prices back up. The spike in the cost of oil this early in the year poses a serious threat to the fragile economic recovery, with experts saying that prolonged high gas prices could cripple economic growth at a critical time. Some economists are even warning that high oil prices could cost the economy up to 600,000 jobs. “[S]ustained rises in the prices of oil or other commodities would represent a threat [to] both to economic growth and to overall price stability, particularly if they were to cause inflation expectations to become less well anchored,” Fed Chairman Ben Bernanke warned Congress earlier this month. A new CNN poll of experts shows that “economists are most fearful of one major headwind [to recovery]: oil prices.” So what’s causing this spike in prices? One factor is Wall Street speculation. The government has new powers created by the Dodd-Frank Wall Street reform law to deal with this problem, but as part of their war on consumer protection regulation, Republicans have so far prevented this from happening.

WHAT’S BEHIND OIL PRICES: While there are several causes that contribute to rise in oil prices, many experts point to Wall Street speculation: hedge funds, investors, and big banks trying to make money by betting on the price fluctuation of oil and other commodities. Speculation in and of itself isn’t a bad thing — in fact, it’s necessary in moderation with proper regulation to help end users like airlines hedge against price fluctuation — but excessive speculation, especially when it is based on fear about inherently unknown future events, can artificially inflate the price of oil beyond the price that natural supply and demand forces would set. Experts concluded in 2008 that that year’s spike in oil and other commodity prices couldn’t possibly be explained by supply and demand forces, and that speculation must have played a role. “[T]here is substantial evidence that the large amount of speculation in the current market has significantly increased prices,” a House Homeland Security Committee report on oil prices from 2008 concluded. The same appears to be true today. While many blame high oil prices on the crisis in Libya, the country accounts for only 2 percent of the world’s output. More importantly, Saudi Arabia has vowed to make up for any shortfall in global supply by increasing its own production. So supply issues are not likely having a significant impact on prices. And despite conservatives’ scapegoating, President Obama’s policies are clearly not to blame either. Meanwhile, a commissioner of the Commodity Futures Trading Commission (CFTC) — the government agency charged with policing commodity speculation — said earlier this month that speculation on energy futures, including oil, is at an all-time high, jumping 64 percent even since 2008. Speculation was blamed by both Republicans and Democrats three years ago for oil prices, and even with conservatives’ tea party embrace of Wall Street today, several Republican congressmen, and conservative leaders have acknowledged that speculation is a driver of oil prices.

A SOLUTION: Recognizing the problem of oil speculation, Congress gave the government new powers to protect consumers and help ensure market stability with the Dodd-Frank Wall Street reform law passed last year. The law gives the CFTC the ability to limit “excessive speculation” by limiting the bets speculators can make. The law expanded the CFTC’s authority to regulate the entire market for the first time. While futures — bets on the future prices of commodities like oil and wheat — were regulated before the law passed, traders could choose to instead purchase “look-alike” futures that were not subject to regulation. Dodd-Frank changes this by allowing the CFTC to “impose a uniform set of rules across exchanges and the over-the-counter market, replacing a patchwork of inconsistent restrictions for different venues and commodities.” Curbing regulation could help make these markets more stable and transparent, and help bring down the cost of oil.

DEFENDING WALL STREET: But the CFTC has so far failed to take up this responsibility and write the rules that would rein in oil speculators. The agency missed a January deadline to file new rules because of opposition from the commission’s Republican members and one of its Democrats, CFTC commissioner Michael Dunn. The agency’s chairman, Gary Gensler — a Democrat and former Goldman Sachs banker — has taken a lead in advocating strong new rules on speculation, but the Republican commissioners have been foot dragging to defend Wall Street’s profits, making Dunn the swing vote. Dunn has said he does not have enough information to sign off on new rules, despite the fact that the agency has received hundreds of public comments and held at least 75 meetings with experts, stakeholders, and the public on the matter. But Dunn’s term is ending this summer, giving President Obama an opportunity to appoint someone who is willing to follow the law and rein in speculation. But the CFTC faces another threat from Republicans on a different front. H.R.1, the House Republican approved spending plan for the remainder of 2011, includes a nearly one-third cut in the CFTC’s budget. Such a draconian cut would require the CFTC to lay off more than 30 percent of its staff. Moreover, House “Republicans are threatening repercussions for regulators that ignore their concerns.” “We’d have to have significant curtailment of our staff and resources,” CFTC Chairman Gensler said. “We would not be able to police…or ensure transparent markets in futures or swaps.” The Republican effort to take cops off the oil trade beat would allow speculators to continue to drive up prices, ensuring even bigger profits for oil companies.

Deregulation = Financial Disaster + Middle-Class Robbery … AFL-CIO.org


This is not a drill. This is an emergency.

Our financial system is being attacked in Congress, and if it collapses again because of reckless greed, working people will bear the brunt. CEO-backed politicians will raid our Social Security, our Medicare and our public services to bail out the fat cats. Take action now.

http://act.aflcio.org/salsa/track.jsp?v=2&c=8sLeYVGi1PcO0hsdij8rr2gmjdx9rGEF

Tell your members of Congress: Deregulation leads to financial crises. Don’t deregulate Wall Street and then rob working people to pay for the bailouts that will follow.

In 2008, Big Banks and Wall Street CEOs created the worst financial crisis since the Great Depression. As a result, 14 million Americans still are unemployed today.

But even though unemployment is high and our economic recovery is pathetically slow and fragile, corporations are lobbying furiously to undo the Wall Street Reform and Consumer Protection Act.

Many parts of this new Wall Street Reform Act—including a requirement that outrageous CEO pay be publicly compared with worker pay—haven’t even gone into effect yet. But already, House Republicans are siding with corporate CEOs, trying to repeal the bill piece by piece.

What’s the Big Bank/CEO/House Republican plan? Deregulate. And if the economy collapses again because of reckless greed, rob working Americans to pay for bailouts while the rich get richer.

http://act.aflcio.org/salsa/track.jsp?v=2&c=8sLeYVGi1PcO0hsdij8rr2gmjdx9rGEF

Tell Congress to leave the Wall Street Reform Act alone—and that if deregulation leads to another financial panic, we won’t pay a dime for bailouts.

This is serious. This is the time to take action. As House Republicans pick at pieces and “provisions” of financial reform, it’s easy to lose sight of the fact that deregulation brought our economy to the brink of collapse. That didn’t happen all at once, either. It happened in pieces since the 1970s. Little by little, corporations pushed their agenda, and they got away with it.

That’s why working people must push back hard when corporations and greedy CEOs lobby for even a small piece of deregulation.

Tell Congress to leave the Wall Street Reform Act alone—if deregulation leads to another financial crisis, we’ll know exactly whom to blame.

So far, this week Republicans in the U.S. House of Representatives have proposed repealing several important provisions of Wall Street reform, including CEO-to-worker compensation disclosure—before they even go into effect. They also want to create new loopholes in the law for private equity fund managers, companies that use derivatives, credit rating firms and companies that issue up to $50 million in securities.

The fact is, America deserves to know what CEOs make compared with their workers, and we simply cannot afford to deregulate Wall Street.

But more broadly, we can’t give an inch and allow the deregulators to bankrupt America again.

Efforts at repealing pieces of Wall Street reform are just the beginning of Wall Street thinking it can return to its old ways. We’ve got to put that notion to rest, right now.

Tell your members of Congress you oppose repealing any part of Wall Street reform, that you demand CEO-to-worker pay ratios be made public and that working people can’t afford more financial disasters.

http://act.aflcio.org/salsa/track.jsp?v=2&c=8sLeYVGi1PcO0hsdij8rr2gmjdx9rGEF

In solidarity,

Manny Herrmann

Online Mobilization Coordinator, AFL-CIO

P.S. BREAKING NEWS: A Wisconsin judge just issued a restraining order against the recently passed bill killing public employee bargaining rights. You can read more at the AFL-CIO Now Blog. http://act.aflcio.org/salsa/track.jsp?v=2&c=IWj7usJ61FDarYEuMmAMp2gmjdx9rGEF

wicked weathered Wednesday &some News


Beware the weather is churning March Madness is heating up and the nonsense in Politics and the behavior by Politicians is getting even worse.

After then Senator Barack Obama became President, someone said the sky was falling, that Marxism and or Socialism was coming to America and we will lose our freedom … oh and that certain Muslims are not to be trusted unless they become FBI informants and or give up their rights – freedom of religion

I thought this was the 21st Century people! I find it amusing yet it brings me to tears to see how easy folks seem to throw out labels to describe President Obama’s actions in a time when the jig is up so to speak. We all see and hear the rhetoric out there in I guess a desperate move to try and make Americans feel that “other” thing relevant again. I am hoping folks have had enough of it and can see through the Republican Tea Party for what they are and refuse to drink the Kool-Aid. If you need to get a blast from the past, engage in movements to make the tea party base scared see what the McCarthyism days were like just tune into the Peter King hearings and see what a racist who holds public office looks like. It is as if these people holding public office not only forgot the oath they took, they decided to use their positions of power to do whatever they can to alienate working American families by separating them from jobs, social services and education to name just a few things jumping around on the chopping block of the Republican Tea Party. Republicans have made a choice and it ain’t for the Middle Class.

I would like to remind anyone thinking of voting right of center in 2012 because they are not happy about the status of your own life at this very moment. After years of so-called creative accounting, procedures from Wall Street finally reared its ugly head. Life for middle America changed as we all know it and again like I keep saying the show House of cards by David Faber on CNBC was a cruel reminder and rude awaking at how greed affects the mind … a truthful documentation of the nasty journey our economy took … by who, for who and how it brought us all down …

I am definitely a part of the Democratic Party but if we have to subscribe to labels … call me a Marxist who believes in Socialism at this time. We need someone who cares, who is socially responsible and who believes the gap between the haves and have none needs to shrink. If that is wrong, school me. Even though my question is rhetorical, think about it. What could be wrong with caring for your fellow man no matter what race, sex, creed, and or religion not just the 2% who got their bonus dollars after holding the Middle Class hostage for what about two years but still not satisfied until they destroy what America use to be about. The fact is that 2% has been and continues to wheel and deal with folks like the Koch brothers and the US Chamber of Commerce beginning or ending at the house of bush is not clear. However, it is obvious they intended to make money at the expense of all investors and the crap trickled down to Main Street.

“We the People” need to admit. It’s time for a change and if you believe in equality, it you believe in Working Families, Working Class American Workers instead of Corporate American or the Rich we all need to make sure that the Democratic Party regains control and correct the blatant BS and or mess that Republicans have made of our country.

Other News …

 **Peter King defends his hearings and will bring in other Muslims to prove it

**Libyan rebels might be losing the fight

**clashes in Tahrir square – 11 killed senselessly

**NPR CEO resigns amid tea party flap

**7.2 earthquake off coast of Japan

**41 in the Italian crime grp are being looked for

**Ben affleck talks about the horrors in Congo

**Mortgage Apps uptick to 16%, highest since June

**Suicide bombings in Pakistan killing dozens 

**hey Glee with Gwenth Paltrow was great

CSPAN …

Senate to Vote on Competing Spending Bills

http://c-span.com/Events/Senate-to-Vote-on-Competing-Spending-Bills/10737420087/

Sec. Duncan Defends FY2012 Education Budget

http://c-span.com/Events/Sec-Duncan-Defends-FY2012-Education-Budget/10737420052/

Capitol Hill

Hearing to Ask if Federal Workers are Underpaid

pay-for-performance system evaluated

http://c-span.com/Events/Hearing-to-Ask-if-Federal-Workers-are-Underpaid/10737420051/

Committee Starts to Deal with Housing Finance Reform

first in series of hearings

http://c-span.com/Events/Committee-Starts-to-Deal-with-Housing-Finance-Reform/10737420082/

First Lady Michelle Obama and Secretary of State Hillary Clinton hosted the annual International Women of Courage Awards ceremony at the State Department. Afterwards, two award winners, a prosecutor from Afghanistan and a journalist from the East African nation of Cameroon, spoke with reporters. http://c-span.com/Events/State-Department-Press-Briefings/10737420056/

TGIF …&some News


Today, many on cable will either choose not to talk about what is considered good news for Americans or manipulate the information or hijack it and claim that Republicans are responsible for the job numbers announced today that unemployment dropped again to 8.9%. Yes, that number can be debated but we cannot debate the fact that 192thousand jobs were created in the private sector and contrary to what we will all be, hearing this positive news belongs to the efforts made by our President and the Democratic Party. In addition to this great news about job creation and or improvement we all should remember Rodney King. Rodney King, who was beaten to a pulp for a speeding ticket and ask ourselves have things changed that much 20 years later even with all that he has gone through since and if you would like to find out more about him tune into CNN with Don Lemon.

President Obama will be meeting with new Mayor of Chicago, Rahm Emanuel at the White House and later the President will be travelling to Miami with Arne Duncan and Jeb Bush to talk about Education.

Lastly, to the doubter’s haters and those who fear the unknown or who keep engaging in typical fear mongering via the interwebs

My response …

i respect your opinion, I may not agree but i will not call you names or think less of you … i don’t know you, however i did vote for Obama and will again because Republicans/Conservatives proved themselves to be useless… they have no one in charge, they have no solutions only complaints. The solutions they do have are only for the top 2% and that 2% has been getting breaks for too long it’s obvious in my opinion that Bush, Cheney and Paulson all f’d us and because of that i personally am subscribing to what works and that is the Government right now. If you need reminding to realize why we need the government right now just watch the House of Cards, a film created by CNBC definitely worth the time. This film will help you understand why Wall Street types capitalists like bernie madoff and others like him engaged in creative accounting, why AIG created a monster and the pay out by AIG to various Banks was big and how it worked its way overseas to become something too big to fail. Republicans want to continue on this same path of less regulation and people need to see it as it is. I wonder why after all that has happened since the mid-term elections would anyone with common sense feel this is the kind of Capitalism you want and if you are still expecting Republicans to solve our problems with every American in mind… I have to say you are foolish…

Capitalism does not mean firms should engage in cooking the books, secret transactions and or becoming bigger than their sum value or investing in schemes … that — is what happened …

We the People need capitalism with a small c and more regulation … with a huge R

 Other News …

**America sturggles & bargaining for thier rights

**Libya makes it harder to cross border

**Tunisia steps up evacuations of people fleeing Libya- also prepare for elections

**Libya’s tribes rise up against Gadhafi

**Chavez and Gadhafi want the UN to visit Libya

**Walker threatens democratic senators -if they don’t come back he will hand out pink slips

**Ohio priest propositions police officers while being picked up for dui

**China will boost their Military spending

**Crude Rises based on Libya Violence

CSPAN …

TARP Oversight Panel Holding its Final Hearing

http://c-span.com/Events/TARP-Oversight-Panel-Holding-its-Final-Hearing/10737419983/

Unemployment Rate Drops to 8.9%

economy adds 192,000 new jobs

http://c-span.com/Events/Unemployment-Rate-Drops-to-89/10737419949/

Earlier today the head of the Environmental Protection Agency (EPA) Lisa Jackson testified before the House Appropriations Subcommittee on the Environment on the proposed 2012 budget, where she urged Congress not to cut her agency’s budget.  http://c-span.com/Events/EPA-Head-and-Congress-Discuss-Environmental-Issues/10737419951/

Homeland Security Secretary Janet Napolitano went before a House panel to talk about President Obama’s 2012 budget request for her department. She discussed the needs of the Department of Homeland Security (DHS) and how the proposed budget will allow the department to continue essential programs to protect U.S. borders.

http://c-span.com/Events/Napolitano-and-Congress-debate-Border-Security/10737419952/

Health and Human Services Secretary Kathleen Sebelius was on Capitol Hill to defend the President’s $79.9 billion 2012 spending request for her department. This morning’s hearing before the House Energy and Commerce Subcommittee on Health focused on the implementation of the health care law.  http://c-span.com/Events/Sebelius-defends-Health-Care-Law/10737419948/

President Obama called on Libyan leader Moammar Gadhafi to step down from power. He also said the U.S. military should be prepared to act if a humanitarian crisis develops in Libya. Speaking at a joint news conference with Mexican President Felipe Calderon, President Obama said the two leaders have come to an agreement on Mexican trucks’ ability to enter the U.S. http://c-span.com/Events/President-Obama-amp-President-Calderon-of-Mexico-Joint-Press-Conference/10737419986/  

House Republicans held a news conference to discuss a bill that would change some of the health care law’s reporting rules for small businesses. http://c-span.com/Events/House-Republican-and-Democrat-Leadership-Press-Briefings/10737419990/

Social Justice: The Main Street Movement


Earlier this month, Wisconsin Gov. Scott Walker (R) “sent shockwaves across the state” when he unveiled a budgetary bill that would strip most of the state’s public workers of collective bargaining rights, essentially devastating state government employees’ ability to negotiate for fair wages, benefits, and working conditions. At the time, many local news observers thought the bill would easily pass. After all, Republicans won commanding majorities in the legislature during the last election and stood united in support of the bill. Yet on the eve of the bill’s certain passage, all 14 state Senate Democrats fled the state, denying the Senate the quorum needed to proceed and freezing the anti-labor bill in its tracks. Tens of thousands of Wisconsinites then took to the streets in support of the “Wisconsin 14,” invigorating a nascent progressive movement. And all around the country, Americans inspired by Wisconsin’s example are taking action and battling attempts by conservative-led state governments to attack organized labor, slash education and environmental funding, and to make America a country where only the privileged and well-connected can prosper. While conservatives may believe that the last election gave them a wide mandate to decimate the social safety net and enact policies that will make us an even more unequal country, it appears that Americans disagree. By trying to enact their radical agenda, conservatives have stirred America’s Main Street into action. The progressive protests that are sweeping the country are defending the American Dream itself, the idea that anyone, no matter what their socioeconomic background, can succeed and prosper.

ASSAULT ON THE MIDDLE CLASS: While Walker’s assault on his state’s public employees’ labor rights is the most visible assault on the middle class, conservative governments across the country are waging similar campaigns. In Ohio, Gov. John Kasich (R) is backing legislation similar to Wisconsin’s in that would gut the organizing rights of public employees. Kasich has already killed his state’s federally-funded high-speed rail project, which will cost Ohio $400 million in infrastructure investment and thousands of jobs. While he justifies these moves by claiming he’s tackling his state’s deficit, he also is championing a slew of tax cuts that could actually double the state’s deficit. New Jersey’s Gov. Chris Christie (R), who previously vetoed progressive efforts to raise taxes on his state’s millionaires, is trying to ram through steep cuts to education funding and municipal assistance. In Georgia, Gov. Nathan Deal (R) has unveiled cuts to the state’s treasured subsidized college tuition program, HOPE, which would lead to hundreds of thousands of college students paying thousands of more dollars out-of-pocket in order to be able to get a higher education. Deal is also cutting overall education spending by seven percent, and he simultaneously plans to dramatically reduce the corporate income tax rate, further reducing the state’s revenue coffers. Gov. John Hickenlooper (D-CO) has dismissed tax increases while simultaneously slashing funding for K-12 education, because, he argued, “That’s where the money is.” Michigan’s Gov. Rick Snyder (R) has unveiled a spending plan that includes “$1.2 billion in cuts to schools, universities, local governments and other areas while asking public employees for $180 million in concessions” while at the same time giving $1.8 billion in tax cuts to businesses.

WORKING AMERICA FIGHTS BACK: To the chagrin of right wingers like Walker, Americans have decided that they don’t want to live in a country where their labor rights are destroyed and their children grow up in the most unequal era since the 1920s. All over the country, ordinary Americans are fighting back, because they understand that if you want a strong middle class you need organized labor and important social services. Yesterday, Indiana House Democrats inspired by Wisconsin’s example fled the state to prevent the passage of a bill that would enact “right-to-work” policies that would cripple the right to organize in the state. After the departure of the House Democrats, hundreds of unionized workers and students marched into the state capitol and began a sit-in in solidarity with the state’s labor unions. Meanwhile, as many as 10,000 union workers and other Ohioans demonstrated both inside and outside the state house in Columbus, as former Gov. Ted Strickland (D) and Rep. Dennis Kucinich (D-OH) joined the rally to show their support for the protests. So many people showed up that the Ohio Highway Patrol was ordered to lock the doors of the state capitol to stop more demonstrators from getting into the building. At least 2,000 demonstrators rallied in Olympia, WA, against state budget cuts and in solidarity with the Wisconsin protests. In Montana, hundreds of “conservationists, sportsmen, firefighters, teachers, correctional officers and others” gathered at the state capitol to defend the state’s environmental laws and protest budget cuts. Hundreds of teachers in Idaho marched against legislation that would layoff 700 teachers and leave schools severely understaffed. Emboldened, the South Central Federation of Labor, a Wisconsin union federation consisting of 97 unions and representing 45,000 workers, voted on Monday to endorse a general strike if the state’s anti-union law is passed by the legislature. Although the strike would be restricted by federal law thanks to the 1947 anti-labor Taft-Hartley Act, it represents a courageous act of civil disobedience and solidarity.

CONSERVATIVES BACKING DOWN: There is evidence that the massive groundswell of legislative disobedience and grassroots protests that have erupted all over the country have started to succeed in forcing conservative governments to back down. Despite the passage of Indiana’s right-to-work bill out of a House committee, Gov. Mitch Daniels (R-IN) “signaled [yesterday] afternoon that Republicans should drop the…bill that has brought the Indiana House to a standstill for two days and imperiled other measures.” Conservative Florida Gov. Rick Scott (R) refused to endorse Walker’s anti-union bill for his own state, saying, “My belief is as long as people know what they’re doing, collective bargaining is fine.” Right-wing Pennsylvania Gov. Tom Corbett (R) also said he has no plans to enact a Wisconsin-style law. Although in Michigan, Gov. Snyder does plan to take aim at public worker compensation, he so far has said he’s “not interested in making Michigan a right-to-work state, or going wholesale after the bargaining rights of unionized workers.” One reason these conservatives may be backing down is because they realize Main Street America is against their anti-middle class agenda. A USA Today/Gallup poll found that 61 percent of Americans oppose a Wisconsin-style anti-labor law and only 33 percent favor such a law.

DEFENDING THE AMERICAN DREAM: As CAP Senior Fellow Van Jones writes, this new Main Street progressive movement seeks to “renew and redeem the American Dream.” “It’s time to draw a line in the sand — nationally,” he writes. “Someone has to stand up for common sense and fairness.” A coalition of progressive groups and organizations is taking up this call to “Save the American Dream” by announcing rallies at every single statehouse in the country on Saturday at noon. The groups, led by Moveon.org, are calling for Americans to “[d]emand an end to the attacks on workers’ rights and public services across the country. Demand investment, to create decent jobs for the millions of people who desperately want to work. And demand that the rich and powerful pay their fair share.” It is up to Americans to ensure that states do not balance their budgets by gutting important services and attacking public workers in order to deal with the effects of a recession caused by Wall Street‘s misdeeds — not those of policemen, firefighters, teachers, students, and other hard-working middle class Americans.