One law for them , another law for us

So much for government assurances of sympathetic treatment for mortagage arrears by the banks during this credit crunch and slump.

The Financial Times reports a landmark High Court ruling under a 1925 law has paved the way for mortgage lenders to sell the homes of borrowers in arrears without seeking a court order after just TWO mortgage payments have failed .

The judgment dismissed the human rights defence of the homeowners in arrears and backed the right of GMAC-RFC, a specialist subprime and buy-to-let lender that is part-owned by General Motors, to appoint receivers and auction the property. The former homeowners were then evicted for trespassing by the new owner, Horsham Properties. The sale circumvented the court process through which judges can give struggling borrowers more time to arrange repayments .

John Gallagher, principal solicitor with Shelter, the housing charity, said the case “gives the green light” for lenders to sidestep courts with legal remedies “rooted in the 19th century and repugnant to most people’s sense of justice”.

Food for Thought

October 17th. was UN Day to Eradicate Poverty. Last year about 43 Million people took part in the global Stand Up, Take Action campaign. In addition, The Toronto Star editorial (26/10/08) headline read, “Vital to Reduce Poverty This Year”. Why this year, I’m not sure, as they have been saying this for about 100 years. How are we doing so far? The same newspaper highlighted the growing phenomenon of tent cities around North America. In Las Vegas, they are sprouting up in the shadow of the glitzy casinos. Can anything be more obscene? And they are not all mental health migrants. Seven out of ten are people from the area who have lost their houses in the current mortgage melt down. In Victoria, BC, a new by-law had to be rushed in to enable Police to move in and break up their tent city. “Ask not what your government can do for you…yadda yadda yadda” asJohn Kennedy once said. Indeed! - Never fear, however, Toronto City Council has found the solution. The notorious, poverty and crime ridden Jane/Finch area has been rebranded as University Heights with spiffy new banners hanging from the light poles. Now doesn’t that sound better? I’ll bet the people there feel richer already!- But wait! Our federal government will come to the rescue. Apparently they are not as cash-strapped as they thought and had us believe. Those poor, poverty-stricken banks, that have reported record profits for as long as I can remember, have received a gift from our government of $25 billion. And, the war in Afghanistan will cost $18 billion by the withdrawal date of 2011. Surely, the end of poverty must be in sight now. ! Not- On the environment, 46 scientists from ten countries, who are studying the Arctic, have concluded that Fall temperatures are 5C above normal, and accompanied by unprecedented rates of rising sea levels and the attendant effect on marine and mammal life. Is it time to act yet?- John Ayers

Reading Notes

- A few examples of how capitalism works and why:- “British Railway construction in Argentina was dramatic – from 1000 kilometres in 1871 to 12 000 kilometres two decades later, but entirely commercial in motivation: to move wheat and meat to ports.”-

“The effort to ensure a plentiful supply caused bloody conflict as one European country after another sought to establish monopolies over the produce of India’s Malabar coast (pepper, ginger), Sri Lanka (cinnamon)…”i.e. economic causes for war.-

“The meat-packing industry made beef an everyday luxury, but there was nothing benevolent about these butchers. Chicago became the world’s largest concentration of industrial capital, mass production, and human misery.” (see also Upton Sinclair’s ‘The Jungle”).-

“Every tonne of sugar consumed in Europe came at the cost of one slave’s life.”-

“In Mexico, the pre-conquest population of five to ten million was just 1.6 million in 1618. In the future United States, the native population shrank from two million in 1500 to 750 000 in 1700 and just 325 000 in 1830.” No wonder the Indian T-shirt says, “Fighting Terrorism Since 1492”. All the above come from “A Brief History of Globalization”, by AlexMacGillivray.
John Ayers

credit crunch bites

The number of Scots declared bankrupt is rising at record levels, figures have revealed.
Finance experts PKF said in the third quarter of 2008, 5,998 people had been made bankrupt or entered a voluntary repayment agreement with creditors.
The firm said this was an increase of 26.7% on the previous quarter and a 70% rise on the same quarter of 2007.
A total of 14,008 Scots have been made bankrupt so far this year, while the total figure for 2007 was 13,814.
PKF said around 20,000 Scots could be declared bankrupt by the end of 2008.

work is bad for your health

Writing in the European Journal of Oncology, Prof Watterson, an expert in occupational health, said "In Scotland more people die from occupational cancers than die from road traffic fatalities, murder and suicide all combined."
He estimated that about 10% of all cancers were work related.While the issue is usually associated with older industries involving asbestos, Prof Watterson said carcinogens were present in diesel, pesticides, silica, wood dust and solvents. He added that Scotland gives a higher priority to road deaths and murders, which claimed about 1,250 lives in 2003/04, than it does to tackling work-related cancers.

Socialist Standard November 2008

Pages: 1 2 3 4 5 6 7 8 9 10 11 12

editorial: contents: Also available as HTML (image lite) and PDF

Pages: 13 14 15 16 17 18 19 20 21 22 23 24

Green Health - Red Revolution

from the bbc
Across the country, there are "health inequalities" related to income and social deprivation, which generally reflect differences in lifestyle, diet, and, to some extent, access to medical care.
This means that in general, people living in poorer areas are more likely to be unhealthy, and die earlier.
However, the researchers found that living near parks, woodland or other open spaces helped reduce these inequalities.

While the health specialists and enviromentalists place their faith in capitalism re-designing cities , the SPGB once more argues only socialism will create the conditions for the separation of town and countryside to wither away.

William’s Words

- William Morris continues with his description of capitalist production as War
in the pamphlet, “How We Live and How We Might Live” (page 21),

"Meantime, let us pass from this “competition between nations to that between the organizers of labour, great firms, joint stock companies; capitalists in short, and see how competition stimulatesproduction among them: indeed it does do that; but what kind of production? Well, production of something to sell at a profit, or say production of profits: and not how war commercial simulates that: a certain market is demanding goods; there are, say, a hundred manufacturers who make that kind of goods and every one of them would if he could keep that market to himself, and struggles desperately to get as much of it as he can, with the obvious result that presently the thing is overdone, and the market is glutted, and all the fury of manufacture has to sink into cold ashes. Doesn’t that seem something like war to you? Can’t you see the waste of it – waste of labour, skill, cunning, waste of life in short? Well you may say, but it cheapens goods. In a sense it does; and yet, only apparently as wages have a tendency to sink for the ordinary worker in proportion as prices sink:”
A good analysis of how economic crises come about and relevant given our situation today.
John Ayers

WHAT HOUSING PROBLEM?

"Each of the 80 floors in the world's first moving skyscraper — with offices and a hotel, topped by apartments — will rotate 360 degrees, all at different speeds. Designed by Italian architect David Fisher and located in Dubai (another is planned for Moscow), the prefab, wind-powered tower will cost an estimated $700 million. The residences will sell for $3.7 million to $36 million. The building should be completed in 2010." (Time, 27 October) RD

THE SAME DIFFERENCE

Amidst the misguided euphoria about the election of a Democratic Party president it is a sobering thought that whether there is a Republican or Democratic legislation capitalism carries on as usual. "Although there is a widespread belief that Wall Street prefers Republican presidents, most studies show that the market has actually done better under Democrats. Since 1901, the Standard & Poor's 500 index rose 7.2 percent a year on average under Democratic presidents and 3.2 percent under Republicans, according to Ned Davis Research. Looking at a more recent time period - 1944 through mid-2008 - the S&P was up 10.7 percent a year on average with a Democrat in the White House versus 8 percent with a Republican, according to International Strategy & Investment." ( San Francisco Chronicle, 4 November)
Changing the ruling party doesn't change the exploitation system that is capitalism. RD

AINT RELIGION WONDERFUL?

"A 13-year-old girl who said she had been raped was stoned to death in Somalia after being accused of adultery by Islamic militants, a human rights group said. Dozens of men stoned Aisha Ibrahim Duhulow to death Oct. 27 in a stadium packed with 1,000 spectators in the southern port city of Kismayo, Amnesty International and Somali media reported, citing witnesses. The Islamic militia in charge of Kismayo had accused her of adultery after she reported that three men had raped her, the rights group said." (Yahoo News, 1 November) RD

MERRY XMAS?

"Major high-street retailers are targeting poor families with bad credit records to prop up their Christmas sales during the credit crisis. Dozens of high street stores are taking part in a doorstep lending scheme which charges poor families extreme rates of interest. Woolworths, Comet, B&Q and Mothercare and 92 other retailers have been accepting vouchers that are repaid by borrowers at an annual percentage rate of 222 per cent – more than 10 times the rate of a credit card." (Independent, 28 October) RD

NEW YORK - OLD PROBLEM

Gina Catana and her grandchildren, Emily, 2, and Christopher, 3, at the administration building for a Bronx shelter. The number of families entering homeless shelters has been increasing

"In what some see as a sign of the economic downturn’s impact on the city’s poorest, more families entered the homeless shelter system in September than in any other month since data has been collected. Some 1,446 families entered shelter in September, city officials said. That was the highest number in one month since the city began keeping track 25 years ago. In each of the past three months, the city has seen record numbers of families admitted to shelter. With the increase, roughly 9,300 families are now in shelter, or more than 28,000 people. In 2003, when the previous record was set, the average daily census of families in shelter was 9,200." (New York Times, 29 October) RD

VATICAN BONUSES

"The Vatican has reintroduced a system of clocking in, nearly 50 years after it was last phased out. Senior clerics will have to swipe plastic cards when entering and leaving, all in a drive to improve time-keeping and efficiency. ... Lay and ecclesiastical staff working in the tiny city state, are now using the swipe cards. The cards have been issued to everyone from the lowest office staff to the heads of departments, even if they are priests and archbishops, though there has been no mention if Pope Benedict XVI carries one. ...It is all part of a drive to increase efficiency and to make the Vatican more meritocratic. Next year there are plans to introduce performance-related pay."
(BBC News, 3 November)
Capitalism is a social system that needs concepts like "performance-related pay", but we wonder how it will operate in the Vatican. One miracle equals how many euros? Two visions equal more or less than one miracle? We foresee some difficulties when disputes go to arbitration! RD

statistics and lies

The press made head-lines of this report :
The Organisation for Economic Co-operation and Development (OECD) Growing Unequal? report published on 21st October 2008 found that “since 2000, income inequality and poverty have fallen faster in the UK than in any other OECD country”

However , not much was reported on this report Poverty and inequality in the UK: 2008 by the Institute for Fiscal Studies (IFS) published in June this year, which found that in the UK “income inequality has risen for its second successive year and is now equal to its highest-ever level (at least since comparable records began in 1961)”.

The OECD report covers the period from 2000 to 2005, whereas the IFS report covers data up until 2007. The IFS report notes an increase in poverty in the last two years which includes an extra 300,000 children living in poverty between 2005 and 2007, and nearly a half a million pensioners entering poverty in the same period. Overall relative poverty increased by 400,000 in 2006/07 alone. Therefore it could be that 2000 to 2005 was the halcyon period of UK poverty reduction (OECD), but this has been reversed in the subsequent two years (IFS).

even so , the positive spin placed on the OECD report couldn't disguise its other findings , that the “the gap between rich and poor is still greater in the UK than in three quarters of OECD countries”. It also states that “the wage gap has widened by 20% since 1985”, and that “child poverty rates are still above the levels recorded in the mid-1980s”

Neither report studied actual wealth distribution which shows that wealth inequality has expanded most aggressively in the years between 1996 to 2003 – the period of Labour in government.

Not considered was that personal debt ballooned in the UK from 102% of personal income in 1997 to 160% of personal income by the end of 2005 and now with the credit crunch unraveling insolvency and re-possessions loom ahead .

From LEAP

Alright for some , eh ?

Amanda Staveley , former girlfriend of Prince Andrew , is set to bag almost £40million in commission paid to her advisory firm, PCP Capital Partners, for brokering last week's £3.5billion capital injection into Barclays Bank by Middle East investors , according to The Independent.

PCP Capital Partners, which Ms Staveley founded in 2005, acted for Sheikh Mansour Bin Zayed Al Nah-yan, a member of the Abu Dhabi royal family, to deliver his £3.5bn personal investment into Barclays in return for a 16 per cent shareholding of the bank.
As part of the overall £7.3bn investment Barclays unveiled on Friday, the bank is also raising up to £2bn from Qatar's sovereign wealth fund and £300m from a member of Qatar's royal family.
PCP's total commission will be £110m, but after other advisers are paid Ms Staveley's firm will earn a £40m profit. While PCP also has a handful of other partners including David Mellor, the former Tory MP, Ms Staveley is expected to pocket the majority of the £40m.

Ms Staveley also previously brokered the takeover of Manchester City football club in August by the same sheikh, Mr Mansour, who is investing in Barclays.

Ms Staveley first started to make her mark with the sheikhs and the Arabian Gulf's kingpins when she set up a restaurant in Cambridge-shire after persuading her bank manager to lend her £180,000. Crucially, she set up her Stocks eatery close to the British horseracing hub of Newmarket.The patrons of the restaurant, where Ms Staveley would work while also dabbling in her alternative career of dealing in shares worth thousands of pounds, included senior staff from the Godolphin stables owned by Sheikh Mohammed bin Rashid al Maktoum, the ruler of Dubai and the most powerful racehorse owner on the planet.
This is where the seeds of her association with the Middle East's wealthiest figures were sown.

Not what you know but who you know , it appears

HARD TIMES

"The number of repossessions in Britain soared by 71 per cent in the three months to June. The Council of Mortgage Lenders has forecast that total repossessions this year will rise by 50 per cent to 45,000." (Times, 1 November) RD

CHRISTIAN BROTHERHOOD?

"Two rival monks are posted at all times in a rooftop courtyard at the site of Jesus' crucifixion: a bearded Copt in a black robe and an Ethiopian sunning himself on a wooden chair, studiously ignoring each other as they fight over the same sliver of sacred space. For decades, Coptic and Ethiopian Christians have been fighting over the Deir el-Sultan monastery, which sits atop a chapel at the ancient Church of the Holy Sepulchre. The monastery is little more than a cluster of dilapidated rooms and a passageway divided into two incense-filled chapels, an architectural afterthought alongside the Holy Sepulchre’s better-known features. And yet Deir el-Sultan has become the subject of a feud that has gone far beyond the walls of Jerusalem's Old City. The Ethiopians control the site, but the Egypt-based Copts say they own it and see the Ethiopians as illegal squatters. The quarrel has erupted into brawls — in 2002, when the Coptic monk moved his chair into the shade and too close to the Ethiopians, a dozen people were hurt in the ensuing melee."
(Associated Press, 25 October) RD

US GURU SHOCKED

"Greenspan 1963: Writing in Ayn Rand's Objectivist Newsletter, Greenspan declared as myth the idea that businessmen "would attempt to sell unsafe food and drugs, fraudulent securities, and shoddy buildings. It is in the self-interest of every businessman to have a reputation for honest dealings and a quality product."Greenspan 2008: Testifying before the House Committee on Oversight and Government Reform, Greenspan recanted: "Those of us who have looked to the self-interest of lending institutions to protect shareholders' equity, myself included, are in a state of shocked disbelief...." This modern [free market] paradigm held sway for decades. The whole intellectual edifice, however, collapsed in the summer of last year."
(Yahoo News, 23 October) RD

CRISIS? WHAT CRISIS?

For those not feeling the global economic crisis -- and not content just to wear diamond earrings -- a Japanese company on Thursday unveiled a line of mobile telephones encrusted with diamonds. Japan's Softbank Mobile said it will sell 10 of the phones, each studded with 537 diamonds of 18.34 carats from Tiffany & Co. The "Softbank 823SH Tiffany" phone will sell for around 1.3 million yen (13,265 dollars), the company said. The phone has a top that flips open to a display also designed by the luxury New York jeweller. Japan is the world's largest market for luxury goods and nearly everyone owns a cell phone, leading fashion companies to try to tap into the mobile market. Earlier this year Softbank rival NTT DoCoMo Inc. launched a cell phone designed by Italian brand Prada. Fellow designer Gucci also started a website for Gucci goods accessible only by Japanese mobile phones."
(Yahoo News, 30 October) RD