The People Who Want To Buy Your Home Are Appearing To Be Poor And Homeless.
Cardboard and Sharpies?
C’mon.
(on Riverside Ave.)
The People Who Want To Buy Your Home Are Appearing To Be Poor And Homeless.
Cardboard and Sharpies?
C’mon.
(on Riverside Ave.)
When 1 in 4 children in America are on food stamps, Obama attempting to renew Bernanke’s post is really going too far. How tone deaf is he? I haven’t quite figured out yet whether the president is a shill for Wall Street or just a tool of it. Either way, the only people he seems to hear are bankers and generals. And so it goes.
Here’s a good piece from Bernie Sanders and another about how Goldman Sachs bankers are starting to purchase firearms for their own protection.

November 6, 2009
Senator Bernie Sanders introduced legislation that would break up financial institutions that are too big to fail. “If an institution is too big to fail, it is too big to exist,” Sanders said. “We should break them up so they are no longer in a position to bring down the entire economy. We should end the concentration of ownership that has resulted in just four huge financial institutions holding half the mortgages in America, controlling two-thirds of the credit cards, and amassing 40 percent of all deposits.” Sanders’ legislation would give Treasury Secretary Timothy F. Geithner 90 days to compile a list of commercial banks, investment banks, hedge funds and insurance companies that he deems too big to fail. The affected financial institutions would include “any entity that has grown so large that its failure would have a catastrophic effect on the stability of either the financial system or the United States economy without substantial Government assistance.” Within one year after the legislation became law, the Treasury Department would be required to break up those banks, insurance companies and other financial institutions.
The perilous condition of financial institutions deemed too big to fail played a major role last year in undermining the American economy and driving the country into a severe recession. As Wall Street cratered, taxpayers were put on the hook for a $700 billion bank bailout. Teetering banks also were propped up by at least $2 trillion more from the Federal Reserve in secret loans at virtually no interest.
Since the bailouts and the resulting shakeout on Wall Street, the four largest banks in America (JP Morgan Chase, Bank of America, Wells Fargo, and Citigroup) now have strengthened their domination of the home mortgage and credit care industries. Just five American banks (JP Morgan Chase, Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley) own a staggering 95 percent of the $290 trillion in risky derivatives held at commercial banks. (Derivatives are the risky side bets made by Wall Street gamblers that led to the $182 billion bailout of AIG, the $29 billion bailout that allowed JP Morgan Chase to acquire Bear Stearns, and forced the collapse of Lehman Brothers.)
One result of the burgeoning concentration of ownership has been outrageously high bank fees and interest rates for credit cards, mortgages and other financial products.
“No single financial institution should be so large that its failure would cause catastrophic risk to millions of American jobs or to our nation’s economic wellbeing. No single financial institution should have holdings so extensive that its failure could send the world economy into crisis,” Sanders said. “We need to break up these institutions because they have done just tremendous damage to our economy.”
(another more general story from the Los Angeles Times)
Bernie Sanders has described himself as a democratic socialist. In 18 years in the House, he was the only independent, although he caucused with the Democrats. He opposed resolutions authorizing war in Iraq in 1991 and 2002 and demurred from impeaching George W. Bush only because he deemed it impractical with Republicans running Congress.
This week, he announced that he would put a hold on Federal Reserve Chairman Ben Bernanke’s nomination by President Obama for a second term. Bernanke is often credited for negotiating the economy through perilous shoals, but many in Congress — spurred by populist anger over Wall Street’s excesses — have their knives out for the Fed chairman.
“If the taxpayers of this country have spent $700 billion bailing out Wall Street because they are too big to fail, why is it that three out of the four largest financial institutions today are bigger than they were before the bailout?” Sanders asked Bernanke in a hearing last March. “Why is it OK that four large financial institutions write half the mortgages, two-thirds of the credit cards in this country and control 40% of the deposits. The bottom line to me is that the middle class in this country is collapsing. … We have seen this trend downward for many, many years. We need a new direction.”
Experts say that Sanders’ move — the prerogative of a single senator seeking to stop any action in its tracks — is expected to slow but not derail Bernanke’s confirmation. What it is more likely, they add, is that the Vermont senator could add political wind to efforts to force the Fed to open its books to public scrutiny.
“He’s going to get battered, beaten and bruised at these hearings, but ultimately, Bernanke should get the votes he needs to return to the helm of Fed,” Financial Dynamics executive Travis Larson told the Washington Times.
Asked about whether the Fed did an adequate job of supervising banks whose spending was off the tracks, Bernanke, noting that Bank of America is paying back its TARP money, said, “Did we do everything we could? Absolutely not,” but “if you fight a battle and lose the battle, does that mean you never use an army again?”
– Johanna Neuman
(and an op-ed from Bloomberg)
by Alice Schroeder
Dec. 1 (Bloomberg) — “I just wrote my first reference for a gun permit,” said a friend, who told me of swearing to the good character of a Goldman Sachs Group Inc. banker who applied to the local police for a permit to buy a pistol. The banker had told this friend of mine that senior Goldman people have loaded up on firearms and are now equipped to defend themselves if there is a populist uprising against the bank.
I called Goldman Sachs spokesman Lucas van Praag to ask whether it’s true that Goldman partners feel they need handguns to protect themselves from the angry proletariat. He didn’t call me back. The New York Police Department has told me that “as a preliminary matter” it believes some of the bankers I inquired about do have pistol permits. The NYPD also said it will be a while before it can name names.
While we wait, Goldman has wrapped itself in the flag of Warren Buffett, with whom it will jointly donate $500 million, part of an effort to burnish its image — and gain new Goldman clients. Goldman Sachs Chief Executive Officer Lloyd Blankfein also reversed himself after having previously called Goldman’s greed “God’s work” and apologized earlier this month for having participated in things that were “clearly wrong.”
Has it really come to this? Imagine what emotions must be billowing through the halls of Goldman Sachs to provoke the firm into an apology. Talk that Goldman bankers might have armed themselves in self-defense would sound ludicrous, were it not so apt a metaphor for the way that the most successful people on Wall Street have become a target for public rage.
Pistol Ready
Common sense tells you a handgun is probably not even all that useful. Suppose an intruder sneaks past the doorman or jumps the security fence at night. By the time you pull the pistol out of your wife’s jewelry safe, find the ammunition, and load your weapon, Fifi the Pomeranian has already been taken hostage and the gun won’t do you any good. As for carrying a loaded pistol when you venture outside, dream on. Concealed gun permits are almost impossible for ordinary citizens to obtain in New York or nearby states.
In other words, a little humility and contrition are probably the better route.
Until a couple of weeks ago, that was obvious to everyone but Goldman, a firm famous for both prescience and arrogance. In a display of both, Blankfein began to raise his personal- security threat level early in the financial crisis. He keeps a summer home near the Hamptons, where unrestricted public access would put him at risk if the angry mobs rose up and marched to the East End of Long Island.
To the Barricades
He tried to buy a house elsewhere without attracting attention as the financial crisis unfolded in 2007, a move that was foiled by the New York Post. Then, Blankfein got permission from the local authorities to install a security gate at his house two months before Bear Stearns Cos. collapsed.
This is the kind of foresight that Goldman Sachs is justly famous for. Blankfein somehow anticipated the persecution complex his fellow bankers would soon suffer. Surely, though, this man who can afford to surround himself with a private army of security guards isn’t sleeping with the key to a gun safe under his pillow. The thought is just too bizarre to be true.
So maybe other senior people at Goldman Sachs have gone out and bought guns, and they know something. But what?
Henry Paulson, U.S. Treasury secretary during the bailout and a former Goldman Sachs CEO, let it slip during testimony to Congress last summer when he explained why it was so critical to bail out Goldman Sachs, and — oh yes — the other banks. People “were unhappy with the big discrepancies in wealth, but they at least believed in the system and in some form of market-driven capitalism. But if we had a complete meltdown, it could lead to people questioning the basis of the system.”
Torn Curtain
There you have it. The bailout was meant to keep the curtain drawn on the way the rich make money, not from the free market, but from the lack of one. Goldman Sachs blew its cover when the firm’s revenue from trading reached a record $27 billion in the first nine months of this year, and a public that was writhing in financial agony caught on that the profits earned on taxpayer capital were going to pay employee bonuses.
This slip-up let the other bailed-out banks happily hand off public blame to Goldman, which is unpopular among its peers because it always seems to win at everyone’s expense.
Plenty of Wall Streeters worry about the big discrepancies in wealth, and think the rise of a financial industry-led plutocracy is unjust. That doesn’t mean any of them plan to move into a double-wide mobile home as a show of solidarity with the little people, though.
Cool Hand Lloyd
No, talk of Goldman and guns plays right into the way Wall- Streeters like to think of themselves. Even those who were bailed out believe they are tough, macho Clint Eastwoods of the financial frontier, protecting the fistful of dollars in one hand with the Glock in the other. The last thing they want is to be so reasonably paid that the peasants have no interest in lynching them.
And if the proles really do appear brandishing pitchforks at the doors of Park Avenue and the gates of Round Hill Road, you can be sure that the Goldman guys and their families will be holed up in their safe rooms with their firearms. If nothing else, that pistol permit might go part way toward explaining why they won’t be standing outside with the rest of the crowd, broke and humiliated, saying, “Damn, I was on the wrong side of a trade with Goldman again.”

(from the NY Times)
Food Stamp Use Soars, and Stigma Fades
(by Jason DeParle and Robert Gebeloff)
MARTINSVILLE, Ohio — With food stamp use at record highs and climbing every month, a program once scorned as a failed welfare scheme now helps feed one in eight Americans and one in four children.
With millions of jobs lost and major industries on the ropes, America’s array of government aid — including unemployment insurance, food stamps and cash welfare — is being tested as never before. This series examines how the safety net is holding up under the worst economic crisis in decades.
It has grown so rapidly in places so diverse that it is becoming nearly as ordinary as the groceries it buys. More than 36 million people use inconspicuous plastic cards for staples like milk, bread and cheese, swiping them at counters in blighted cities and in suburbs pocked with foreclosure signs.
Virtually all have incomes near or below the federal poverty line, but their eclectic ranks testify to the range of people struggling with basic needs. They include single mothers and married couples, the newly jobless and the chronically poor, longtime recipients of welfare checks and workers whose reduced hours or slender wages leave pantries bare.
While the numbers have soared during the recession, the path was cleared in better times when the Bush administration led a campaign to erase the program’s stigma, calling food stamps “nutritional aid” instead of welfare, and made it easier to apply. That bipartisan effort capped an extraordinary reversal from the 1990s, when some conservatives tried to abolish the program, Congress enacted large cuts and bureaucratic hurdles chased many needy people away.
From the ailing resorts of the Florida Keys to Alaskan villages along the Bering Sea, the program is now expanding at a pace of about 20,000 people a day.
There are 239 counties in the United States where at least a quarter of the population receives food stamps, according to an analysis of local data collected by The New York Times.
The counties are as big as the Bronx and Philadelphia and as small as Owsley County in Kentucky, a patch of Appalachian distress where half of the 4,600 residents receive food stamps.
In more than 750 counties, the program helps feed one in three blacks. In more than 800 counties, it helps feed one in three children. In the Mississippi River cities of St. Louis, Memphis and New Orleans, half of the children or more receive food stamps. Even in Peoria, Ill. — Everytown, U.S.A. — nearly 40 percent of children receive aid.
While use is greatest where poverty runs deep, the growth has been especially swift in once-prosperous places hit by the housing bust. There are about 50 small counties and a dozen sizable ones where the rolls have doubled in the last two years. In another 205 counties, they have risen by at least two-thirds. These places with soaring rolls include populous Riverside County, Calif., most of greater Phoenix and Las Vegas, a ring of affluent Atlanta suburbs, and a 150-mile stretch of southwest Florida from Bradenton to the Everglades.
Although the program is growing at a record rate, the federal official who oversees it would like it to grow even faster.
“I think the response of the program has been tremendous,” said Kevin Concannon, an under secretary of agriculture, “but we’re mindful that there are another 15, 16 million who could benefit.”
Nationwide, food stamps reach about two-thirds of those eligible, with rates ranging from an estimated 50 percent in California to 98 percent in Missouri. Mr. Concannon urged lagging states to do more to enroll the needy, citing a recent government report that found a sharp rise in Americans with inconsistent access to adequate food.
“This is the most urgent time for our feeding programs in our lifetime, with the exception of the Depression,” he said. “It’s time for us to face up to the fact that in this country of plenty, there are hungry people.”
The program’s growing reach can be seen in a corner of southwestern Ohio where red state politics reign and blue-collar workers have often called food stamps a sign of laziness. But unemployment has soared, and food stamp use in a six-county area outside Cincinnati has risen more than 50 percent.
With most of his co-workers laid off, Greg Dawson, a third-generation electrician in rural Martinsville, considers himself lucky to still have a job. He works the night shift for a contracting firm, installing freezer lights in a chain of grocery stores. But when his overtime income vanished and his expenses went up, Mr. Dawson started skimping on meals to feed his wife and five children.
He tried to fill up on cereal and eggs. He ate a lot of Spam. Then he went to work with a grumbling stomach to shine lights on food he could not afford. When an outreach worker appeared at his son’s Head Start program, Mr. Dawson gave in.
“It’s embarrassing,” said Mr. Dawson, 29, a taciturn man with a wispy goatee who is so uneasy about the monthly benefit of $300 that he has not told his parents. “I always thought it was people trying to milk the system. But we just felt like we really needed the help right now.”
The outreach worker is a telltale sign. Like many states, Ohio has campaigned hard to raise the share of eligible people collecting benefits, which are financed entirely by the federal government and brought the state about $2.2 billion last year.
By contrast, in the federal cash welfare program, states until recently bore the entire cost of caseload growth, and nationally the rolls have stayed virtually flat. Unemployment insurance, despite rapid growth, reaches about only half the jobless (and replaces about half their income), making food stamps the only aid many people can get — the safety net’s safety net.
Support for the food stamp program reached a nadir in the mid-1990s when critics, likening the benefit to cash welfare, won significant restrictions and sought even more. But after use plunged for several years, President Bill Clinton began promoting the program, in part as a way to help the working poor. President George W. Bush expanded that effort, a strategy Mr. Obama has embraced.
The revival was crowned last year with an upbeat change of name. What most people still call food stamps is technically the Supplemental Nutrition Assistance Program, or SNAP.
By the time the recession began, in December 2007, “the whole message around this program had changed,” said Stacy Dean of the Center on Budget and Policy Priorities, a Washington group that has supported food stamp expansions. “The general pitch was, ‘This program is here to help you.’ ”
Now nearly 12 percent of Americans receive aid — 28 percent of blacks, 15 percent of Latinos and 8 percent of whites. Benefits average about $130 a month for each person in the household, but vary with shelter and child care costs.
In the promotion of the program, critics see a sleight of hand.
“Some people like to camouflage this by calling it a nutrition program, but it’s really not different from cash welfare,” said Robert Rector of the Heritage Foundation, whose views have a following among conservatives on Capitol Hill. “Food stamps is quasi money.”
Arguing that aid discourages work and marriage, Mr. Rector said food stamps should contain work requirements as strict as those placed on cash assistance. “The food stamp program is a fossil that repeats all the errors of the war on poverty,” he said.
Across the country, the food stamp rolls can be read like a scan of a sick economy. The counties of northwest Ohio, where car parts are made, take sick when Detroit falls ill. Food stamp use is up by about 60 percent in Erie County (vibration controls), 77 percent in Wood County (floor mats) and 84 percent in hard-hit Van Wert (shifting components and cooling fans).
Just west, in Indiana, Elkhart County makes the majority of the nation’s recreational vehicles. Sales have fallen more than half during the recession, and nearly 30 percent of the county’s children are receiving food stamps.
The pox in southwest Florida is the housing bust, with foreclosure rates in Fort Myers often leading the nation in the last two years. Across six contiguous counties from Manatee to Monroe, the food stamp rolls have more than doubled.
In sheer numbers, growth has come about equally from places where food stamp use was common and places where it was rare. Since 2007, the 600 counties with the highest percentage of people on the rolls added 1.3 million new recipients. So did the 600 counties where use was lowest.
The richest counties are often where aid is growing fastest, although from a small base. In 2007, Forsyth County, outside Atlanta, had the highest household income in the South. (One author dubbed it “Whitopia.”) Food stamp use there has more than doubled.
This is the first recession in which a majority of the poor in metropolitan areas live in the suburbs, giving food stamps new prominence there. Use has grown by half or more in dozens of suburban counties from Boston to Seattle, including such bulwarks of modern conservatism as California’s Orange County, where the rolls are up more than 50 percent.
While food stamp use is still the exception in places like Orange County (where 4 percent of the population get food aid), the program reaches deep in places of chronic poverty. It feeds half the people in stretches of white Appalachia, in a Yupik-speaking region of Alaska and on the Pine Ridge Indian Reservation in South Dakota.
Across the 10 core counties of the Mississippi Delta, 45 percent of black residents receive aid. In a city as big as St. Louis, the share is 60 percent.
Use among children is especially high. A third of the children in Louisiana, Missouri and Tennessee receive food aid. In the Bronx, the rate is 46 percent. In East Carroll Parish, La., three-quarters of the children receive food stamps.
A recent study by Mark R. Rank, a professor at Washington University in St. Louis, startled some policy makers in finding that half of Americans receive food stamps, at least briefly, by the time they turn 20. Among black children, the figure was 90 percent.
Across the small towns and rolling farmland outside Cincinnati, old disdain for the program has collided with new needs. Warren County, the second-richest in Ohio, is so averse to government aid that it turned down a federal stimulus grant. But the market for its high-end suburban homes has sagged, people who build them are idle and food stamp use has doubled.
Next door, in Clinton County, the blow has been worse. DHL, the international package carrier, has closed most of its giant airfield, costing the county its biggest employer and about 7,500 jobs. The county unemployment rate nearly tripled, to more than 14 percent.
“We’re seeing people getting food stamps who never thought they’d get them,” said Tina Osso, the director of the Shared Harvest Food Bank in Fairfield, which runs an outreach program in five area counties.
While Mr. Dawson, the electrician, has kept his job, the drive to distant work sites has doubled his gas bill, food prices rose sharply last year and his health insurance premiums have soared. His monthly expenses have risen by about $400, and the elimination of overtime has cost him $200 a month. Food stamps help fill the gap.
Like many new beneficiaries here, Mr. Dawson argues that people often abuse the program and is quick to say he is different. While some people “choose not to get married, just so they can apply for benefits,” he is a married, churchgoing man who works and owns his home. While “some people put piles of steaks in their carts,” he will not use the government’s money for luxuries like coffee or soda. “To me, that’s just morally wrong,” he said.
He has noticed crowds of midnight shoppers once a month when benefits get renewed. While policy analysts, spotting similar crowds nationwide, have called them a sign of increased hunger, he sees idleness. “Generally, if you’re up at that hour and not working, what are you into?” he said.
Still, the program has filled the Dawsons’ home with fresh fruit, vegetables, bread and meat, and something they had not fully expected — an enormous sense of relief. “I know if I run out of milk, I could run down to the gas station,” said Mr. Dawson’s wife, Sheila.
As others here tell it, that is a benefit not to be overlooked.
Sarah and Tyrone Mangold started the year on track to make $70,000 — she was selling health insurance, and he was working on a heating and air conditioning crew. She got laid off in the spring, and he a few months later. Together they had one unemployment check and a blended family of three children, including one with a neurological disorder aggravated by poor nutrition.
They ate at his mother’s house twice a week. They pawned jewelry. She scoured the food pantry. He scrounged for side jobs. Their frustration peaked one night over a can of pinto beans. Each blamed the other when that was all they had to eat.
“We were being really snippy, having anxiety attacks,” Ms. Mangold said. “People get irritable when they’re hungry.”
Food stamps now fortify the family income by $623 a month, and Mr. Mangold, who is still patching together odd jobs, no longer objects.
“I always thought people on public assistance were lazy,” he said, “but it helps me know I can feed my kids.”
So far, few elected officials have objected to the program’s growth. Almost 90 percent of beneficiaries nationwide live below the poverty line (about $22,000 a year for a family of four). But a minor tempest hit Ohio’s Warren County after a woman drove to the food stamp office in a Mercedes-Benz and word spread that she owned a $300,000 home loan-free. Since Ohio ignores the value of houses and cars, she qualified.
“I’m a hard-core conservative Republican guy — I found that appalling,” said Dave Young, a member of the county board of commissioners, which briefly threatened to withdraw from the federal program.
“As soon as people figure out they can vote representatives in to give them benefits, that’s the end of democracy,” Mr. Young said. “More and more people will be taking, and fewer will be producing.”
At the same time, the recession left Sandi Bernstein more sympathetic to the needy. After years of success in the insurance business, Ms. Bernstein, 66, had just settled into what she had expected to be a comfortable retirement when the financial crisis last year sent her brokerage accounts plummeting. Feeling newly vulnerable herself, she volunteered with an outreach program run by AARP and the Ohio Association of Second Harvest Food Banks.
Having assumed that poor people clamored for aid, she was surprised to find that some needed convincing to apply.“I come here and I see people who are knowledgeable, normal, well-spoken, well-dressed,” she said. “These are people I could be having lunch with.”
That could describe Franny and Shawn Wardlow, whose house in nearby Oregonia conjures middle-American stability rather than the struggle to meet basic needs. Their three daughters have heads of neat blond hair, pink bedroom curtains and a turtle bought in better times on vacation in Daytona Beach, Fla. One wrote a fourth-grade story about her parents that concluded “They lived happily ever after.”
Ms. Wardlow, who worked at a nursing home, lost her job first. Soon after, Mr. Wardlow was laid off from the construction job he had held for nearly nine years. As Ms. Wardlow tells the story of the subsequent fall — cutoff threats from the power company, the dinners of egg noodles, the soap from the Salvation Army — she dwells on one unlikely symbol of the security she lost.
Pot roast.
“I was raised on eating pot roast,” she said. “Just a nice decent meal.”
Mr. Wardlow, 32, is a strapping man with a friendly air. He talked his way into a job at an envelope factory although his boss said he was overqualified. But it pays less than what he made muscling a jackhammer, and with Ms. Wardlow still jobless, they are two months behind on the rent. A monthly food stamp benefit of $429 fills the shelves and puts an occasional roast on the Sunday table.
It reminds Ms. Wardlow of what she has lost, and what she hopes to regain.
“I would consider us middle class at one time,” she said. “I like to have a nice decent meal for dinner.”