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Posted: January 6, 2010 06:03 PM

Move Your Money: Arianna And Rob Johnson Explain How Moving Your Money Can Change The System

What's Your Reaction:

Arianna and Rob Johnson, director of the Economic Policy Initiative at the Franklin and Eleanor Roosevelt Institute, urged Americans to move their money to community banks during an appearance on the Ed Show with Ed Schultz on Wednesday.

Just last week, Arianna and Rob unveiled Move Your Money, a challenge to Americans fed up with too-big-to-fail banks. The initiative encourages account holders to withdraw their money from big, mismanaged banks and move the funds to smaller, better-managed community banks--institutions that are still lending.

Arianna explained that community banks are more likely to lend, and to help fuel a recovery among America's small businesses, "Community banks are much more likely to reinvest that money in the community and actually help create jobs...because... $1000 billion less money has been lent to communities from these four banks that we bailed out."

Visit MoveYourMoney.info to find a community bank near you. Click here for answers to frequently asked questions about how to move your money.

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Arianna and Rob Johnson, director of the Economic Policy Initiative at the Franklin and Eleanor Roosevelt Institute, urged Americans to move their money to community banks during an appearance on the ...
Arianna and Rob Johnson, director of the Economic Policy Initiative at the Franklin and Eleanor Roosevelt Institute, urged Americans to move their money to community banks during an appearance on the ...
 
 
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12:08 PM on 01/10/2010
Great idea. Something needs to be done. If everyone does this there will be no bonuses to give the CEO's and other so called TALENT they can't afford to lose.
08:01 PM on 01/07/2010
I saw Spitzer recommend this on MSNBC first. It reminds me of this: Back in the day, on a little known campus in Santa Barbara, a once evil international banking institution office (rhymes with "hank of awarika") was burned to the ground by student activists for its involvement in South Africa's Apartheid regime (as well as other regimes.) That was considered radical guerilla political action in its day. Today, bogged down with mortgages, credit cards, etc--the very vehicles that were sought to be "destroyed" in order to stop the funding of these regimes, can still be similar vehicles of change. Yeah, burning down a building was petty (albeit dangerous) and honestly didn't full stop the funding by doing so. BUT, it did send a powerful message, that coupled with other efforts towards that end, FINALLY did end the Apartheid regime in South Africa. A lesson that I think if applied as Spitzer, Huffington, and others say with this kind of action, and if in sufficient numbers, could make that similar statement (hopefully a lot faster.)

Oh, and I moved all my money today; but not to a Community Bank. After putting in a couple of local zip codes, I couldn't find any locally that didn't have Board of Directors linked to either AIG, another bailout bank, Chamber of Commerce, or large religious organizations. So, I went to a local not-for-profit Credit Union as described in another article. Cheers.
05:47 PM on 01/07/2010
It would be nice to encourage the use of simpler local goods and services as well. We have become vulnerably specialist, each making a minute contribution to a vast complex, largely incomprehensible, system, and becoming in turn dependant an uncountable number of others all over the globe for even the simplest things. Were global warming meltdown, an asteroid hit, or some other emergency event to occur we would be quite incapable of meeting our individual needs and would find ourselves, devoid of local skills and networks, starving and freezing in a way mankind has never before faced.
05:19 PM on 01/07/2010
I'm not sure I understand the idea here. First of all, a lot of small banks have failed also, so putting your money in a small bank does not guarantee that it will be better managed. Second, if we try to starve our big banks of funds, doesn't that mean that our big banks will lose out in competition with Japanese and Chinese and European banks? Is Arianna's idea to take the United States back to some kind of small town, agrarian past? If so, isn't the US in danger of becoming an economic backwater?
03:59 PM on 01/07/2010
This is a great idea.

Don't do business with banks or investment banks which got TARP money.
09:13 AM on 01/07/2010
The stock value is essentially meaningless if they're going for the long term creation of a business. People who truly invested in the company at the IPO should be forced to retain their holdings for a specific time frame, in excess of 6 months similar to insider restricted shares used as rewards in lieu of cash for execs, and sometimes line people.
But really, from that point on, the trading of shares only benefits the traders, and people trying to screw around with the company via a takeover, greenmail [popular in the 80's], and so called holder activism, which is usually Kirk Kerkorian trying to make the company fire 25% or more of it's staff for a temporary profit increase, distributed to the shareholders; or in an attempt to split up the company which also causes job losses.
09:13 AM on 01/07/2010
I would think even a community bank would be OK, better than a credit union. The trick is to get them to publicly pledge not to sell to multi state bancorp for a specific period - say the next 8+ years. That should give the movement enough time to take hold and have an effect.
As far as the stock mkt goes, having had a series 6,7,63, 24 licenses in the past, I can tell you that all the market does nowadays is act as a casino for wealthy individuals or people trying to become wealthy via trading, or gambling. The companies listed truly only benefit on one day for the entirety of their existence - the day they go public and receive money to operate. Next is a secondary, etc offering. But once they get their cash, the play on the stock only makes them act irresponsibly, because they begin to believe their own nonsense of "worth" and use the stock as if it were a form of cash.
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HUFFPOST SUPER USER
bud812
07:02 AM on 01/07/2010
Loadable pre paid visas are good also they allow you to be your own banker.Cash your check load it onto your card which can be used anywhere as a visa card.You can manage your account online,1 time fee when loading card,very small fee in comparrisson to bank fees.Its not a credit card because you cant overdraft!If your card is lost or stolen you can manage account from internet or phone and your monies refunded and many other protections.Its a nice alternative to dealing with banks beyond your savings account.
03:32 AM on 01/07/2010
How about a resource for helping people move their credit cards too? I've moved my money, but still have a b of a credit card. Any comparison engines out there?
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01:22 AM on 01/07/2010
there's always the cash option too.

banks give us barely any interest, lots of fees and little security.

my grandmother used to divide all her husband's paycheck into dollar bills and put them in envelopes that were designated for different things.

cash makes things very easy.

you also get discounts if you are smart about it
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notb observer
Technically it's a micro auto-bio...
02:00 AM on 01/07/2010
If you add up all the charges and the miserable interest that we are offered in return for our money, we may all be surprised to find that we are actually paying to keep our money in the banks.... This is not supposed to be the case ! The banks use (borrow) our money as a way to increase their own capital according to what the law allows. So if they have $1 in money from their customers, they might be allowed to "create" another $8 of money based on their holdings. The new money they are allowed to "create" they can then lend out to borrowers for interest. Nowadays it seems we are not only getting no interest but are also being gouged with penalties and service charges, while the banks carry on using our deposits to make interest profits.
The government has allowed all this to happen, thanks to the immense amount of power banks have managed to gain over our elected officials and the legislative process.
Deregulation, the Right Wing holy grail has been at the root of this problem, like so many others, which have allowed an entire generation and class of capitalist carnivores to roam freely and take whatever they want from the people and the government.
There has never been a more pressing reason to dismantle and eradicate this cancer from our country than what we have seen in the past months with health care reform, and in the coming months with finance reform.
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leifcatt
02:25 AM on 01/07/2010
my grandparents did the same thing, dividing money into envelopes. My grandpa carried his pocket money in an envelope. I never saw him use a wallet. He had 3 envelopes, one for big bills, one for small bills and one emergency envelope he used to put under the floor mats of his car. His experience in the great depression soured him on banks.
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David Schroeder
family - work - politics
01:07 AM on 01/07/2010
Best cause Arianna has ever publicized.
Visit: http://www.facebook.com/MoveYourMoney?ref=nf

The banks and land companies raped the farmers of the mid-west in the '30's. Everyone looking back thinks that was an evil. But, what is happening now on Wall Street is worse by orders of magnitude. When the crash occurred and the depression set in we did not have the supposed regulation to prevent it. Those people might be excused for their ignorance.

Today we have the luxury of looking back on the lessons of the roaring '20's and depressing '30's to avoid making similar fiscal mistakes. Instead of learning from the past we are repeating it due to a select group of greedy money lovers. I mean, who really needs a hedge fund!

When you woke up this morning, you were a pawn in class warfare.

"According to the Economic Policy Institute report, in 1965, U.S. CEOs in major companies earned 24 times more than a typical worker; by 2007, they made 275 times more. U.S. CEOs also make far more than CEOs in other advanced countries, the report said."

That is just wrong.

This suggestion to move your money from large institutions is a tangible, peace-love step in the right direction. The people need actions like this to tilt the odds back in the favor of the shrinking middle class. If people are apathetic and miss opportunities to take simple steps like this one - things will only get worse.
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notb observer
Technically it's a micro auto-bio...
02:09 AM on 01/07/2010
The statistics are indeed mind boggling ! The salaries and bonuses that we have been hearing about in Wall Street execs and the health insurance cartel are simply impossible to justify in any sane society.
I typically compare these people's salaries and responsibilities to the POTUS or the Chairman of the Joint Chief, both of whom make UNDER $500K a year !!!!!! Tell me that a Wall Street exec or health insurance bigwig deserves tens of millions of dollars plus bonuses and who knows how much in stock and other hidden gifts and goodies !
The truth is, all this money these people are getting is money that is truly owed to the people. Whether it's better insurance coverage and not being denied at any cost, or whether it's banks not charging withdrawal fees or ATM charges. They are helping themselves to our money because they have a stranglehold on the lawmakers in DC and can rewrite the rules to their liking.
They are now set to go to court to have their money (it's actually out money, but they consider it their own...) recognized as "free speech"... They will only be content when they own the system outright, and this must be stopped at all costs !
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leifcatt
02:34 AM on 01/07/2010
Great post! And the sad part of the viral greed that has consumed America is that it is transforming our democracy into a plutarchy.
It's like the feudal system wrapped in the industrial revolution. The people with the money make the rules which are to help them make more money all off of the backs of the "commoners".
02:51 AM on 01/07/2010
Great post!
01:02 AM on 01/07/2010
Just moved another 5k to a local bank not much but I'm on board for moving money! Arianna this is a great effort on your part and I'm trying to convince others to follow your lead! It's up to us to make the Change!

Move your Money dot info
http://moveyourmoney.info/
01:01 AM on 01/07/2010
This has been a good initiative for our checking and savings. How about another one for retirement savings such as 401K's? 2009 clearly demonstrated how corporations, namely investment banks and holding companies, well connected power brokers, regulatory agencies and their agents, politicians, and anyone else with inside Wall Street connections can control the market to their profit and advantage. The individual investor is the last player in. I remember a while back Michael Moore giving several suggestions for Main Street to take back control of America and one was not to invest in the stock market.
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notb observer
Technically it's a micro auto-bio...
02:24 AM on 01/07/2010
Yes, and if you're in a position to actually have money to play the market, you are doing better than a lot of people... I think it's great that this is being discussed and that people are also acting on it ! If this story gets picked up by the MSM, then it will really start to get traction. I am a little curious to see if the MSM will cover it, or if they are so beholden to the corporate interests that they will simply bury it by covering another Balloon Boy story like they seem to have done with the entire issue of health care reform.
If enough people start moving their money that a real trend develops, it will have potentially serious implications for Big Bank. If the MSM fails to cover the story, then the MSM is likely trying to smother it. If they do pick it up, it will also be very revealing to see exactly what kind of spin they put on it. They have the power to turn this into a nationwide phenomenon and can also portray the movement as a positive or negative thing.
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01:00 AM on 01/07/2010
Being ethical, moral and political with your cash is just about the only way we can influence the system or at the very least do what our conscience tells us is right.
For my part, I stopped buying French wine ages ago because I disagreed with their nuclear testing. I don't buy goods from "Pound Shops" (I don't know if you have them in the states; they are super cheap shops known in Japan as 100 yen shops). Look at the labels and they are all made in China, Pakistan and other countries where workers are treated little better than slaves.
Maybe we can't change the system but don't let the system change YOU!
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smokeystover39
12:59 AM on 01/07/2010
We've had BofA and Chase hosed us with (a) nickle dime charges which no one can explain, (b) double "fees" in other words a line item in a transaction for faxing $30.00 and then further in the recap several "fees" lumped together one of which is a "fee" for faxing, (c) the inability to listen. The classic case was the double fax fee. After a half hour of explaining to this 20 something air head she finally gave up after we insisted on involving a manager - something she didn't want us to do in that wasted time. Yeah we got it fixed, but left feeling drained.One shouldn't have to go through the equivalent of a steel cage death match to fix something obvious. We what did we do??

We checked out several smaller banks through fdic.gov . We found one which has been in business since 1942 and family owned. It's regulated by FDIC as well as our State. They pay slightly higher interest rates, but best of all they're small enough to know you by name and LISTEN. Re the ATM hassle - this bank recognized the problem and worked out an agreement with a larger bank so we can use our ATM card at their machines.

Use the FDIC on line resources - you'll be surprised at the wealth of information you can get, then move that money mister!
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ResearchtheFacts
Alert, awake & paying attention to the details.
01:11 AM on 01/07/2010
Thanks for sharing it was funny. We all have been through that experience one way or another. My spouse prior to our move had been arguing with B of A over a mysterious $19.99 charge that kept reappearing. I overheard the conversations and was chuckling. I kept saying why bother let's just move our accounts. After the last time it didn't take much convincing. It does drain you explaining the same thing over and over again to the many different people they transfer you to.