Year: 2012

How the Bankers of Wall Street Are Helping to Bankrupt America

Submitted by Elaine Magliaro, Guest Blogger

I’ve heard many politicians talk about what they believe were the causes of the financial meltdown of 2008 and the money problems facing our federal, state, and local governments today. These causes include: collective bargaining, pensions, healthcare costs for public workers; subprime mortgages taken out by poor people who couldn’t actually afford to buy homes; the high costs of Social Security, Medicare, and Medicaid. Many of these same politicians rarely put the blame for the financial crises we are experiencing in this country today on the cost of waging two wars—or on the financial shenanigans of the big banks of Wall Street.

In February of 2010, Mike Elk wrote an article for the Huffington Post titled How Big Banks’ Greek-Style Schemes Are Bankrupting States Across the U.S. In it, he talked about a financial instrument called the “interest rate swap”—which is a kind of unregulated derivative.

Here’s an excerpt from Elk’s article:

Just when you thought Wall Street couldn’t get any more clever in their attempts at predatory lending, they have.

Big Banks have created an exotic financial instrument that is the equivalent of a payday loan for cash-strapped state and local governments, innocently labeled an “interest rate swap.”

In the United States, states and local governments cannot run deficits. This year states face a $357 billion budget shortfall and local governments are facing an additional $82 billion budget shortfall. States have begun cutting basic services like snow removal, reduced garbage pickup, and in Colorado Springs they went to the pawn shop – selling police helicopters on the Internet.

In a desperate effort to meet budget needs, states and local governments over the last decade have gone to the big banks to ask for exotic instruments known as interest rate swaps. These desperate state and local governments were taken advantage of in the same way that Greece was by Goldman Sachs. Likewise, these swaps are threatening the economic health of local cities and states.

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Dog Sniff Case Granted Cert

-Submitted by David Drumm (Nal), Guest Blogger

This case has everything a Fourth Amendment nerd could want, it’s got curtilage, sniff tests, and unreasonable searches. The case is Jardines v. State in which Miami, Florida, police, supported by DEA agents, conducted a “sniff test” by a detection dog, a chocolate lab named Franky (left). The warrentless sniff test, based on an anonymous tip, occurred at the front door of Jardines’ private residence. Franky alerted to the odor of narcotics and a search warrant was obtained. The search found marijuana was being grown inside the home.

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Marine Biologist Faces 20 Years For Feeding Whales

By Mark Esposito, Guest Blogger

Renowned marine biologist Nancy Black faces 20 years in prison and a half million dollars in fines for allegedly unlawfully feeding killer whales. And no,she didn’t feed them people. Apparently,Black, who’s been featured on PBS, Animal Planet, and National Geographic has been charged with running afoul of  the Marine Mammal Protection Act.  The charges stem from a 2005 research trip in which Black filmed a gray humpback whale and a pack of killer whales swimming nearby. She’s accused of feeding the killer whales and then altering a video of the “crime.” Here’s her lawyer’s account of the heinous attack on the environment.

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The Remains of an Illegal and Immoral War

Respectfully submitted by Lawrence Rafferty (rafflaw)-Guest Blogger

The United States recently ended its formal military occupation of Iraq and removed most of its combat troops after more than 8 years and thousands of troops and civilian deaths and injuries.  Our troops did their job under difficult situations, but the havoc that our invasion and occupation of Iraq created will remain for generations.  When we look at the impact of Shock and Awe and the constant barrage of bullets and bombs, it is a wonder that even more civilians were not killed.  Most estimates put the Iraqi civilian deaths over 100,000 and more than a million people displaced from their homes.  However, the repeated use of depleted uranium and white phosphorus weapons in particular, may be the cause of Iraqi infants and children being born with horrific abnormalities in alarming numbers. Continue reading “The Remains of an Illegal and Immoral War”

America’s Transcendent Issue

Submitted by: Mike Spindell, guest blogger

ImageWhen you contemplate all of the problems that beset us in this election year it is hard not to feel daunted by the task of finding solutions. Many millions of American’s are without jobs, with the prospect of future employment seeming illusory. The top 1% of the American population controls vast amounts of the country’s wealth.  http://www.businessinsider.com/15-charts-about-wealth-and-inequality-in-america-2010-4?op=1  Wages of average Americans have stagnated for the past 40 years to such an extent that our middle class is shrinking rapidly. The housing boom of years past has become a bust of monumental proportions and foreclosures are destroying formerly viable neighborhoods. Our once barely adequate “safety net” has been shredded and there are attempts to destroy both Social Security and Medicare as we know it. Despite a weak attempt at Medical reform millions of Americans find health care unaffordable, with many dying and others forced into bankruptcy to stay alive. Due to lack of money America’s once magnificent infrastructure is rotting and solutions are not on the horizon.

The collapse and bailout of our banking industry has cost us trillions and appears to have been brought about by fraudulent practices on the part of the industry, yet no one has been indicted. In fact the remuneration of top executives in this duplicitous industry has actually increased. Efforts to impose stiff controls ensuring that these artificial crises don’t happen again and that these huge financial entities do business ethically, have failed to pass the Congress. We see that the fallout from the American banking crisis has undercut the world’s economy and that economic crises in other industrialized nations appear regularly. Please notice I’m only referring to the economic problems we face and only producing a partial list of those economic problems.

We have seemingly come to the conclusion of an unnecessary war in Iraq, where trillions were spent and perhaps a million were killed, yet the withdrawal of troops is to bases that surround Iraq. We are leaving about 40,000 Americans in country, many as mercenaries (contractors is a euphemism) as we support the largest diplomatic infrastructure in any foreign nation. The war in Afghanistan still rages in a land that has never been significantly shaped by any outside empire, this despite the killing of Osama Bin Laden and the virtual destruction of Al Qaeda.  Hundreds of billions are being spent and the lives of our troops are put in danger, in an exercise with little hope of success. Billions are going towards building Afghanistan’s infrastructure as ours is falling apart. Yet these instances fail to raise the broad spectrum of the military/foreign policy problems continuing to plague us. These issues include a military budget that far greater than that of all other nations. http://en.wikipedia.org/wiki/List_of_countries_by_military_expenditures 

However, these three paragraphs still do not encompass the broad range of problems we Americans face. There is more to be touched on before we come to the conclusion that I’ve reached, that there is one problem that not only transcends all of these, but its need for immediate solution supersedes any of the others in importance. Continue reading “America’s Transcendent Issue”

Is the Cordray Recess Appointment Constitutional?

The recess appointment of Richard Cordray has produced what appears to be the intended political response. The White House wanted to highlight the GOP blocking not just the head of the Consumer Financial Protection Bureau and three members of the National Labor Relations Board. Over the last few days I have been called by various media outfits for a supporting view of the recess appointment of Cordray. However, I do not support the appointments and believe they raise serious constitutional problems.
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Caucusing With God: Pat Robertson Reveals God Told Him The Name Of The Next President . . . But He Is Not Talking

Pat Robertson is back. This time he is revealing how God told him the name of the next president. Robertson, however, is not going to reveal the name. It appears that he is the only viewer on God’s cable punditry channel. Robertson explained “I think He showed me about the next president, but I’m not supposed to talk about that so I’ll leave you in the dark — probably just as well — but I think I know who it’s gonna be.”

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Is Ron Paul A Clear and Present Threat To War Correspondents?

We have yet another live mike mishap. While reporters were waiting to hear from President Obama on his reform of the military, a C-Span mike picked up on reporters saying “See this room? Two-thirds of us laid off when Ron Paul is president.” It is a far point. How can Paul claim to be serious about creating jobs when fewer wars mean fewer war correspondents? In the meantime, President Obama should be credited with taking an unpopular step in calling for a reexamination of our long-standing “two-war” strategy of maintaining an army ready to fight two conventional wars.
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Oklahoma Mother Calls Dispatch For Approval Before Shooting Intruder — Accomplice Then Charged With Murder

There is an interesting case out of Blanchard, Oklahoma involving the “Make My Day” or “Castle doctrine” laws, a subject that we have repeatedly discussed over the years. In this case, Sarah McKinley, 18, asked a dispatcher on New Year’s Eve over the phone whether she could shoot an intruder in her home. The dispatcher told her that she should do what she needed to do. She did. Justin Shane Martin, 24, was shot did and his alleged accomplice will be charged in his death.
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Court Orders Arrest of Lawyer After Judge Called “Catholic Knight Witch Hunter” in Bizarre Filings

A bankruptcy case in Minneapolis has produced some unexpected fireworks after U.S. Bankruptcy Judge Nancy Dreher ordered the arrest of an attorney who filed a bizarre litany of anti-Catholic remarks in a filing. Dreher ordered the arrest of lawyer Naomi Isaacson (left), who is president of a group known as the Dr. R.C. Samanta Roy Institute of Science and Technology Inc.
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Santorum Instructs Students On Same-Sex Marriage and Health Care

We previously discussed the unease of civil libertarians over Rick Santorum, particularly his privacy positions. His appeal to evangelical and faith-based voters was evident in a remarkable appearance in Sioux Center, Iowa. Santorum has a tense exchange over his position on same-sex marriage and health care — making the factual representation that no one has ever died from lack of health care protection and same-sex marriage would have horrific consequences for the nation.
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The New Katz Cats Test: Court Cries Foul Over Kitty Litter Claim

One of my former students sent along this interesting case. U.S. District Judge Jed Rakoff in Manhattan has taken the relatively rare step of blocking a commercial by Clorox Company for its Fresh Step kitty litter. Rakoff agreed with lawyers from Arm & Hammer that the commercial would do the company “irreparable harm” by publishing misleading information about cat litter boxes — and cats generally. The claims did not pass the smell test for the Court which rejected the methodology used by Clorox.

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Law Professors Ranked Among Top Jobs In Annual Study

It is oft said that those who can’t, teach. Well, a new AOL study finds legal teaching to be the second best job in terms of lifestyle in the United States. Airline pilots come out on top. After my continuing failure to land the job with the Chippendale dancers and the Chicago Bears offensive line, the study could not be more welcomed. However, the “lifestyle” ranking seems to be code to “little work, high pay.”
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Turley Blog Hits 10 Million Viewers

Last night, we received word of two considerable accomplishments. First, we won the ABA Journal’s selection as the top opinion blog. Second, we hit our 10 millionth viewer on the blog. We are routinely ranked as one of the most visited legal blogs by AVVO. As our viewership has grown in only a few short years, we have reached a wider and wider international audience.
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