As the economy continues to hurt working families, and Congress takes its orders from corporate America, many people are asking: where's the progressive protest movement that will galvanize public attention, challenge the undue influence of the Tea Party, and focus public anger on big business?
Throughout American history, progressive protest movements have started with local actions and spread to other places as the word spreads, momentum builds, media pays attention, and politicians wake up.
No issue gets at corporate America's inordinate influence than the epidemic of home foreclosures. In response, a David vs. Goliath battle is developing this holiday season between hard-working families facing foreclosure and banking giants such as Wells Fargo and JP Morgan Chase.
Fed up with Wall Street's stranglehold on our political system, community groups around the country are mounting a protest movement to stop the epidemic of foreclosures. They expect that a wave of protests across the country will help focus public anger, mobilize angry homeowners, force banks to halt the evictions and pressure local, state and national politicians to adopt stronger laws to hold banks accountable for consumer abuses.
For example, in Los Angeles next Thursday, December 16, members of the Alliance of Californians for Community Empowerment (ACCE) -- a statewide community organizing group -- will sponsor a demonstration at a major bank that will include civil disobedience and probably arrests.
The Los Angeles action is part of a burgeoning national movement to reign in the political power of the banking industry -- the corporate sector most responsible for the current recession. Along with ACCE, groups such as National Peoples Action, the PICO national organizing network, and the Service Employees International Union (SEIU) are mobilizing actions demanding that banks change their practices.
"A small group of rich, greedy bankers crashed the economy and got bailed out by tax payers," explained Peggy Mears, a Fontana homeowner and ACCE campaign leader. "Now the banks are making unprecedented profits. At a time of year when banks are distributing outrageous bonuses to the their top executives, they are kicking more and more families out of their homes. This has to stop."
Despite record profits -- due in large part to the federal bail-outs -- banks are not only pushing families out of their homes but are also refusing to make loans to businesses to create jobs.
Polls show that there is widespread public anger against Wall Street. Americans generally support strong bank reform measures -- consumer protections, requirements that banks renegotiate mortgages for families facing foreclosure, limits on the size of banks (so that they are not "too big to fail"), and new regulations against Wall Street gambling with default swaps and derivatives.
The shake-out of the American economy has left a handful of large banks at the pinnacle of the American corporate power structure. As a growing number of banks have collapsed and been gobbled up by larger institutions, the top six banks -- Bank of America, Wells Fargo, CitiGroup, JP Morgan Chase, Goldman Sachs, and Morgan Stanley) control 79% of total assets ($9.4 trillion out of $12 trillion).
Those six mega-banks are on pace to pay out $143 billion in bonuses and compensation to their top executives this year, which is higher than any year on record except 2007.
Nationwide, about three million families are facing foreclosure this year and 500,000 families have already been pushed out of their homes. Many of them are innocent victims of fraud, deception, and predatory practices. The largest banks are the biggest culprits, responsible for most of the foreclosures.
Despite the new financial reform bill passed in Congress last summer, and the Obama administration's efforts to encourage banks to renegotiate delinquent mortgages with homeowners (though only a voluntary basis), the financial industry continues to abuse homeowners.
Working class and middle class homeowners are facing holiday lockouts from their homes. In California, over 15,000 families face foreclosure every month.
Thursday's protest in LA is part of what the ACCE Home Defenders League is calling Stand Up for the American Dream Day. Families facing foreclosure and/or eviction over the next month will "move in" to a local bank building accompanied by a broad coalition of supporters from the religious community, labor unions, and community groups. Their goal is to put a human face on the failure of big banks to assist hardworking homeowners that are about to lose their homes over the holidays.
One of these families is headed by William and Esperanza Casco, owners of a small business. They've raised their three children in their Long Beach home of 17 years. When their bank, Washington Mutual, was being acquired by JP Morgan Chase, a paperwork error led to the Cascos being offered a lowered payment that they did not need. One day the Cascos received a notice that they were over $50,000 in arrears, even though they never missed a payment. Two months ago, the bank sold their home. Now the Cascos are now facing the prospect of being evicted over the holidays.
Like many families facing foreclosure, the Cascos did nothing wrong. They have the ability and desire to pay off their loans, and they followed all the rules, but their banks are ignoring them.
Now, many of these families are fighting back. They won't let their homes -- their most important investment and source of security -- be taken because banks are changing the rules or messing up the paperwork.
The six banking giants have ignored growing calls for policy changes. The activists are not only targeting the nation's largest banks, but also pushing for stronger laws to protect consumers.
They want to expand local court programs that require lenders to participate in mediation with homeowners. In California and elsewhere, the program has helped homeowners avoid foreclosure by getting lenders to agree to permanent loan modifications. ACCE is advocating legislation in California to require banks to negotiate with homeowners to modify loans before they can begin foreclosure proceedings. ACCE is also part of a growing national movement demanding that banks reduce mortgage principal for homeowners who are "under water" -- whose mortgages are worth less than their homes' values because of the unprecedented drop in home prices.
The ACCE protest will begin at 11:30 am on Thursday, December 16th. To find out details, e-mail ACCE organizer Peter Kuhns at pkuhns@calorganize.org.
"Robo-signers need to be called Robo-perjurers."
Love you, Mr. Kowalski !!!
www dot wgroup.ning dot com
www dot wgroup.ning dot com
We are organizing protests nationwide. Please join.
Why we would choose as a country to not regulate businesses that used 'our investments' to gamble, When they lost the gamble, they had to get more money from 'us' to cover their losses. Now that they are assured a 'support source' they can afford to pay well those that manged the gambling, bonuses and nice salaries.
The folks who lost value in their 401ks, their homes, and their future are the ones who took the loss.
Our Government just looks the other way. I guess not too surprising when 44% are millionaires and are well compensated with campaign funds by lobbyists and the banks.
Congress has no incentive to fix a system that bolsters their power, while diminishing the influence of those they pretend to represent.
The Government is not 'of the people or for the people; It appears to be for the rich and wealthy.
Just ask the unemployed what their Congressional Representative is doing to help them find and acquire a job.
I suspect they are too busy to listen, while making sure there is even more for the wealthy.
As much as you want to make this about banks lending practices, or the unfairness of bonuses, or how much wealth banks control, or how inept our government is, etc.; one thing stands constant, these people do not own the houses they are being evicted from. They are squatters. It really is that simple
The bulk of the money came from the bank and the control of title/ownership rights stay with the banks until certain conditions are met, namely the prompt and repayment of the loan that they signed for to buy the house. If these people are late in their payments (with most people being evicted only after 18 months of non-payment) then they are in default and the houses NEED to go back to the banks so someone more worthy can buy it. These people living in houses but not paying their loans are squatters! They need to be evicted like anyone who is trespassing on someone else’s property.
If they do not like it, then next time do not borrow money. Personally, I am hoping that banks stop lending to such ethically challenged people who cannot manage their own finances or meet their financial obligations.
Listening to these people cry about how they were being duped or how a robo-signed document absolves them of their need to meet their financial obligations is lame. Let’s move them out and move on. Enforce the property rights of the bank.
Kai
Sure a lot of folks should not have taken out loans they could not afford. If the banks and financial institutions relied on realistic guidelines, those folks would never have been approved.
To suggest that the devaluation of so many people's net worth was caused by people who should not have gotten loans is ludicrous.
The gambling by the banks, the lack of over sight by Congress, and the pursuit of money caused this mess.
I recently received some 'pre-approved' credit card applications from several banks. I filed for bankruptcy in May and some of applications are from those II had to default on. I am unemployed, have no assets, and am not likely to find a job after three years of looking. If banks consider me a 'good' risk then something is seriously broken.
Thanks for taking the time to respond with a well-reasoned view.
a) True properties have devalued, but as with any business venture where you borrow money, the equity holder takes first loss. However, it is important to note that in an up market, the bank does not get to see any of the upside. This is how lending works.
b) All I can say to your second point is caveat emptor. I hate people asking the government to save them from their own stupidity. These people should read their contracts and understand the potential downside to their loans.
c) I did not say the that devaluation of people’s net worth was caused by people who should not have gotten loans. Much of the problem was due to an asset bubble that formed due to loose monetary policy. Part of it due to poor government policies that amplified the bubble through poor policies that increased morla and financial hazards. It is partly due to people who should have known better and not taken out a loan they could potentially not afford..
d) Agreed with you point about banks, Congress, etc.
e) Agreed. Caveta emptor goes two ways. If they are willing to risk their money on you that is their risk. Likewise, if you take their money, that is your risk (that they will ruin your credit record further, stop you from getting employed, press civil charges, etc.) Caveat Emptor
Kai
It was the banks that caused the drop in values. Now, by refusing to lend, they are eliminating the potential buyers that would help stabilize values. The banks have set the precedent in that they will only help the people who are in default. In order to even talk about a loan modification, you have to be behind on your payments. Even if you get one it won't help with the fact that you owe more than it's worth.
If you are an underwater homeowner and you are not inclined to protest with a group. You can fight back on your own. Just give your house back to the bank. In most cases, they can wreck your credit but they can't touch you. You can live in your house for free, stretch it out and use that money to help set yourself up for the new housing market where you will find really cheap housing compared to today's prices.
The collapse is coming. If you get rid of your property now, you will be able to cash in. It may seem like a bold move, but in retrospect it will be obvious.
www.FinancialRevivalGroup.com
http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=asU.b_fCjHTE
Wachovia's Drug Habit - Bloomberg.Âcom
"...The bank didn’t react quickly enough to the prosecutorÂs’ requests and failed to hire enough investigatÂors, the U.S. Treasury Department said in March. After a 22-month investigatÂion, the Justice Department on March 12 charged Wachovia with violating the Bank Secrecy Act by failing to run an effective anti-moneyÂ-launderinÂg program.
Five days later, Wells Fargo promised in a Miami federal courtroom to revamp its detection systems. Wachovia’s new owner paid $160 million in fines and penalties, less than 2 percent of its $12.3 billion profit in 2009..."
No mention of prison sentences.
During the Great Depression, 38 states had NO banks. People used barter.
And as you state, " A battle IS Developing."
I'd like to offer my support for ACCE as they prepare to protest for "accountability"
and also to:
ACCE, NPA, PCIO, and SEIU as well as the local group here in S FL,
4closurefraud.org (and the Foreclosure Hamlet).
I am with you all.
Homeowner Zernick brought the massive mortgage frauds to the attention of L.A. County Superior Court Judge Jacqueline Connor in West District (when she had been at 210 W Temple, she was one of the main "Rampart Judges" which lead to a decade long Consent Decree being imposed on the LAPD, but no action taken against Judge Connor for her role in the scandal). When Zernick informed Connor of massive mortgage fraud by Countrywide, she and her fellow judges instituted a cover-up on behalf of Countrywide. Had these judges not chosen to cover up for Countrywide, the entire mortgage crisis would have been stopped before it caused a world wide economic meltdown from which we still suffer.
When Attorney Richard Fine protested illegal payments by Los Angeles County to judges, Judge David Yaffe threw the elderly attorney into jail for 18 months -- no trial, just the order of one vile judge. Yes, there are political prisoners in the US! Right now they are very few, but as more people protest corruption more vigorously, their numbers will increase.
Protest the banks as they deserve it, but remember corruption flourishes when the courts protect the wrongdoers. But for corrupt judges, this entire economic disaster would have been avoided.
Don't believe me, use Google.
The sad part; so few see this "dark side" of our govt.
Corruption runs rampant in the Judicial branch. More of the "Change we SHOULD HAVE BEEN ABLE to believe in".
My buddy (a lawyer...not to be named) wouldn't go into court without a court reporter..."Keeps the chronyism down to a dull roar between the judges and the big foreclosure mills," he says.
Fanned buddy!
The Los Angeles Superior Court is all about "money"....from my experience...it has absolutely NOTHING to do with Justice at all. I learned this the hard way...I don't care how right you are...it makes no difference...the Judges & Commissioners are a disgrace.
Combined, my various blogs get enough hits every day to possibly help spread the word. While the numbers don't approach Huffington Post, they still get hits. Why can't this protest group take a few moments and find blogs like mine and send out a notice about their protest?
I am somewhat amazed at how those who need the pr the most, do it the least, even when the PR is FREE and as easy as googling, Chase Bank protest blogs.
I'm not even going to bother leaving a link. sheesh.
I'm a BofA h@ter, and I h@te Chase too. Chase kicked my friend and his family out of their home after meeting they met the terms of their trial mortgage modification.
All of the TBTF banks are g@rbage.
If so, maybe some day they will win some form of financial restitution via a class action lawsuit. Unfortunately, after Sarah Buduson broke the story about parallel foreclosure over a year ago, NOBODY, and I mean NOBODY in the media will use the phrase parallel foreclosure.
This is rather unfortunate as it does not give the perhaps one million parallel foreclosure victims a rallying point.
Contact any group like ACCE and get on their media list.
Are you in a network with other protest bloggers? It would be a good idea - it makes it easier to reach a group of like-minded bloggers at once. You can share community contacts, get on all their media lists, and so forth.
You have to make it easy for them. You have to be polite. Don't go around saying "I'm not even going to bother leaving a link. sheesh." (Once you have the readership of HuffPo, you can be rude :) If you're nice to the activists, they'll be nice to you. If you're in LA and have time, go to the demo, and meet people.
BTW, I have done research to find blogs, and it doesn't take a few minutes. Getting a list of area blogs here for a project a couple years ago took over a day, and I'm sure I missed many. It's a lot of work.
It should not take more than 30 minutes to half an hour to find the majority of blogs.