New Mexico needs legislative ethics reform, but especially an Ethics Commission. Such a bill is proposed, but Senators like Bernadette Sanchez oppose it.
Below you will find a great oped from the Albuquerque Chamber of Commerce and Common Cause, published yesterday in the Albuquerque Journal, WHICH SHOULD BE RUNNING STORIES LIKE THIS ON ITS FRONT PAGE.
Ever wonder why we have an unending series of public officials stealing our money? Can you say Manny Aragon? Forty other states have independent ethics commissions which investigate and deter corruption and crime.
Little known fact: New Mexico has just such a commission that investigates, disciplines and, even, fires judges. The Judicial Standards Commission operates independently, competently, professionally and without bias, taking down judges that are drunks, drug abusers, corrupt and/or perverts -- all recent cases.
Ask yourself, why don't legislators want an independent group looking for corruption??
So, you might want to phone your legislator about establishing an Ethics commission and the other reforms listed in the following oped from the Albuquerque Chamber of Commerce and Common Cause, published yesterday in the Albuquerque Journal, which should be running articles like this on the front page.
Ethics Reform Bogs Down
By Don Chalmers And Jack Taylor
Ethics Reform Advocates
New Mexicans are asking the Legislature for meaningful ethics reform this year, and we couldn't agree more. Apparently, a number of lawmakers are also in agreement, given that they have introduced more than 45 bills related to campaign contribution limits, establishment of an ethics commission, limitations on state contractors' contributions to public officials, fiscal penalties for public officials who have committed crimes related to their office and imposition of state conduct legislation on local governments.
However, we are running out of time to get this done. The Senate Rules Committee, which is the first committee of several in the Senate to which the ethics bills go, has spent the last three weeks reviewing the various ethics bills sponsored by senators in an effort to allow each legislator the opportunity to have a hearing on his or her bill.
To date, several bills have passed out of this committee, one of which has made it out of the Senate and over to the House. That bill would allow the imposition of financial penalties on those public officials who commit a felony related to their office.
The House has also been working on some ethics reform bills. It sent a whistle blower bill, an open conference committee bill and a bill to allow the Attorney General to prosecute statewide elected officials over to the Senate. It also has a bill to establish an ethics commission in its third committee.
Yet, we still don't have a single piece of major ethics reform legislation moving through the process fast enough to be considered by both chambers and be sent up to the governor.
As in years past, the major bills are stalled in committee. We know that legislators have a great deal on their plate, but many of these bills were introduced early in the session. They should be heard in committee and moved forward now; otherwise, we will, once again, fail to enact major, meaningful ethics reform.
Perhaps it would help if all of us, legislators included, remember that:
n New Mexico is one of five states in the country with no campaign contribution limits.
n We're one of 10 states with no independent ethics commission to investigate allegations of misconduct by public officials.
n We're one of just a handful of states in which the public is not allowed to observe legislative conference committees, the powerful committees that reconcile differences between bills that pass both chambers.
n New Mexico is one of just six states that until recently didn't broadcast any of its legislative proceedings. (That's changed a bit this session, largely due to a bit of high-profile civil disobedience by Republican representative Janice Arnold-Jones.)
n In reports published by the UCLA School of Law and the California Voter Foundation that analyzed states' campaign finance disclosure systems, New Mexico has received two consecutive “F” grades.
We don't want to remain at the bottom of another list—if our state is ever to move up the economic and social ladder, the first step needs to be cleaning up the rules of the game in our state government.
Legislators need to do the right thing and take action quickly on ethics reform. This is what their constituents want. This is what the New Mexico business community wants. This is what government reform advocates want. We believe this is probably what most legislators themselves want.
Don Chalmers is board chairman of the Greater Albuquerque Chamber of Commerce. Jack Taylor is chairman of Common Cause of New Mexico.
Friday, March 13, 2009
Journal Covers TIDDs (sort of)
Tax Increment Development Districts are becoming ever more common in the U.S. and New Mexico despite being a disaster in cities like St. Louis and Chicago.
During the last week, after several years of supporting TIDDs, the Albuquerque Journal has at last devoted more coverage to both sides of this issue with two front page articles.
If Bernadette Sanchez, Linda Lopez, Moe Maestas and other legislators have their way, over the next few decades, hundreds of millions of NM tax dollars are going to go to a corporation (SunCal) whose main claim to fame is dozens of bankrupt developments in CA.
SunCal says it is going to bring jobs to Albuquerque. There is absolutely no proof of this, but they keep saying it, even though the record shows that SunCal's TIDDs will probably just cause jobs to move to their area from other areas of the city, which is a double tax loss for taxpayers.
There is, however, proof of one thing, a massive spending campaign with unprecedented amounts of money going to legislators and lobbyists.
Following is the article from today's Albuquerque Journal:
To unsubscribe or subscribe, email me,
Bob McCannon (mccannon@flash.net )
Co-President
The Action Coalition for Media Education,
www.acmecoalition.org
2808 El Tesoro Escondido, Albuquerque NM 87120
Presenter, Media Educator, Consultant
mccannon@flash.net (505) 839-9702
www.bobmccannon.org
Author, "Media Literacy/Media Education:
Definitions and Literature Review" in Children Adolescents and Media, 2nd edition - college text, 2008
Winner: The Holroyd-Sherry Award for Excellence
in Media Education by the American Academy
of Pediatrics, Boston, October, 2008
Executive Director, 1993 -2005
The New Mexico Media Literacy Project (founded 1993)
Thursday, March 12, 2009
TIDD Analysis Leaves Out Concerns
By Jeff Jones
Journal Staff Writer
Critics of a plan to give $408 million in future tax money to a California-based developer are questioning why a state analysis provided to lawmakers omitted major concerns about the deal that were described in a similar document last year.
A 2008 legislative analysis of a so-called TIDD deal for SunCal Cos. said the firm's planned development on Albuquerque's West Side might not generate nearly as much tax revenue as SunCal claimed.
Last year's analysis also said that according to one of SunCal's own studies, most of the demand for industrial space in the giant new development would come from firms already doing business in the Albuquerque area rather than new, out-of-state firms — a top concern of critics who warn the tax break amounts to "cannibalism."
The issue could have a "potentially huge impact for the state," the 2008 analysis said.
Neither of those criticisms was detailed in this year's Legislative Finance Committee analysis given to lawmakers considering the controversial deal, which was approved by the Senate in late February and is pending in the House.
"I absolutely think it (this year's analysis) does not tell the whole story," said Sen. Eric Griego, D-Albuquerque, a TIDD critic who questioned whether the LFC was pressured on the new analysis.
LFC director David Abbey told the Journal on Tuesday that he was indeed pressured on the TIDD issue.
He declined to say who applied pressure and insisted it had no impact.
"We absolutely didn't bow to pressure," Abbey said. "We prize our objectivity."
While he defended the objectivity of both the 2008 and 2009 analyses, he said this year's report should have detailed the cannibalism concern. And the LFC analysis was amended for lawmakers Wednesday morning after the Journal's inquiry.
Since a SunCal TIDD bill died in the Roundhouse last year, the developer has embarked on a major push to get a similar measure through this year's Legislature.
SunCal has spent a chunk of cash — it refuses to say how much — on pro-TIDD billboards, advertising and mailers. It also has a team of 11 top lobbyists and has spread more than $50,000 in campaign cash among dozens of Democratic and Republican lawmakers and the state Democratic Party.
TIDDs, shorthand for tax increment development districts, involve the formation of special tax districts in which portions of the gross receipts and property taxes are set aside to pay the developer for infrastructure such as roads and water and sewer systems. The TIDDs issue bonds secured by the tax money.
Backers of TIDDs say developers get none of the future tax money until they build their projects and say they benefit the state because they bring new jobs and tax revenue.
Opponents equate them to a tax giveaway. And some maintain that much of the business locating in the SunCal TIDD would be existing Albuquerque-area companies enticed to relocate or expand there by lower rent or construction costs made possible by the TIDD tax subsidy.
Cannibalism concerns stem from the possibility of existing companies moving to a TIDD-subsidized development, shifting some of the existing tax revenue from local government to the TIDD.
The LFC's 2008 analysis, prepared by agency chief economist Norton Francis, said a study done for SunCal assumed most of the industrial growth would be from "intramarket" demand.
"This is activity that would have generated revenue for the state that is moving to an area where half of the revenue is redistributed to the development, a potentially huge impact for the state," Francis wrote.
The analysis added that according to a separate state study, the amount of permanent gross receipts tax revenue generated in several of the areas in the TIDD "will be less than 20 percent of the amount calculated by the (SunCal) study."
The shorter, 2009 analysis that did not detail the concerns was done by another LFC staffer.
SunCal chief spokesman David Soyka in written responses to Journal questions said the study done for his firm was" clearly based only upon historical averages" concerning typical Albuquerque growth and does not address SunCal's emphasis on recruiting firms from other states and countries.
"TIDDs will allow us to attract large out-of-state companies to New Mexico by providing infrastructure and shovel-ready industrial land," Soyka wrote. "We have met with more than 30 international companies in our recruitment efforts to date."
During the last week, after several years of supporting TIDDs, the Albuquerque Journal has at last devoted more coverage to both sides of this issue with two front page articles.
If Bernadette Sanchez, Linda Lopez, Moe Maestas and other legislators have their way, over the next few decades, hundreds of millions of NM tax dollars are going to go to a corporation (SunCal) whose main claim to fame is dozens of bankrupt developments in CA.
SunCal says it is going to bring jobs to Albuquerque. There is absolutely no proof of this, but they keep saying it, even though the record shows that SunCal's TIDDs will probably just cause jobs to move to their area from other areas of the city, which is a double tax loss for taxpayers.
There is, however, proof of one thing, a massive spending campaign with unprecedented amounts of money going to legislators and lobbyists.
Following is the article from today's Albuquerque Journal:
To unsubscribe or subscribe, email me,
Bob McCannon (mccannon@flash.net )
Co-President
The Action Coalition for Media Education,
www.acmecoalition.org
2808 El Tesoro Escondido, Albuquerque NM 87120
Presenter, Media Educator, Consultant
mccannon@flash.net (505) 839-9702
www.bobmccannon.org
Author, "Media Literacy/Media Education:
Definitions and Literature Review" in Children Adolescents and Media, 2nd edition - college text, 2008
Winner: The Holroyd-Sherry Award for Excellence
in Media Education by the American Academy
of Pediatrics, Boston, October, 2008
Executive Director, 1993 -2005
The New Mexico Media Literacy Project (founded 1993)
Thursday, March 12, 2009
TIDD Analysis Leaves Out Concerns
By Jeff Jones
Journal Staff Writer
Critics of a plan to give $408 million in future tax money to a California-based developer are questioning why a state analysis provided to lawmakers omitted major concerns about the deal that were described in a similar document last year.
A 2008 legislative analysis of a so-called TIDD deal for SunCal Cos. said the firm's planned development on Albuquerque's West Side might not generate nearly as much tax revenue as SunCal claimed.
Last year's analysis also said that according to one of SunCal's own studies, most of the demand for industrial space in the giant new development would come from firms already doing business in the Albuquerque area rather than new, out-of-state firms — a top concern of critics who warn the tax break amounts to "cannibalism."
The issue could have a "potentially huge impact for the state," the 2008 analysis said.
Neither of those criticisms was detailed in this year's Legislative Finance Committee analysis given to lawmakers considering the controversial deal, which was approved by the Senate in late February and is pending in the House.
"I absolutely think it (this year's analysis) does not tell the whole story," said Sen. Eric Griego, D-Albuquerque, a TIDD critic who questioned whether the LFC was pressured on the new analysis.
LFC director David Abbey told the Journal on Tuesday that he was indeed pressured on the TIDD issue.
He declined to say who applied pressure and insisted it had no impact.
"We absolutely didn't bow to pressure," Abbey said. "We prize our objectivity."
While he defended the objectivity of both the 2008 and 2009 analyses, he said this year's report should have detailed the cannibalism concern. And the LFC analysis was amended for lawmakers Wednesday morning after the Journal's inquiry.
Since a SunCal TIDD bill died in the Roundhouse last year, the developer has embarked on a major push to get a similar measure through this year's Legislature.
SunCal has spent a chunk of cash — it refuses to say how much — on pro-TIDD billboards, advertising and mailers. It also has a team of 11 top lobbyists and has spread more than $50,000 in campaign cash among dozens of Democratic and Republican lawmakers and the state Democratic Party.
TIDDs, shorthand for tax increment development districts, involve the formation of special tax districts in which portions of the gross receipts and property taxes are set aside to pay the developer for infrastructure such as roads and water and sewer systems. The TIDDs issue bonds secured by the tax money.
Backers of TIDDs say developers get none of the future tax money until they build their projects and say they benefit the state because they bring new jobs and tax revenue.
Opponents equate them to a tax giveaway. And some maintain that much of the business locating in the SunCal TIDD would be existing Albuquerque-area companies enticed to relocate or expand there by lower rent or construction costs made possible by the TIDD tax subsidy.
Cannibalism concerns stem from the possibility of existing companies moving to a TIDD-subsidized development, shifting some of the existing tax revenue from local government to the TIDD.
The LFC's 2008 analysis, prepared by agency chief economist Norton Francis, said a study done for SunCal assumed most of the industrial growth would be from "intramarket" demand.
"This is activity that would have generated revenue for the state that is moving to an area where half of the revenue is redistributed to the development, a potentially huge impact for the state," Francis wrote.
The analysis added that according to a separate state study, the amount of permanent gross receipts tax revenue generated in several of the areas in the TIDD "will be less than 20 percent of the amount calculated by the (SunCal) study."
The shorter, 2009 analysis that did not detail the concerns was done by another LFC staffer.
SunCal chief spokesman David Soyka in written responses to Journal questions said the study done for his firm was" clearly based only upon historical averages" concerning typical Albuquerque growth and does not address SunCal's emphasis on recruiting firms from other states and countries.
"TIDDs will allow us to attract large out-of-state companies to New Mexico by providing infrastructure and shovel-ready industrial land," Soyka wrote. "We have met with more than 30 international companies in our recruitment efforts to date."
Tuesday, October 28, 2008
Where is Ted Stevens?
Today, my paper, the Albuquerque Journal, put the conviction of corrupt Republican Senator Ted Stevens on the last page of the front section. Where did your paper put the story? Last night CBS and NBC featured the story.
This is important. This kind of corruption is not only history making, but our media need to feature public governmental corruption in order to keep public informed and the system honest.
For only the fifth time in history a sitting Senator of the United States became a convicted felon. In fact, Republican Senator Ted Stevens was convicted of seven felonies. He was the senior U.S. Senator, the longest serving senator, the ranking member and former chairperson of the most important Senate committee, the appropriations committee.
It is the committee that controls all spending bills and all earmarks. Earmarks are those spending appropriations which are never debated by the legislature. This Senator had more to say about money matters than any other Republican. People owed him! He had incredible power.
That he was beyond his time and out of touch was never in doubt. He most famously referred to the internet as a group of “tubes” in last year’s famous debate over net neutrality, coming down on the side of the big telecoms.
As chairman, he refused to allow Big Oil’s CEOs to be sworn in at a hearing (a singularly unique breach of custom). One now has to wonder why he would do such a favor for them. Did he get something in return?
He was one of the most arrogant of the famous club of one hundred millionaires.
More importantly, this man typified what is most wrong with our system of government. People fight, dig and scratch to become politicians, get elected, and, then, get rich. Common people like you and I sigh and scratch our heads, but the fact remains.
Whether mayors, county commissioners, city councilors, state or national legislators, these people almost always wind up living way beyond their meager salaries. With the Ted Stevens case, one source of their largesse is clearly revealed. Private corporations and/or business do them “favors.”
In this case $250,000 worth of improvements were done to Stevens’ home. He somehow was unaware that they had come for free.
Ladies and gentlemen, we need more investigation and reporting like this. Why? Simply put, to help keep our legislators honest.
If you think a friend might be interested in reading about the media's untold and underreported stories, forward this newsletter to them. I'll put them on my list.
To subscribe or unsubscribe, simply email mccannon@flash.net.
Have a great October 28th,
Bob
Winner: The Holroyd-Sherry Award for Excellence
in Media Education by the American Academy
of Pediatrics, Boston, October, 2008
Presenter, Media Educator, Consultant
www.bobmccannon.org
Co-President, Co-Founder
The Action Coalition for Media Education,
www.acmecoalition.org
2808 El Tesoro Escondido, Albuquerque NM 87120
mccannon@flash.net (505) 839-9702
Author, "Media Literacy/Media Education
Literature Review" in Children Adolescents
and Media, 2nd edition - college text, July, 2008
Executive Director, 1993 -2005
The New Mexico Media Literacy Project (founded 1993)
This is important. This kind of corruption is not only history making, but our media need to feature public governmental corruption in order to keep public informed and the system honest.
For only the fifth time in history a sitting Senator of the United States became a convicted felon. In fact, Republican Senator Ted Stevens was convicted of seven felonies. He was the senior U.S. Senator, the longest serving senator, the ranking member and former chairperson of the most important Senate committee, the appropriations committee.
It is the committee that controls all spending bills and all earmarks. Earmarks are those spending appropriations which are never debated by the legislature. This Senator had more to say about money matters than any other Republican. People owed him! He had incredible power.
That he was beyond his time and out of touch was never in doubt. He most famously referred to the internet as a group of “tubes” in last year’s famous debate over net neutrality, coming down on the side of the big telecoms.
As chairman, he refused to allow Big Oil’s CEOs to be sworn in at a hearing (a singularly unique breach of custom). One now has to wonder why he would do such a favor for them. Did he get something in return?
He was one of the most arrogant of the famous club of one hundred millionaires.
More importantly, this man typified what is most wrong with our system of government. People fight, dig and scratch to become politicians, get elected, and, then, get rich. Common people like you and I sigh and scratch our heads, but the fact remains.
Whether mayors, county commissioners, city councilors, state or national legislators, these people almost always wind up living way beyond their meager salaries. With the Ted Stevens case, one source of their largesse is clearly revealed. Private corporations and/or business do them “favors.”
In this case $250,000 worth of improvements were done to Stevens’ home. He somehow was unaware that they had come for free.
Ladies and gentlemen, we need more investigation and reporting like this. Why? Simply put, to help keep our legislators honest.
If you think a friend might be interested in reading about the media's untold and underreported stories, forward this newsletter to them. I'll put them on my list.
To subscribe or unsubscribe, simply email mccannon@flash.net.
Have a great October 28th,
Bob
Winner: The Holroyd-Sherry Award for Excellence
in Media Education by the American Academy
of Pediatrics, Boston, October, 2008
Presenter, Media Educator, Consultant
www.bobmccannon.org
Co-President, Co-Founder
The Action Coalition for Media Education,
www.acmecoalition.org
2808 El Tesoro Escondido, Albuquerque NM 87120
mccannon@flash.net (505) 839-9702
Author, "Media Literacy/Media Education
Literature Review" in Children Adolescents
and Media, 2nd edition - college text, July, 2008
Executive Director, 1993 -2005
The New Mexico Media Literacy Project (founded 1993)
Friday, October 24, 2008
Financial Crisis Review = Inadequate
The Sunday Journal, Money Section (on how we got into this financial mess) did NOT include most of the following information. I think readers deserve better.
In April I warned about the economic danger of hedge funds and associated financial instruments, most importantly called derivatives and credit-default swaps(CDS). Sadly, the warning was prophetic, and our economy is falling apart, and not because of problem mortgages. Bad mortgages we could have handled; hedge funds we are struggling with.
Interestingly enough, in our current financial catastrophe the mainstream news (MSN) still refuses to discuss the role of hedge funds, derivatives and CDS. More importantly, the Presidential candidates are not talking about them either.
There seems to be an unspoken agreement to blame mortgages and generalized "greed on Wall Street" as the cause of the current crisis which has caused the FED to throw almost two TRILLION dollars at the problem (and the end is not in sight).
The lack of information is ominous, closely resembling censorship. It is more than an untold story; it verges on information control. I follow the mainstream news, and I have only seen Obama mention hedge funds once and McCain not at all.
CBS nightly news has talked about hedge funds three times and NBC twice. Two weeks ago there was a Sixty Minutes story that was very detailed and informative about derivatives and CDS. That is not much news for a crisis that has run over a month. We should all be hearing repeatedly about hedge funds, derivatives and CDS.
Don't get me wrong. I am not absolving don't Fannie, Freddie and the other causes of our crisis, but I am saying that more important topics are not being discussed in the MSN.
Leverage should be a major topic around the proverbial water cooler. We should all be talking about mortgage instruments that were leveraged twenty to three hundred times in various kinds of derivatives and, then, INSURED by CDS. After all, leverage did cause the Great Depression.
I have been waiting for Sixty Minutes' information to be verified by a responsible MSN source, and yesterday none other than Alan Greenspan did so, and he pointed out how wrong he was to leave these investment banks unregulated.
What's the total exposure? Believe it or not; we are talking about 50-60 TRILLION DOLLARS worth of highly leveraged, possibly worthless paper. That is the reason the markets are in the crapper, and that is the reason banks are failing left and right. Hundreds of people sold these schemes, made fortunes and should be on their way to jail, but where is the news?
Again, it bears repeating that leveraging assets at the margin was the cause of the Great Depression and the reason for the creation of the SEC, the FDIC and the FED. This is worse that the savings and loan scandal of the 80's that saw over 747 banks close due to the same kind of greed.
In April I quoted the SEC chairman, William Donaldson, who was fired by George Bush for trying to regulate hedge funds and CDS. As he said, "They are totally unregulated." That is why, for example, CDS are called swaps. If they were called insurance, they'd be regulated. As I noted in April Warren Buffet, John Bogle and Robert Kutner all agree about hedge fund dangers.
Now, here is the 64 zillion dollar question: why are the politicians and their media lapdogs avoiding the hedge fund issue?
I really don't know. I can only speculate that the pigs do not want this trough regulated.
I might further speculate that they want our tax dollars to stabilize their feed lots, so they can continue to take huge leveraged risks (now with our money) and possibly make zillions more in the future (instead of going to jail). If you have a better idea, please email me.
Remember, according to the Wall Street Journal, last year the 30 top hedge fund CEOs made an AVERAGE of one BILLION dollars in just that one year.
This needs to be talked about. Congress is holding hearings on regulating hedge funds. Last night, again, neither CBS nor NBC went into significant detail about these complex financial instruments. Write/call your Congressperson.
In April I warned about the economic danger of hedge funds and associated financial instruments, most importantly called derivatives and credit-default swaps(CDS). Sadly, the warning was prophetic, and our economy is falling apart, and not because of problem mortgages. Bad mortgages we could have handled; hedge funds we are struggling with.
Interestingly enough, in our current financial catastrophe the mainstream news (MSN) still refuses to discuss the role of hedge funds, derivatives and CDS. More importantly, the Presidential candidates are not talking about them either.
There seems to be an unspoken agreement to blame mortgages and generalized "greed on Wall Street" as the cause of the current crisis which has caused the FED to throw almost two TRILLION dollars at the problem (and the end is not in sight).
The lack of information is ominous, closely resembling censorship. It is more than an untold story; it verges on information control. I follow the mainstream news, and I have only seen Obama mention hedge funds once and McCain not at all.
CBS nightly news has talked about hedge funds three times and NBC twice. Two weeks ago there was a Sixty Minutes story that was very detailed and informative about derivatives and CDS. That is not much news for a crisis that has run over a month. We should all be hearing repeatedly about hedge funds, derivatives and CDS.
Don't get me wrong. I am not absolving don't Fannie, Freddie and the other causes of our crisis, but I am saying that more important topics are not being discussed in the MSN.
Leverage should be a major topic around the proverbial water cooler. We should all be talking about mortgage instruments that were leveraged twenty to three hundred times in various kinds of derivatives and, then, INSURED by CDS. After all, leverage did cause the Great Depression.
I have been waiting for Sixty Minutes' information to be verified by a responsible MSN source, and yesterday none other than Alan Greenspan did so, and he pointed out how wrong he was to leave these investment banks unregulated.
What's the total exposure? Believe it or not; we are talking about 50-60 TRILLION DOLLARS worth of highly leveraged, possibly worthless paper. That is the reason the markets are in the crapper, and that is the reason banks are failing left and right. Hundreds of people sold these schemes, made fortunes and should be on their way to jail, but where is the news?
Again, it bears repeating that leveraging assets at the margin was the cause of the Great Depression and the reason for the creation of the SEC, the FDIC and the FED. This is worse that the savings and loan scandal of the 80's that saw over 747 banks close due to the same kind of greed.
In April I quoted the SEC chairman, William Donaldson, who was fired by George Bush for trying to regulate hedge funds and CDS. As he said, "They are totally unregulated." That is why, for example, CDS are called swaps. If they were called insurance, they'd be regulated. As I noted in April Warren Buffet, John Bogle and Robert Kutner all agree about hedge fund dangers.
Now, here is the 64 zillion dollar question: why are the politicians and their media lapdogs avoiding the hedge fund issue?
I really don't know. I can only speculate that the pigs do not want this trough regulated.
I might further speculate that they want our tax dollars to stabilize their feed lots, so they can continue to take huge leveraged risks (now with our money) and possibly make zillions more in the future (instead of going to jail). If you have a better idea, please email me.
Remember, according to the Wall Street Journal, last year the 30 top hedge fund CEOs made an AVERAGE of one BILLION dollars in just that one year.
This needs to be talked about. Congress is holding hearings on regulating hedge funds. Last night, again, neither CBS nor NBC went into significant detail about these complex financial instruments. Write/call your Congressperson.
Monday, September 15, 2008
Journal Ignores Merrill Lynch
The financial crisis in this country is getting serious. My local paper, the Albuquerque Journal devoted half of its front page today to a 14 year-old who got in a fight (the lead story) and an epileptic baby--sad enough, but we had TWO MORE MAJOR FINANCIAL INSTITUTIONS FAIL over the weekend! The failure of Merrill Lynch is not worth the Journal's front page.
The Feds are still pouring many billions of $$ into saving Bear Stearns, Fannie May, Freddie Mac, and several other failed institutions while the FDIC has said it expects over a hundred more banks to fail. A hundred more! (And all so sleazy bankers could make big bonuses giving out millions of sleazy loans!)
The Federal deficit is now over a half TRILLION dollars/year, yet both Presidential candidates say they want to cut taxes AND reduce Federal spending. Hello?? Anyone who has taken Econ 101 would ask "how?" We have a ton of debt and two expensive wars, and Afghanistan is fixing to get a whole lot more expensive.
The only way would be to borrow more from our enemies or print more money, which, BTW, the FED is doing. They call it "expanding the money supply."
Inflation just hit the highest level in decades--over 12% annually adjusted for a few months. At 12% you have to make 12% on your investments to break even.
Now, I actually taught Econ 101, and I agree with what the Journal said in its Sept. 14th article about inflation. Inflation is "too much money chasing too few goods."
However, the Journal did not say, and no commercial media is telling you the key fact. "Inflation is a TAX." The government spends money it does not have--inflating the money supply (yes, running the printing presses) to pay its obligations (wars, programs or payments on its debt), and, presto, your money will not by as much. You have been taxed! Politicians love inflation; it allows them to promise more stuff to the voters without "raising taxes."
This is not a partisan statement. It is an economic axiom. As Colbert would say. It is "truthiness."
Whether you are a Republican or Democrat, ask your candidates about the economic facts of life. Here are two articles that should have been on today's Journal front page.
After Frantic Day, Wall Street Banks Falter
http://www.nytimes.com/2008/09/15/business/15lehman.html?_r=2&hp&oref=slogin&oref=slogin
Andrew Ross Sorkin, The New York Times: "In one of the most dramatic days in Wall Street’s history, Merrill Lynch agreed to sell itself on Sunday to Bank of America for roughly $50 billion to avert a deepening financial crisis, while another prominent securities firm, Lehman Brothers, said it would seek bankruptcy protection and hurtled toward liquidation after it failed to find a buyer. The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of hundreds of billions of dollars in losses because of bad mortgage finance and real estate investments."
Greenspan: Can't Afford McCain Tax Cuts
http://www.msnbc.msn.com/id/26689925/
The Associated Press: "Alan Greenspan says the country can't afford tax cuts of the magnitude proposed by Republican presidential contender John McCain - at least not without a corresponding reduction in government spending. 'Unless we cut spending, no,' the former Federal Reserve chairman said Friday when asked about McCain's proposed tax cuts, pegged in some estimates at $3.3 trillion. 'I'm not in favor of financing tax cuts with borrowed money,' Greenspan said during an interview with Bloomberg Television. 'I always have tied tax cuts to spending.'"
If you think a friend might be interested in reading the media's untold or underreported stories, forward this newsletter to them.
To subscribe or unsubscribe, simply email mccannon@flash.net.
Have a great day,
Bob
Presenter, Media Educator, Consultant
www.bobmccannon.org
Co-President, Co-Founder
The Action Coalition for Media Education,
www.acmecoalition.org
2808 El Tesoro Escondido, Albuquerque NM 87120
mccannon@flash.net (505) 839-9702
Author, "Media Literacy/Media Education
Literature Review" in Children Adolescents
and Media, 2nd edition - college text, July, 2008
Executive Director, 1993 -2005
The New Mexico Media Literacy Project (founded 1993)
The Feds are still pouring many billions of $$ into saving Bear Stearns, Fannie May, Freddie Mac, and several other failed institutions while the FDIC has said it expects over a hundred more banks to fail. A hundred more! (And all so sleazy bankers could make big bonuses giving out millions of sleazy loans!)
The Federal deficit is now over a half TRILLION dollars/year, yet both Presidential candidates say they want to cut taxes AND reduce Federal spending. Hello?? Anyone who has taken Econ 101 would ask "how?" We have a ton of debt and two expensive wars, and Afghanistan is fixing to get a whole lot more expensive.
The only way would be to borrow more from our enemies or print more money, which, BTW, the FED is doing. They call it "expanding the money supply."
Inflation just hit the highest level in decades--over 12% annually adjusted for a few months. At 12% you have to make 12% on your investments to break even.
Now, I actually taught Econ 101, and I agree with what the Journal said in its Sept. 14th article about inflation. Inflation is "too much money chasing too few goods."
However, the Journal did not say, and no commercial media is telling you the key fact. "Inflation is a TAX." The government spends money it does not have--inflating the money supply (yes, running the printing presses) to pay its obligations (wars, programs or payments on its debt), and, presto, your money will not by as much. You have been taxed! Politicians love inflation; it allows them to promise more stuff to the voters without "raising taxes."
This is not a partisan statement. It is an economic axiom. As Colbert would say. It is "truthiness."
Whether you are a Republican or Democrat, ask your candidates about the economic facts of life. Here are two articles that should have been on today's Journal front page.
After Frantic Day, Wall Street Banks Falter
http://www.nytimes.com/2008/09/15/business/15lehman.html?_r=2&hp&oref=slogin&oref=slogin
Andrew Ross Sorkin, The New York Times: "In one of the most dramatic days in Wall Street’s history, Merrill Lynch agreed to sell itself on Sunday to Bank of America for roughly $50 billion to avert a deepening financial crisis, while another prominent securities firm, Lehman Brothers, said it would seek bankruptcy protection and hurtled toward liquidation after it failed to find a buyer. The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of hundreds of billions of dollars in losses because of bad mortgage finance and real estate investments."
Greenspan: Can't Afford McCain Tax Cuts
http://www.msnbc.msn.com/id/26689925/
The Associated Press: "Alan Greenspan says the country can't afford tax cuts of the magnitude proposed by Republican presidential contender John McCain - at least not without a corresponding reduction in government spending. 'Unless we cut spending, no,' the former Federal Reserve chairman said Friday when asked about McCain's proposed tax cuts, pegged in some estimates at $3.3 trillion. 'I'm not in favor of financing tax cuts with borrowed money,' Greenspan said during an interview with Bloomberg Television. 'I always have tied tax cuts to spending.'"
If you think a friend might be interested in reading the media's untold or underreported stories, forward this newsletter to them.
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Have a great day,
Bob
Presenter, Media Educator, Consultant
www.bobmccannon.org
Co-President, Co-Founder
The Action Coalition for Media Education,
www.acmecoalition.org
2808 El Tesoro Escondido, Albuquerque NM 87120
mccannon@flash.net (505) 839-9702
Author, "Media Literacy/Media Education
Literature Review" in Children Adolescents
and Media, 2nd edition - college text, July, 2008
Executive Director, 1993 -2005
The New Mexico Media Literacy Project (founded 1993)
Thursday, September 11, 2008
What Happened to 9-11?
How did your local paper treat today's anniversary of possibly the greatest catastrophe in U.S. history?
If you were living here in Albuquerque, depending on the Albuquerque Journal, you probably would not even know it was a special day.
Now, I must confess that I was jolted into action by an email from a friend who just wrote me and said, "I loved the Albuquerque Journal front page. 9/11 was not worthy of ANY mention on the front page??? But, luckily, we got to read about campaign signs and mountain lions. The Journal is so ****ed up." (I am sure she meant "messed" up.)
What does it say when the LEAD story in today's Journal was about some boys being sexually humiliated WEEKS ago? Yes, it was a sick tragedy, but, really, it was the Journal's third story about these poor kids, i.e., very old news. This sort of editing reminds one of the National Enquirer.
The Journal devoted almost a whole PAGE to Sarah Palin, but only a TINY mention on page seven about the anniversary of the date that has cost our country literally TRILLIONS OF DOLLARS, THOUSANDS OF DEAD, a DEVASTATED ECONOMY and much more!
9/11 affects our lives in so many ways. Our bridges are ancient, falling down, and we don't have the money to fix them. Our electric transmission system is prehistoric; our schools are ineffective; we are sending $700 Billion to our enemies every year for oil. The list goes on. Economists call this opportunity cost--the cost of what we are giving up because of what we are spending on the war on terror.
If you were living here in Albuquerque, depending on the Albuquerque Journal, you probably would not even know it was a special day.
Now, I must confess that I was jolted into action by an email from a friend who just wrote me and said, "I loved the Albuquerque Journal front page. 9/11 was not worthy of ANY mention on the front page??? But, luckily, we got to read about campaign signs and mountain lions. The Journal is so ****ed up." (I am sure she meant "messed" up.)
What does it say when the LEAD story in today's Journal was about some boys being sexually humiliated WEEKS ago? Yes, it was a sick tragedy, but, really, it was the Journal's third story about these poor kids, i.e., very old news. This sort of editing reminds one of the National Enquirer.
The Journal devoted almost a whole PAGE to Sarah Palin, but only a TINY mention on page seven about the anniversary of the date that has cost our country literally TRILLIONS OF DOLLARS, THOUSANDS OF DEAD, a DEVASTATED ECONOMY and much more!
9/11 affects our lives in so many ways. Our bridges are ancient, falling down, and we don't have the money to fix them. Our electric transmission system is prehistoric; our schools are ineffective; we are sending $700 Billion to our enemies every year for oil. The list goes on. Economists call this opportunity cost--the cost of what we are giving up because of what we are spending on the war on terror.
Sunday, August 3, 2008
Journal Promotes Gambling
Gambling . . . Excuse me, I should use today's politically correct term, promoted by industry executives, lobbyists and legislators. "GAMING" is one of the largest industries in the U.S. It accounts for over $50 million in contributions politicians.
In fact, gambling is bigger than theme parks, the movie industry and outdoor sports. Actually, it is bigger than all of these COMBINED. It is so big and has such a huge media presence that we do not even question it any more--on the national or local scene.
Today's front page Albuquerque Journal story, "3 Groups Vying for State's Last Racetrack Liscense" filled a full page and a half of section A.
The writer, Charles Blount, touted the the economic BENEFITS of the proposed "racinos" again and again. Each "racino" would have 600 "state of the art" slot machines.
Unfortunately, Blount made NO attempt to point out the negative impact of injecting gambling into a small town NM community. He promoted the increase in jobs and the "annual economic impact" of the racinos ad nauseum, but REFUSED TO INFORM HIS READERS OF THE BALANCING NEGATIVE IMPACT OF GAMBLING.
Blount could have sought out some experts on gambling and included them in his story which painted such a positive face on gambling. I am not an expert, but the following have all been mentioned as negative and expensive impacts of introducing gambling to a community:
1) Less disposable income for community members who lose at the racino. The huge amounts generated by casinos has to come from individuals.
Most individuals in small town NM have precious little money they can afford to lose. For example, most New Mexicans cannot pay for their retirement.
2) Lost jobs at other businesses when community members have less disposable income to spend upon things like restaurants, home repair, health care, education, retirement, etc.
3) Increased crime and drug addiction associated with problem gamblers.
4) Increased tax burden upon community institutions that have to pick up the slack for the above (police, hospitals, agencies, etc.).
The Journal routinely neglects to honor the basic ethics of professional journalism, but this is a particularly egregious example of omission.
Sigh.
In fact, gambling is bigger than theme parks, the movie industry and outdoor sports. Actually, it is bigger than all of these COMBINED. It is so big and has such a huge media presence that we do not even question it any more--on the national or local scene.
Today's front page Albuquerque Journal story, "3 Groups Vying for State's Last Racetrack Liscense" filled a full page and a half of section A.
The writer, Charles Blount, touted the the economic BENEFITS of the proposed "racinos" again and again. Each "racino" would have 600 "state of the art" slot machines.
Unfortunately, Blount made NO attempt to point out the negative impact of injecting gambling into a small town NM community. He promoted the increase in jobs and the "annual economic impact" of the racinos ad nauseum, but REFUSED TO INFORM HIS READERS OF THE BALANCING NEGATIVE IMPACT OF GAMBLING.
Blount could have sought out some experts on gambling and included them in his story which painted such a positive face on gambling. I am not an expert, but the following have all been mentioned as negative and expensive impacts of introducing gambling to a community:
1) Less disposable income for community members who lose at the racino. The huge amounts generated by casinos has to come from individuals.
Most individuals in small town NM have precious little money they can afford to lose. For example, most New Mexicans cannot pay for their retirement.
2) Lost jobs at other businesses when community members have less disposable income to spend upon things like restaurants, home repair, health care, education, retirement, etc.
3) Increased crime and drug addiction associated with problem gamblers.
4) Increased tax burden upon community institutions that have to pick up the slack for the above (police, hospitals, agencies, etc.).
The Journal routinely neglects to honor the basic ethics of professional journalism, but this is a particularly egregious example of omission.
Sigh.
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