Conference call Sunday: draft a coherent strategy to attack the bailout

[eridani]

Dear Friends,
This week a 700 billion bailout will likely occur. Is this Grover Norquist's wet dream of shrinking government until it can be drowned in a bathtub, eliminating all hope of serving We the People with health care, education, etc. -OR- is it our opportunity to demand those services? Either way - this week might be the time to grind business as usual to a hault - And remind Congress that they represent main street, NOT Wall Street!
Dean Baker is co-director of the Center for Economic and Policy Research in Washington, DC. He previously worked as a senior economist at the Economic Policy Institute and an assistant professor at Bucknell University. His blog, Beat the Press, features commentary on economic reporting. His recent post on Talking Points Memo, Progressive Conditions for a Bailout he outlines Principles to Guide the Bailout, Principles for Restructuring the Financial System, Principles to Guide the Bailout, and Principles for Restructuring the Financial System. He and Doug Henwood the editor of Left Business Observer will be on the call to discuss what we in the grassroots should do this week and what we and Congress must be demanding.

WHEN: SUNDAY, Sept. 21, 3 PM (Pacific)/6 PM (Eastern)

Three ways to participate:
1. CONFERENCE CALL: First, RSVP by email with "Bailouts!_WallStreet-vs-MainStreet" in the subject line, so we can reserve a spot for you on the call. At the time of call, dial 1-[phone] , follow prompts, then enter access code 1037729 followed by #.
and/or
2. WEB RADIO: Voice of Vashon. To ask questions while you listen, you will need to RSVP for a password. Use it to log in at the live chat.
and/or
3. E-MAIL: Click here to email your questions ahead of time. (same RSVP address)

[crispini]

1. K &R

[Ghost Dog]

2. Kick. Bailout not limited to $700bn.

See here: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x385679#386171

[crispini]

3. kick

[crispini]

4. Could we get one more R for this? I think it's a good idea.

[WhiteTara]

5. k & r

:kick:

[eridani]

6. Oopsie--cut off email address. Here it is

[e-mail]

[eridani]

7. Further call instructions. Starting now

Thank you for your RSVP to join our call with Doug Henwood and Dean Baker on the coming week's looming $700 billion bailout - Sunday September 21, 3 PM (Pacific). We are pleased to be hosting this conversation and welcome your participation on the phone, online or both if at all possible.

The number to call is: 1-[phone]
The access code is: 1037729#
Chat room password: "vashon"

Please come onto the call 5 minutes early (if possible), i.e 2:55 (Pacific). This will allow folks to very briefly announce their presence on the call, and make sure that all participants understand the "Radio" style format of the call, and how to line up for questions/comments in the chat room.

Asking Questions & The "Chat" Room
Go to http://backbonecampaign.org/chat, type in your name and hit the "Login" button. We are now using a password for the chat room. It is "vashon".

We find that cuing questions from the chat room improves the flow of the call, reduces cross talk and thus makes for a more usable recording and intelligible webcast. In the chat room, please indicate that you have a question/comment and its nature and we will invite you to unmute (by pressing "*6") when it seems appropriate for the flow of the conversation. Please mute again (press "*6" again) after asking to reduce background noise.

If you are listening online and wish to type a question, please indicate that you are not on the phone and we will ask your question for you. We also request that there not be a lot of "chat" in the chat room as we've found it makes it difficult to sort out questions and questioners. (It is possible to send private messages by clicking on the person's screen name.)

For those on the phone and not online:
If you cannot be online and on the phone simultaneously we will accommodate you by occasionally inviting folks to unmute (press "*6"), please mute again (press "*6" again) after asking to reduce background noise. We will announce this option a couple times during the call. Please be slightly bold as we do not like to have excessive "dead air."

To avoid annoying echoes we STRONGLY recommend that all participants in the conference avoid cellular phones and speaker phones, both are strongly discouraged except when muted. If an echo is introduced we will ask all those using these devices to please hang up and listen online.

Thank you for participating in this, our 71st Conversation with the Cabinet. We hope that you find this opportunity valuable and encourage you to spread the word to your friends and networks.

Talk to you on the Conversation!

Bill Moyer
Backbone Campaign
206-408-8058

[eridani]

8. Notes on the call. Also, someone is working on a nobailoutforbillionaires website

Dean Baker

We are in the middle of a horrible and preventable situation. A freeze-up means that normal transactions will be halted. Treasury and Fed have so far cooled things off. They are using fear to get exactly what they want.

They have asked for a 700 billion dollar blank check for the Paulson to use however, with no congressional oversight. We are giving the people who caused the problem money to solve it. We must put conditions on it.

Limit executive compensation
People other than Paulson should be involved in the bailout—labor and consumer representative
The public must have a stake in the process—force companies to sell themselves to the company
Longer term—insist on other measures like transaction taxes.
Legislation dictating that Fed must act to stop asset bubbles


Stan Soerscher

It really is a very serious situation.
Scandinavian banking crisis in early 90s. Use this as a model—investigate how they did it.
We have had bubbles, busts and bailouts ever since the 80s
Re-regulate the financial system
We have a lot of foreign loans backing up our profligate habits
Tax rich people to pay debts
Polarization of income and wealth needs to be corrected. People have borrowed to maintain middle class standard of living. 1-3 trillion dollars of home equity extracted

“Someday” has now arrived. Dems are being too mild talking about this. Hedge funds have backed Obama. He won’t move unless forced to.

We could have a better conversation about the nature of the economy.
Require Fannie and Freddie should put limits on appreciation of mortgages that they buy

Possibilities for getting it right are better with Obama nevertheless.

Tobin tax
Reserve requirements to reign in speculation.
Government should have a say of what happens to homeowners—favor workouts and allow people to stay as renters.

Politically we have to do something in a week or two. Some things are more saleable than others. Politicians tell us about this by what they advocate.

A harder sell to bail out people—many who pay their mortgages resent others getting help.

Paulson does not want to limit executive pay. It is a red meat issue that we should push.


Bill Moyers—need sound bite and freeway overpass sign slogans.

No blank checks for bankers
Paulson made hundreds of millions as an investment banker

What happens with 700 billion should be front and center
Tax on stock trades—generates 150 billion a year
You are taxed on gambling

Agenda shouldn’t be too large. We have to do something before the end of the week.
If they want to participate, set conditions

Talking Points Memo has a list

"Progressive Conditions for a Bailout" by Dean Baker at http://tpmcafe.talkingpointsmemo.com/2008/09/20/progressive_conditions_for_a_b/index.php

http://act.credoaction.com/campaign/no_blank_check/?r_by=912-223246-VYF84vx&rc=paste

http://www.faireconomy.org/


Citizens for Executive Oversight—Linda Boyd
Democrats.com

[VP505]

9. Very interesting and it kooks like a lot

will be going on this week, more info will be posted at: http://www.backbonecampaign.org/

[eridani]

10. More details from Backbone Campaign chair

had to take some time with family this evening and am now compiling all that folks have done since our call. I still want to get out something short and sweet, but it is taking me too long and I don't want to hold any of you back any longer.

John's earlier notes and links to bios and stories at the bottom of this email are great resources for action alerts and to augment my compilation o everyone's work with links and references.

Above John's notes I pasted the Code Pink announcement that Desiree shared.

Thank you all.

Bill
206-356-9980

AUDIO TO POST:
Short Preview/Teaser for posting online
http://www.backbonecampaign.org/podcasts/bailout_preview.mp3
Great edit of the first section of the call specifically focused on conversation with Dean Baker, Doug Henwood and Stan Sorscher:
http://www.backbonecampaign.org/podcasts/bailout.mp3


Conclusions of Sunday's Call

The public has no reason to accept Paulson’s blank-check bailout.

This shock opportunity should work for us and could be a significant turning point in political sentiment on markets, regulations, and taxes
It is time to organize around an alternative plan
Change the narrative - No More "Bubbles, Busts & Bailouts"
This crisis bursts the conventional "bubble" that markets will solve all our problems. For 30 years we were told that markets are good and government is bad. We are now surrounded by market failures in finance, trade, jobs, health care and climate change. Not one of these problems can be solved without strong public policies to intervene and regulate market outcomes to align with the public interest.

Alternative Proposal

Any bailout must be run in the public interest with oversight by a range of interests – no blank check for Henry Paulson, who according to a 2006 Forbes Article on his Compensation at Goldman Sachs, made $46.74 million over 5 years, and had wealth in stock of $632.4 million as of 2006. We will not give this man tax-payer money to save his cronies or his "industry."

The people who caused the problem or profited most should pay for it:

Highly compensated executives’ total compensation should be capped or taxed heavily as a condition for being bailed out.

Tobin tax on all transactions in Finance, Insurance and Real Estate – including currency transactions.

Government takes an equity stake, proportionate to the size of the bailout
Tax hedge fund managers’ income
Accountability - fire executives of failed companies as done in the UK, and abrogate their severance packages.

Impose a five-year, 10 percent surtax on income over $1 million a year for couples and over $500,000 for single taxpayers.

Re-regulate to prevent this from happening again

Direct the Federal Reserve to intervene to prevent asset bubbles.

Extend reserve requirements to new security categories
Regulate the packaging of loans so they can be evaluated, rated, and priced rationally.

Regulate hedge funds and private equity funds in a way comparable to banks

Include Main Street in the bailout & Invest in a new productive economy

Establish a moratorium on foreclosures, renegotiating mortgages or institute a rent-to-own plan to keep people in homes.
Create a major economic recovery package which puts Americans to work at decent wages, in productive jobs that add value to homes and communities.
Invest the taxes on speculation, executive compensation, and the surtax on the wealthy in clean energy, infrastructure, education, and health care.

ACTIONS:
Phone Blockade Website Coming. (See http://phoneblockade.org/)

Freeway Bannering letter templates, and instructions here: http://backbonecampaign.org/page.cfm?id=115

Online Action Options:
Email Campaign via People's Email Network: http://www.usalone.com/help_people_instead.php
Petition Against Blank Check Bailout: http://act.credoaction.com/campaign/no_blank_check/?r_by=912-16693-CZv8rEx&rc=paste
Petition to Stop Foreclosures and Eviction: http://www.stopforeclosuresandevictions.org/moratoriumpetition.shtml
Another petition based on our phone call is in draft form and attached. Anyone willing to help complete it should contact Annie 201-995-9000 tomorrow afternoon. (ailed to attach) See http://backbonecampaign.org/media/WETHEPEOPLEBail-OutPETITION.pdf

Graphic:
Emily did a sketch of the Treasury taking on water (attached).


Code Pink Action Alert:
Contact: Liz Hourican 202-903-3363
Desiree Fairooz 202-423-3654

We, CODEPINK: Women for Peace, denounce the 800 billion dollar bailout that amounts to government-sponsored welfare for the wealthy while totally ignoring and disenfranchising the rights of working-class people.

Taking our creative messaging to the Treasury Department's Henry Paulsen, we will respond to the Administration's decision to saddle more bad debt onto the backs of the American taxpayers.

What: Bailout for the Billionaires and Pennies for the People Protest
Where: U.S. Treasury Department 1111 20th St NW 20526
Time: 8:30a
Date: Monday, September 22, 2008

While the Democrat and Republican parties' presidential campaigns take turns spewing venomous vitriol at each other, swindled American homeowners are the victims in this economic tragedy.

These victims are being left penniless, weighed down with incredible debt on worthless property, suffering dwindling buying power and facing insurmountable healthcare costs, while this Administration pursues perverted policies to prop up a house of cards, all the faces Jokers. The joke is on the American taxpayers who are losing jobs, homes and health to a government of the billionaires, by the billionaires and for the billionaires!
NO MORE BAILOUTS FOR BILLIONAIRES!! PROTECT MAIN STREET NOT WALL STREET! BUSH'S BAILOUT IS BREAKING US!!

John Grebe wrote:
Dear fellow participants (bailout conference call),

Here's a partial list of resources, articles, web sites and ideas mentioned on
tonight's conference call, organized by Bill Moyer of the Backbone Campaign
http://backbonecampaign.org/

Dean Baker & Doug Henwood make crucial points and provided information you can
read in links below.

--John Grebe (on this call, just a note-taker)

Presenters on the call:

Dean Baker (presenter on the call)
of Center for Economic and Policy Research http://www.cepr.net/
bio at http://www.cepr.net/index.php/dean-baker/
Dean Baker's commentaries: http://www.prospect.org/csnc/blogs/beat_the_press

Doug Henwood (presenter on the call)
of the newsletter and web site "Left Business Observer"
author of "After the New Economy" (2003) and "Wall Street" (1997)
http://www.leftbusinessobserver.com/

Articles mentioned during the call (short list, should be expanded):

"Progressive Conditions for a Bailout"
(THIS IS A SOLID DETAILED LIST OF PROPOSALS.
SOMEONE NEEDS TO WRITE LEGISLATION BASED ON THIS. -JG)
By Dean Baker - September 20, 2008 at
http://tpmcafe.talkingpointsmemo.com/2008/09/20/progressive_conditions_for_a_b/i
ndex.php

"What Wall Street Should Do To Get Its Blank Check"
By Robert Reich - September 21, 2008
http://tpmcafe.talkingpointsmemo.com/2008/09/21/what_wall_street_should_do_to/in
dex.php

"Mad as hell - taxpayers lash out"
We asked you what you had to say about the bailout, and we heard you loud and
clear: 'No way!'
By David Goldman, CNNMoney.com staff writer - September 21, 2008
http://money.cnn.com/2008/09/21/news/economy/readers_on_bailout/index.htm

Web sites mentioned during the conference call:

United for a Fair Economy http://www.faireconomy.org/ in Boston
Petition at
http://act.credoaction.com/campaign/no_blank_check/?r_by=912-223246-
VYF84vx&rc=paste
Congress switchboard in DC: 1-800-828-0498
http://PhoneBlockade.org
Senate phone numbers at
http://www.senate.gov/general/contact_information/senators_cfm.cfm
House of Representatives phones at
http://clerk.house.gov/member_info/mcapdir.html

Very brief brainstorm of tactics, not comprehensive, not in order:

- calls to Congress immediately
- point to a specific web site, e.g., (Mike has one?)
- hanging banners
- starting tomorrow CODEPINK can do small zap actions, inserting good messages
in hearings, press conferences, treasury, etc. we just need good soundbites and
we can flyer the demands. --Gael washington, DC
- General strike, or the threat of it
- alliances & coalitions among unions, churches, justice groups, third parties
- draft breif talking points based on Dean Baker's article above
- draft legislation based on Dean Baker's article above

Short, punchy phrases expressed during call:

No Billions for Bankers
No Blank Check to Bankers
No Blank Check for Wall Street
Make Wall St. pay, not Main St.
Make CEO's pay
Slow Down the Bail Out
Slow Down the Bail Out - $700 Billion is Your Future
Socialized losses & privatized profits
Privatize profits, Socialize losses (ironic)
GENERAL STRIKE - NO EXECUTIVE BAILOUTS
Vote for justice
CEOs, turn in your parachutes!
Broken bootstraps
Reaganomics fails
NO TAXPAYER BAILOUTS FOR EXECUTIVES!
No Bailouts for Corporate Sinking Ships

Punchy sentences expressed:

This is bailing out a bunch of highly paid parasitical characters.
Independent panels should determine & advise for working people on any bailout.

A few thoughts expressed on the conference call, not a thorough list:

Contact unions, churches, economic justice groups, local governments to spread
information, and to seek staff to assist. Specific organizations suggested by
various participants in the call included Code Pink, MoveOn, Common Cause,
Ruckus Society www.ruckus.org . Citizens for Executive Oversight has spent the
last two weeks lobbying in DC - contact Linda Boyd. An opportunity to reach way
beyond our usual progressive circles. CODEPINK DC actions this week please send
any ideas for theater, soundbites, etc to us 202 290 1301 and
[e-mail] . Institutte for Policy Studies ips-dc.org