The Occupy Wall Street movement has been going on for a month now and it has found its way to Santa Fe, New Mexico. I’ll be covering the protests this morning and I’ll be back this afternoon to report on today’s events. Keep your fingers crossed that I am not poked in the eye by one of the three prongs on a Tea Partiers hat.
As a one-time registered socialist (note that it has been nearly seven years since my name has had a red inked star scribbled next to it), I am all for the collected organization of citizens with the purpose of standing up for their constitutional beliefs, whether it bubbles up from a well of laws they disagree with or from that of a socio-emotional stance – as long as its means are compassionate and peaceful. As a matter of fact, even as a liberal, I beamed a bit with American self-indulgence as I watched the Tea Partiers march in Washington toting signs that clearly established their distaste for an Obama Whitehouse (albeit I completely disagreed with their message and their uncompassionate means – I do not care what your political affiliations may whisper to you as you drift off to sleep, people, Barrack Obama is in no way comparable to Adolf Hitler), which may sound outrageous and could possibly put me at risk of having my Lefty Card swiped from my pocket, I thought to myself, hey, at least they’re organizing, at least they’re doing something – so one can justify my feelings of pride when the left began their weeks long protesting of our financial institutions and their practice of systematically eradicating households below the one million dollar mark.
I was planning on handling the Occupy Santa Fe protest in the same fashion I handle most political demonstrations, by not participating. But it was not until I watched Anne Coulter spew her typical fire-poker dialogue on Fox News earlier this week that I decided to get involved here in our own town. Ms. Coulter found it necessary to say that the Occupy Wall Street movement was “just how, with a few slight differences, the Nazi Party organized.” Ms. Coulter also found it necessary to not define these “few slight differences” in her diatribe to the audience of the most watched news network in the United States. The Nazi Party? Really? I have become quite adept at ignoring most everything that comes out of Anne Coulter’s mouth, and that of the rest of the Fox News Team, but this was a bit too outrageous for me to say nothing. Let me explain how the Occupy Wall Street Movement has nothing to do with the Nazi movement. For the sake of time, and our readers’ intelligence, I will not be explaining the bullet points of the Nazi Party manifesto, but rather pointing out why these protestors are upset, and exactly what it is they are speaking out against:
The American Financial Crisis starting kicking our ass in early spring of 2008. Subprime mortgages began going under faster than we could handle, and then Bear Stearns, one of the largest financial institutions in the world, failed in March of 2008. Lehman Brothers, a bank of the same breed followed suit in September. The US Government came up with a fairly simple plan they named TARP (Troubled Asset Relief Program) in October of 08 and gave nine of the largest banks $125 billion dollars (that’s billion) with the purpose of getting our big banks back on track so they could start lending money again to the real majority of the American population: the middle class – the end game being that the mind-numbingly large banks we gave money to (remember, this came out of our taxes) would pay us back once everything was back to Clinton-era normalcy. But, as most people saw at the time, giving banks this money did nothing to address the actual problem with our financial system, it just bought the banks some extra time; basically postponing what would eventually happen; what IS happening now. Imagine the banking structure of the US as a large ocean liner with a ton of holes in it that is making the ship sink very slowly – TARP plugged those holes and now the ship is sinking again, only this time faster.
TARP wasn’t enough for Bank of America, and in 2009 they finagled another $20 billion out of the government; money they used to set aside for colossal bonuses they could give their top execs, a very perplexing point that the government and the media quickly brushed past. By spring of 2009, the US Government announced that more than half of the nation’s largest banks had enough capital to survive another recession; they even had enough to survive a Doomsday scenario, the worst possible economic slip. Bank stocks took off again, and within a couple months the bailed out banks started repaying their TARP money. Believe it or not the banks actually wanted to get rid of that money – hanging on to that kind of cash was seen as a sort of scarlet letter, a black cloud, giving the banks that retained the money a sort of a pariah position. Banks began to profit again. Goldman Sachs made a profit of $13 billion in 09, up from a mere $1.5 billion just a year earlier. This rise in their bottom lines gave the banks the ability to pay the government back, but some say they paid it back too soon. Much of the banks new money they documented in 2009 and 2010 were through earnings and stock prices and they used these numbers to make their capital look lucrative. Great right!? Not so much. The problem here is that the banks made all their money back and were boasting ridiculous gains without lending money to us – which was the whole point of taking the TARP money in the first place. The banks were paying themselves in order to manage their own stock. In simple terms – that is not real business. They were not making money through lending to American citizens, so when the money ran out, which it did, the banks were right back where they started because there were not receiving any money from loan payments. Their profits, in a sense, were false.
Now, financial jargon aside, why does this suck? In 2008, before the top five banks were bailed out, their total executive compensation was $96 billion dollars (hard to believe as it is, that’s normal). What sucks: In 2010, it was $130 billion. The financial crisis continues and depending on who you ask (myself included) it is getting worse, so if the banks are in as much trouble as they were three years ago, how come their profits are nearly doubled? Because they are not lending money to Americans and they continue to fire their employees by the boat load. Last month Bank of America laid off 30,000 employees. But hey, Ken Lewis, BofA’s CEO made $100 million dollars this year. Him. Just him.
There has always been economic disparity between the top 1% of the American population and the rest of us, but now, during a time of bleak financial crisis, and after the banks that caused it received billions of dollars to fix their mistakes, the gap is bigger than ever before and it is the leaders of these institutions that tell us straight-faced that it is our problem and maybe we’re just not working hard enough, and this is why so many Americans are flocking to their states capitals and financial districts to let them know that they are not okay with this any longer and that they will no longer accept it. I encourage you all, as always, to check my facts, but I think it goes without saying that this movement is more than slightly different than the organization of the Nazi Party.
WHAT: Occupy Santa Fe
WHERE: Roundhouse Capital Building – Downtown Santa Fe
TIME: 9am
WHY: Because the Über -rich and phasing out the rest of us so they can buy a yacht and a fourth home.