Little thing about Kucinich

[Captain Absolut]

It's from slate.com


The story: Kucinich "was elected mayor on a promise that he would not sell off or privatize the beloved and trusted city-owned power system, though Cleveland was deeply in debt. Cleveland Magazine offered this summary: 'Kucinich refused to yield to bankers who gave him a choice: Sell the Municipal Light System to the Cleveland Electric Illuminating Co. or the city will go into default. ...' When Kucinich refused to sell Muny Light, the banks took the unprecedented step of refusing to roll over the city's debt, as is customary. Instead, they pushed the city into default. It turned out the banks were thoroughly interlocked with the private utility, CEI, which would have acquired monopoly status by taking over Muny Light. … By holding to his campaign promise and putting principle above politics, he lost his re-election bid and his political career was derailed. But today Kucinich stands vindicated for having confronted the Enron of his day, and for saving the municipal power company. 'There is little debate,' wrote Cleveland Magazine in May 1996, 'over the value of Muny Light today. Now Cleveland Public Power, it is a proven asset to the city that between 1985 and 1995 saved its customers $195,148,520 over what they would have paid CEI.'" (Kucinich campaign Web site)

Reality check: Banks expect borrowers to show responsibility. Muny Light was one of Cleveland's few remaining assets and had been losing money for a decade. The banks wanted the city to sell it to cover previous loans. As one bank director put it to Kucinich (in the Cleveland Magazine article Kucinich selectively quotes), "You have the opportunity to straighten up some of your house by selling your losing Muny Light plant. If you're going to ask us to roll over these notes, you've got to show some financial responsibility." In exchange, the banks offered to throw in an extra $50 million loan.

Kucinich rejected the offer. He asked the banks to wait a few months to let him hold a special election on an income tax increase to pay off the loans. The banks said no. Kucinich then tried to force the tax increase in a last-minute city council session and was rebuffed. Cleveland Magazine concluded, "It was love of confrontation that eventually forced him into this ultimate confrontation." The default made Cleveland a national laughingstock and led to Kucinich's overwhelming re-election defeat. In 1995, a panel of 25 historians ranked him the seventh-worst mayor in American history.


I guess everyone can't get it right all the time...

[Garage Queen]

1. Two questions:

1. Which Democrat are YOU supporting?

2. Why do you feel the need to try and bash Kucinich? (I'm not a DK gal, but I've decided to live and let live.)

Thank you in advance for your kind response.

[cjbuchanan]

5. great advice

no need to attack within the family.

[Rainbowreflect]

6. A nice 9 post hit & run.

How does this change that he save the people of Cleveland millions?

[Zuni]

2. legends will die hard

I think Kucinich supporters would not want to hear this.

[sangh0]

3. Propoganda

that does nothing to refute the claim that DK saved Cleveland $195 million

[rabid_nerd]

4. "the banks took the unprecedented step..."

"...of refusing to roll over the city's debt, as is customary"

Disregarding that not paying bills on time gives someone the right to forclose/declare in default, it IS unusual for such an occurence to take place.

I also am not a DK guy but there IS obvious evidence of collusion between the banks and the interested outside power company.

[sangh0]

7. Banks lose money when they foreclose

which is why they are usually happy to roll it over

[blm]

8. There was. I lived there at the time.

The powers that be were in cahoots to defeat Kucinich at every turn possible. He was a populist mayor in a big business town. When DK was mayor, over 70% of this nation's industry was within a 500 mile radius of Cleveland. It was essential to big business to control Cleveland.

[RUMMYisFROSTED]

14. Gotta agree with you. *shock*

Am I gonna believe a banker or DK? DK by a mile.

[ThirdWheelLegend]

9. Good one

Obviously the corporate banking version of the story is the best source.. why would they mislead?

“There is little debate,” wrote Cleveland Magazine in May 1996, “over the value of Muny Light today. Now Cleveland Public Power, it is a proven asset to the city that between 1985 and 1995 saved its customers $195,148,520 over what they would have paid CEI.”


TWL

[tlcandie]

18. You ARE joking right?

<quote>
Obviously the corporate banking version of the story is the best source.. why would they mislead?
<quote>

ROFLMAO.. unbelieveable! :crazy: :silly:


EDIT: I'm sorry, you were being sarcastic and I missed it! I was so shocked to read what you wrote that I about fell out of my chair :) Apologies!
:hi:

[fob]

10. I haven't committed to any candidate yet, but this "little thing"

is unfair.

You repeat the "story" as if it's such bs because it's told as an absolute version of events rather than a summary of the event, then you throw in your OPINION as absolute fact to rebut the story.

Do I believe the "story" is a complete record of what happened, NO. But your opinion of what "banks expect" and how they related that info to Dennis (were you at this meeting) are wholly unfair and misleading. You also intimate that banks don't get, and grant, requests for delayed payments.

Please spend your time to refute the POINT of the story, Clevelanders saved money and ultimately, they owe that to Dennis' moves.

Why mask your point in such a disguised manner?

[sfecap]

11. Yawn....

n/t

[WhoCountsTheVotes]

12. I'm glad Kucinich stuck it out, and now the city still owns Muny Light

Kucinich took the political hit, but it paid off for the city in the long run. Good for Kucinich.

[Captain Absolut]

13. I wasn't hitting and running

I'm supporting Dean unless Clark runs.

I wasn't bashing DK...I was just commentting that a left leaning online mag gave this on DK.

I was just saying that no matter how good one thinks a candidate is they can't always do right. I like DK, but I don't think he's electable.

Plus I like getting people frazzled...:evilgrin:

[qb]

15. I think this paints Kucinich in a good light

The banks tried to blackmail him, but he stood by his principles and made a decision that ultimately benefited the people of Cleveland.

[TheBigGuy]

22. I agree.

Dennis comes arcross as actualy wanting to work with the banks on this....

[Stumpy]

16. You're spouting dishonest tripe.

You totally ignore two very important facts:

One has been mentioned, that it is customary for banks to rollover on a municipality's debt.

The other is that CEI's bank, which I think was Cleveland Trust (Now AmeriTrust). Also the bank owned a lot of stock in CEI.

This was blackmail, pure and simple.

Check out www.kucinich.us/powertothepeople.htm

Furthermore, I suggest a letter writing campaign to AmeriTrust. It's time they pay for their transgressions.


Stumpy

[gratuitous]

17. So . . . Kucinich resisted a standard World Bank ploy

And that's the reason to bash him? Check out Greg Palast's "The Best Democracy Money Can Buy" for the object lesson of Argentina, which succumbed to the bankers by selling off its utilities and the like. The World Bank and the IMF used the exact same tactics: Sell off your water, your electricity and other sources of public income, or face the economic consequences of no longer being able to borrow money."

So, sell Argentina did. And if you'll recall, their economy collapsed last year. Not just a recession, not a depression, but a full-blown collapse. But the banks got their money.

Venezuela faced the same "offer it couldn't refuse" last year, and resisted. Hugo Chavez has been mercilessly vilified in the popular media (including the "left-leaning" - hah! - Salon.com) as a socialist, a communist, and so forth, even having to withstand a military coup attempt backed by the Bush administration. But Chavez has stood his ground, Venezuela still has an economy, and the bankers have had to move on to other pastures.

I'd say Kucinich comes out looking pretty heroic from this episode which happened . . . uh, which happened . . . say, when did this happen? Ten years ago? Twenty? Little thing about the clip-and-paste, it doesn't say. Hmmmm.

[TheBigGuy]

19. What you posted vindicates Kucinich

Kucinich rejected the offer. He asked the banks to wait a few months to let him hold a special election on an income tax increase to pay off the loans. The banks said no. Kucinich then tried to force the tax increase in a last-minute city council session and was rebuffed.

It seems that Kucinich was trying to work out a deal, with that tax referendum to pay down the debt, but the banks played hardball.

Also, Kucinich had inherited the debt from a previous (Republican) Perk adminstration, and the banks did not play the same kind of hardball with the Republican they played w. Kucinich

[TheBigGuy]

20. What you posted vindicates Kucinich

Kucinich rejected the offer. He asked the banks to wait a few months to let him hold a special election on an income tax increase to pay off the loans. The banks said no. Kucinich then tried to force the tax increase in a last-minute city council session and was rebuffed.

It seems that Kucinich was trying to work out a deal, with that tax referendum to pay down the debt, but the banks played hardball.

Also, Kucinich had inherited the debt from a previous (Republican) Perk adminstration, and the banks did not play the same kind of hardball with the Republican they played w. Kucinich

[TheBigGuy]

21. What you posted vindicates Kucinich

Kucinich rejected the offer. He asked the banks to wait a few months to let him hold a special election on an income tax increase to pay off the loans. The banks said no. Kucinich then tried to force the tax increase in a last-minute city council session and was rebuffed.

It seems that Kucinich was trying to work out a deal, with that tax referendum to pay down the debt, but the banks played hardball.

Also, Kucinich had inherited the debt from a previous (Republican) Perk adminstration, and the banks did not play the same kind of hardball with the Republican they played w. Kucinich