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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.

Bullshit. *Charisma, Icon, Intelligence, Empty Sandwich

How does the word “bullshit” connect to Charisma, Intelligence and the notion of The Empty Sandwich?To find out the answer to this question we meandered through David Fleming’s Lean Logic. A dictionary unlike any other, Lean Logic encourages readers to actively and intellectually engage with its entries. These entries are often cross-referenced so that you […] Read More

From Farm-to-Table to Farm-to-Everything

No longer restricted to the elite segments of society, the farm-to-table movement now reaches a wide spectrum of Americans from hospital and office cafeterias to elementary schools and fast-casual restaurants.Nearly a century ago, the idea of “local food” would have seemed perplexing, since virtually all food was local. Today, most of the food consumed in […] Read More

The Three Cs of Farm-to-School

Most people know about the three “R’s” – reading, writing, and arithmetic. But, have you heard about the three “C’s”?If you, or your kid, is at a school that takes part in the Farm-to-School movement, then you may already know about them.October is National Farm-to-School month, and in their book Farm to Table, authors Darryl […] Read More

“Rules for Revolutionaries” Offers New Political Playbook for Activists

A riveting behind-the-scenes look at the “rules” used by the “revolutionaries” who helped harness the volunteer power that fueled Bernie Sanders’ historic, and insurgent, presidential campaign.Authors Becky Bond and Zack Exley led the Sanders campaign’s efforts to recruit and engage volunteers at an unprecedented level, which was crucial to the Vermont senator capturing 46 percent […] Read More

Born on Third Base: A Q&A with Author and Inequality Activist Chuck Collins

As inequality grabs headlines, steals the show in presidential debates, and drives deep divides between the haves and have nots in America, class war brews. Does it have to be this way?Can we suspend both class wars long enough to consider a new way forward? Is it really good for anyone that most of society’s […] Read More
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