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I Hear You, Occupy Wall Street

Posted: 09/30/11 08:03 PM ET

Are the barons of high finance ever called to account for their avarice, or for the billions squandered by their schemes?

I own a San Francisco real estate firm with more than two hundred million in assets. But had I made dumb choices that destroyed my equity in my properties, I would have lost them or gone bankrupt. The financial elite, it seems, plays by a different set of rules. And that's what has people shaking their heads today.

Three years after Wall Street collapsed in a greed fueled conflagration, people from all classes, all ethnicities, and all generations are camped out at Liberty Square in New York City to protest the continued fleecing of America by big banks and corporate chieftains.

Other demonstrations built on the same highly-organized model have sprung up in 70 other American cities, including San Francisco, Portland, Memphis, Louisville, Miami, Sacramento and Boston.

The protesters bill themselves as the "Other 99 percent," in contrast to the 1 percent of Americans who account for 25 percent of all income earned in the United States and 40 percent of the country's wealth.

Yesterday, I was able to hear the protest from my office at the Merchants Exchange, just down California Street from the Bank of America building, where people across the socioeconomic, ethnic, occupational and ideological spectrum had gathered in support of the Occupy Wall Street movement in New York.

They are protesting a culture which concentrates money and power in the hands of a tiny elite, all while allowing corporate executives of public companies to achieve monumental pay packages without investing a dime of their own money.

I recently talked to the 45-year-old retired CFO of a famous Silicon Valley company who justified his $250 million stock package by saying that he had worked six days a week for five years. I thought of my father, who worked six- and seven-day weeks for 40 years as a deliveryman for Berkeley Farms and Dreyer's Ice Cream.

The astonishing thing is that you don't even have to succeed at the upper echelons of corporate management to "earn" dramatic cash windfalls. Just yesterday, the New York Times reported on the return of the "golden goodbye," outsized severance packages for failed corporate executives.

Want to make a cool $10 million? Get fired! For a failed 11-month run at the top of Hewlett Packard, Léo Apotheker last week took home $13.2 million in severance (on top of his $10 million signing bonus). Still, it's not as good as former Merrill Lynch CEO Stanley O'Neal's $161.5 million parting package in 2007, the year the firm's net losses totaled $7.8 billion. $161.5 million. That's 3,244 times the median annual household income in the United States.

Who knew that getting fired could be so lucrative?

Business leaders, portrayed as omnipotent gurus, are usually quick to blame social ills on a recalcitrant government bureaucracy and a self-dealing political class. The myth of the meritocracy of financial genius is perpetuated by horserace coverage of wealth, such as the Forbes 400 list.

Here the accumulation of money is more than lauded; it is mythologized. Success has become so equated with money that critical professions such as teaching, journalism, medicine, public health and government service, which require a spirit of sacrifice, are made to seem less important than pure capitalistic endeavors.

It is a wonder that this paradigm remains intact after the humiliating corporate downfalls of 2008, but here we are again, listening to yet another field of Republican presidential candidates demagoguing onstage about the evils of government and the wholesome judgment of corporate "job creators."

Have we forgotten the catastrophic banking losses that drove the world economy to the brink of ruin? Do we fail to see the irony in disgraced former Merrill Lynch chairman John Thain being interviewed once again by an obsequious Maria Bartiromo on CNBC? Are we consciously averting our eyes from the continued housing crisis, where underwater homes and hopeless "For Sale" signs dot the landscape?

Make no mistake; little has been done since the 2008 financial firebombing of America to change the underlying fundamentals of an economy rent asunder. Americans who pinned their hopes on an artificially bullish stock market to repair the damage to their retirement funds are now plummeting back to earth. The country is wracked by staggering unemployment and more than one in four American homes is deeply underwater.

But this is only a problem for the bottom 99 percent of the country. If you're a high-ranking corporate executive of a failing company, you might get fired, but you can still look forward to a severance package in the tens of millions.

It would do us well to remember the rebukes to business elites delivered by two great Democratic Presidents: Franklin D. Roosevelt and John F. Kennedy. When he assumed the presidency in 1932 in the midst of the Great Depression, Roosevelt condemned the sordid results of capitalism without values:

The rulers of the exchange of mankind's goods have failed through their own stubbornness and their own incompetence, have admitted their failure and have abdicated... they have no vision and where there is no vision the people perish. The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of that restoration lies in the extent to which we apply social values more noble than mere monetary profit.

Thirty years later, President John F. Kennedy slammed the country's steel barons who violated a public agreement not to raise prices:

The American people will find it hard as I do to accept a situation where a tiny handful of steel executives -- whose pursuit of private power and profit exceeds their sense of public responsibility -- can show such utter contempt for the interests of 185 million Americans.

Unlike the breathless national media coverage of the incipient Tea Party protests in 2009, the "Occupy Wall Street" protesters in New York and across the country have so far been relegated to sidebar status. But that shouldn't diminish the importance of their cause.

In the wake of a continued corporate sycophancy from the country's hard right, it is encouraging to see an organized counter movement brave enough to address the problem of American inequality and pragmatic enough to include all those who suffer as a result -- the other 99 percent.

 
Are the barons of high finance ever called to account for their avarice, or for the billions squandered by their schemes? I own a San Francisco real estate firm with more than two hundred million in...
Are the barons of high finance ever called to account for their avarice, or for the billions squandered by their schemes? I own a San Francisco real estate firm with more than two hundred million in...
 
 
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brutalefrank
revenue, revenue wherefore art thou oh revenue.
04:53 PM on 10/03/2011
For all the Republican hoopla of not taxing Job Creators, remember this statement from the article: "...corporate executives of public companies.. achieve monumental pay packages without investing a dime of their own money".

A small business owner is more likely to invest his or her own money into his or her company, than a CEO is to invest money into the public company he or she runs.
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HUFFPOST SUPER USER
Nic the wonder puppy
When life throws lemons, throw them back
10:37 AM on 10/03/2011
No, just my yard
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muck-raker
give me liberty or give me death
07:38 AM on 10/03/2011
We Stand With the Majority of Americans: Human Needs, Not Corporate Greed

--------------------------------------------------------------------------------

Tax the rich and corporations
End the wars, bring the troops home, cut military spending
Protect the social safety net, strengthen Social Security and improved Medicare for all
End corporate welfare for oil companies and other big business interests
Transition to a clean energy economy, reverse environmental degradation
Protect worker rights including collective bargaining, create jobs and raise wages
Get money out of politics
The government, dominated by elite economic interests, is going in the opposite direction from what the people want. The American people’s agenda is our agenda. For more see: The American People Could Rule Better than the Political and Economic Elites.

The broad agenda for Stop the Machine: Create a New World is to end corporatism and militarism and shift power to the people, so necessities can be met. In addition to stopping the machine we also want to show the “new world†we want to see. The seven issues above are part of our agenda, each of these issues are discussed below, primarily in relation to showing that according to polls, large majorities of Americans support each issue and in many cases have done so for years.
....................CAN U COME....AND......BRING A FRIEND................................
Oct 6th Wash DC Freedom field: http://october2011.org/standwiththemajority
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Daniel Key
08:59 AM on 10/04/2011
That's right, we do support a lot of those things, but you're way off base when you get into demanding government does something about it. It's like you people are pissed at how corrupt government has become so you're going to demand that the corrupt entity fixes itself. It's insanity.
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muck-raker
give me liberty or give me death
10:04 AM on 10/04/2011
You are new here: Pay-for-De­lay in Pharmaceut­ical IndustryCo­nsumers lose when branded drugmakers use illegal tactics to keep generic alternativ­es off the market. Since 2001, Federal Trade Commission has worked on behalf of consumer to sue drug companies that pay off makers of competing drugs not to bring their products to market. The companies do this by using a loophole in current law to effectivel­y block all other generic drug competitio­n. FTC also supports legislatio­n to end such “pay-for-d­elay†settlement­s.

Why? Because, as an agency staff study recently found, delaying entry of generic drugs costs consumers billions of dollars a year, and one method in particular – pay-for-de­lay patent litigation settlement­s – costs consumers approximat­ely $3.5 billion per year.
but of consumer choice. By using drug approval and Hatch-Waxm­an Act processes to keep generic alternativ­es off market or delay their entry, companies not only hurt competitio­n, but deny consumers right to choose cheaper alternativ­e form of medication­. In addition, these anticompet­itive “sweethear­t†deals in which payment is made to the generic competitor keep the generic drug off the market, on average, 17 months longer than deals that don’t include such a payment. Considerin­g that generic entry can reduce price of a branded drug by up to 90 percent, it’s easy to understand why branded firms are willing to pay generics not to come to market – and then share their illegally obtained monopoly revenues.â€
, tag along awhile you maybe surprised.MR
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mrose001
VOTE 2012 for a change that will ROCK Washing
01:19 AM on 10/03/2011
They should be marching and protesting at the Capitol mall for Congress to reverse the laws that allowed Wall Street to do what they did. Congress is the problem their dysfunction and incompetence to do the job they were elected to do is what caused and continues to increase the effects of this recession.
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pennywhite
06:33 PM on 10/02/2011
The country club is losing control of the trailer park - and there will be hell to pay.
The times they are a changin'...
05:16 PM on 10/02/2011
The incentive for the top 1% is not to share or trickle down-but to help only their own. Yet it is not their money-but the money from the people who cannot help their own and their families because they must give it to the global elite.
Warning-your charities will be the next scam to fall.
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SMK1414
just another community organizer
04:06 PM on 10/02/2011
Dear Corporate America: So you blew the economy for millions of Americans and were safed by millions of American. Now is not your turn to do something for millions of Americans.

Like you we want to prosper and like you we want to have a future and like you we want to participate in the economy as consumers, business owners with a sense of security.

Unlike you we are not sitting on trillions of dollars that you could, if you cared about Americans, put those millions of people back into the workforce and back into a economy with a future.

Please reinvest into the country that gave you so much or face the country's disrespect and criminal accusations by your victims.
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03:19 PM on 10/02/2011
If Mitt Romney is right, and corporations are people, then corporations are not patriots! Too many corporations pay no federal taxes. Some even recieve $millions in rebates from the US government while paying no federal taxes. Too many corporations lay off American employees, and move their jobs to countries where they can pay workers next to nothing. They then give top level managers outrageous and undeserved pay packages for saving the company money. The American blue collar workers who remain are then subjected to union-busting tactics by the corporations. Verizon, for example, paid it's CEO $36.75 million last year, but it now expects for it's unionized employees to take pay and benefit cuts amounting to $20 thousand per year. The CEO of Occidental Petroleum was paid $52.2 million last year, while heading up a corporation in an industry which recieves US government subsidies. The Wall Street banks rewarded their top executives with millions in bonuses, even as they accepted government bailout money to keep the banks from failing because of poor executive leadership. Today's corporate executives seem to have adopted Gordon Gekko's view that greed is good.
03:43 PM on 10/02/2011
If corporations are people then they need to be able to go to jail. Let's bring back the draft too. And let's try them for treason if they transfer secrets to communist China.
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muck-raker
give me liberty or give me death
07:31 AM on 10/03/2011
“They weren't murderers or anything; they had merely stolen more money than most people can rationally conceive of, from their own customers, in a few blinks of an eye. But then they went one step further. They came to Washington­, took an oath before Congress, and lied about it.

Thanks to an extraordin­ary investigat­ive effort by a Senate subcommitt­ee that unilateral­ly decided to take up the burden the criminal justice system has repeatedly refused to shoulder, we now know exactly what Goldman Sachs executives like Lloyd Blankfein and Daniel Sparks lied about. We know exactly how they and other top Goldman executives­, including David Viniar and Thomas Montag, defrauded their clients. America has been waiting for a case to bring against Wall Street. Here it is, and the evidence has been gift-wrapp­ed and left at the doorstep of federal prosecutor­s, evidence that doesn't leave much doubt: Goldman Sachs should stand trial.

The SHORT LIST as to who should be wearing an orange jump suit soon:
Lloyd Blankfien, Jaime Dimon, Greenspan, Rubin, Summers, Immelt, Geightner, Bernanke..­and the 4 Supreme Court judges that voted for Campaign Finance by the Corporatio­ns thats just for startersâ€
02:12 PM on 10/02/2011
Wall Street needs to start seeing the millions and millions of people their actions have affected.

The Corporate CEO's and Corporate culture don't have to go out and campaign, they don't go out to meet Americans or shake their hands, they don't see the American people so we are nothing to them but a means to an end.

"We the people" have become less than human to the Corporate culture because they have no occasion to see us, interact with us, or come the realization that is "we the people" who are the 99% percent who Occupy This Country, not just Occupy Wall Street.

Until we are humanized and until Corporations open their eyes to the realization that the American people aren't going to sell our country out so that Corporations can slap a banner over our flag and Constitution just like we were a sports arena.

Get out of our politics, get out of our government, get out of our elections and create some jobs why don't you Corporate America???
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Daniel Key
09:14 AM on 10/04/2011
LOL, quit blaming corporations...how clueless are you people?? "get out of our politics, government, and elections". Isn't is clear as crystal what the problem is? IT'S GOVERNMENT, not corporations. Corporations are doing exactly what they were designed to do and exactly what they are allowed to do. They are using the power of the state to have total control. It's time everyone quits thinking like children and blaming capitalism and puts the blame where it rightfully belongs - the state itself.
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julieJgoldengay
Buffalo Woman of the L-Train
01:15 PM on 10/02/2011
Grandmothers, Moms, Veterans, and Students...
Ended the Vietnam War.
Little People.
Changed America.
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SMK1414
just another community organizer
04:10 PM on 10/02/2011
If I recall it something like this: Power To The People - yes Americans can.
11:17 AM on 10/02/2011
Obama isn't protecting the civil rights of the protestors.
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SMK1414
just another community organizer
04:11 PM on 10/02/2011
When is the right time to have the white house involved? I do think there is an opportunity to do so but the right time means the most effect gained. Not sure.
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Daniel Key
09:16 AM on 10/04/2011
Are you kidding me? I'm all about protesting, but we're talking about 6 people got pepper sprayed and a bunch of people got "arrested" (i.e. - removed from the middle of the road, taken to the station, booked, and released.). I don't think that's so bad that the white house needs to intervene.
11:16 AM on 10/02/2011
The American economy is no longer about making stuff; it's about moving money around.
11:01 AM on 10/02/2011
Hedge Funds are favored over Homeowners.

Think about this as a solution to our economic ills.

Big Banks have no problem selling my mortgage at a discount to a hedge fund. But they wont sell it at that same discount to me. Read my post (link below).

Since Mark to Market (M2M) was revised not repealed in the Economic Stabilization Act of 2008 it is still alive and well. How about allowing homeowners the ability to refinance at M2M value and create a trillion dollar tax free stimulus for the American Homeowner.

Please read and think about this solution and pass it on. Everyone wins under this policy proposal.

http://theaccidentalhumanist.blogspot.com/2011/09/simple-fix-to-our-economic-woes.html
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10:43 PM on 10/02/2011
Home"owners" are favored over renters.

End the home mortgage-interest deduction.
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Daniel Key
09:19 AM on 10/04/2011
Big banks would not exist if not for the Fed, thus all of these problems would not exist if there were no fed.
Eppur Si
One of the majority who are not part of the "99%"
09:25 AM on 10/02/2011
How one manages to talk about "catastrophic banking losses" and the banks "fleecing" the rest of us in the same article is a mystery to me. If you're trying to fleece someone, it is probably not the best strategy to suffer catastrophic losses. Also mysterious is how a member of the "rich" can support protests that seem to have no point at all, except opposing the existence of the rich.

There are a lot of societies in the world, and a uniform truth is that in the societies with LOTS of rich people and corporations, the standard of living is better for everyone. There are also plenty of societies with NO rich people or corporations. Go take a look at one some time. The nearest one is 90 miles off the coast of Florida.
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SocratesSiddhartha
"Poverty is the worst form of violence." Gandhi
09:29 AM on 10/02/2011
Ever heard of Enron?

Nice 'either or' proposition, so the current grossly inadequate concentration of wealth is acceptable to you but is NOT acceptable to us.
11:15 AM on 10/02/2011
Um, 1% of the people having 25% of the money is NOT a lot of people having lots of money. Its a few people have a great deal of money, which is not the same thing. That's the problem. Too high a concentration of money into too few hands. All that is being suggested is that the concentration of wealth is too high in this country and needs to be addressed. Anyone can see it. all the statistics point to it. Now all we have to do is do something about it.
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SocratesSiddhartha
"Poverty is the worst form of violence." Gandhi
09:08 AM on 10/02/2011
Bravo!!!