Blackonomics: 'Putting Our Dollars Under Arrest'

by Jim Clingman
cross-posted from Blackonomics

Here’s an intriguing concept: Arrest the Black dollar. Say what, Jim? You read it correctly. We should arrest our dollars and charge them with neglect. Put them on trial, call the witnesses to testify against them, and convict them of crimes against Black people. Sentence them to a minimum of five years hard labor with no possibility of parole. That’s right, lock them up and make them work for their keep by producing distribution companies, supermarkets, financial institutions, and entrepreneurs.

Since our dollars are not making sense, we should discipline and punish them by keeping them locked up and making them work until they do start making more sense. Right now our dollars are “wilding out” in the marketplace, making everyone happy and secure except us. They are “raining down” at strip clubs; they are beating a path to jewelry stores and exchanging themselves for gaudy trinkets and ornaments; they are hangin’ out at “da club” to pay for expensive vodka, champagne, and other top-shelf liquors. They definitely need to be disciplined.

Our dollars are filling the coffers of profiteers who know that all they have to do is make the most ridiculous item in return for them. Black dollars are strewn at the feet of shyster preachers who “anoint” them by running back and forth on top of them, as they shout, “Money cometh to me!” At least they are telling the truth about that part.

Black dollars are running wild, out of control, in our neighborhoods. They run as fast as they can to the businesses of everyone other than Black people. They are jealous as well and are always trying to outspend one another by purchasing a bigger car, a bigger house, the latest gym shoes, clothing, and all the accoutrements of what they believe to be the “good life.”

More than one trillion Black dollars are acting inappropriately, committing economic crimes against Black people. They really need to be controlled and contained before they destroy us. Our dollars are weak, and are vulnerable to the constant lure of trivial things and dishonest people who are waiting to trap them with their platitudes and false doctrines. If we put our dollars in labor camps where they could work for us all day long, imagine how quickly we could revive our economic power.

Read the rest of this Blackonomics article.

Obama's Weekly Address: Congress Must Protect the Middle Class from Income Tax Hike

President Obama urges Congress to meet its deadlines and responsibilities, protect the middle class from an income tax hike, and lay the groundwork for future progress on more economic growth and deficit reduction. [Transcript / Video]



Do you think that Congress will find a way to reach an agreement? Or are we going to go 'over the cliff'?

25% of Blacks Will Go Into Foreclosure

Foreclosure rates among African American homeowners are pretty much the same across all income groups, unlike those for whites whose foreclosure rates decline as income rises, according to a study published in November by the Center for Responsible Lending. [SOURCE]

The 47-page report , "Lost Ground, 2011: Disparities in Mortgage Lending and Foreclosures," said that 9 percent of mortgage loans to higher-income African Americans, based on mortgage originations made from 2004 to 2008, went into foreclosure, virtually the same rate of foreclosure for loans to middle-income Blacks. Among moderate-income Black homeowners, the foreclosure rate was 10 percent, and among low-income Black homeowners, the foreclosure rate was 11 percent.

"For African Americans, the foreclosure rate is highest among low-income groups, but there is not much variation across income groups," found The Center For Responsible Lending, which is based in Durham, N.C. "Among non-Hispanic whites, the completed foreclosure rate decreases as income goes up."

The foreclosure rate among higher income, non-Hispanic whites was just above 4 percent, compared with 5 percent for middle-income whites. Among moderate-income whites, the foreclosure rate was nearly 6 percent, and among lower- income whites, it was above 6 percent.

The organization defined low income as borrowers at 50 percent below the area median income; moderate income refers to borrowers at 50 percent to 80 percent of area median income; middle income referred to borrower at 80 percent to 120 percent of the area median income and high income referred to borrowers at 120 percent or above the area median income.

The center reported that the disparity in foreclosure rates among African Americans, Hispanics and whites is tied to mortgage-loan products.

"We find that borrowers in minority groups were much more likely to receive loans with product features associated with higher rates of foreclosures, specifically higher interest rates, hybrid and option ARMs [adjustable rate mortgages] and prepayment penalties," center officials reported.

The study found that 21.4 percent of African Americas with credit scores over 660, which is considered a high credit score, received high-interest-rate mortgages, 3.5 times higher than the proportion of non-Hispanic white borrowers receiving high-interest loans. The organization based its report on data provided under the Home Mortgage Disclosure Act.

So far, 25 percent of African American homeowners either have lost their houses to foreclosure or have become seriously delinquent, according to the report. The foreclosure rate has destroyed Black communities. In Detroit, for instance, more than 33 percent of African American homeowners have lost their houses to foreclosure, the center reported.

"This is a staggering statistic for a city that once had one of the highest African American homeownership rates in the country," the report said.

Center for Responsible Lending Officials noted that this is the fifth year of the nation's foreclosure crisis, and that it does not show any signs of abating.

So far, 6.4 percent, or 2.7 million homes, have gone into foreclosure, and 8.3 percent of families are at risk of losing their homes, the report said. Among African Americans, the center officials predict 25 percent will lose their homes to foreclosure before the crisis ebbs.

The foreclosure crisis will have a devastating effect on Black wealth.

"The average white household now has twenty times more wealth ($113,149) than the average African American ($5,667) household," the report said. "The ongoing foreclosure crisis will only exacerbate this growing inequality, as more African American households see their assets erode either directly through foreclosure or though loss of home equity resulting from concentrated foreclosures in their neighborhoods."

President Obama's Message on the Debt Agreement

President Obama lays out the agreement he reached with congressional leaders to meet our financial obligations and reduce our debt in a video to supporters.






Personally, I think that the President and the Democrats got rolled by the Republicans in this debt deal. However, that is a consequence of losing the midterm elections so badly in November 2010. The best way to ensure that Democrats don't get rolled in the future is to elect some Democrats to Congress ... and of course, to re-elect President Obama to the White House.

What say u?

Tell President Obama: We Have Your Back on the 14th Amendment

The Republican Party is on track to drive our economy off the cliff over the debt negotiations. Rep. John Garamendi (D-CA) is sending an open letter to President Obama letting him know that progressives have his back if he chooses to invoke the 14th Amendment.

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Dear President Obama,

We understand the difficulties you face in reaching a debt limit agreement. Extremists have taken over the Republican Party in Congress. To get their way, they're willing to risk the United States defaulting on its debts for the first time in history. This GOP-manufactured debt crisis threatens a rejuvenated recession, hundreds of thousands of lost jobs, and higher interest rates. You don't want that. We don't want that.

Mr. President, we want you to know that if a reasonable compromise cannot be reached with Congressional Republicans, we have your back if you choose to use your constitutional authority under the 14th Amendment to avoid economic catastrophe.

The 14th Amendment of the U.S. Constitution clearly states that the validity of the public debt of the United States "shall not be questioned." Let's stop questioning it.

When we play chicken with radicals willing to drive the economy off the cliff, the entire country loses. That's the lesson we're now learning.

We support negotiations. We do not support fiscal suicide. Should a reasonable compromise be unreachable, we urge you to consider the "Constitutional Option" to get us past imminent disaster.

When the situation has stabilized, we can focus on the real issues -- job creation in the immediate term and deficit reduction over the next decade. There is plenty of time for bipartisan debate on these important issues of the day, but we are running out of time to stop an easily preventable financial disaster.

Thank you for your leadership.

Sincerely,
John Garamendi

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Add your name to the letter here.

Obama's Weekly Address: Working Together to Meet Our Fiscal Challenges

President Obama calls on both parties to come together to find a balanced approach to deficit reduction that lets us live within our means without hurting investments our economy needs to grow and create jobs. [Video / Transcript]




President Obama continues to show me that he is an aspirational leader who sees the best in people ... including his Republican opponents. It should be interesting to see what happens this weekend in the negotiations to raise the debt limit. What is your evolving view of your President? Is he worthy of his office?

Obama Administration Earns $12 Billion Profit on Citigroup Bailout

President Obama has been taking a lot of grief from his political friends and his political enemies. I suspect that he must be feeling good at knowing that his administration continues to do well behind the scenes. The U.S. Treasury is selling off the last remaining shares from the Citigroup bailout. All told, taxpayers will reap a $12 billion gain on the government's multi-billion dollar investment in Citigroup.

White House: The Rebirth of the American Auto Industry (VIDEO)

One of my summer jobs as a teenager in Detroit was working on the auto assembly line. I understand how important the auto industry is to America. It always amazes me when folks like Sarah Palin and other Tea Party activists continue to chant about how poor a decision it was to 'bail-out' the auto industry.

Austan Goolsbee, Chairman of the Council of Economic Advisers, discusses the President’s tough decisions on the American auto industry in light of the General Motors IPO:






What say u? Was the 'bailout' of the auto industry a good or bad policy decision by the federal government?

Conversation with Democratic National Committee Chairman Tim Kaine

Soulclap to Gina McCauley (What About Our Daughters) for extending an invitation to this blog to participate in an on-the-record conversation with Democratic National Committee (DNC) Chairmman Tim Kaine and his senior staff. There were a number of African American bloggers engaged in the discussion.

I went into the conversation with some skepticism. The DNC was very engaged with the afrosphere during the 2008 election. They worked with a number of Black bloggers to gain access to the convention at which President Obama secured the Democratic nomination allowing him to run for President of the United States.

However, since that glorious moment it has been mostly the sound of *crickets* from the DNC as it relates to working with the afrosphere. Today, the Democrats are facing an electoral tsunami by the Republicans due in no small measure to the lack of enthusiasm and support from Black voters.

Black voters appear to have been disrespected by the Republican Party and taken for granted by the Democratic Party. Meanwhile, the economic recession for America has been a DEPRESSION for Black America, especially the Black middle class. The predatory loans that brought down the national economy had a devastating impact on the Black middle class. Unemployment for the nation stands at a little under 10% ... but it is over 16% for African Americans ... and much worse for young Black males.

Nobody in Washington DC, including Tim Kaine and the DNC, ever speaks to the specific issue of Black unemployment and the other nightmares that impact on our community.

I was skeptical ... but willing to have an open mind as the conversation with Gov. Kaine began this morning. I found him to be very knowledgable and willing to answer questions. The discussions covered a variety of areas including:

• evolution of the Organizing For America (OFA) within the DNC?
• how can the DNC reach out in a stronger way via new media outlets such as Black bloggers?
• is there a turf battle between OFA and existing grassroots organizations at state or local level?
• Presidential successes and heavy lifting in terms of policy and legislation
• Republican Party strategy to take the nation "dramatically backwards"
• there were 15 million new voters who voted for Obama in 2008 (5 million of them were African American) ... were these voters supporters of Democrats (in general) or simply loyalists to President Obama?
• what are Democrats doing to combat growing levels of poverty in Black community?

• what is DNC strategy in support of micro-businesses (less than 5 employees, less than $250k in annual revenue)?
• what is DNC strategy related to older, more conservative, Black voters who may be concerned about Democratic positions on issues of choice or marriage?
• what is DNC strategy to develop a stronger pipeline of credible Black candidates for state or local elections?
• what is DNC strategy to work closer with Black bloggers (afrosphere)?why don't Democratic candidates tout the past successes (e.g., saving the auto industry)?
• what specific steps are being taken by Democrats to deal with 16% unemployment rate in the Black community?
• why don't Democrats have party discipline (e.g., Blue Dogs)?

I'm not a reporter so it is going to take me a minute to share some of these insights in blog posts -- but, I will try to do so. Which of the questions or issues listed above hit home for you?

Rise and Grind If You Have 'More Month Than Money'

Rise and Grind! I understand the anxiety that my fellow villagers are feeling as they deal with unemployment and floundering business revenue. Some people joke about the idea of having "more month than money". It ain't no joke for many of us. We're less than halfway through the month ... and we're juggling bills and delaying purchase decisions so that we can make it to the end of the month. It's Monday morning and many villagers, including myself, realize that we need to rise, hustle and grind things out.

I'm an entrepreneur. Entrepreneurs need to find new clients and retain current clients. That is easier said than done in today's economic environment. However, when the sun rises today I'll begin my grustle (hustle and grind). How about you? Are you feeling any real pain from the economy?

One thing that I'm fairly sure about ... I could give a phuque about renewing the Bush Tax Cuts for the wealthy. The wealthy always do well. They were doing well back when Clinton was president. So, in my view, they can handle having the same tax rates in 2011 that they had in the Clinton Administration. The GOP wants me to believe that Obama has a "Kenyan anti-colonial world view" because he wants to let the Bush Tax Cuts for the wealthy expire. Heck, if the GOP was serious about those tax cuts in the first place ... why did they put the sunset date into the law when it was originally passed. They said that the tax cuts should expire in 2010 ... so let 'em expire.  Newt Gingrich wants us to believe that President Obama is a "con-man".  I guess if Republicans can believe that our president isn't an American and that he practices Islam religion ... they may fall for Gingrich's nonsense as well.

On a personal note, I want to wish my 15-year old niece a very happy birthday. Zoe turned 15 yesterday ... and she is one of the most creative youngsters that I know. I wish her nothing but love and happiness over the course of the next year.

Finally, I give praise to the New England Patriots. They ripped the hearts out of the Cincinnati Bengals yesterday with a 38-24 victory. The Bengals need to do a gut-check this week as it gets no easier next week when the Baltimore Ravens come into town.

Baltmore Ravens vs. New York Jets tonight on Monday Night Football.   I'm hoping that New York Jets can live up to their hype by putting a beat-down on the Ravens.  Who you got in tonight's game?

Weekly Address: Finishing the Job on Wall Street Reform

President Obama continues to have a remarkable series of legislative successes during the past 18 months. Today he is very close to signing legislation that reforms Wall Street. He uses his weekly address to talk about it:

Obama's Weekly Address: Reining in Budget Deficits

President Obama had a good week. His mojo was powerful during the State of the Union speech and his Q&A session with House republicans was a home run. He used his weekly message this week to renew his pledge to rein the federal deficit, citing three specific steps to this end: restoring pay-as-you-go, a freeze in discretionary spending, and a Fiscal Commission to hammer out further concrete proposals.





What is your take on this week's presidential address? For that matter, how do you think the President did this week after the disastrous week he had before?

Weekly Address: Getting Our Money Back from Wall Street

As President Obama continues to work on immediate job creation, he discusses his proposal for a new fee on the largest financial institutions to ensure that every cent of taxpayer assistance gets paid back.





Villager's Voice: - I am happy to see that the president is working to get our money back from the banks. I think that his administration should ensure we get paid back from the auto industry as well.

What are your thoughts on the president's message this week?

Wordless Wednesday: Outrageous New Banking Fees...

...for a step-stool!

(Th)ink by Keith Knight: Extreme Home Takeover

(Th)ink is an editorial cartoon written and drawnby cartoonist Keith Knight (the K Chronicles).

President's Weekly Address: Milestones on the Economy and the Recovery Act

While there is nothing to celebrate until job numbers turn around, the President cites the recent dramatic turnaround in gross domestic product as a sign of better things to come. He also applauds the fact that the Recovery Act has now created or saved more than a million jobs.




Was the $800 billion stimulus package worth the effort? What say u?

Resignation: Bank of America CEO Ken Lewis

This blog called for the resignation of Bank of America CEO Ken Lewis back in May 2009. As such, we are glad to learn that he will be stepping down from the company in December, becoming "one of the most prominent financial executives to lose his job because of the financial crisis."

Analysts say that Lewis had become a "distraction" since the bank's takeover of Merrill Lynch and Countrywide Financial Corp., and he leaves "amid intensifying state and federal investigations."

Goodbye and good riddance. I would like to see others take responsibility and pay a price for their negligence that led to the current economic crisis that our nation is still reeling from today.

President's Weekly Address: 'This Economic Storm Will Pass'

The President discusses the state of the economy amidst positive signs from the Gross Domestic Product (GDP). Making clear that this is little comfort to those struggling, he notes that we appear to have averted an even worse disaster and offers hope for the time ahead.





Villager's View: I must admit that the storm is still throwin' down as far as my business goes. It is a day-to-day struggle to maintain and grow the client base. A big part of the challenge is that many people are holding back on expansion. Anyhow, I'm counting on the Obama administration to keep fighting for the big-ticket items that brought him into office in the first place. We still need CHANGE in our economy, education and energy.

What say u?

Resource Guide on Recovery Act for African Americans

Drumbeats from NAACP Wichita Branch informed us that the Congressional Black Caucus Foundation (CBCF) has prepared a resource guide for African Americans to highlight some of the major provisions within the American Recovery and Reinvestment Act of 2009 (ARRA) that are critical to our community.

Commonly called the Economic Stimulus Package, ARRA is the most comprehensive economic recovery legislation in the United States since the New Deal of the 1930s. ARRA provides federal funding to states and local communities for projects and programs that will address budget shortfalls for critical issues, such as employment, housing, and health care.

"CBCF fully supports ARRA because it provides vital resources for improving the circumstances of African Americans and all Americans who have been disproportionately affected by the current economic crisis," said Elsie L. Scott, president and chief executive officer for CBCF. "Our guide allows readers to quickly reference where funding is going for education, health, economic development and social welfare - all areas that can stimulate and boost the economy by creating and saving jobs in the private sector."

A major source of job opportunities will come from training programs and projects. For example, $16.8 billion is allocated for energy efficiency and conservation block grants, including funding for weatherization assistance, $636 million for business loans programs and $50 million for YouthBuild to provide disadvantaged youth with education and employment skills, youth development and training activities.

"One of the most important aspects of the Act is that it is intended to quickly disburse funds to revitalize and improve our most economically vulnerable communities," said Alana Hackshaw, Ph.D., and author of the guide. "This represents a major step forward for many in African-American neighborhoods. With the federal agencies working with those who are responsible for urban policies and the system of transparency and accountability among states and local communities in order to prevent waste, fraud and abuse of funds, we can begin to turn the economy around," she said.

Villagers, have you seen any evidence of the stimulus package in your community?

President's Weekly Address: 'Credit Card Reform'

I'm feelin' our president in this week's message. I think that I have singlehandedly paid for most of the dayum bank bailouts with the interest and other trick payments on my credit cards over the past few years. This week the President recaps a busy week, from strides on fiscal discipline, to financial stability, to cracking down on tax havens and tax breaks for shifting jobs overseas. For his next big step, he calls for a credit card reform bill:

"Americans know that they have a responsibility to live within their means and pay what they owe. But they also have a right to not get ripped off by the sudden rate hikes, unfair penalties, and hidden fees that have become all-too common in our credit card industry."

What are your thoughts on the issues raised by Obama in this week's message?