Foreclosure Fraud Day of Action

I've finally finished breaking down the proposals in the "Homeowner's Bottom Line."  In the meantime, the campaign has continued to progress.

Around the country, citizens groups met with their state Attorney General during the past week to discuss the ideas in the "Homeowner's Bottom Line."  On Thursday and Friday, from Massachusetts to California, they pressed the agenda to be included in the potential settlement between the state Attorneys General, the thirteen federal agencies with a horse in the foreclosure derby, and the powerful banking interests.  In North Carolina, fourteen leaders,  representing six broad-based organizations with over 250 congregations, institutions, and community groups, met with the NC Attorney General's senior staff.  We came from Charlotte, Davidson County, Winston-Salem, Guilford County, Orange County, Durham, and Raleigh, and our constituents stretch across most of the state.  We are blacks, whites, and Latinos seeking the common good.

Attorney General Roy Cooper currently serves as the President of the National Association of Attorneys General.  In that office, he has played an important role in pressing for a fifty-state investigation into foreclosure fraud.  We were pleased to find that a new staff member who oversees the Consumer Protection Division is now devoting much of his time to this foreclosure fraud investigation.  The AG's staff were well-informed on our proposals and demonstrated a commitment to pursue an agenda very similar to ours.  Since AG Cooper was one of the instigators in bringing about this investigation, we were not surprised to find that to a great extent, our leaders and his staff were on the same page.  Good exchanges of information and assistance were followed by agreements for continued cooperation.

We have a follow-up meeting with AG Cooper himself scheduled for April.  The investigation on foreclosure fraud is apparently moving very fast, and it could be that significant announcements will appear within the next month.  When I hear reports from other states, I will post again about this Day of Action.

Economic Recovery for All 3: A Bailout for the Few that Did Not Trickle Down

I should mention, with thanks, the assistance of Stephen Boyd of Wake Forest University and Winston-Salem CHANGE. Steve carefully examined the earlier drafts of this document and suggested a reorganization of the material to make it more user-friendly for study.

THEOLOGICAL REFLECTION ON THE ECONOMY
A Working Paper for North Carolina United Power
from an Interchange Among Theological Educators
July 2009

II. The Initial Government Solution

A. Top-Down Bailout for Institutions "Too Big to Fail"
When the economic situation became too severe to ignore, government officials recommended a massive bailout of major financial institutions. With only a bare sketch of a plan, the engines of government shifted into high gear to authorize transferring hundreds of billions of dollars directly to banks and other financial institutions to prop up their endangered portfolios of assets. "Too big to fail" became a motto for saving the financial institutions that helped to create the collapse, as a way of assuring average citizens that their own economic future was bound up intimately with the success of these mega-banks.

B. Problems Remaining After the Bailout
The purpose of the bailout plan was to stabilize the financial system so that banks would be willing to lend money. Banks and other financial institutions were unwilling to lend money because they could not get a clear idea of the value of the ubiquitous securities intertwined with delinquent and "troubled" loans ("toxic assets"). By lending money, more people and businesses could buy goods and services and fuel economic recovery. However, the banks and financial institutions took the money and held it or used the money for self-aggrandizing purposes. Consequently, the bailout did not have the intended ripple effect on the economy, and it did not pump up the economy.

1. Foreclosures have increased unabated regardless of claims that programs would help people keep their homes.

2. A crisis in credit markets has led financial institutions to rewrite overnight the terms and conditions of credit cards, to the disadvantage and dismay of their customers.

3. Many have found themselves now holding more debt than they can possibly repay.

4. Bankruptcies have continued to increase resulting from credit card debt, mortgage debt, and debt arising from skyrocketing costs of health care and growing numbers of people without insurance.

Bailout 14: Thinking About Jubilee

Last Monday I was in an interesting meeting at Wake Forest Divinity School. The Wake Forest folks and some of their ecclesial friends from Winston-Salem CHANGE showed up in force. I was there as a faculty member of Shaw Divinity and as a leader in Durham CAN. No one from the other invited divinity school was able to attend.

There were two purposes for the meeting. The one I was most aware of was an effort to bring together divinity faculty to discuss ways for community organizing to be taught to their students. The second purpose, which turned out to dominate the meeting, was the idea that North Carolina United Power (NCUP) should consider a campaign relating to the economic situation.

Gerald Taylor, who called the meeting, is the regional organizer for IAF, the oldest of the national institutions which promote Alinsky-rooted community organizing. Gerald discussed the current economic situation and what he sees as the wrong-headed direction of the governmental responses. In that context, he brought up the biblical concept of Jubilee.

The most significant thing said at that meeting was that biblical Jubilee is not merely about solving the economic problems of the wealthy. Forgiving debts of the poor and setting the oppressed free are its central concepts. Thus, a bailout which attempts to benefit everyone by clearing out the debts of the banks and financial instututions contradicts the wisdom of the Jubilee tradition.

Taylor argued that the way to help the economy, including the banks and other financial institutions, would be to help the average person who is deep in debt. Provide debt relief to everyday people, and they will pay off credit cards, pay and restructure mortgages, pay for higher education, and purchase goods. For those persons who are not in debt, the same financial stimulus would provide economic opportunities that would strengthen economic activity, bolster retirement funds, and stabilize families and businesses.

Taylor also went on to discuss the ways that credit card companies and other lenders are sticking it to common people at the same time that they are able to borrow at the lowest rates in history. This is what the Bible condemns as usury, and the state of usury laws in the U. S. is such that the credit companies can locate in one or two of the fifty states which give them the greatest freedom to charge whatever they want in interest. The situation calls for a national policy.

What kind of bailout would a jubilee call for? It is about fifty years since the Civil Rights Movement. It is about fifty years since the Nixon government began to institutionalize the backlash against progressive reforms. It may be time to proclaim a Jubilee.

Today our fair state of North Carolina is participating in a ritual of democratic governance through primary elections. I have been especially caught up in this election season for several reasons.

First, my church is part of a community organizing group called Durham CAN, and we are engaged with mostly local issues relating to poverty, youth, health, and other matters of quality of life in Durham. We held one of our most successful Delegate's Assemblies this past Sunday at the site of one of our newest member congregations, First Presbyterian Church. Our organizations showed up in strength, more candidates than we had expected showed up to interact with us, and the agenda went off as planned. We found candidates very eager to support our proposals concerning assistance to the elderly and disabled, job training for ex-offenders, and health department disease tracking.

We got a good report from Duke University that they have extended their policy of paying a livable wage to their own employees, extended to certain restaurant vendor workers a year ago a year ago, to include workers at 100% of vendors who do business with the university, and that by November all vendors will also offer health benefits comparable to the University's health benefits for workers. Duke is to be commended for its commitment to its workers. Durham CAN can claim some credit for making the livable wage a key issue of discussion in Durham. Before Duke made this policy official, already Durham CAN had helped to bring about its adoption by Durham County Government, Durham City Government, and Durham Public Schools.

At the assembly, I had my moment in the sun as I spoke about Durham CAN's relationships with similar groups: Charlotte HELP, Winston-Salem CHANGE, Orange County Organizing Committee, and North Carolina Latino Coalition. We operate together under the name North Carolina United Power. Our work together on issues affecting all our communities gives us reason to need relationships with the Governor, Lt. Governor, other statewide officials, and representatives in the NC Legislature. In the past we have also worked with member of the US Congress.

At this assembly, two candidates for Governor and two for Lt. Governor came at our invitation to publicly agree to meet with us and to make their case for why we should vote for them. My job was to ask them a question about agreeing to a future meeting and to tell them how long they would be allowed to speak. For a few minutes, I was able to tell these statewide officials where to stand and when to talk. It was a heady feeling, like being "King for a Day." The TV coverage, for some reason, was more interested in what the candidates had to say than in my speech or instructions, but you can see me for less than a second, standing in the elevated pulpit to the left of the screen, in a black suit.

Second, I have been very interested in this primary election because of the candidacy of Barack Obama. He has been a community organizer in the past, doing work similar to the work we do in Durham CAN. The way of organizing his campaign has demonstrated this experience, working to bring together everyday people to have their say. Moreover, his connection with Trinity United Church of Christ, a church with a strong record of community service and transformation, has piqued my interest. I've been writing here about Rev. Dr. Jeremiah Wright in recent weeks. Not all of the campaigning and campaign coverage has treated the racial politics of the U. S. with honesty and integrity, and I would hope that more people would be willing to put a mature conversation about race on the table, as Sen. Obama has said well in his Philadelphia address. So today I was pleased to have the opportunity to cast a vote for Sen. Obama in my precinct.

I have been accused for several rounds of recent elections of "wasting" my vote for president. Overall, I see little difference between the Republicats and the Demicans. Neither is committed to the ends and means of a politics that would pay attention to the convictions I hold dear. I have voted for Ross Perot (for a change), Jimmy Carter (a write-in on the basis of his life of service), and such. But I might be able to vote for one of the parties this Fall, if some of the commitments to health care, better international relations, a restructured economy, and grassroots participation continue to be on the agenda. Not only Obama has offered some of these good ideas. We'll see what today brings, and what the campaigns and ballots offer in November.