Banker Gets Owned and Our Responsibility to OWS

[jerseyjack]

A video posted today (Banker Gets Owned) showed what appeared to be a BoA branch manager or regional exec. He was confronted with the usual chanting as he left his office. He tried to engage the OWS'rs on two occasions and finally just left for his car. In response to the video, several DUrs, pointed out that an opportunity was lost when the occupiers were not able to engage him on terms. So what does this mean to us?

Many of the occupiers are poor, unemployed, didn't have higher education and are under-informed. They know something is wrong. Some have been evicted from their homes, most of the "regulars" are likely unemployed. Many are deeply in debt but with nothing to show for it. On the other hand, we DUrs. have a better handle on many of the problems and their causes than some of the occupiers. I say this based on my reading of the posts on this board.

The most frequently heard complaint about OWS is they have no plan, no program and no one knows what they want. I want to propose that it is our opportunity to provide information to the OWS people. We need to do this for two reasons. One is to give them the information to inform the public about their AND OUR complaints. The second reason is simple. Charles and David will promote their cure for the ills that OWS are demonstrating about. They will do this just like they did for the teabaggers. When they publish their propaganda, we need everyone to know the facts so that just like Dubwa Bush, "Fool me twice and, us, we won't get fooled again."

Some of this type of education is already happening. I was pleased to hear that there is a free library in the Wall Street park with books so the occupiers can learn about what is happening. I hope Naomi Klein's Shock Doctrine is in the library.

I propose we prepare and disseminate Fact Sheets. They would propose a solution to a problem, explain the problem and tell why the solution would make things better. For example:

(Solution) Allow the government to borrow directly from the Federal Reserve.

(Problem) At present the government borrows its money from the Federal Reserve. However, the money first goes through broker banks like Citibank, Wells Fargo and other "too big to fail" banks. These banks borrow from "THE FED" and then buy Treasury notes and earn interest from the government at a higher rate than that charged to those banks by the Federal Reserve. The result is the government/taxpayer pays more for the loans.

(What this will accomplish) U.S. taxpayers will save money on government financing. Secondly, one reason the big banks are not lending is because they are making money from the U.S. government with no risk. Why loan to risky businesses and individuals when they can earn billions with no risk? Also, if the banks are cut off from the gub'mint teat, they will loan to businesses and this will add jobs to the economy.


This is one example of what we can do to support OWS. Please add your own suggestions.

[Vincardog]

1. I don't think the OWS folks need us to clarify their thinking, or their demands. They are mad and

are taking the public space to say so.
The more people that join them in the public space and discuss why they are mad the closer they will come to deciding what they want to solve and how they want to solve it.

[Me.]

3. Agreed

And I like the fact that so far no one is above the others, they are all equal. We are too hooked into leaders in this country and look where it's gotten us. Big egos, bait and switch, promises ignored, sit down and STFU.

[Vincardog]

4. That is why I am going to Occupy Des Moines tomorrow. I know some people will be their trying to

push agendas like "Get the Fed out".
I will make it my job to make sure it remains a democratic process.
Everyone has a right to their opinion.
We need to hear from everyone.
Next?

[Ilsa]

2. You may have something there. In a given place and time,

is it a teachable moment?

I'd like to see the protests kept united in purpose, not too much hodge-podge of demands.

[SixthSense]

5. you have to understand

the banksters know the deal, they just don't care.

They are not engaging, they are taunting. And I personally hope that one day one of them finds himself torn limb from limb in a frenzy of righteous justice at the hands of the people they live to harm.

[Edweird]

6. My suggestion is that you resist your urge to 'help' by attempting to change or control

what's going on. If it doesn't suit you then you are free to start your own movement.

[sabrina 1]

7. I think you need to learn more about OWS. The people there do not

need any instruction from DU from everything I have seen. I am in awe of what they are doing and continue to do each day. I have learned from them.

They are publishing their own newspaper already. They are the most organized group of people I have ever seen engage in an enormous project like this.

You are repeating the MSM and Fox attempt to smear them and in fact, leading people to believe that it is DU that needs to be educated if posts like this were the norm here.

This week, eg, they have had two of this country's most prominent Economists conduct actual classes on the economy and I would think they are far more educated than most of us here right now on what needs to be done.

Sure, we can and are helping, but to say WE here could teach THEM, who actually started a huge movement without any help, and in some cases the exact opposite, is kind of funny.

When was the last time DU started a movement that within three weeks has gone not only National, but Global and shows no sign of stopping.

An awful lot of people seem to 'get' what you say they are not managing to explain. It is my opinion that anyone who doesn't 'get it' doesn't want to at this point. THEY have done a magnificent job of explaining why they are there.

Maybe try reading up on this movement because seriously, I don't think you know much about it.

[A HERETIC I AM]

8. Just as long as your "fact sheet" does not include the fact at the bottom of your post.

(Solution) Allow the government to borrow directly from the Federal Reserve.

This is a solution looking for a problem.

(Problem) At present the government borrows its money from the Federal Reserve.

No it does not. The US Treasury borrows money by issuing bonds. Those bonds are sold at regular auctions held on behalf of the Treasury by the New York Federal Reserve Bank. The primary reason the NY Fed has this responsibility is because it is in NEW YORK! Which just happens to be a financial center.

However, the money first goes through broker banks like Citibank, Wells Fargo and other "too big to fail" banks.

Wrong. The list of http://newyorkfed.org/markets/pridealers_current.html">Primary Dealers is easily accessible on the NY Fed's website and that list is updated regularly, whenever there is a change. "Citibank" and Wells Fargo" are not on the list. Citigroup Global Markets, Inc. is, but that is a division of Citigroup. Citibank is the name of their retail banking arm and is not a player in the US Treasury market to any great degree.

These banks borrow from "THE FED" and then buy Treasury notes and earn interest from the government at a higher rate than that charged to those banks by the Federal Reserve. The result is the government/taxpayer pays more for the loans.

Wrong again. Please Google "Open Market Operations" and/or go to the home page of the NY Fed website I linked above and read up on how the money supply is managed and what exactly the Federal Reserve does. You have it COMPLETELY wrong.

(What this will accomplish) U.S. taxpayers will save money on government financing.

US Taxpayers in the form of their government are currently borrowing money at historical lows. The last auction of 90 day securities, held on October 3rd, sold at a yield of 0.02%. That's ANNUAL. That means if you bought one single, $1000 face value note of this issue, you would pay $999.95 for it (roughly, give or take another few decimal places) and at the end of 90 days, you would get a grand back. Do that 3 more times and you made a grand total of twenty cents over the course of a year. The last auction of the "benchmark" Ten Year Treasury actually sold for more than it's face value at a yield of just a tic under 2%.

That's pretty cheap money.

Secondly, one reason the big banks are not lending is because they are making money from the U.S. government with no risk.

That may be partly true. So I'll give you that. But they aren't making much, as the yields on Treasuries is, as I said, very low.

Why loan to risky businesses and individuals when they can earn billions with no risk? Also, if the banks are cut off from the gub'mint teat, they will loan to businesses and this will add jobs to the economy.

That is an assumption you are making and I think it is a bit of a stretch. If banks were somehow prohibited in purchasing Treasury Bonds, they would just look elsewhere for a place to put the money. It might or it might not currently be in the form of loans to businesses. The reason most banks hold Treasuries is, for the most part, to resell them anyway. Go to any major brokerage near you, ask to see a broker, tell him you are interested in purchasing some Treasury bonds and ask to see his inventory. You would be surprised.