Jun 012012
 

A month out I’m willing to declare, even discounting the mainstream media’s severe undercoverage, Occupy Wall Street’s May 1st general strike and rallies did not live up to expectations.  The Occupy movement, while still actively organizing and taking action, has begun to fade into the background.  I’ll grant you that the demotion is not entirely the movement’s fault.  The corporate media elites are more than happy to let (or push) OWS slide into the background. 
 
Having failed to reignite with the return of warmer springtime weather, perhaps Occupy has truly peaked.  However, I wouldn’t advise the “1%” (I still reject that term as too broad) to celebrate victory yet.  As Occupy “fades,” we should take some time to consider some lessons learned from the recent movements striking at unjustified concentrated power wielded to the detriment of average citizens.
 
Yes, Occupy Wall Street and the Tea Party share a common undercurrent of populist discontent (including a lot of fear and/or anger).  I would also include the Rally to Restore Sanity and/or Fear as another expression of this populism.  Friends on the left will express shock that I’m even entertaining the idea that there is anything to admire or learn from the Tea Party.  Before you guys pass out, just think of the Tea Party as Darth Vader:  Young Skywalker knew there was some good in him even though Vader was co-opted and used as a powerful tool of the Empire.  
 
Occupy and the Tea Party’s common populist undercurrent is that some form of elite has usurped our political system (our American form of democracy) and it no longer responds to “We the People.”  I like to think of the movements’ actions as modern populists “testing the fence,” like the raptors did in Jurassic Park.  Occupy and the Tea Party’s experiences have uncovered strengths and weaknesses of the barriers and movements themselves.  These lessons should be learned to craft the next populist movement.
 
We learned from the both that co-option is a danger, to be wary of divisive so-called opinion leaders trying to jump to the front of your parade (Glenn Beck, Sarah Palin).  If an organization is giving you a bus they are going to want to steer it.  Co-option by established “allies” undermines the perceived legitimacy of the movement; true grassroots can be smothered beneath a layer of cynically applied astroturf.
 
We learned from Occupy that masses without message doesn’t translate into success. 
 
We learned from both that big crowds at rallies are still shiny objects that can get media attention.  People in attendance are making a statement with their physical presence, voting with their bodies.  The picture says, “Look at all of these people who came out to support this message (whatever it happens to be).”
 
Both evoked an activist awakening, getting new people and new generations to get up off their butts and show up at an event.
 
We learned from both about the limits of leaderlessness, that too much decentralization leads to abdication of control over the message to the movements’ more fringy participants.  You can have quality, legitimate leadership without being co-opted; it requires finding new, unaffiliated leaders from within the movement.
 
Perhaps most importantly, the Tea Party showed how it is possible to take over an establishment party from the bottom up.  Over-gerrymandered safe districts are actually fertile ground for populist candidate takeovers.  We learned from the Tea Party that if you are going to run candidates in elections, you need to vet them better.  The Tea Party sometimes had multiple favored candidates running against the establishment GOPer resulting in a split vote.  How about trying some sort of pre-primary or Tea Party caucus/convention sending your best candidate to the GOP primary?
 
We learned from both that there needs to be some control over the image of the movement.  If you don’t define your image, someone else will.

We learned from Occupy that choosing tactics that the general public find annoying can be counterproductive to growing the movement.  One writer disagrees: “Occupy’s saving grace and only power is that it is not permitted, and it is not ‘legal’”  This accomplished what exactly?  I guess it sent the message that a movement is not afraid to break a law, perhaps leading your enemies to wonder what sort of other laws can be broken in the future if the vague demands are not met.
 
Hopefully, the next movement spawned from popular disgust can learn from the lessons of the Tea Party and Occupy Wall Street.  Perhaps they will not repeat the same mistakes and find greater success.

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Jan 232012
 

… but the recklessnes of some may ruin it for everybody and cause others to reject it.
 
Capitalism works. Don’t fall into the trap of asking for the end of capitalism. American capitalism works. It’s been warped for about the past 30 years or so, but it works, and here’s why.
 
American capitalism has always been a mixed economic system. It combines freedom of private ownership and some features that are considered central to socialism: government regulation and operation of some industries. Having a mixed economy gives us the ability to adjust the public/private balance when necessary to respond to economic circumstances. Also, we Americans love the idea of social mobility (and we’re really starting to miss it).
 
Since American Capitalism is a mixed system we need to reject the false choice expressed by many between “socialism” and “capitalism.” Continue reading »

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Nov 182011
 

Last week I conducted my own protest. I could not go marching in the streets, so I came up with a different way to make a point. I called up the customer service line for one of my credit card accounts and posed some questions that illustrate just how hard the banks work to squeeze every dime they can from their customers using these one-sided agreements. I recorded the call and edited the video to include more amusing commentary via text captions, so watch with your eyes, not just your ears.

I don’t necessarily recommend you try this at home. I had some unplayed leverage (I had the funds and was about to cut a check to pay off the balance) that gave me the extra courage to be this confrontational. You might not have the same circumstances.

I’ve included a fuller transcript of the call at the bottom of this page. It has some content that did not make the video.

UPDATE: For those with limited time or attention spans, we now have a short version including only the best punches and punchlines.

Kitchen Counterstrike (Short Version)

 

 Kitchen Counterstrike (Part 1)

 

Kitchen Counterstrike (Part 2)

 
The customer service rep was sort of taken aback by the unorthodox approach. He was confused by the perspective presented that set up an aggressive negotiation. Keep in mind that I never yelled at him. Was I ever mean to him? I might have come close when I almost implied he makes Jesus retch. Continue reading »

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Oct 272011
 

 

Another band-aid solution – granted, his hands are tied by a Congress whose number one mission is to make him a one-term president.  Higher education wouldn’t look like such a scam if there were enough jobs.  This minor student loan relief is just meant to keep us treading water until real help relief arrives (either the return of a robust economy or death — I’m sure Vegas has them at even odds right now).  The student loan relief is about as useful as a cardboard life preserver.  They see you drowning and shout “America doesn’t make boats anymore, but, here, take this.”
 

Student loan debt raises the related issue of the rapidly increasing cost of education.


 

Is the degree that much more valuable than it was in 1978?  I doubt that graduates have become that much smarter.  Just from a supply/demand standpoint I don’t think they are as valuable.  America used to have a huge manufacturing base.  Now, the people who would fill factory jobs are told to go to college.  This swells the number of degree holders chasing every available job.  So you graduate deeper in debt, less likely to get your preferred job, and if you do it will likely pay less.  Oh, but, the president will cut you some slack and let some of you have a smaller paymemt.  The broken promise, some could argue a “bait-and-switch,” calls for a stronger response.
 

The above chart also reminds me about the existance of Student Loan Asset-Backed Securities (SLABS).  The financial crash in 2008 was heavily based on the derivatives made from subprime mortgages.  What happens to the market for SLABS when the student loan default rate jumps?  I could see SLABS being sold as safer investments than subprime derivatives because students could not turn over the keys to their education and cannot have their student loan debts discharged in bankruptcy.  We can only hope that there are not nearly as many SLABS out there as there were supbrime ABS.  Stay tuned.
 

For more info about SLABS, see:

http://www.edu-factory.org/wp/bad-education/

http://nplusonemag.com/bad-education

http://www.reddit.com/r/finance/comments/czwc6/askfinance_is_there_any_way_for_an_individual_to/

http://www.slideshare.net/pkedrosky/eisman-ira-sohn-conference-slides-and-speech52610

http://www.nypost.com/p/news/opinion/opedcolumnists/subprime_goes_to_college_FeiheNJfGYtoSwmtl5etJP

http://rghost.net/download/1730024/bf87072c8c998af4d97f8036d710534676fc15d1/Steve-Eisman-Ira-Sohn-Presentation-2010.pdf

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Oct 172011
 

Behold this Yahoo! News headline: “One month in, protests yet to topple capitalism,” albeit linking to an article on right-wing The Daily Caller: “Conservatives and Republicans have ranged from skeptical to dismissive, calling the demonstrators’ anti-capitalist message unrealistic.”

Many have described the protest as anti-capitalism. Granted, there may be some (well, a lot of) sincere anti-capitalists out there protesting (the usual suspects that have showed up to many protests in the past decade or so), but I’ll bet you dollars-to-doughnuts the “Occupy Wall Street” protesters generally support capitalism. If they were protesting capitalism they would have still been out there when unemployment was 6%. They are angry because someone has hijacked the American capitalist economy, crashed it, received a bailout, and ducked all consequences. They are angry because they feel the death of the American dream in their own lives. Study hard, play by the rules, stay out of trouble and you’ll get a “good job.” That’s the promise of the American Dream. In the name of greater profits the “good jobs” are vanishing.

They know America has always had a capitalist system. They know it used to work better. They want to help American capitalism function again, not turn it into some Soviet nightmare.

To those protesting capitalism, I’m going to have to smack your hand. You see, capitalism used to work just fine for almost all of us. We had real hope that we could build better lives and evidence that the system honored merit. Not anymore. Capitalism works, but right now it is ill. Now a powerful few are going too far and are able to do so because of the modern finance system (including rules (or lack thereof) and technology).

The mainstream media and right-wing elite are frequently labeling the Occupy Wall Street protests as anti-capitalist, intentionally or not keeping the working class conservatives on the sidelines. They tell the lie that the movement is about destroying capitalism when it really is about restoring it. They know that if the tea party activists (well, the real grassroots among the astroturf) join Occupy Wall Street, it is game over for the 1 percent. It would be like when Darth Vader finally decided to take Luke’s side, the emperor couldn’t really put up much of a fight. (I think I’ll have to write a different post about the redemption of Darth Vader and the tea party.) Occupy Wall Street may lead to an awakening and a uniting of the 99%. You can see why those with the power to influence the mass media would want to prevent that.

Some in the media have been catching on to the idea that the protests are not primarily anti-capitalist. One search turned up a piece in Forbes:

I want to note that there’s something profoundly anti-capitalist about the critics of OWS. It’s a movement about which capitalists, real capitalists who work hard and smart, have nothing to fear. Oligarchs, on the other hand, should be afraid, very afraid. Entrepreneurs and corporate leaders will find a way to make money and allocate capital so that jobs are created even in a workable financial system. Sure, breaking-up the incestuous relationship between Wall Street and K Street will change the rules of the game, but it won’t end the game. Maybe wealth disparity will shrink, maybe CEOs will make slightly less relative to average workers. But the entrepreneurial spirit will still triumph. Who knows, just like Steve Jobs emerged from the ethos of 1960s radicalism and spiritual-seeking, perhaps the 21st century’s next great industrialist will emerge from the Zuccotti Park tripod tarps and all-inclusive General Assembly in which everyone has a say.

Even someone at WorldNetDaily gets it:

The Occupy Wall Street protests are no more an attack on capitalism than the tea party is an attempt to restore the Confederacy, because there is nothing capitalist about Wall Street. Wall Street is actually an outdated throw-back to the pre-capitalist period; it is a variant of the royal mercantile system in which profits were not dependent upon superior competition, but upon the monopolies granted by the thrones of France and England.

Neither Occupy Wall Street nor the tea party are going to achieve their self-contradictory objectives. Their ideological incoherence renders that impossible. But the mass anger and frustration they represent are real, their grievances are legitimate, and the inept, short-sighted, arrogant governance by the bifactional ruling party makes it likely that eventually, the two popular sides will come together to fight their real enemy: the unholy alliance of the politicians of Washington with the bankers of Wall Street.

So everyone remember American capitalism is just ill; it has a virus. However, it does not have a virus like the zombies in “The Walking Dead;” you don’t have to put a bullet in capitalism’s brain. It can be cured. Occupy Wall Street is just another March for a Cure.

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Oct 042011
 

 The Occupy Wall Street protests seem to be growing and getting more attention.  The protests and their ideas certainly do deserve more attention.  However, I’m still skeptical about what they can actually accomplish.  Monday’s corporate zombie march was a fun idea that makes for great video, but I doubt your corporate opponents noticed.  The Occupy Wall Street protesters seem unfocused.  That is especially not going to produce any capitulation from the corporate types.  You can sense how they are shrugging it all off by reading some of their favorite mouthpieces.
 
I understand the Occupy Wall Street protest is inspired by the Arab spring protests in the Middle East that brought down some dictatorial regimes.  I think there is a big difference between getting some tinpot dictator to abdicate and getting multinational corporations and banks to yield.  The human dictators obviously had in the back of their minds that the protests could turn violent and result in death of the dictator and his family. 

Corporations do not have such fear.  They are not human.  They do not fear death because they do not have a life-preservation instinct built into their being.  By law, they can only “care” about one thing: profit.  This single-minded focus is one of the greatest strengths of the corporate form, but it also might be its greatest weakness.  Protesters are strictly denied access to the NYSE trading floor, but consumers are welcomed with open arms into many corporate-owned locations.
 
I’d like to suggest a new form of protest that will get the attention of the profit-hounds:  the buy-mob.  Corporations pay more attention to consumer activity than citizen activity.  In an era when money equals speech, it’s only a matter of time before shopping becomes a form of protest. Continue reading »

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