When the renowned Warren Buffet speaks about the perils of Credit Default Swaps, people listen. Mr. Buffet supports a federal bailout of the financial institutions to save America whereas others in the financial and governmental arena do not support the bailout of the big 3 automakers. He will be coming “clean” on how he manages his investments, now that he and his Wall Street investor friends are losing their investments at an accelerated rate. The corporate jets are in jeopardy and now they will have to fly commercial with “the public”.
Downsizing is tough for people who have been living large and in charge when Fuel prices were over $3.50 a gallon and, were making millions off of other people’s misery. This is nothing new to UAW members who have been experiencing this recession/depression, long before the December 2007 declaration by Wall Street of the start of the official recession. Click here to read the “Buffet Story” from the New York Times article of November 25, 2008.
The advantage of bailing out the big three will have a ripple effect in the affected communities. People who work for the Auto Industry are the true middle class. UAW members were the ones doing the spending on things such as electronics, recreational vehicles, and tend to spend their money among the citizens of their respective neighborhoods. The total number of people tied to the Auto Industry is about 10 times the numbers working in the finance area. Autoworkers and suppliers tend to be larger participants in local community activities such as bowling, golf, and spending with neighborhood businesses.
Bailing out the financial industry because of the greed and mismanagement is bewildering to the Middle Class citizen. Mr. Buffet’s concern of the credit default swaps and derivatives in the market is commendable and genuine. One of his primary investments Berkshire Hathaway has lost over %36 in value since October 1st of 2008. He is losing about 1/3 of his total assets in the falling stock market and is a big supporter of the federal bailout of the financial industry. Berkshire Hathaway is an investment portfolio of companies like, Coca-Cola, Goldman Sachs, and General Electric. And when Joe and Jane UAW member lose their home in a foreclosure proceeding, Wall Street investors refer to that as a natural course of business. And sometimes the investor’s investments increase in value because the investor was betting that the price of a stock or an investment will fall in price.
The mismanagement and greed has another friend in the un-regulated business practices of Wall Street. The friend comes in a form of a Security Item called Derivates where investors were creating items called futures that are backed by hard objects like homeowner mortgages, corn, rice, gasoline, natural gas, and other physical assets. The investor is hoping (betting) that the price will change upwards or in some cases downward (short position) in a measured amount of time. Usually it is about 3 months. An investor purchases one of these derivates without ever owning the asset that backs it. When the price goes up, the investor skims the profit. If the price goes down, then the investor loses their money. The investor has their bet “insured” by a company like AIG and Goldman Sachs. AIG and Goldman Sach’s job is to pay off the investment in case something goes wrong. This was fine until the adjustable rate mortgages started to default and the financial pyramid came tumbling down.
Mr. Buffet was a willing participant in this process and was a major player in this market. He was also wise to see that the derivative market was a tool for financial mass destruction. He realized that in the wrong hands an unsupervised a rouge investor could manipulate prices by using world events to create a false demand by altering the supply chain. With the help of a few press releases and access to supply lines, investors can control the supply of commodities (electric, fuel, etc) with the click of a mouse.
So why does the opinion of a wealthy person like Mr. Buffet matter to anyone in the middle class? A middle class person is defined as a married couple or anyone making in a range from $30,000 to $100,000 a year. Warren Buffet is a financial consultant and a supporter of President-Elect Obama’s plan for change in America. Rep. Cushingberry sees the relationship between Wall Street and the homeowners and businesses on 7 mile road. Rep Cushingberry knows that the average UAW employee spends their money in the community much quicker than employees of Wall Street firms. The money spent by these union members gets turned over at least 5 to 7 times in the community they live in. UAW members tend to be common people who are actively involved in their community’s growth by participating in PTA meetings, softball tournaments, and other activities that directly impact the people.
Rep Cushingberry knows that the UAW members were the first ones who gave concessions to the big 3 long before the current credit crisis on Wall Street. He finds it appalling that the investors on Wall Street say that Union members make too much money. This is after new UAW members make %50 less than their counterparts working the same job. And the new UAW worker has to pay more for their health care coverage out of their gross pay. And to ask these workers to give even more concessions is an insult, especially when the derivates market is a $531 trillion dollar albatross that is bringing down the economic wealth of the United States.
If you want to support me in my efforts to reform the financial planning of State Government, please give me a call at my office or email me at gcushingberry@house.mi.gov. I would love to hear from you on this. If you have a Gmail account, then log in and comment on my blog.
Wednesday, December 3, 2008
Restoring the Revenue: Michigan Department of Corrections Budget Savings
Mama Cushingberry once said to me that "you should be careful for nothing". I pondered what she said to me and then I thought about it. Mom was talking about preventive maintenance and boy Mom was right again! After all Moms' are always right
and have a lot of insights. And in these times of financial uncertainty ruling life's events, new and creative ways must be developed to restore the revenue to needed State Services. In the Department of Corrections, there are many opportunities to streamline and redirect revenue that is currently being spent on existing programs and policies. Specific policy changes in the Department will generate at least one billion dollars in savings over the next 5 years. One of my visions is when the revenue returns, I want to plan for how long the revenue will last and, how strong the revenue will be. And to do that I am proposing a 10 year master plan to accomplish this.
One of the effective methods that I propose is to start reducing the number of prisons. What will you do with the existing prisoners? Where will they stay? Wont your create prison overcrowding by tearing down and closing prisons? The answers to these questions are not that complex. The main customer of the Department of Corrections is the County Prosecutors who send the prisoners and, the prisoners themselves. Reducing the number of prisoners is an attainable goal. And to accomplish this, you have to look at each one of the prisoners on a case by case basis.
The main requirement is to remove the non-violent, low level, mentally ill, and the seriously ill from the Corrections process. Currently %82 costs are related to maintaining food, clothing and shelter for each of these inmates. These functions truly belong in the Department of Community Health because mental illness is a disease that needs treatment. Too often our Jails are
used to house people who are mentally ill where in all reality these people need to be in supervised medical treatment facilities. The closing of Mental Hospitals was a mistake because when these facilities were open, the crime rate went down. Some of the people committing crime are true mental patients who do not need to be in the general population without medical intervention. State supplied medicine is cheaper and more cost effective than housing a prisoner in the Dept of Corrections system.
The second criterion that I would use is to remove all low level drug offenders from the system. Crimes like Marijuana possession and Possession with intent to deliver (a big charge to keep a person in jail) would be reviewed and the prisoner purged from the Correction's system. I would also push for this at the county level because most of the arrests are made by County and Local Police agencies. County Prosecutors would be given broad leeway and encouraged to plead these cases to low misdemeanors or civil infractions. Other alternative measures such as community service jobs such as cleaning bathrooms at State Parks and teaching at public schools as a sub-teacher.
A prisoner would be given a time adjustment for teaching subjects such as Math and Science count for a paid lunch at $15.00 per day. Otherwise 500 hours of community service is much cheaper than keeping these people in jail at $25,000 per year. Additionally, with the adoption of Proposal 1 allowing the sick and dying to receive Medical Marijuana under a doctor's prescription will further reduce the burden on the State of Michigan
These changes in the Department of Corrections would save the taxpayers $250 million dollars a year in prison costs to the taxpayers. We could move the cost savings to Dept of Community Health for proper treatment of mental health patients and still have a surplus.
and have a lot of insights. And in these times of financial uncertainty ruling life's events, new and creative ways must be developed to restore the revenue to needed State Services. In the Department of Corrections, there are many opportunities to streamline and redirect revenue that is currently being spent on existing programs and policies. Specific policy changes in the Department will generate at least one billion dollars in savings over the next 5 years. One of my visions is when the revenue returns, I want to plan for how long the revenue will last and, how strong the revenue will be. And to do that I am proposing a 10 year master plan to accomplish this.One of the effective methods that I propose is to start reducing the number of prisons. What will you do with the existing prisoners? Where will they stay? Wont your create prison overcrowding by tearing down and closing prisons? The answers to these questions are not that complex. The main customer of the Department of Corrections is the County Prosecutors who send the prisoners and, the prisoners themselves. Reducing the number of prisoners is an attainable goal. And to accomplish this, you have to look at each one of the prisoners on a case by case basis.
The main requirement is to remove the non-violent, low level, mentally ill, and the seriously ill from the Corrections process. Currently %82 costs are related to maintaining food, clothing and shelter for each of these inmates. These functions truly belong in the Department of Community Health because mental illness is a disease that needs treatment. Too often our Jails are
used to house people who are mentally ill where in all reality these people need to be in supervised medical treatment facilities. The closing of Mental Hospitals was a mistake because when these facilities were open, the crime rate went down. Some of the people committing crime are true mental patients who do not need to be in the general population without medical intervention. State supplied medicine is cheaper and more cost effective than housing a prisoner in the Dept of Corrections system. The second criterion that I would use is to remove all low level drug offenders from the system. Crimes like Marijuana possession and Possession with intent to deliver (a big charge to keep a person in jail) would be reviewed and the prisoner purged from the Correction's system. I would also push for this at the county level because most of the arrests are made by County and Local Police agencies. County Prosecutors would be given broad leeway and encouraged to plead these cases to low misdemeanors or civil infractions. Other alternative measures such as community service jobs such as cleaning bathrooms at State Parks and teaching at public schools as a sub-teacher.
A prisoner would be given a time adjustment for teaching subjects such as Math and Science count for a paid lunch at $15.00 per day. Otherwise 500 hours of community service is much cheaper than keeping these people in jail at $25,000 per year. Additionally, with the adoption of Proposal 1 allowing the sick and dying to receive Medical Marijuana under a doctor's prescription will further reduce the burden on the State of Michigan
These changes in the Department of Corrections would save the taxpayers $250 million dollars a year in prison costs to the taxpayers. We could move the cost savings to Dept of Community Health for proper treatment of mental health patients and still have a surplus.
Sunday, November 16, 2008
Wednesday, November 5, 2008
Michigan Democrats Celebrate a Democratic Landslide
Click on the title to see the highlights of all the action as we celebrate the win of President-Elect Barack Obama
Thursday, October 2, 2008
The wrongs of Predatory Loans, recognition of the true problem, a prescription to cure the foreclosure crisis and restore homes in America.
As I was visiting New Prospect Baptist Church in Northwest Detroit one Sunday morning, I ran into and talked with my Pasteur School Classmate Dwight Jones a friend of mine from “the old neighborhood”. We both grew up together in the neighborhood just 3 blocks south of 8 mile road and one block west of Livernois.
Dwight is a respected member of the community and currently serves his as an usher and Deacon at the church. Mr. Jones is a proud alumnus of Pasteur Elementary School just like me and we love the City. Brother Jones shared the same concerns that I had about the housing situation so much that he just blurted out. “Hey Cush, how did this foreclosure mess really get started and, what can we do about it to make it right?
Dr. Cush pondered a few seconds and started to break it down to him on how it happened. Basically we homeowners were sacrificed for investors and speculators on Wall Street and throughout the world. The way that they did it was through a process called Securities Derivatives. I explained to my good friend Dwight that a derivative is similar to a bet on a horse, these investors were betting that with the adjustable rate mortgages we could buy a debt for $10,000 and plan to make $4,000 from and to sell pieces of mortgages in an unprecedented way.
But how does that work? Dwight asked.
Here's how it works Brother Dwight. Let’s take the example of a homeowner on Santa Rosa St in Detroit purchasing a house with an adjustable rate mortgage for $100,000 from a lender. The lender sells the mortgage to Fannie Mae or Freddie Mac after the closing 3 weeks later for $150,000. A mortgage at 8% over 30 years at about $650 per month will yield approximately $350,000 in total payments.
Fannie Mae and Freddie Mac then sells the mortgage to Bear Stearns, Goldman Sachs, etc who creates the SECURITY a derivative which they sell to investors in bundles as a note or bonds. The insurance company (A.I.G.) guaranteed through insurance, as they do with mortgage insurance the derivative.
They sell pieces of the mortgage to investors. The investors are told that the mortgages are backed by insurance companies like (A.I.G.) and that their money is safe. Furthermore, the debt is backed by the homeowner’s property. Bear Stearns or Goldman takes the mortgage to 10 investors, each of them purchasing a piece of the $150,000 mortgage or $15,000 per person, hoping to make $10,000 or higher on the debt. These derivatives equal nearly $516 trillion dollars.
Some of the investors sell their piece of the debt to others who turn around and sell it again and again. This process is called securitization and carried as high bond rating because of the insurance.
To accomplish this, the speculators are would say that in 6 months, the price of property will be at set price more that what is was on a particular date. If it gets there, the investor gets paid a profit. If not then the investor loses money.
The Oil Men in the White House already delivered the nations liquidity to their cronies and now home values have plummeted like no time since the great depression.
They were all counting on the owner of the home to make that monthly payment on time every time for 30 years. The problem starts when the adjustable rates start kicking in and the tax assessment rises. The original $500 a month payment balloons to $1500 a month after 2 years. The homeowner ends up defaulting on the mortgage and the house of cards starts to fall.
The loan is in default, the investors cannot cover their ‘bet’, and the only hard asset that is left is the house itself. The bank forecloses on the property and kicks the people out in the street. The house is priced much more that what it is worth and it sits empty in the neighborhood. The bank takes a huge loss by having to sell the house at pennies for a dollar because the bank does not want to own the home. Meanwhile the investors are screwed out of their money and everyone loses.
These same investment houses speculate other hard assets like Oil, Wheat, Corn, and anything that people use every day. They live on creating and attempting to control the supply and demand through the use of current events in the world, weather, and regulating supply to manipulate the demand price to a higher level. In other words, it is a high stakes poker game with the homeowners being used as chips.
Brother Jones said a deep prayer and asked his old friend “What do we do to fix this situation”? This is a moral disgrace and a criminal act that has been taken against the people of my world! What can we do Brother George? Dr. Cush’s thinking cap went off with bells and whistles. He rubbed his chin and said this is the way to solve this problem.
I would introduce legislation to promote housing for the homeless through the use of State of Michigan and Federal assistance programs. No family without a home to call home. This would include funding set aside for repairs and bringing the property up to code.
If a working person decides to squat in an abandoned property and starts to live there, that person shall be given squatters rights of 60 to 90 days to bring the property up to code. I would also tie this in with Job apprenticeship training in fields of plumbing, home repair, home electrician, and roofing.
Then I would place strict regulations on the process of Derivatives. I would also demand that the Comptroller of the Currency resign immediately. Then I would ask the Federal House Judiciary Committee to start an investigation into the practices of the derivatives. And I would not stop there.
I support increasing the FDIC limit to $250,000 to protect the consumers. I would also advance changes in the credit reporting act to allow local and state courts to resolve credit reporting issues and modify terms of a homeowner’s mortgage based on income and assets. Then I would demand an inventory of all property taken by State, County, and Local agencies, including the land bank authorities.
Once this is all done Brother Jones, this would with God’s help and with all of us working together, we can begin to right this rape of America. My Mom and Dad always told me the rich do well under Republicans and we will do poorly. Boy has it turned out to be true!
1st things 1st, put people in the houses, give cash credit for sweat equity and let’s tackle the Homeless Families issues first. Let the people say Amen. And both of us did just that.
Dwight is a respected member of the community and currently serves his as an usher and Deacon at the church. Mr. Jones is a proud alumnus of Pasteur Elementary School just like me and we love the City. Brother Jones shared the same concerns that I had about the housing situation so much that he just blurted out. “Hey Cush, how did this foreclosure mess really get started and, what can we do about it to make it right?
Dr. Cush pondered a few seconds and started to break it down to him on how it happened. Basically we homeowners were sacrificed for investors and speculators on Wall Street and throughout the world. The way that they did it was through a process called Securities Derivatives. I explained to my good friend Dwight that a derivative is similar to a bet on a horse, these investors were betting that with the adjustable rate mortgages we could buy a debt for $10,000 and plan to make $4,000 from and to sell pieces of mortgages in an unprecedented way.
But how does that work? Dwight asked.
Here's how it works Brother Dwight. Let’s take the example of a homeowner on Santa Rosa St in Detroit purchasing a house with an adjustable rate mortgage for $100,000 from a lender. The lender sells the mortgage to Fannie Mae or Freddie Mac after the closing 3 weeks later for $150,000. A mortgage at 8% over 30 years at about $650 per month will yield approximately $350,000 in total payments.
Fannie Mae and Freddie Mac then sells the mortgage to Bear Stearns, Goldman Sachs, etc who creates the SECURITY a derivative which they sell to investors in bundles as a note or bonds. The insurance company (A.I.G.) guaranteed through insurance, as they do with mortgage insurance the derivative.
They sell pieces of the mortgage to investors. The investors are told that the mortgages are backed by insurance companies like (A.I.G.) and that their money is safe. Furthermore, the debt is backed by the homeowner’s property. Bear Stearns or Goldman takes the mortgage to 10 investors, each of them purchasing a piece of the $150,000 mortgage or $15,000 per person, hoping to make $10,000 or higher on the debt. These derivatives equal nearly $516 trillion dollars.
Some of the investors sell their piece of the debt to others who turn around and sell it again and again. This process is called securitization and carried as high bond rating because of the insurance.
To accomplish this, the speculators are would say that in 6 months, the price of property will be at set price more that what is was on a particular date. If it gets there, the investor gets paid a profit. If not then the investor loses money.
The Oil Men in the White House already delivered the nations liquidity to their cronies and now home values have plummeted like no time since the great depression.
They were all counting on the owner of the home to make that monthly payment on time every time for 30 years. The problem starts when the adjustable rates start kicking in and the tax assessment rises. The original $500 a month payment balloons to $1500 a month after 2 years. The homeowner ends up defaulting on the mortgage and the house of cards starts to fall.
The loan is in default, the investors cannot cover their ‘bet’, and the only hard asset that is left is the house itself. The bank forecloses on the property and kicks the people out in the street. The house is priced much more that what it is worth and it sits empty in the neighborhood. The bank takes a huge loss by having to sell the house at pennies for a dollar because the bank does not want to own the home. Meanwhile the investors are screwed out of their money and everyone loses.
These same investment houses speculate other hard assets like Oil, Wheat, Corn, and anything that people use every day. They live on creating and attempting to control the supply and demand through the use of current events in the world, weather, and regulating supply to manipulate the demand price to a higher level. In other words, it is a high stakes poker game with the homeowners being used as chips.
Brother Jones said a deep prayer and asked his old friend “What do we do to fix this situation”? This is a moral disgrace and a criminal act that has been taken against the people of my world! What can we do Brother George? Dr. Cush’s thinking cap went off with bells and whistles. He rubbed his chin and said this is the way to solve this problem.
I would introduce legislation to promote housing for the homeless through the use of State of Michigan and Federal assistance programs. No family without a home to call home. This would include funding set aside for repairs and bringing the property up to code.
If a working person decides to squat in an abandoned property and starts to live there, that person shall be given squatters rights of 60 to 90 days to bring the property up to code. I would also tie this in with Job apprenticeship training in fields of plumbing, home repair, home electrician, and roofing.
Then I would place strict regulations on the process of Derivatives. I would also demand that the Comptroller of the Currency resign immediately. Then I would ask the Federal House Judiciary Committee to start an investigation into the practices of the derivatives. And I would not stop there.
I support increasing the FDIC limit to $250,000 to protect the consumers. I would also advance changes in the credit reporting act to allow local and state courts to resolve credit reporting issues and modify terms of a homeowner’s mortgage based on income and assets. Then I would demand an inventory of all property taken by State, County, and Local agencies, including the land bank authorities.
Once this is all done Brother Jones, this would with God’s help and with all of us working together, we can begin to right this rape of America. My Mom and Dad always told me the rich do well under Republicans and we will do poorly. Boy has it turned out to be true!
1st things 1st, put people in the houses, give cash credit for sweat equity and let’s tackle the Homeless Families issues first. Let the people say Amen. And both of us did just that.
Friday, September 5, 2008
What’s good about Detroit? Children’s hospital, Buick Lucern, Bonding at a Detroit Lions football game.
Here I go again talking about my favorite city. As I was talking with some of my staff members, I asked them this question. What is good about Detroit? Why did I do that? They could not stop talking at all until I told them I had to go to bed. They brought up the fact that Detroit still makes some of the finest automobiles in the world. Despite what you hear about outsourcing, we still make the Buick Lucern, Cadillac DHS and DTS, Dodge Charger, Jeeps and the new Chevrolet Volt. They are all great automobiles and especially if you get a sun room installed. Recently these cars were cited for having a reliability rate of over 90 percent, which is much better than the Mercedes Benz. Although the news media rarely covers this, we know deep down in our hardcore Detroit hearts that we still produce world popular and reliable automobiles. The Detroit Auto Show is the premiere annual auto gala event.
Eastern Market features food and vegetables that are grown in Detroit! Hometown farming is a priority and our residents take pride in their work. There are no synthetic chemicals, pesticides, fertilizers, or other genetically modified food products allowed in our city. Every Saturday from 6:30am to 3:00pm in shed #2, the finest food grown in the City is for sale. The Eastern Market is an international market offering fare for cuisine from cultures globally.
The Children’s hospital expansion at the Detroit Medical Center is another example of what is good about the city. Medical services are free for children regardless of income level and indigent status. This hospital is a world-renowned institution. Detroit is also a beacon for aspiring lawyers with three great law schools like The University of Detroit, Wayne State University, and the Detroit College of Law at Michigan State University. These three instructions are producing graduates that can practice law with the best, and give back to their communities. So the two great professions medicine and law are both good in Detroit.
Given the high cost of fuel, ridership is growing on Detroit Department of Transportation busses. Detroit has always been committed to mass transportation despite being the motor capital of the world. We all know that the city is experiencing an economic downturn like the rest of the country. It is not a one state recession as being advertised, but a 50 state depression. It seems that we were the first ones to feel the crunch and we are not alone. The entire country is going through a depression with Michigan leading the way at the moment. We still have some excellent homes that are currently abandoned by people and neglected by the banks. But like a rubber band, the first city that is down will be the first city to lead the way to nationwide prosperity. When Detroit comes back, it will be roaring, soaring, and scoring with the nation and the world.
Most of us are political disciples and admirers of the late Mayor Coleman S. Young. We also share his dream of having commercial air service return to City Airport. Mayor Young was an excellent pilot and an honorary member of the Tuskegee Airmen. Detroiters owe it to him to make the dream happen by any means necessary. We are a much better city than people want to believe; a melting pot of all ethnic groups who bring distinct gifts to sustain and maintain the survival of the city.
The Lions, Tigers, Pistons and Red Wings are good things about Detroit. Ford Field Joe Louis Arena and Tiger Stadium are teeming with the melting pot of Detroit love. The Detroit Zoo is what’s good about Detroit visitors from around the globe visit here yearly for this attraction alone.
Old and new Detroit residents have a commitment to the city by participating in community cleanup efforts and voicing their concerns for the children at Detroit Public Schools board meetings. While the rest of the world sees our children as dropouts, hoodlums, and thugs, we see them as future citizens working as police officers, fire fighters, nurses, teachers, doctors, lawyers, dentists, accountants, mechanics, carpenters, farmers, plumbers, etc. The graffiti writer of today may be the webmaster and computer engineer of the future developing cross-platform applications for use all over the world. The saggy pants wearing youth that the adults criticize and berate now, will grow to be a contributing citizen. We must make sure Detroit is a metropolis/village that bears responsibility to our youth to help them learn and earn. This is good about Detroit.
For all those who participate in Detroit’s public and private schools, we as parents will see to it that they take every opportunity that is provided to them in the system. One day, the Detroit Public School system will feature an online syllabus for high school students and parents to help keep track of their progress. We Detroiters have a pride in our city that is unmatched and undisputed. Detroiters handle their business politically and professionally. I look forward to the day when Detroit employees live within the city boundaries, and then the concept of true public service will come to fruition.
Eastern Market features food and vegetables that are grown in Detroit! Hometown farming is a priority and our residents take pride in their work. There are no synthetic chemicals, pesticides, fertilizers, or other genetically modified food products allowed in our city. Every Saturday from 6:30am to 3:00pm in shed #2, the finest food grown in the City is for sale. The Eastern Market is an international market offering fare for cuisine from cultures globally.
The Children’s hospital expansion at the Detroit Medical Center is another example of what is good about the city. Medical services are free for children regardless of income level and indigent status. This hospital is a world-renowned institution. Detroit is also a beacon for aspiring lawyers with three great law schools like The University of Detroit, Wayne State University, and the Detroit College of Law at Michigan State University. These three instructions are producing graduates that can practice law with the best, and give back to their communities. So the two great professions medicine and law are both good in Detroit.
Given the high cost of fuel, ridership is growing on Detroit Department of Transportation busses. Detroit has always been committed to mass transportation despite being the motor capital of the world. We all know that the city is experiencing an economic downturn like the rest of the country. It is not a one state recession as being advertised, but a 50 state depression. It seems that we were the first ones to feel the crunch and we are not alone. The entire country is going through a depression with Michigan leading the way at the moment. We still have some excellent homes that are currently abandoned by people and neglected by the banks. But like a rubber band, the first city that is down will be the first city to lead the way to nationwide prosperity. When Detroit comes back, it will be roaring, soaring, and scoring with the nation and the world.
Most of us are political disciples and admirers of the late Mayor Coleman S. Young. We also share his dream of having commercial air service return to City Airport. Mayor Young was an excellent pilot and an honorary member of the Tuskegee Airmen. Detroiters owe it to him to make the dream happen by any means necessary. We are a much better city than people want to believe; a melting pot of all ethnic groups who bring distinct gifts to sustain and maintain the survival of the city.
The Lions, Tigers, Pistons and Red Wings are good things about Detroit. Ford Field Joe Louis Arena and Tiger Stadium are teeming with the melting pot of Detroit love. The Detroit Zoo is what’s good about Detroit visitors from around the globe visit here yearly for this attraction alone.
Old and new Detroit residents have a commitment to the city by participating in community cleanup efforts and voicing their concerns for the children at Detroit Public Schools board meetings. While the rest of the world sees our children as dropouts, hoodlums, and thugs, we see them as future citizens working as police officers, fire fighters, nurses, teachers, doctors, lawyers, dentists, accountants, mechanics, carpenters, farmers, plumbers, etc. The graffiti writer of today may be the webmaster and computer engineer of the future developing cross-platform applications for use all over the world. The saggy pants wearing youth that the adults criticize and berate now, will grow to be a contributing citizen. We must make sure Detroit is a metropolis/village that bears responsibility to our youth to help them learn and earn. This is good about Detroit.
For all those who participate in Detroit’s public and private schools, we as parents will see to it that they take every opportunity that is provided to them in the system. One day, the Detroit Public School system will feature an online syllabus for high school students and parents to help keep track of their progress. We Detroiters have a pride in our city that is unmatched and undisputed. Detroiters handle their business politically and professionally. I look forward to the day when Detroit employees live within the city boundaries, and then the concept of true public service will come to fruition.
Thursday, September 4, 2008
Stopping the Systematic Stealing – A prescription for the City of Detroit.
Do you know that the thieves who strip Detroit homes and property are better organized than the police? Think about it. Just like a junk yard for car parts, a companion market has grown in parts for homes too. The end result of this criminal work is the systematic destruction of property, and the rapid descent in neighborhood home values. For NEW property owners, survival in this hostile, blatantly criminal environment is a struggle also. Here are three frustrating but real situations that thwart growth in Detroit.
Example one.
1. A young man used his savings to purchase a two family home and invest in its development.
2. He upgraded the appliances and brought the property up to code paid for the cost of a rental license from the city, and had a contract drawn up by a lawyer for the tenants.
3. Things were fine until the renter abruptly moved out.
4. Within 2 hours of their leaving the property, the place was stripped of its metal, materials and mechanical apparatuses (furnace, garbage disposal, etc).
5. The young man still has to make the house note despite the damage to the property.
Example two;
1. Elderly parents die;
2. The grief-stricken children and family members neglect the property;
3. An estate is open to pay for Mom’s funeral, to cover her past due bills, and to continue to operate her bank accounts;
4. The home is stripped before the first appearance in Probate Court; thieves take the copper pipes the aluminum siding, the appliances, the doors, the windows, the furnace, the iron, and strip the brick from the foundation and structure. The police reluctantly take a report but do not visit the home to investigate the damage.
Example Three:
1. A woman inherits a home.
2. The husband abandons her and two children.
3. She works 2 jobs to take care of the children and pay the bills.
4. The neighborhood crack addict breaks in and steals their personal items.
5. The crack addict develops a schedule breaking in based on the schedule of the working woman not being home.
6. Eventually he decides that he can break in while the woman and her family are home and attempts entry through the window.
7. The woman calls 911 while the children.
8. A passer by and a few helpful neighbors show up and intervene helping the woman fight the crack addict.
9. One hour later the police show up.
10. The woman frustrated, has had enough and moves out of the home for the safety of her children.
11. The property is abandoned and stripped of its assets.
In the third example, if the neighbors and the passerby were not fortuitously there, we would have had another major tragedy in the City of Detroit.
But Cush, how can you say that the thieves are better organized than the police? This question to the editor comes from the blog contributor Richard Clement by way of Royal Oak Township Michigan and a hard core Detroiter with our roots in the cement of 8 mile road and points south.
A succession of authority have policed the city and metropolitan area since the founding of Detroit in 1701: a militia, local army, metropolitan police department, city police department and Wayne County Sherriff have exercised the power of the people to keep order and protect people and property. The police are successful when they have the support and co-operation, information, and confidence in those who deliver the police service. Fear feeds on itself and when the people fear police as mush as criminals we have dysfunction. Human nature tells us that people lookout for themselves first.
When I began my political career, the addition of strong Detroit ties to police department officer affiliations strengthens our police efforts. We began and expanded police community relations through precinct organizations, CB patrols, and expanded the Police Reserves. The key to curtailing crime is comprehensive information coordination combined with communicational and caring law enforcement that reacts to and is interactive with city-wide citizen networks.
The criminals know their neighbor’s movements and the police don’t because so few of us have police officers living in our neighborhoods. When Officer Clement lives next door, he has to recognize what is going on and has to do something about it 24/7 not as an employee of the city, but a resident and a public servant. Police who live in the neighborhood and know people can better investigate break-ins, property crimes, and the senior citizens and the single mothers in the neighborhood.
Police Officers are fearless and are not afraid of criminals. They know the neighborhoods they live in and know them well. They know where there are potentially problematic vacant homes and the goings and comings of senior citizens, youths and families: the officers are involved in their community. They make neighborhood observations, they protect senior citizens who give them valuable information, non-withstanding of major community folk and the street cop that make life bearable in the city. This is the key to making the city work again: the relationship between the street cops and citizens.
The systematic criminals who strip our property are watching the comings and goings in the neighborhood. They are stealing and selling mechanical devices, toilets, sinks, wire, pipe, furnaces, etc., to home contractors who use these stolen devices on someone else’s property. Contractors mostly do not, but should, question from where these devices are coming. Second hand dealers should be legally required to keep a log documenting all hardware they purchase and sell. Furthermore, I would support an ordinance to require building equipment, materials to be imprinted as we have done with auto parts to help track stolen merchandise.
Police Citizens Band (CB) units should help coordinate vulnerable people’s comings and goings. City Council needs to review ordinances and budgets so that CB patrols can provide police investigative information and to provide fuel for CB Volunteer automobiles and motorcycles. The CB patrols should be expanded to include cell phones and more reports though the 411 system. Police community relations should have access to virtual mps and other GPS devices.
A google-type picture of every home and business in the City of Detroit on file with the assessor’s office should be kept in a public database. We would have a new way of policing when a 911 call comes in and a picture of the home or business comes on the screen of the police car, the dispatcher, and the CB patrol, along with text message notification to the home occupier’s cell phone.
Scrap dealers should be legally required to question and keep logs of their bills of sale for the purchase and sell of home-related assets. As for punishment in lieu of jail time, first time offenders could be a part of the revitalization by paying their debt to society by assisting with restoring at least one complete home. Jobs on a property include tasks such as painting, installation, cleaning, construction, and other needs as determined by people selected from the home vandalism victim database which each municipality would be required to maintain. This is truly a statewide issue to find alternatives to imprisonment for stealing and illegal drug use. These actions would bring back the true meaning of community service and giving back to our community in a positive way.
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