Chelsea Green Publishing

Chelsea Green Blog

Weak Medicine: Obama’s Flawed Plan for Reforming the Banks

AlterNet is running a timely excerpt from A Presidency in Peril: The Inside Story of Obama’s Promise, Wall Street’s Power, and the Struggle to Control our Economic Future by Robert Kuttner.

When Barack Obama entered office, the housing crisis required very strong remedies. Government needed to use a mix of public funds and concessions on the part of the bankers and investors, who held the mortgage paper, to reduce the principal and interest to a monthly payment low enough to allow distressed borrowers to keep their homes. Otherwise, the foreclosure crisis would keep feeding on itself, glutting the market with vacant homes, driving housing values still lower, and triggering still more foreclosures. But this course would require banks and holders of mortgage-backed securities to take losses, and it was rejected by both the Bush and Obama administrations. Instead, both Bush and Obama relied on a series of voluntary programs, jawboning bankers to reduce monthly payments. Not surprisingly, this approach failed.

Back in 2007, looking over the brink of this precipice, the Bush administration had worked with the banking industry to develop the first voluntary program, called the HOPE NOW Alliance. The group claimed that member banks participated in 2,911,609 “workouts” (reductions of monthly payments) between July 2007 and November 2008, but that number turned out to be grossly inflated. Only 37 percent of the workouts resulted in modification of the loan terms, and of these only 49 percent actually cut monthly payments. Most of the reductions were modest.

Read the whole excerpt on AlterNet.


Author Petra Kuenkel: The Art of Leading Collectively

More than ever before, there is a focus on new, collective forms of leadership—and an urgency to get collective change processes underway, all over the world. What’s behind the recent push to move collective leadership to the fore? Whether we find ourselves in societal or organizational change, it requires collective energy and drive to bring […] Read More

10 Books to Curl Up With This Winter

William Wordsworth was right when he said, “Nature never did betray the heart that loved her.” Nevertheless, the cold, dark days of winter can still get the best of even Nature’s most tenderhearted admirer. What’s one to do? We here at Chelsea Green have concocted the perfect cabin fever remedy with our suggested winter reading […] Read More

Top 8 Chelsea Green Books the Self-Styled Oregon Militia Should Read

The ongoing armed militia occupation of the Malheur National Wildlife Refuge in Oregon is showing no signs of ending — so, rather than send them snacks, or sex toys, we had an idea: Send them a book! Better yet, send them several Chelsea Green books. Don’t worry, we’ve picked five key titles that we think […] Read More

Author David Stroh: First Steps to Becoming a Systems Thinker

Systems thinking is often seen as something relegated to scientific and business analysis – economics, resource depletion, and climate. However, Systems Thinking for Social Change focuses on how to use systems thinking to make breakthrough progress on intransigent social problems. We asked author David Stroh how this approach can make an impact, and how readers […] Read More

Use Systems Thinking to Make Lasting Social Change

What can be done when our best intentions create unintended problems—such as temporary shelters increasing homelessness or food aid accelerating starvation?After decades of helping change-makers in the nonprofit, public, and private sectors address tough social problems, systems-thinking expert David Stroh shares the pioneering framework that both demystifies systems thinking and shows how it can lead […] Read More
Follow us
Get every new post delivered to your inbox
Join millions of other followers
Powered By WPFruits.com