OCCUPY WALL STREET & Follow the Money: Behind Europe's Debt Crisis Lurks Another Giant Bailout of Wall Street 5OKT11

THE OCCUPY WALL STREET movement is spreading across the nation, especially since the mass arrest on the Brooklyn Bridge in NYC on 1OKT11. Here is the policy statement from the http://www.october2011.org website. One course of action everyone can take is to move their money to smaller local and regional banks, financial institutions that are more likely to invest in the local economy and create jobs. Following the statement is a warning from Robert Reich on the real possibility of a second wall street bailout due to the European financial crisis, the kind of bailout the Occupy Wall Street movement is opposed to without a massive restructuring of the financial institutions and corporate America that own our government....

A Call to Action - Oct. 6, 2011 and onward
October 2011 is the 10th anniversary of the invasion of Afghanistan and the beginning of the 2012 federal austerity budget. It is time to light the spark that sets off a true democratic, nonviolent transition to a world in which people are freed to create just and sustainable solutions.
We call on people of conscience and courage—all who seek peace, economic justice, human rights and a healthy environment—to join together in Washington, D.C., beginning on Oct. 6, 2011, in nonviolent resistance similar to the Arab Spring and the Midwest awakening.
A concert, rally and protest will kick off a powerful and sustained nonviolent resistance to the corporate criminals that dominate our government.
Forty-seven years ago, Mario Savio, an activist student at Berkeley, said, "There's a time when the operation of the machine becomes so odious—makes you so sick at heart—that you can't take part. You can't even passively take part. And you've got to put your bodies upon the gears and upon the wheels, upon the levers, upon all the apparatus, and you've got to make it stop. And you've got to indicate to the people who run it, to the people who own it, that unless you're free, the machine will be prevented from working at all."
Those words have an even greater urgency today. We face ongoing wars and massive socio-economic and environmental destruction perpetrated by a corporate empire which is oppressing, occupying and exploiting the world. We are on a fast track to making the planet unlivable while the middle class and poor people of our country are undergoing the most wrenching and profound economic crisis in 80 years.
"Stop the Machine! • Create a New World!" is a clarion call for all who are deeply concerned with injustice, militarism and environmental destruction to join in ending concentrated corporate power and taking direct control of a real participatory democracy. We will encourage a culture of resistance—using music, art, theater and direct nonviolent action—to take control of our country and our lives. It is about courageously resisting and stopping the corporate state from destroying not only our inherent rights and freedoms, but also our children’s chance to live, breathe clean air, drink pure water, grow edible natural food and live in peace.
As Mother Jones said, "Someday the workers will take possession of your city hall, and when we do, no child will be sacrificed on the altar of profit!"
We are the ones who can create a new and just world. Our issues are connected. We are connected. Join us in Washington, D.C., on Oct. 6, 2011, to Stop the Machine.
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Take the pledge and sign up to attend here. Let America know you are coming to make history and a new world!
"I pledge that if any U.S. troops, contractors, or mercenaries remain in Afghanistan on Thursday, October 6, 2011, as that occupation goes into its 11th year, I will commit to being in Freedom Plaza in Washington, D.C., with others on that day with the intention of making it our Tahrir Square, Cairo, our Madison, Wisconsin, where we will NONVIOLENTLY resist the corporate machine to demand that our resources are invested in human needs and environmental protection instead of war and exploitation. We can do this together. We will be the beginning ."

Pledge

"I pledge that if any U.S. troops, contractors, or mercenaries remain in Afghanistan on Thursday, October 6, 2011, as that occupation goes into its 11th year, I will commit to being in Freedom Plaza in Washington, D.C., with others on that day or the days immediately following, for as long as I can, with the intention of making it our Tahrir Square, Cairo, our Madison, Wisconsin, where we will NONVIOLENTLY resist the corporate machine by occupying Freedom Plaza to demand that America's resources be invested in human needs and environmental protection instead of war and exploitation. We can do this together. We will be the beginning."

You do not have to sign up or log-in to Facebook in order to take the pledge or register with october2011.org.
The Facebook form is only a convenience for current Facebook users.

Follow the Money: Behind Europe's Debt Crisis Lurks Another Giant Bailout of Wall Street

http://www.huffingtonpost.com/robert-reich/europe-debt-crisis_b_996528.html
Today Ben Bernanke added his voice to those who are worried about Europe's debt crisis.
But why exactly should America be so concerned? Yes, we export to Europe -- but those exports aren't going to dry up. And in any event, they're tiny compared to the size of the U.S. economy.
If you want the real reason, follow the money. A Greek (or Irish or Spanish or Italian or Portugese) default would have roughly the same effect on our financial system as the implosion of Lehman Brothers in 2008.
Financial chaos.
Investors are already getting the scent. Stocks slumped to 13-month low on Monday as investors dumped Wall Street bank shares.
The Street has lent only about $7 billion to Greece, as of the end of last year, according to the Bank for International Settlements. That's no big deal.
But a default by Greece or any other of Europe's debt-burdened nations could easily pummel German and French banks, which have lent Greece (and the other wobbly European countries) far more.
That's where Wall Street comes in. Big Wall Street banks have lent German and French banks a bundle.
The Street's total exposure to the euro zone totals about $2.7 trillion. Its exposure to to France and Germany accounts for nearly half the total.
And it's not just Wall Street's loans to German and French banks that are worrisome. Wall Street has also insured or bet on all sorts of derivatives emanating from Europe -- on energy, currency, interest rates, and foreign exchange swaps. If a German or French bank goes down, the ripple effects are incalculable.
Get it? Follow the money: If Greece goes down, investors start fleeing Ireland, Spain, Italy, and Portugal as well. All of this sends big French and German banks reeling. If one of these banks collapses, or show signs of major strain, Wall Street is in big trouble. Possibly even bigger trouble than it was in after Lehman Brothers went down.
That's why shares of the biggest U.S. banks have been falling for the past month. Morgan Stanley closed Monday at its lowest since December 2008 -- and the cost of insuring Morgan's debt has jumped to levels not seen since November 2008.
It's rumored that Morgan could lose as much as $30 billion if some French and German banks fail. (That's from Federal Financial Institutions Examination Council, which tracks all cross-border exposure of major banks.)
$30 billion is roughly $2 billion more than the assets Morgan owns (in terms of current market capitalization.)
But Morgan says its exposure to French banks is zero. Why the discrepancy? Morgan has probably taken out insurance against its loans to European banks, as well as collateral from them. So Morgan feels as if it's not exposed.
But does anyone remember something spelled AIG? That was the giant insurance firm that went bust when Wall Street began going under. Wall Street thought it had insured its bets with AIG. Turned out, AIG couldn't pay up.
Haven't we been here before?
Republicans and Wall Street executives who continue to yell about Dodd-Frank overkill are dead wrong. The fact no one seems to know Morgan's exposure to European banks or derivatives -- or that of most other giant Wall Street banks -- shows Dodd-Frank didn't go nearly far enough.
Regulators still don't know what's happening on the Street. They have no clear picture of the derivatives exposure of giant U.S. financial institutions.
Which is why Washington officials are terrified -- and why Treasury Secretary Tim Geithner keeps begging European officials to bail out Greece and the other deeply-indebted European nations.
Several months ago, when the European debt crisis first became apparent, Wall Street banks said not to worry. They had little or no exposure to Europe's problems. The Federal Reserve said the same. In July, Ben Bernanke reassured Congress the exposure of U.S. banks to European nations in trouble was "quite small."
Now we're hearing a different tune.
Make no mistake. The United States wants Europe to bail out its deeply indebted nations so they can repay what they owe big European banks. Otherwise, those banks could implode -- taking Wall Street with them.
One of the many ironies here is some badly-indebted European nations (Ireland is the best example) went deeply into debt in the first place bailing out their banks from the crisis that began on Wall Street.
Full circle.
In other words, Greece isn't the real problem. Nor is Ireland, Italy, Portugal, or Spain. The real problem is the financial system -- centered on Wall Street. And we still haven't solved it.
Robert Reich is the author of "http://www.amazon.com/Aftershock-Next-Economy-Americas-Future/dp/0307592812" target="_hplink">Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.