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7 Ways to Transform Banking
Each of us can help build a resilient financial system that will serve real people in real communities.
Are you as outraged as I am by the Wall Street bankers with their fat
bonuses, shoddy mortgages, and financial shenanigans? With the gridlock
in Washington, I wanted to know what “we the people” can do to turn our
fury into constructive action. So I turned to my friend Jared Gardner
for advice. Jared comes from the financial industry and thinks hard and
well about how to change the system.
Here are seven things I gleaned from my discussion with Jared about what we can each do to build a resilient financial system that will serve real people in real communities.
1. Move your money.
You may have heard about the Move Your Money campaign. The idea is to move your deposits from a Wall Street bank to a community bank or a local credit union. This is a terrific first step to keep the banksters from playing games with your money. Check out Green America's Community Investing website for ideas on what to do.
2. Move your debt.
Don’t stop with just moving your deposits. Move your debt. It’s in servicing debt that banks make the big money. So if you have a credit card, a car loan, or a mortgage, consider moving them. Find someone at your local bank or credit union who can help you review your debt and see what you could move to a local institution. Your interest payments can build your local economy instead of fattening those Wall Street bonuses.
3. Persuade your institutions.
Do you belong to a church, synagogue, mosque, or temple? How about the place where you work? Or a club or nonprofit where you are a member? All of these institutions likely have money and debt. Talk with the leadership about where they do their banking and encourage them to explore what they could move to a local bank. The First Unitarian Church in Portland, Oregon is considering moving its entire banking relationship from a Wall Street bank to a local bank. And the Responsible Endowments Coalition is urging colleges and universities to do the same. We need to follow these examples and make this a nation-wide movement.
4. Advocate a state-owned bank.
Sadly for the nation, North Dakota stands alone in having a state-owned bank. But that may change. Ellen Brown reports that five states now have pending legislation to create state-owned banks, and more are studying the possibility. The advantages are tremendous. The Bank of North Dakota has kept credit flowing throughout the financial crisis. More important, the state bank keeps community banks thriving. North Dakota has more community banks per capita than any other state in the union. Those community banks serve local businesses, which in turn generate local jobs—a winning strategy in a job-starved market. According to Brown, last year North Dakota had the lowest unemployment rate in the country.
5. Form or join a group.
Working with others keeps motivation high. One good option is a Common Security Club. Chapters are forming in communities across the country. Members find ways to help each other with financial difficulties, discuss the roots of the economic crisis, and advocate policies that will turn the system around.
6. Learn more.
The New Rules Project has a community banking initiative that’s a font of current information on breakthroughs for community banking. Ellen Brown provides regular insights into openings for transforming the banking system. Oregonians for a State Bank is developing allies across the political spectrum who want to strengthen their local economy. And the YES! Magazine website provides a steady stream of stories that spotlight the actions people are taking to build a new economy.
7. Share these ideas.
People of all political stripes are furious with the Wall Street banks. But they don’t know what to do. So tell everyone you know what you’re doing and why. And share this list. Together we can build a force strong enough to transform the banking system to one that will work for us all.
- Posted in
38 Comments so far
Show AllGreat ideas, I've also got another one. Start prosecuting now!
http://market-ticker.org/post=171966
Item number 8 needs to be: Don't vote for any member of the House or Senate who supported TARP or Dodd-Frank Bill, or any Senator who voted to reconfirm Fed Chairman Ben Bernanke earlier this year.
The results of last week's election show that just the opposite happened.
I have the greatest respect and admiration for Mrs. Korten's husband whose visionary praxis would go a long way to correct the corruption, fraud, and greed running rampant. The only problem is that the US congress, senate and presidency is owned by the entities she decrys. First you need to work to build third parties with platforms like the Greens who repudiate corporate donations and thus are not beholding to these entities; until that happens, this is all academic.
Sorry Mrs. Korten, you are missing a very important step before you see any of the visonary ideas you are putting forth actually becoming law of the land.
Respectfully disagree. Lots of people have to do exactly what Fran Korten says: get your money out of bad banks and into credit unions / local banks. It's a way of "voting" that actually counts, in addition to supporting the local banks.
"Voting with your dollars" seems to me to be another of those capitalist statements of manipulation designed to make the serfs feel like they have some control. In actuallity, though....when people vote with their dollars, those with the most dollars win....no?
swansong,
Actually, no. The sum of 1000 people with $1 each is hugely more effective than one person with $100. There are a few with lots of cash, but millions with much less.
1) i moved my accounts from Banknorth (yuk!) to a local bank (United Bank) with good track records, and it's been working for us wonderfully!
2)no one wants to take over our mortgage (debt) with GMAC (yuk!) though we have impeccable payment records with lots of equity. i guess there's no money to be made from us.
3) i have been bugging our "progressive" rep for a local public credit union, to no avail, though our local economy is busted.
4) we will look for local groups to join for further actions!
Any folks out there want to expand their imaginations beyond money, work and debt? Why do we want this stuff to go on forever and ever? To have rich and poor forever? To have someone somewhere lacking money...FOREVER? Somebody on planet Earth being denied a service, or a medical procedure, or a car needed for a job or anything everything all of it...FOREVER AND EVER AND EVER?
What poverty of ideas the money people have.
your sentiment is on the money. pun intended.
transaction between members of a society is inevitable.
the question is how to structure it so as to be fair for all, for the equal and just appreciation of all human beings.
a more localized, not-for-profit system will be a start.
getting off the federal money and starting to use a local currency will be the next step.
Apparently there are communities that are issuing their own money. Barter and trade is the only thing we will have left after the wall street gambling dens take everything else.
those communities are what this article is referring to.
I believe like John Locke, who probably said this out of bitterness, that "When you agree to something called money, you agree to something called poverty."
If I have learned anything from economics I have learned that.
7 ways to transform and non suggesting to punish or send any one of Wall Street criminals to Jail ? Economist like William Black, Joseph Stiglitz, Michael Hudson and many other demanding for prosecution of Wall Street crime.
Some of the ideas are good but goes along the line of non-cooperation, and I think it won't work in present time, especially in capitalist highly individualistic society. Congress, President and Justice Dept are bribed by big Corporation and are corrupt. Same big corporation owns media.
Share these ideas ? who do you share this ideas to ? Vast majority of populus is busy watching "scripted" reality show, facebooking, tweeting, texting and so on. They hardly have any idea while they are busy the "Real Owners of the Country" - as George Carlin said --
http://www.youtube.com/watch?v=acLW1vFO-2Q&feature=player_embedded -
are robbing them and now they are after the Social Security (he said this in 2008!!) Michael Hudson also said same thing that - Social Security is going to fall on Obama's watch.
Gerald Celente - "American people has failed to react to (banker) payout"
http://dailybail.com/home/video-120-seconds-of-gerald-celente-kicking-wall-streets-ass.html
"Total Wall Street compensation is on pace to reach $144 billion for 2010, a record for the second consecutive year, a study by The Wall Street Journal finds" NYT - http://dealbook.nytimes.com/2010/10/12/wall-st-pay-said-set-to-hit-a-record-144-billion/
It appears even the Taiwanes/Chines know it better "Wall Street gorges on record bonuses" - http://www.youtube.com/watch?feature=player_embedded&v=RwetW1B3J8A#!
In my opinion, the idea of Transforming Banking system by oraganizing and non-cooperation if not going to work, they are way too big and powerful and populus is hardly aware of their crimes.
8th Avatar, you just defeated yourself before you even got started.
Do you have a computer and a printer to copy the article and all the responses? Is there a shop or library or local paper or business somewhere around that you could make a thousand copies or more ... at your expense or sell them for 3 cents or a nickel ... and get a few friends to go door to door or go to supermarket or mega-shopping plaza parking lots and just hand a copy out, one at a time or one family at a time???
Make sure there are phone numbers for people to call to discuss issues, maybe organize a meeting then and go from there. Add that encouragement to the flyer before its printed.
Most folks don't know what to do. Here's a list. Go with it and for it!
A journey of a thousand miles begins with one step ... If we never take that one step, we will never get to where we want to go ... Fairness and justice for and empowerment of the people.
It's time we all stopped getting robbed by the major criminals of our time globally who live in opulent houses, are driven around in limos, wear very expensive suits and never get their hands dirty except with our money.
Enough already!
peace, cm
If you have a few extra dollars to spend this weekend, you may want to think about doing this:
http://www.washingtonsblog.com/2010/11/crash-jp-morgan-buy-silver-show-too-big.html
Who knows? and it doesn't cost that much. Remember the Hunt brothers? If all else it will make a great paper weight or look good on your coffee table. It would also be a great, unique christmas gift.
At the time of this post it is $25.88 oz. Here is the live ticker price:
http://www.monex.com/why/silver_market.html?gclid=CKzb-aTtm6UCFZxL5QodMmgvIg
if you have few dollars, establish a democratic institution instead
edweg
It's a start!
http://www.zerohedge.com/article/max-keiser-buy-silver-coin-destroy-jp-morgan
Here is a place to buy.
APMEX.com
Sssssh.. Obama don’t want you to know this..
I CAN CREATE 10 MILLION JOBS If USA Pulls out of NAFTA and WTO right now..
Here are my Job creation Computations:
“Based on the U.S.Department of Commerce estimates that 22,800 jobs are created for every $1 billion in merchandise produced for Import or Export.”
http://www.policyarchive.org/handle/10207/bitstreams/9621.pdf
Total USA Imports in 2006:
----------------------------------
$ 2,211.7 billion --- (Import number including all Oil Imports)
$ 309.4 billion less - (minus amount spent on Imported Crude Oil)
--------------------------------------------------
$ 1,902.3 billion X 22,800=43.37 million jobs lost from Imports. ==================================================
Total USA Exports in 2006:
----------------------------------
$ 1,451.7 Billion X 22,800=33.10 million jobs created from Exports.
If USA Pulls out of NAFTA and WTO right now:
USA could possibly lose 33.10 million Jobs from EXPORTS.
However, I am sure many countries will still import items from the USA because they will be forced to do so. That would of course create even more jobs gained than I have estimated.
USA would absolutely gain 43.37 million Jobs by closing the doors to International IMPORTS from China, India and Japan.
So, 43.37 minus 33.10 = 10.27 million NET JOBS GAIN.
My calculation means ABSOLUTELY 10.27 million Jobs gained if the rest of the world did not buy one single penny of USA EXPORTS.
SO MOTE IT BE. . . . .
BY: Harry Dingey
you calculation is right and still modest, not mentioning increase of wages boosting the economy even more, but economy is not about jobs, but against jobs / shareholders created deadly triangle; business-politics-media that prevents even mentioning economic emancipation of people who work for a living
edweg
Harry,
i think you are right in the overall scheme, though I am not sure about your numbers, i suspect they may need to be tweaked when other factors are taken into consideration. But the overall idea is that the less we import, the less money goes out of the country. This is basically the same idea as the use of local vs big banks.
As you point out, In order to import less we would have to make more ourselves - hence the jobs and, by the way, a much better version of national security. Another necessity this would entail is R&D into import substitution - how to make stuff here from the resources we have here, which would obviously require Green technology.
The biggest objectors, of course, would be the multinationals for whom these trade deals were instituted in the first place. By removing trade barriers companies could use cheaper labor overseas and still have access to American markets. Once they no longer needed US workers, bye bye jobs and bye bye unions whose only real leverage was the need of the companies for their labor. These trade deals were/are, IMO, the most effective union busting techniques ever pulled off.
The other objectors would be those whose livelihoods depend on exports, those folks have to be considered. So a program such as this would have to include a transition phase in which the folks who lose jobs from decreasing exports would be assured of jobs in the new domestic economy arising from decreased imports. As you point out, there would be enough for them and for 10 million more.
The devil, as they say, is always in the details, but the fact of the matter is we and future generations will be more secure directly in proportion to the extent we rely on domestic sources for our needs. The other obvious corollary is that we would have to make sure to do this in a sustainable manner, which of course means no gas fracking, etc.; domestic energy at the cost of domestic water and health is worse than a fool's bargain. It is interesting that the energy industry is already using this argument about domestic sources = domestic security in its push to frack and drill and blow things up. Our side needs to make use of that same appeal, but produce a vision and a plan for domestic self reliance that will point out the obvious flaws in the energy industries' "strategy", and the case we make for our own would, IMO, of necessity, have to include "protecting" domestic industries.
We should have been doing this at least by the 90's, the longer we wait the harder it will be. We are already at the point where the naysayers -"impossible, can't be done" - have considerable credibility, we gotta get on the stick ..
I bring up this issue periodically here and it never gets much play, which i don't quite understand because to me it is quite obvious that this is a direction we must take and failure to take it means, IMO, that all the other stuff we do will be just a drop in a leaky bucket ....
"In order to import less we would have to make more ourselves - hence the jobs and, by the way, a much better version of national security. Another necessity this would entail is R&D into import substitution - how to make stuff here from the resources we have here, which would obviously require Green technology."--Aquifer
~
i like the ideas and thoughts you've shared. perhaps "it never gets much play" because you've stated your arguments so well. i agree that we local-yokels must support local development with an eye to green responsibility. that's a must if we wish to recapture a demand-side economic model. let's not forget the best example of green technology is the earth itself, the land, the water, the air and the vegetation. if earthling do not cooperate with Nature to secure and encourage the real resources, eventually all those investment resources-as in fiat dollars-will swirl about unnoticed, blown by the unchallenged winds of a desertified planet. i keep hearing about "a better standard of living" which i suspect means my right to consume more than i produce. as long as most citizens believe that $UCCE$$ means the ability to satisfy every impulse and be the first kid on the block to have it, Natural resources don't have a chance. even those Natural resources we call "renewable" cannot be renewed to keep apace with consumption. i read the other day that one area of booming retail sales is in weight loss items.
i hope we can redefine "standard of living" to a less is more paradigm. spend time outdoors, spend time with family and friends, spend time planting and maybe we can hand the next generation a healthier living planet.
~
"The devil, as they say, is always in the details, but the fact of the matter is we and future generations will be more secure directly in proportion to the extent we rely on domestic sources for our needs. The other obvious corollary is that we would have to make sure to do this in a sustainable manner, which of course means no gas fracking, etc.; domestic energy at the cost of domestic water and health is worse than a fool's bargain."--Aquifer
~
i could not agree more! the citizens united serve only as a profit entity for today's "smart" investor which means never having to consider the long term economic or environmental affects of any policy. the whole charade is unsustainable! what's wrong with having a going little business that provides owners and workers with enough to enjoy life and save up for the kid's education and a nest egg for whatever may come? oh, i know enjoying what you have, spending quality time with family and friends means you're not ambitious enough. whatever your station in life, if you're happy with it, something's very wrong with your priorities.
you're right! these problems should have been addressed all along the way. at some point humanity will be forced to do the intelligent thing. and you know what that more productive generation will be the happier for it!
not seven but one
putting the national government on the top of the lending money pyramid, and use the profit to offset taxes / though not for today's thinking
edweg
8. Do not leave your retirement accounts with your bank
9. Do not let banks manage company 401(k), 403(b) and other pension funds.
10. 503 (c) insitutions (charities and schools) should divest themselves of bank accounts and investments.
11. Do not use bank investment services
12 Put pressure on unions to divest themselves of bank accounts.
13. Put pressure on politicians who use banks to underwrite municipal debt
14. If you must use a bank, use a "mutual" bank. Do not use a bank which pays dividends to stockholders.
15. Banks thrive on your ignorance ... get educated and take action.
At a few minutes before this post, CNBC announced something about the Carlyle Group and an IPO....... Also keep an eye on John Paulsons' hedge fund.
Oh, yes. I didn't see the news, but you can bet your sweet ass that what is in the works is a brand new export program.......new weapons for the countries where Obama and company have just visited. With $6B (not sure of exact amount), of weapons sales in the pipeline to India...not yet confirmed, but in the works. Also, Indonesia will get it's shiny, brand new weapons, thanks to the delegation and if S. Korea could bend over a little more...whoopy, more new weapons for them.
The US has an export product worth billions.....WAR MACHINES! And Carlyle is salivating at the thought of all the new production and of course the money to be made. If only the weapons that US companies manufacture could be used against those very same companies and their enablers, maybe then we could change the direction of this nation. Then again, maybe not. But it sure would feel good to watch it all go up in smoke.
Ever wondered what quantitative easing really is?
http://www.creditwritedowns.com/2010/11/video-quantitative-easing-explained.html
This list of seven ways leaves out what could be the most powerful solution, featured last summer in Yes! Magazine: Common Good Bank (http://CommonGoodBank.com) for community-based democratic economics.
Without democratic economics, communities are at the mercy of big business and distant government. We need a way to plan and invest locally, for thriving local economies and a sustainable future.
Imagine a society in which communities everywhere gather to decide for themselves what their funding priorities should be — for sustainable agriculture and energy systems, for local self-reliance, for ensuring that everyone has enough to eat, a home, and satisfying work.
Common Good Bank™ is designed to be the framework for a community-based democratic economic system that can also compete effectively within the current economic system. This design combines the spirit of a credit union with the power and growth potential of a stock savings bank.
Any geographic community can have its own democratically-guided virtual bank, simply as a cooperative depositor group within Common Good Bank. Deposits, investments, and profits will be tracked separately for each community. All profits from the community's investments will go to schools and other nonprofits as decided by the members.
Together we can get get Common Good Bank started by signing up as Founding Members.
I did that about a year ago after Bank of America started to charge me $30 per month because - are you ready for this? I had under $30,000 in my checking account!
So I gave the bastards the proverbial boot up the ass and moved to a tiny community band with two branches and I couldn't be happier. I get free checking, free checks, up to $10 worth of free foreign ATM transactions, free travelers checks, a credit card and the account even pays me a little interest. But the best part is the staff. We absolutely love those ladies! We come into the bank or thru the drive up window and they actually greet us by our first name. I tell everybody about them!
I've been with local credit unions off and on for over 15 years and I have always been satisfied with the services, the rates, and knowing that the money stays close to home.
I have also been a customer with Working Assets / Credo phone service because I believe in their work. Unfortunately, they use Bank of America for their banking. I recently had a conversation with an employee of Credo and brought up the subject of their banking with BofA. His response was that they need to work with the larger bank because of the size and scope of Credo's banking needs. Well, they need to walk the talk. I suggested that maybe Credo needs to get a bank charter and start selling shares to its members or something similar to a credit union. It would really give Credo more Credibility in the eyes of many of their members. I do think that they have alternatives and Credo should investigate the possibilities. Any suggestions?
Watch this to laugh and cry:
http://www.huffingtonpost.com/2010/11/12/fed-animation_n_782929.html
From the article -- "North Dakota has more community banks per capita than any other state in the union."
North Dakota, lovely state that it is, is 49th in population, exceeding only Wyoming. The city of Washington, D.C. has less than 10% fewer residents. The county I live in has a 30% larger population than N. Dakota.
Ya' think ND might have community banks because it doesn't have a high enough population density to support the big boys?
Did that already AND moved all my retirement assets (life savings) off shore.
Great ideas. But the status quo isn't an accident of inattention; it's a crime state. The criminals are in key positions to make life very hard for anyone who wants honesty in finance. I'm all for bucking criminal bankers. However, everyone taking action should do it with a willingness to deal with the consequences.
http://www.oftwominds.com/blognov10/fraud-is-lifeblood11-10.html
What? Something that doesn't preserve the status quo? Madness...
the victims run in competition to save banking system
- who will save you from the banks, things are getting hatter
edweg
Here is a cartoon regarding QE-2...
http://www.youtube.com/watch?v=PTUY16CkS-k