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Tue Jan 8, 2013, 09:41 AM

Why Post-Sandy America Needs State Banks More than Ever

from YES! Magazine:

Why Post-Sandy America Needs State Banks More than Ever
If we the people want the sort of security in emergencies that is available to the owners of Wall Street banks, we need to own some banks ourselves.

by Ellen Brown
posted Jan 07, 2013

Most people believe that they'll be covered by their insurance policies or by the Federal Emergency Management Agency (FEMA), if a disaster hits their region. But many victims of Hurricane Sandy have found that their insurance policies included obscure provisions that excluded coverage, and the only aid that FEMA gives to individuals is the opportunity to take on more debt.

A demonstrated solution exists to this problem, in the form of state-owned banks like the one that exists in North Dakota. As climate change makes disasters like Hurricane Sandy more common in many parts of the United States, the fight to establish state banks in new places will become ever more urgent.

In the coastal regions of New Jersey, New York, and Connecticut that got slammed by Sandy, homeowners were already strained by underwater mortgages prior to the storm. Many properties have now depreciated to the point of having no market value at all.

They have no choice but to try to rebuild, but how can they take on more debt? FEMA's focus on lending moves money from the victims of disaster into the hands of loan servicers, who make enormous profits off these loans. ...........(more)

The complete piece is at: http://www.yesmagazine.org/new-economy/how-state-banks-help-disaster-relief-efforts

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