Saturday, November 15, 2008

Ohio Bank, a bank whose time has come - again?

I am going to propose to the Board of Trustees of Cincinnati Change that we explore the creation in Ohio of a new Federal Bank. The bank's capital would be used to buy Ohio institutions bad loans and rework at least 600,000 of them, residential and commercial. It would be syndicate of all Federal Reserve Banks through the Cleveland Fed.

This will be like trying to land the space shuttle, we know what to do and can do it but it up to forces beyond our direct control for the actual feat to be accomplished safely.

We will have to raise over 2 million dollars in cash and sweat equity to even attempt it. This will include at least a million in cash of which approx. $350,000 will be spent on SEC & TARP qualified documentation preparation, another $150,000 on lawyer fees, $50,000 plus association memberships, $300,000 on staff salaries and organizations operations with over $100,000 spent in Washington DC with federal authorities by our representatives. This will be through a 501(c)3 that will act as fiduciary as we use the institution to create the financial intermediary whose services are sold on a means tested basis. The 501(c)3 would allow investors to write off the organizing expenses and be the peoples representative force on the board of directors of the institution.

It would focus operations on those whose households have been foreclosed on, have been bankrupted, are in foreclosure or bankruptcy, have health problems that threaten their household and home, have troubled house loans, have troubled federal and or state commercial debt, the homeless, veterans, and are first responders that includes active duty military, public safety and health professionals.

This bank would apply for funds under TARP authority under the Congress of the United States and the newly installed government of the People through the President of the United States Barack Obama. It addition it will work with other federal agencies such as HUD to address the housing crisis in Ohio.

We will ask him [President Elect of the United States Barack Obama] to excise his powers, by January 21th 2008, under established federal law such as OMB A-76 authority.

My organization has been a member of the National Community Reinvestment Coalition [NCRC] since 2001. We will look to draw on the experience of NCRC and its members, including our Ohio members such as Cincinnati Change [organizer under Fred Hargrove, Sr. PE, MBA], OneCommunity [electronic networks] and NCRC board members Morris Williams [grassroots CRA advisory organizer] and Dean Lovelace [public sector representation committed to CRA].

The National Community Reinvestment Coalition was formed in 1990 by national, regional, and local organizations to develop and harness the collective energies of community reinvestment organizations from across the country so as to increase the flow of private capital into traditionally under served communities.

NCRC is an association of more than 600 community-based organizations and governmental members that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development, and vibrant communities for America's working families.

Other members include community reinvestment organizations, community development corporations; local and state government agencies; faith-based institutions; community organizing and civil rights groups; minority and women-owned business associations as well as local and social service providers from across the nation.

NCRC pursues its work through a variety of partnerships and programs; we would promote this as one program that can bused by other states to solve this problem.

Ohio Power, an ideal whose time has come?

In Cincinnati they [the city manager] just raised the electric bill without a vote of the peoples representatives and we won’t take it anymore. Its past time we started a statewide joint venture that includes a electrical power Co-op that would include power generation. We will contribute the engineering [Fred Hargrove, PE, MBA] and Electrician [Lloyds General and Electrical Contractors, started 20 plus years ago by IBEW journeywoman and my wife]. From Cincinnati to Cleveland anyone interested?

Cincinnati Change would create a non-profit organization and appoint the first board of directors. Rates will be based on the cost of doing business. That doesn’t mean we will not earn a margin; it means that we return this excess to you, the member-consumer. The return of this margin is called patronage capital credits, these can be used by the owner and or can be passed on to others who need it more.

At the end of each year, these net margins will be allocated to each member on the basis of the dollar amount of energy used during that year. Annually you will receive a notice stating the amount of capital credits assigned to your account for that year. This notice is not a check and cannot be cashed or applied to your electric bill.

The statewide Board of Trustees will set a goal of returning patronage capital to eligible members on a 10-year cycle. When approved, checks are issued to eligible members for the amount credited to their account for the year being refunded.

Ohio's electricity Customer Choice Law

In 1999, Ohio enacted a law deregulating (some folks use the term "restructuring") the state's electric utility industry. The centerpiece of this legislation is its "customer choice" provisions, under which some customers were eligible to start shopping for new generators of their electric power on Jan. 1, 2001.

In essence, the law "unbundles" investor-owned utilities ("IOUs") — American Electric Power (AEP), Cinergy[Duke], FirstEnergy, and Dayton Power & Light. Under the old "regulated" system, an IOU owned everything from the power plant (or "generation") to the high-voltage wires that carry electricity from the plant ("transmission") to a substation near you, then the wires that carry the power locally from the substation to your home ("distribution").

Under the new deregulated system, each of those segments are broken into separate "cost bundles." Some — but not ALL — customers have the option to choose which "cost bundle," or company, generates their electricity.

The new law was expected to lower costs to consumers by introducing competing sources for power generation; it has not. We would take advantage of the opportunity, in the beginning, of energy marketing, in which companies purchase power from another firm and then resell it to customers. Although we will start like this but move to our own power generation developments such as wind, solar and yes we will even do it clean coal and nuke, only after extensive Research & Development and include state of the art security and safety support services.

A special choice for Cooperatives

In the new law, Ohio legislators recognized cooperatives are different in some very important ways — we are nonprofit, our consumers hold title to their own power plants, and we serve and are controlled by our member-owners, who elect our boards of directors.

Because of our unique relationship with our consumers, Ohio's electric co-ops were given a choice of when and if we want to "opt in" to competition — allow our members to choose new power suppliers.

But, unlike the IOUs, which are required by law to offer choice, the cooperatives in Ohio decided to wait, watch the market take shape, and learn. Why?

  • Because the choice to "opt in" is irrevocable; it's permanent. Once it's "opted in," a cooperative can't "opt back out" again, even if it turns out to be bad for most members.
  • Because even though our members don't have choice today doesn't mean they never will. The cooperatives can "opt in" whenever the time is right
  • The cooperatives' costs of generating and transmitting power already are significantly lower than the state average. And because the members are the owners of their co-op, they also are an investor. The money they've earned in capital credits is being used today to provide operating capital for their business. Depending on how the new marketplace evolves, opting in could put some or all of their investment at risk.
Today, 25 different electric co-ops serve more than 380,000 homes and businesses in 77 of Ohio's 88 counties. Their combined service areas cover about 40 percent of the state's land areas, including most rural areas. It is in this area that Ohio's food and fiber are produced for the state's population, as well as a large export market.

Rural electric cooperatives average seven residential consumers per mile of line, in contrast to 31 for Ohio's eight investor-owned companies. The average revenue per mile of line for rural electric cooperatives in Ohio is about one-ninth that of the investor-owned companies.

And all these cooperatives are linked together with more than 600 other electric co-ops across the country in a national alliance called Touchstone Energy®.

Why do utility customers, in survey after survey, say they prefer to get their power from a cooperative? Because ownership makes the difference! Unlike the IOUs that must balance the interest of the consumer with that of Wall Street, electric cooperatives provide services solely in the interest of the member.

The results can be amazing. Each and every employee of the rural electric program works for the benefit of the member, while the member is treated with the uncommon distinction that he/she is the owner. We think that makes a powerful difference in today's competitive marketplace.

A special choice for Ohioans through the Cooperative

If you are an electric utility customer and are interested in generating your own electricity from renewable sources Ohio law allows you to do so if you meet the following criteria:

  • The generating equipment for producing electricity must be intended primarily to offset part or all of the your own electricity requirements;
  • Acceptable generation include solar, wind, biomass, landfill gas, hydropower, microturbines, and fuel cells;
  • Such generating equipment must also be located on a your own premises; and
  • Must be connected in parallel to the electric utility’s system.

What is net metering?

Net metering is a billing arrangement where customers who produce their own electricity can receive a credit on their electric utility bills for any extra electricity produced by the customer that flows back onto the electric utility’s distribution system.

Generating your own electricity may reduce your electric bill in two ways:

  1. The electricity you produce displaces electricity you would otherwise have purchased from the electric utility (or from a competitive supplier); and
  2. Your electricity bill is lowered by the amount of electricity your generating system may feed back onto the electric utility’ system.
Cincinnati Change will help residents in the Cincinnati Empowerment Zone do this on a individualized basis. The new statewide organization can then pick it up as a operation.

Wednesday, November 12, 2008

Past Time For Him To Go

Treasury Secretary Henry Paulson, in the most explicit sign yet that Treasury was abandoning its initial plan for the rescue funds, said on Wednesday he preferred a second round of capital injections into financial companies to help them weather the worst market crisis in 80 years.

"Our assessment at this time is that this (the purchase of toxic assets) is not the most effective way to use funds," Paulson told a news conference.

Its time for him to go. We need to invest in homes not financial instruments gone bad and or failing financial securities [he missed the boat on the most important one]. We need to rebuild our home infrastructure and put people back to work in doing so.

Tuesday, November 11, 2008

Remember our Veterans

[Photo of President-elect Obama and Iraq war veteran Tammy Duckworth at wreath laying ceremony at the Bronze Soldiers Memorial by Pablo Martinez Monsivais / AP]

At 11 am CST today, Veterans' Day, President-elect Barack Obama arrived at a bronze memorial at Chicago's Soldier Field.

Wearing a dark overcoat, the president-elect walked to the memorial with Tammy Duckworth, a wounded Iraq War veteran and director of the Department of Veterans Affairs for Illinois.

With her at his side, he picked up a wreath placed in front of the memorial and carried it a few feet forward, then set it directly in front of the bronze memorial.

Obama bowed his head for a moment. Then, with Duckworth, they put their right hand their forehead, saluted and walked away with Duckworth. Only a few dozen spectators were present on this crisp day.

A salute like his is a symbol of respect for our fallen heroes. It really has nothing to do with military experience - Ronald Reagan did it all the time.

As a Vet I am proud of the way he did this.

Wednesday, November 5, 2008

Deadline Friday 7 Nov 2008 Columbus Ohio

We have some work to do in Ohio by noon Friday. Lawrence Auls is leading an effort through his company [I co founded it.] to Erase the Digital Divide in Ohio. This included e-books for every child in the state with WiFi built in. It included One Child One Laptop. It is developing a unified infrastructure rebuilding plan that uses the resources of a Cincinnati Change lead public private partnership that will develop a Collateralized Debt Obligation and REIT for 500,000 Ohio homes that will serve as network access points for a statewide broadband wireless cloud.

Tuesday, November 4, 2008

The 44th President of the United States of America and his wife.

Senator Obama, the President Elect, will in January 2009 be the 44th President of the United States, said in winning the office, “If there is anyone out there who still doubts that America is a place where all things are possible, who still wonders if the dream of our founders is alive in our time, who still questions the power of our democracy, tonight is your answer”. Senator Obama was standing in front of a wood lectern on a huge wooden lectern, casting his eyes against a crowd that stretched far into the night.

“It’s been a long time coming. But tonight, because of what we did on this date, in this election, change has come to America.”

Remarks of President-Elect Barack Obama—as prepared for delivery
Election Night
Tuesday, November 4th, 2008
Chicago, Illinois

If there is anyone out there who still doubts that America is a place where all things are possible; who still wonders if the dream of our founders is alive in our time; who still questions the power of our democracy, tonight is your answer.

It’s the answer told by lines that stretched around schools and churches in numbers this nation has never seen; by people who waited three hours and four hours, many for the very first time in their lives, because they believed that this time must be different; that their voice could be that difference.

It’s the answer spoken by young and old, rich and poor, Democrat and Republican, black, white, Latino, Asian, Native American, gay, straight, disabled and not disabled – Americans who sent a message to the world that we have never been a collection of Red States and Blue States: we are, and always will be, the United States of America.

It’s the answer that led those who have been told for so long by so many to be cynical, and fearful, and doubtful of what we can achieve to put their hands on the arc of history and bend it once more toward the hope of a better day.

It’s been a long time coming, but tonight, because of what we did on this day, in this election, at this defining moment, change has come to America.

I just received a very gracious call from Senator McCain. He fought long and hard in this campaign, and he’s fought even longer and harder for the country he loves. He has endured sacrifices for America that most of us cannot begin to imagine, and we are better off for the service rendered by this brave and selfless leader. I congratulate him and Governor Palin for all they have achieved, and I look forward to working with them to renew this nation’s promise in the months ahead.

I want to thank my partner in this journey, a man who campaigned from his heart and spoke for the men and women he grew up with on the streets of Scranton and rode with on that train home to Delaware, the Vice President-elect of the United States, Joe Biden.

I would not be standing here tonight without the unyielding support of my best friend for the last sixteen years, the rock of our family and the love of my life, our nation’s next First Lady, Michelle Obama. Sasha and Malia, I love you both so much, and you have earned the new puppy that’s coming with us to the White House. And while she’s no longer with us, I know my grandmother is watching, along with the family that made me who I am. I miss them tonight, and know that my debt to them is beyond measure.

To my campaign manager David Plouffe, my chief strategist David Axelrod, and the best campaign team ever assembled in the history of politics – you made this happen, and I am forever grateful for what you’ve sacrificed to get it done.

But above all, I will never forget who this victory truly belongs to – it belongs to you.

I was never the likeliest candidate for this office. We didn’t start with much money or many endorsements. Our campaign was not hatched in the halls of Washington – it began in the backyards of Des Moines and the living rooms of Concord and the front porches of Charleston.

It was built by working men and women who dug into what little savings they had to give five dollars and ten dollars and twenty dollars to this cause. It grew strength from the young people who rejected the myth of their generation’s apathy; who left their homes and their families for jobs that offered little pay and less sleep; from the not-so-young people who braved the bitter cold and scorching heat to knock on the doors of perfect strangers; from the millions of Americans who volunteered, and organized, and proved that more than two centuries later, a government of the people, by the people and for the people has not perished from this Earth. This is your victory.

I know you didn’t do this just to win an election and I know you didn’t do it for me. You did it because you understand the enormity of the task that lies ahead. For even as we celebrate tonight, we know the challenges that tomorrow will bring are the greatest of our lifetime – two wars, a planet in peril, the worst financial crisis in a century. Even as we stand here tonight, we know there are brave Americans waking up in the deserts of Iraq and the mountains of Afghanistan to risk their lives for us. There are mothers and fathers who will lie awake after their children fall asleep and wonder how they’ll make the mortgage, or pay their doctor’s bills, or save enough for college. There is new energy to harness and new jobs to be created; new schools to build and threats to meet and alliances to repair.

The road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America – I have never been more hopeful than I am tonight that we will get there. I promise you – we as a people will get there.

There will be setbacks and false starts. There are many who won’t agree with every decision or policy I make as President, and we know that government can’t solve every problem. But I will always be honest with you about the challenges we face. I will listen to you, especially when we disagree. And above all, I will ask you join in the work of remaking this nation the only way it’s been done in America for two-hundred and twenty-one years – block by block, brick by brick, calloused hand by calloused hand.

What began twenty-one months ago in the depths of winter must not end on this autumn night. This victory alone is not the change we seek – it is only the chance for us to make that change. And that cannot happen if we go back to the way things were. It cannot happen without you.

So let us summon a new spirit of patriotism; of service and responsibility where each of us resolves to pitch in and work harder and look after not only ourselves, but each other. Let us remember that if this financial crisis taught us anything, it’s that we cannot have a thriving Wall Street while Main Street suffers – in this country, we rise or fall as one nation; as one people.

Let us resist the temptation to fall back on the same partisanship and pettiness and immaturity that has poisoned our politics for so long. Let us remember that it was a man from this state who first carried the banner of the Republican Party to the White House – a party founded on the values of self-reliance, individual liberty, and national unity. Those are values we all share, and while the Democratic Party has won a great victory tonight, we do so with a measure of humility and determination to heal the divides that have held back our progress. As Lincoln said to a nation far more divided than ours, “We are not enemies, but friends…though passion may have strained it must not break our bonds of affection.” And to those Americans whose support I have yet to earn – I may not have won your vote, but I hear your voices, I need your help, and I will be your President too.

And to all those watching tonight from beyond our shores, from parliaments and palaces to those who are huddled around radios in the forgotten corners of our world – our stories are singular, but our destiny is shared, and a new dawn of American leadership is at hand. To those who would tear this world down – we will defeat you. To those who seek peace and security – we support you. And to all those who have wondered if America’s beacon still burns as bright – tonight we proved once more that the true strength of our nation comes not from our the might of our arms or the scale of our wealth, but from the enduring power of our ideals: democracy, liberty, opportunity, and unyielding hope.

For that is the true genius of America – that America can change. Our union can be perfected. And what we have already achieved gives us hope for what we can and must achieve tomorrow.

This election had many firsts and many stories that will be told for generations. But one that’s on my mind tonight is about a woman who cast her ballot in Atlanta. She’s a lot like the millions of others who stood in line to make their voice heard in this election except for one thing – Ann Nixon Cooper is 106 years old.

She was born just a generation past slavery; a time when there were no cars on the road or planes in the sky; when someone like her couldn’t vote for two reasons – because she was a woman and because of the color of her skin.

And tonight, I think about all that she’s seen throughout her century in America – the heartache and the hope; the struggle and the progress; the times we were told that we can’t, and the people who pressed on with that American creed: Yes we can.

At a time when women’s voices were silenced and their hopes dismissed, she lived to see them stand up and speak out and reach for the ballot. Yes we can.

When there was despair in the dust bowl and depression across the land, she saw a nation conquer fear itself with a New Deal, new jobs and a new sense of common purpose. Yes we can.

When the bombs fell on our harbor and tyranny threatened the world, she was there to witness a generation rise to greatness and a democracy was saved. Yes we can.

She was there for the buses in Montgomery, the hoses in Birmingham, a bridge in Selma, and a preacher from Atlanta who told a people that “We Shall Overcome.” Yes we can.

A man touched down on the moon, a wall came down in Berlin, a world was connected by our own science and imagination. And this year, in this election, she touched her finger to a screen, and cast her vote, because after 106 years in America, through the best of times and the darkest of hours, she knows how America can change. Yes we can.

America, we have come so far. We have seen so much. But there is so much more to do. So tonight, let us ask ourselves – if our children should live to see the next century; if my daughters should be so lucky to live as long as Ann Nixon Cooper, what change will they see? What progress will we have made?

This is our chance to answer that call. This is our moment. This is our time – to put our people back to work and open doors of opportunity for our kids; to restore prosperity and promote the cause of peace; to reclaim the American Dream and reaffirm that fundamental truth – that out of many, we are one; that while we breathe, we hope, and where we are met with cynicism, and doubt, and those who tell us that we can’t, we will respond with that timeless creed that sums up the spirit of a people:

Yes We Can. Thank you, God bless you, and may God Bless the United States of America.

We will plan to act on the six “principles” Senator Obama has outlined suggesting a more comprehensive infrastructure overhaul of the financial markets. In the past he has suggested that his administration would regulate investment banks, mortgage brokers and hedge funds much as commercial banks are. And he would streamline the overlapping regulatory agencies and create a commission to monitor threats to the financial system and report to the White House and Congress.