Fed Hawks Ignore Reality of Stagnant Wages, No Jobs
WSJ 12.01.2014 “A Central Bank...
WSJ 12.01.2014
“A Central Bank for the Beltway” (Review & Outlook, Nov. 19) criticizes the recent work of the “Fed Up” coalition, which is advocating for transparent processes in the appointment of Federal Reserve presidents and monetary policies that promote a full employment economy.
The editorial acknowledges that “the Fed should be held politically accountable in a democracy,” and I agree. In Dallas and Philadelphia, where the current Fed presidents will be replaced this year, the public does not know how the private search firm chooses candidates, who the candidates are, by what criteria they will be judged or even when the vote will be held.
Fed governance is dominated by financial and corporate interests: Of the 108 current directors on the 12 regional Fed boards, 36 are bankers, 62 are corporate executives and just 10 are leaders of community or labor organizations. The “independ-ent policy judgment” that comes from such a structure will be advice that benefits banks and corporations, not the general public.
Our coalition believes that the voices of workers, community leaders and faith leaders will bring important perspectives to key policy debates. The Fed hawks who argue that the economy has recovered ignore the reality of stagnant wages, plummeting workforce participation rates and the rapid growth of the involuntary part-time workforce.
While near-zero interest rates have not yet been sufficient to spur a true recovery, many prominent economists—from Adam Posen to Joseph Stiglitz —have explained that raising interest rates would be catastrophic. The public, particularly the unemployed, underemployed and underpaid, recognize that the Fed should provide robust support to the economy until it reaches full speed and is creating millions of good new jobs, and wages are rising for a broad sector of working Americans who have seen their income fall or stagnate for far too long.
Shawn SebastianCenter for Popular Democracy
Source: Wall Street Journal
Puerto Rico was just hit by an island-wide power outage — here are the best charities to donate to for victims of Hurricane Maria
Puerto Rico was just hit by an island-wide power outage — here are the best charities to donate to for victims of Hurricane Maria
The Center for Popular Democracy – located in Brooklyn, New York – has launched the Maria Fund, which is focusing on...
The Center for Popular Democracy – located in Brooklyn, New York – has launched the Maria Fund, which is focusing on aid for low-income communities of color, women, and girls in Puerto Rico.
Read the full article here.
Fed Up Coalition Complains About Jackson Hole Room Cancellations
Fed Up Coalition Complains About Jackson Hole Room Cancellations
A group of activists planning to attend the Federal Reserve Bank of Kansas City’s annual economic symposium in Jackson...
A group of activists planning to attend the Federal Reserve Bank of Kansas City’s annual economic symposium in Jackson Hole, Wyo., has filed a complaint with the National Park Service, the Department of the Interior’s Inspector General’s Office and the Justice Department after the conference hotel canceled the group’s room reservations.
The Center for Popular Democracy’s Fed Up Coalition said in an Aug. 9 letter that it booked 13 rooms in May at the Jackson Lake Lodge for its members for the nights of Aug. 24, 25 and 26. Last month, the lodge informed the group that their reservations had been canceled because of a “computer glitch,” according to the letter.
But the lodge didn’t cancel the reservations for other guests who booked after Fed Up did, said the letter written by Ady Barkan, campaign director of Fed Up, a left-leaning group that has lobbied for more diversity among Fed officials and more openness about the selection of regional Fed bank presidents.
“It is very hard for me to interpret the Company’s actions as anything other than a specific targeting of the Fed Up coalition,” he wrote in the letter.
Mr. Barkan said the group booked rooms at other hotels farther away from the conference, which will make it difficult for activists to attend events.
The Jackson Hole conference draws central-bank officials and economists from around the world who gather near the Grand Tetons to discuss monetary policy.
Fed Up members have been attending the conference for the past two years to urge Fed officials to hold off on raising interest rates, arguing that higher borrowing costs will slow economic growth and hurt low-income households. The group’s members often hold events and rallies near Fed events, wearing their signature green T-shirts.
A spokesperson for the Jackson Lake Lodge didn’t return a call for comment. Kathy Kupper, a spokeswoman for the National Parks Service said the lodges are run by independent contractors who are responsible for their day-to-day operations.
Mr. Barkan said he was writing the letter “to file a formal complaint regarding improper and potentially illegal behavior,” by the company.
By David Harrison
Source
Communities Demand End to HUD Distressed Loan Sales
US Finance Post - September 10, 2014, by Christine Layton - Community groups and homeowners in 10 cities have started...
US Finance Post - September 10, 2014, by Christine Layton - Community groups and homeowners in 10 cities have started to rally at local offices of the Department of Housing and Urban Development (HUD), calling for an end to a program that sells off delinquent loans to investors, HousingWire reports.
The groups are protesting the HUD Distressed Asset Stabilization Program, which was created two years ago to auction delinquent loans to the highest bidders. In 2010, the government began selling delinquent mortgages that are at least 90 days past due to the highest bidder in an attempt to help the FHA rebuild cash reserves that were hit hard by loan defaults during the recession.
In the first 2 years, the FHA sold 2,000 loans in six auctions. In September 2012, when the loan pools were expanded under the new DASP program, it sold over 3,000 loans during the first auction.
The community groups claims these sales harm stabilization goals in neighborhoods, including affordable housng and homeownership.
“We’re seeing an unprecedented rise of the corporate landlord, and HUD’s DASP is just facilitating the process,” said Rachest Laforest, executive director of the Right To The City Alliance. She argues that HUD should instead use a system to favor nonprofit bidders whose mission is to invest in the community with greater requirements for winning bidders to preserve homeownership and offer affordable housing options to homeowners.
In a report released earlier this month, HUD said it sold $15.8 billion in nonperforming loans since 2010, which reduces losses to its insurance fund and saves homeowners from foreclosure. New reports claim the program helps the FHA avoid having to get more money from taxpayers, although it is questioned whether there are any efforts to protect neighborhoods that are hit hard by foreclosures.
About 97% of loans sold have gone to for-profit, private investors, such as private equity firms, hedge funds and mutual funds. Just 11% of the loans sold under DASP are considered “re-performing,” according to a report released by the Center for American Progress, while 22% were allowed to short sale or the property was surrendered for loan forgiveness. One-third were turned around and re-sold, while another one-third went into foreclosure.
“These are companies that put the financial gains of their shareholders first and community stabilization second — or I would say it’s not even necessarily a priority for them,” said Connie Razza, co-author of a report released by the Center for Popular Democracy and the Right To The City Alliance.
The group has sent a petition to Julian Castro, who took over HUD, which houses the FHA, asking that he stop selling loans under DASP until the program an be strengthened and refocused on improving neighborhoods.
During the housing crash, the share of FHA loans skyrocketed as homeowners could not get private loans, increasing from 2% of mortgages in 2006 to almost one-third by 2009. A wave of defaults put the FHA’s mortgage insurance fund into the red, and it took its first $1.7 billion taxpayer bailout in 2013. So far, almost 100,000 non-performing loans have been sold under DASP, giving the FHA a net of $8.8 billion.
Source: US Finance Post
The Fight for Paid Sick Leave Moves South
The Fight for Paid Sick Leave Moves South
It’s not surprising that the same sort of coalition of elected officials advancing the fight against SB4 have turned to...
It’s not surprising that the same sort of coalition of elected officials advancing the fight against SB4 have turned to this issue,” said Sarah Johnson, the director of Local Progress. “Workers and immigrants are important to the foundation of cities. The work being done around SB4 has created a strong coalition that has advanced from defense to offense.
Read the full article here.
The Fed’s Big Mistake: Rate Hikes Hurt US Workers
The Fed’s Big Mistake: Rate Hikes Hurt US Workers
Protesters rallied in Washington, New York City and Philadelphia yesterday against an imminent government action that...
Protesters rallied in Washington, New York City and Philadelphia yesterday against an imminent government action that would damage the financial prospects of ordinary workers. And no, it had nothing to do with Donald Trump.
The Center for Popular Democracy’s Fed Up campaign wants the Federal Reserve to break with expectations and hold interest rates steady rather than hiking them this week. They believe minority communities have yet to recover from the ravages of the financial crisis, and are still experiencing high unemployment and stagnant wages.
Read the full article here.
Rivera and Camara Push 'Ambitious' Bill for Noncitizen Voting
Capital NY - June 16, 2014, By Nidhi Prakash - With just four remaining days in the state legislative session, sponsors...
Capital NY - June 16, 2014, By Nidhi Prakash - With just four remaining days in the state legislative session, sponsors of a new bill to grant citizenship rights to undocumented immigrants said they hope to begin building momentum for next session.
“First of all, this is obviously not something that is going to pass by the end of this week," said State Senator Gustavo Rivera, at a press conference in Battery Park City. "This was never about this particular legislative session. We’ve been working on it for almost two years, it’s a bold idea and we wanted to make sure it was thought out."
The bill, titled the New York is Home Act, would make it legal for undocumented immigrants in New York State to vote in local and state elections, get professional and drivers' licenses, and make them eligible for state-funded Medicaid and financial aid for higher education.
“What we’re doing today is we’re starting a conversation not only in New York, but hopefully across the country,” said Rivera, who was joined at the press conference by representatives from the Center for Popular Democracy and Make the Road New York.
Senator Rivera said he was choosing this moment to introduce the bill, despite nearing the end of the legislative session, partly because of a lack of movement in Washington on immigration reform. He pointed to the defeat last week of Republican House majority leader Eric Cantor by a Tea Party candidate who criticized Cantor's support for limited immigration reform.
But some progressives have also balked at provisions in the proposed bill. Mayor Bill de Blasio has called for municipal ID cards for undocumented immigrants, but said last year he's "not comfortable" with the idea of noncitizen voting.
“We are certainly asking for everyone in the Senate and the Assembly as well as in other sectors—the mayor and the governor—to support it, and we will have conversations with them going forward," Rivera said. "We are just starting the conversation."
Assembly Member Karim Camara, the bill’s sponsor in the Assembly, said the broad scope of the bill could help other stalled measures, like the Dream Act and a bill to allow undocumented immigrants access to drivers' licenses.
“We’re hoping that by looking at this big picture, and this is probably one of the most ambitious efforts over at least the last decade or two, maybe those smaller pieces now seem like they’re not that big of a deal,” said Camara.
Camara said he hoped the bill would create momentum for other immigration reform initiatives by the start of the next legislative session.
“We didn’t break it into priorities in this bill, but we’re hoping that by looking at this overarching bill it’ll perhaps make those other smaller bills easier—drivers' license, Dream Act, et cetera,” he said.
Camara blamed the balance of power in the Senate for those bills being unsuccessful in the past, and said if that was to change there may be more hope for immigration reform on a state level.
“The Republican-led Senate has been a main challenge," he said. "We would have passed it this year if it was not for that. So of course there is that elephant in the room, that political dynamic that we can’t avoid, and if that’s not the case then we’ll appeal to individuals’ reason."
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Letter: No point putting faith in GOP lawmakers
Letter: No point putting faith in GOP lawmakers
Anyone who buys the GOP story that they are going to give us better health care is a sucker. We will get hosed by the...
Anyone who buys the GOP story that they are going to give us better health care is a sucker. We will get hosed by the lying GOP. Anyone who votes for this garbage of a health care proposal should be voted out of office. If this becomes law, every working man and woman should change their dependents, then let us see how these leeches get by with no salary. We do that and the federal government has no income.
Read the full letter here.
Why the People’s Climate March matters to people of color like me
Why the People’s Climate March matters to people of color like me
Ever since taking power, the Trump administration has made clear it intends to wage war on the environment. It’s given...
Ever since taking power, the Trump administration has made clear it intends to wage war on the environment. It’s given the green light to both the Dakota Access and Keystone pipelines and geared up to wipe away long-standing protections that keep our air and water safe. Its mission is clear: Eliminate any obstacle that stands in the way of fossil fuel companies.
Yet I refuse to see this moment as a crisis. I see it as an opportunity to bring together people from different backgrounds and different areas of the country to start building a truly national movement to defend our environment. And the People’s Climate March, happening on April 29 in Washington, D.C., is where it will take off.
This movement will be led by those most affected by climate change and pollution: communities of color and working-class families. These are the communities that have always been hardest hit by under-regulated oil pipelines running through their towns. The ones closest to coal train routes, whose residents suffer from lung cancer at alarming rates. The ones whose children bear the most exposure to lead. Many working-class Trump voters, in fact, may come to regret their votes when environmental problems worsen in their backyards.
That is why I believe caring for the environment is not a Democratic or Republican issue. I think it’s an issue all voters can and will come to rally around in coming years as Trump’s policies hit home.
The good news is that the climate movement is in a better place to take on this challenge than it’s ever been. And it is getting stronger every day, fueled by young people and people of color who are growing increasingly empowered to speak up for the safety and health of their communities.
The opposition to the Keystone Pipeline helped galvanize this movement into action. For years, pipelines had been approved around the country with only a passing glance at their effect on the local community, local wildlife, and local history. Keystone marked a turning point, showing that a unified, broad opposition could stymie plans for a pipeline.
Keystone planted the seeds, but Standing Rock is when the movement truly bloomed, bringing together thousands of people from every corner of the country to block a pipeline that threatens ancient water sources and blatantly disregards treaties with sovereign First Nations. By making a powerful argument that wove together environmental, racial, and economic justice, water protectors were able to attract both die-hard climate activists and allies brand-new to the cause.
This intersectionality will be the hallmark of the movement in coming years, and it will be our strength. That is why the People’s Climate March is so important. It’s not just about sending a message to Washington that we won’t stand for their agenda. It’s about sending a message of unity that crosses color lines and income scales. It’s about demonstrating the diversity of the climate movement, the diversity that gives us our strength.
But the work can’t and won’t end with a march. Already, community groups in states and cities across the country are banding together to fight the worst damage expected from the Trump administration. In Florida, Missouri, New York, and Virginia, they are looking for ways to elevate fights over local pipelines into the national debate. In cities like Seattle and New York, they are pushing their elected leaders toward divestment from the funders of the Dakota Access Pipeline. And nationally, they are mobilizing to prevent giveaways to oil, gas, and coal companies in any national infrastructure package.
Climate can no longer be a fringe issue. It must be an essential part of any resistance that fights racism and economic inequality, because the environment we live in affects those issues intimately. Air filled with smog raises the risk of lung disease, cutting life expectancy. Water filled with lead forces our children to grow up with learning defects that limit their ultimate earning potential. And workplaces filled with safety hazards make it more likely that workers — not employers — bear the cost of any accidents.
There is no plan B when it comes to our planet. It is a precious resource and it cannot be taken for granted. We must fight for it, today and for the years to come. The People’s Climate March is just one small step on this path.
By Aura Vasquez
Source
Regional Feds' head-hunting under scrutiny over insider bias, delays
Efforts to fill top positions at some U.S. Federal Reserve regional branches are casting a spotlight on a decades-old...
Efforts to fill top positions at some U.S. Federal Reserve regional branches are casting a spotlight on a decades-old process that critics say is opaque, favors insiders, and is ripe for reform.
Patrick Harker took the reins as president of the Philadelphia Fed this week, in an appointment that attracted scrutiny because he served on the committee of directors that interviewed other prospective candidates for the job he ultimately took.
The Dallas Fed has been without a permanent president for more than three months as that search process stretches well into its eighth month. And the Fed's Minneapolis branch abruptly announced the departure of its leader, Narayana Kocherlakota, more than a year before he was due to go, with no replacement named to date.
The delays and reliance on Fed employees in picking regional Fed presidents can only embolden Republican Senator Richard Shelby to push harder for a makeover of the central bank's structure, which has changed little in its 101 years.
A bill passed in May by the Senate Banking Committee that Shelby chairs would strip the New York Fed's board of its power to appoint its presidents. And it could go further, given the bill would form a committee to consider a wholesale overhaul of the Fed's structure of 12 districts, which has not changed through the decades of shifting U.S. populations and an evolving economy.
The bill is part of a broader conservative effort to expose the central bank to more oversight, and some analysts saw the Philadelphia Fed's choice as reinforcing the view that the Fed needs to open up more to outsiders.
Nine of 11 current regional presidents came from within the Fed, a proportion that has edged up over time. Twenty years ago, seven of 12 were insiders.
"The process seems to create a diverse set of candidates in which the insider is almost always accepted," said Aaron Klein, director of a financial regulatory reform effort at the Bipartisan Policy Center.
Since it was created in 1913, the central bank's decentralized structure was meant to check the power of Washington, where seven Fed governors with permanent votes on policy are appointed by the White House and approved by the Senate.
The 12 Fed presidents who are picked by their regional boards usually vote on policy every two or three years, and they tend to hold more diverse views.
Former Richmond Fed President Alfred Broaddus told Reuters the regional Fed chiefs have more freedom "to do and say things that may not be politically popular" because they are not politically appointed. "On the other hand, there is the question of legitimacy since they are appointed by local boards who are not elected."
"TONE DEAF"
Two-thirds of regional Fed directors are selected by local bankers, while the rest are appointed by the Fed's Board of Governors in Washington.
Critics question how well those regional boards - mostly made of the heads of corporations and industry groups meant to represent the public - fulfill their mission.
Last year, a non-profit group representing labor unions and community leaders organized by the Center for Popular Democracy, urged the Fed's Philadelphia and Dallas branches to make the selection of their presidents more transparent and to include a member of the public in the effort.
Philadelphia's Fed in particular proved "tone deaf" in its head-hunting effort, said Lou Crandall, chief economist at Wrightson ICAP in Jersey City, New Jersey.
Harker was a Philadelphia Fed director when the board started looking to replace president Charles Plosser, who left on March 1, and he was among the six directors who interviewed more than a dozen short-listed candidates for the job, according to the Philadelphia Fed.
But on Feb. 18, Harker floated his own name, recused himself from the process and a week later his colleagues on the board unanimously appointed him as the new president.
While the selection follows Fed guidelines and was approved by its Board of Governors, it raised questions of transparency and fairness.
"The Philadelphia Fed's search process might have made perfect sense in a corporate environment, but is obviously problematic for an official institution," said Crandall.
The board's chair and vice chair, Swathmore Group founder James Nevels and Michael Angelakis of Comcast Corp, respectively, declined to comment, as did Harker.
Peter Conti-Brown, an academic fellow at Stanford Law School's Rock Center for Corporate Governance, and an expert witness at a Senate Banking Committee hearing this year, proposed to let the Fed Board appoint and fire regional Fed presidents or at least have a say in the selection process.
In the past, reform proposals for the 12 regional Fed banks have focused on decreasing or increasing their number and their governance.
Changes to the way the regional Fed bosses are chosen could strengthen the influence of lawmakers at the expense of regional interests.
For now, delays in appointments of new chiefs force regional banks to send relatively unknown deputies to debate monetary policy at meetings in Washington, as Dallas and Philadelphia did last month when the Fed considered raising interest rates for the first time in nearly a decade.
The Minneapolis Fed still has time to find a new president before Kocherlakota steps down at year end.
"For now the Fed criticism is just noise, mostly from Republicans," said Greg Valliere, chief political strategist at Potomac Research Group. "But once the Fed begins to raise interest rates ... then the left will weigh in as well."
(Additional reporting Ann Saphir in San Francisco; Editing by Tomasz Janowski)
Source: Reuters
6 days ago
6 days ago