St. Paul, MN – Standing in front of banner reading, “Bail out poor and working people – not billionaires!” leaders of the Welfare Rights Committee announced a campaign to combat the impact of the growing economic crisis at a press conference here, Oct. 29. They were joined by members of AFSCME Local 3800, the Anti-War Committee, Women Against Military Madness and other peace and justice groups.

One year after the current financial crisis began, the situation has gone from bad to worse. What began with the failure of small mortgage lenders has toppled Wall Street investment banks, the largest mortgage company in the world, and a trillion-dollar insurance firm. Depositors are starting to flee banks and money market funds, putting businesses in danger of not being able to get loans. Banks don’t want to lend to each other and the stock market can’t find buyers. The economy continues to get worse month by month. As job losses mount, companies declare bankruptcy, foreclosures rise and consumers cut back on spending.

San Jose, CA – On Friday, Oct. 3, the House of Representatives voted to approve Secretary of Treasury Henry Paulson’s $700 billion bailout plan and then left town to campaign for the election. Despite government reports showing that almost half a million people applied for unemployment insurance benefits in one week alone in September and that the economy had lost 159,000 jobs, Congress did not extend unemployment insurance benefits for the long-term unemployed. This inaction will cause almost 800,000 jobless workers to lose their benefits this month.

Keep the heat on Congress!

Commentary by the editor of Fight Back!

A Fight Back! Editorial

Worst Financial Crisis Since the Great Depression

San Jose, CA – The year-old financial crisis entered a new stage in September as the U.S. financial system suffered its worst setbacks since the Great Depression of the 1930s. Over the weekend of Sept. 6-7, Fannie Mae and Freddie Mac, two large mortgage companies that were financing three-quarters of U.S. mortgages, were taken over by the government due to their growing mortgage losses. Then a week later the 158-year old investment bank Lehman Brothers failed to find a buyer and had to declare bankruptcy. The following Tuesday, Sept. 16, the giant insurance firm American International Group (AIG), with more than $1 trillion (1,000 billion) in assets, failed to get an emergency loan and was taken over by U.S. government in exchange for an $85 billion dollar loan. The next day the Putnam money market fund had to close down as investors pulled billions of dollars out following a big loss at a smaller money market fund that had made a big loan to Lehman Brothers.

San Jose, CA – On Sept. 5 the Labor Department reported that the unemployment rate in August rose to 6.1%, from 5.7% in July. This is the highest unemployment rate in almost five years. A week earlier a report from the Commerce Department showed that real income (income adjusted for inflation) fell in July for the first time since January, dragging down household spending despite a drop in savings for the month. These two reports show that the economy may be going into a downward spiral of falling income and spending, leading to more layoffs, which in turn cut incomes and then spending even more.

Plainfield, NJ – The fight here to save Muhlenberg Hospital continues to intensify and broaden. Two public hearings of the New Jersey Health Planning Commission, on May 5 and on June 5, each drew more than 1200 people. The Commission must grant a Certificate of Need (CN) to legally allow Solaris Health Care Corporation to close the hospital.

San José, CA – Working people had less to celebrate over the holiday weekend as the number of jobs fell for the sixth month in a row in June. On July 3, the U.S. Department of Labor reported that there were 62,000 fewer jobs in June as compared to May and increased their estimates of job losses for previous months. All told, businesses have shed almost one-half a million jobs since January. Six straight months of job losses has always meant a recession is underway in the past. At the same time, the number of people applying for unemployment benefits jumped to more than 400,000, a level typical of a recession.

Trenton, NJ – 500 people traveled to Trenton, the state capital of New Jersey, April 5, to protest the threat to close Muhlenberg Hospital in Plainfield. Hospital closings are at crisis level in New Jersey and Muhlenberg, which has served Plainfield for 125 years, is only the latest to be threatened.