HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Sandy, the Storm from Hel...

Mon Dec 10, 2012, 05:26 AM

 

Sandy, the Storm from Hell – Unless You’re a Banker: Costs of disaster being shifted to individuals

When the bankers take over a nation and its economy they don’t build factories, and they don’t make investments in people or infrastructure. What finance capitalists do, when given the power, is put everyone in debt.

For Wall Street, every disaster is an opportunity to make debt slaves of the victims – if the victims have enough resources to pay back the banks. If those struck by natural calamity are too poor to become assets on the bankers’ books, they’re pretty much on their own – even when a public agency is in charge of disaster relief.

A new report by a group called Strike Debt, described as an offshoot of the Occupy Wall Street movement, says federal disaster aid in the wake of Hurricane Sandy is largely built around ensnaring storm victims in debt. Titled “Shouldering the Costs,” the study concludes that the burden of recovery from disasters is being shifted to the individual. “Federal aid programs,” says the report, “require victims to first apply for loans before qualifying to apply” for aid from FEMA, the Federal Emergency Management Agency. And before the feds will even consider making Small Business Administration loans in a disaster, they require that the victims first go to a commercial bank, where the interest rates are much higher.

To the average citizen, this seems illogical. Why place a hurricane-struck small businessperson in deeper financial trouble by forcing her to take on even more debt? What kind of disaster relief is that? Very good logic, if the intention is the serve the banks. The unwritten rule of government under capitalism is never to compete with private business – even in disasters. Therefore, the first job of government is to withhold low interest federal loans from victims with good credit, in order to protect corporations’ chances to profit from the disaster. Only if the private banks reject you will the Small Business Administration offer “direct loans” at lower rates...

The Occupy-related activists say FEMA and the Small Business Administration steer homeowners to loan programs, rather than grants. However, many homeowners in the impacted areas were already underwater in terms of their mortgages, and the storm has further devalued their neighborhoods and, therefore, their property. “By only offering loans to already struggling homeowners,” says the report, “FEMA and the SBA shift the burden of disaster to individuals and send profit to the loan servicers…. Homeowners have no way out of these properties other than foreclosure. The only practical option is to take the chance on taking on more debt.”

http://blackagendareport.com/content/sandy-storm-hell-%E2%80%93-unless-you%E2%80%99re-banker

4 replies, 616 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 4 replies Author Time Post
Reply Sandy, the Storm from Hell – Unless You’re a Banker: Costs of disaster being shifted to individuals (Original post)
HiPointDem Dec 2012 OP
Fumesucker Dec 2012 #1
raouldukelives Dec 2012 #4
kickysnana Dec 2012 #2
dballance Dec 2012 #3

Response to HiPointDem (Original post)

Mon Dec 10, 2012, 05:34 AM

1. "For Wall Street, every disaster is an opportunity to make debt slaves of the victims"

Cannot be repeated too often.

Thing is that you don't have to feed debt slaves, they are responsible for their own care and feeding, much less trouble.


Reply to this post

Back to top Alert abuse Link here Permalink


Response to Fumesucker (Reply #1)

Mon Dec 10, 2012, 08:36 AM

4. Well, nobody would be in the market if they didn't want to profit from others pain. nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to HiPointDem (Original post)

Mon Dec 10, 2012, 05:35 AM

2. Which is why Blomberg was trying to run Occupy out. n/t

Reply to this post

Back to top Alert abuse Link here Permalink


Response to HiPointDem (Original post)

Mon Dec 10, 2012, 05:39 AM

3. Why am I NOT surprised

Given the number of people like Bernake and Geithner in our government who are so closely tied to the same people and firms that crashed the economy this is not a surprise. And even if these policies were enacted prior to them they're still not doing a damned thing to change them in favor of individuals and families.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread