Action: Securities Trading

Immediate action must be taken on three issues related to security trading on our domestic markets and on shares of our domestic companies trading on foreign exchanges or bourses to prevent market manipulations by investment pools that may be operating in concert or alone to manipulate markets. Specifically they are:

I. Reinstate the uptick rule immediately and require foreign exchanges to follow these rules with domestic securities If the foreign burses do not comply de-list all domestic stocks from those exchanges.
II. Outlaw "Naked Shorting" and punish violators by levying severe penalties, disgorging all profits from illegal transactions and possible suspensions from trading against all participants including broker dealers, exchanges and fund managers.
III. Require volume equivocation on short sales to prevent "painting the Tape" which is an illegal form of manipulation whereby the market participants buy a few shares to "create" an uptick and then short massive volumes. Whereby, if IBM for example, had cumulative upticks of 15000 shares that would be the maximum no of short sales that could be made until the next uptick. Also the uptick change in market price should be the greater of $.05 per share or .075% of share price. This is in response to the elimination of fractionalization and the implementation of decimalization of pricing mechanisms.

The so-called uptick rule, established in 1938 but repealed by the Securities and Exchange Commission on July 6, 2007 had required traders to wait for a stock’s price to make an upward move before it could be sold short.

Short selling is a trading strategy designed to profit from a stock’s downward movement. It involves borrowing shares from a brokerage firm, then immediately selling them and waiting for the stock price to decline before buying the shares back at a lower price and returning them to the brokerage lender.

"Naked shorting" is technique whereby institutions and investment pools may represent that they will deliver stock by settlement date(3days) when indeed they do not have access to the shares they have sold..

Shorting by itself provides useful balance to the investment markets as speculation by the short operators can be enormously profitable and oftentimes provides analysis and protection against the frauds perpetrated by the Enron’s, World Com’s and AIG’s of the world and the misrepresentations perpetrated by the dishonest managements of these companies.. However when speculation leads to stock price manipulation certain safeguards must be instituted. Due to the development of arcane derivatives and computer generated trading, it is more important than ever to be vigilant.

Please contact your elected officials and tell them to:

1) Reinstate the uptick rule immediately and require foreign exchanges to follow these rules with domestic securities.
2) Outlaw "Naked Shorting" and punish violators by levying severe penalties.
3) Require volume equivocation on short sales to prevent "painting the Tape" which is an illegal form of manipulation.

White House
Senator Voinovich
Senator Brown
Congressman LaTourette

Hank Spain

RIP the Conservative Revolution

On a recent visit to Boston, and with time on my hands, I visited Quincy Market, Faneuil Hall and the Old State House. It was here that our nation was forged, was created as Margaret Thatcher said "by philosophy". An idea, bold and noble shaped a new kind of nation that would grow up to be America. Patriots here lit the spark, took the risks, shaped the debate and began the fight that led to the Declaration of Independence and Constitution.

We've had our ups and downs - but mostly triumph, often at great sacrifice. Our fathers and grandfathers saved the world from a dark and powerful tyranny. Now we seem about to squander it all.

Adults often make self-assessments; honest appraisals to reset our compass. Our country needs a serious reassessment - not by the bickering political class, not by the craven punditry that dominates our flaccid media. By the citizens. Now.

Serious adults, even if they want smaller government, do not hold government in contempt. The need for political structure has been recognized throughout history as essential. Only the adolescents who seized the great edifice of our founders hold it in contempt, and look at the result: gridlocked Congress, Katrina, preemptive war, US Attorney mess, FISA violations, etc. We have even tortured people. Worst of all, we have factionalism, that which many of our founders regarded as the greatest threat to their new system of government.

We lack the will and cooperative spirit to do the real work of government. Bridges are not built across the broad, ideologically imposed divide. Government for too long has been hijacked by a bunch of adolescents riding the curve of their economic mythology. We have a mountain of debt that hobbles our ability to deal with real challenges. Their absolute belief that markets will behave rationally to right themselves has been exposed as a fraud. At least 2 examples: mortgage products that even promoters didn't understand and the recent panic in stock markets. How ironic the stampede to get taxpayer help to bail them out.

Maybe now we'll have some long overdue outrage. Does it have to hit our pocketbooks before we stop the squandering of our great inheritance? Lots of people have gotten rich, and, let's be honest, a lot of middle class people benefited from low rates and rising home values. But our savings rate is zero and our national debt is $10 trillion. The cost is too great, now the piper wants his payment.

The neocons who hijacked the great conservative tradition have gotten it all wrong. Time for accountability, one of their incessant mantras. David Brooks, an estimable conservative, pronounced the Reagan revolution dead. Good riddance.

Time to banish them from influence over our institutions. Shake up the political class. Shun the pundits. Let's get back on track and send the adolescent worshippers of the disastrous, discredited fiscal policies into exile. As Sam Adams said, " If you love wealth more than liberty ... go home from us in peace. May posterity forget that you were our countrymen".

Pat Moore

lte

Published in Cleveland Jewish News 3/13/09:

A sentence in the article on p. 10 of the Mar 6 edition, written by Doug Guth, quotes Dr. Michael Oren as saying, "War with Iran is inevitable." Of all the things this historian says, the idea of war with Iran being "inevitable" is the most destructive to any peaceful resolution in the Middle East. Bibi Netanyahu is apparently a proponent of bombing Iran, at least their nuclear facilities, but I hope clearer Israeli heads prevail.

Yes, Israel has heart, resolve, technology; and is up against all its Arab/Persian neighbors, and is greatly worried about survival. But the use of an Iranian nuclear weapon, responding to an Israeli bombing, would be catastrophic to both.

Watching a recent TV documentary about Iran, I observed that Iranians are very modern people, love Western culture, and the vitriol spewing from the mouth of Ahmadinejad runs counter to the average Iranian citizen’s opinions. If Iran continues to develop nuclear power, it is primarily to demonstrate that they can "play with the big boys," and can use it for electrical power generation for manufacturing goods and to pump oil.

Elliott Berenson, Chesterland

Environmental Action Alert

Several of us met this morning with Amy Gomberg, the program Director for Environment Ohio. This organization is an outgrowth of PIRG (Public Interest Research Group) which has a chapter in Oberlin. Maybe some of you have given donations to PIRG when they come knocking on our doors once a year.

Environment Ohio is focusing on energy and climate change. They are especially interested in changing policy through lobbying. This is why they need our support and our donations. To read more or donate go to Environment Ohio. Right now there are two pieces of legislation pending in Columbus.

The first is HB7 which requires all new buildings that receive capital from the state to meet the LEED Silver standards. Most of you are familiar with LEED standards, but I didn’t know there were three levels: gold, silver and bronze. These standards make sure the buildings are built with green materials etc. but only the gold mandates stricter standards of alternative energy sources such as solar power.

The other bill is the Passenger Rail Bill (HR 6003) providing rail transportation between Cleveland, Columbus and Cincinnati. This project would be eligible for funds from Obama’s stimulus package IF it meets IEEC (International Energy Efficiency Code) standards. These are the highest standards for new buildings, and we could receive funds if the Senate passes legislation in favor of the Passenger Rail Bill.

You can help by calling or e-mailing your State Senator:

Senator Thomas Patton (Cuyahoga County). Senator Patton is on the Transportation Committee.
or
Senator Timothy Grendell (Geauga County).

Please ask them to vote in favor of the Passenger Rail Bill. If the Republican majority votes in favor of the Bill we will be eligible for stimulus package funds and bring more green energy to Ohio.

Becky Thomas

Steering Committee Minutes, February 10 and March 10, 2009

March 10, 2009 Minutes

Attendance: Lynne Rustad, Judy Kramer, Bill Rowe, Ed Fire, Ted Buczek, Debbi Thomas, Lori Zaim, Kathy Kolcaba, George LuPone, Becky Thomas, Ray DiCarlo

Meeting called to order at 9:30 by President Lynne Rustad.

Approval of Minutes:
• Minutes of 2/10/09 approved by Judy Kramer, seconded by Lori Zaim.
• Subsequent minutes will be circulated for approval electronically in order to make the deadline for Newsletter copy on the 20th of each month.

Treasurer’s Report:
• Kathy Kolcaba reported a balance of $4170.54
• There are 50 paid members thus far for 2009
• 100 previous paid members have not yet paid; options to encourage more timely payment were discussed.

Membership:
• Updated list of members is kept by Lori Zaim with Constant Contact (CC), our e-mail service. The Treasurer also keeps a list.
• Lori can also use CC to send out thank-you notes to all who have contributed. George Lupone will write note for this as well as other membership e-communication purposes.
• Contacted because they seem not to have been opening their Patriots e-mail, only 20 out of 80 people have requested to be taken off the email list.
• Patriots is in the process of obtaining a PayPal account which should facilitate dues payments.
• Discussed option of paying dues for more than one year at same rate to avoid likely increase in the future and to help budget process.

Website:
• The new website has been reviewed by several Steering Committee members. Link will now be sent for review to Saturday Coffee and Politics group whose members have helped in site development.
• Lynne Rustad requested that suggestions for changes be sent to her.
• The Homepage section on “Priorities” should be reviewed with special care to ensure that it reflects the general philosophical principles guiding Patriots.
• Website will be moved to a permanent server following approval. Domain name will be moved to the new (hopefully less expensive) server. Until then, a link on current web site will permit access to new site and prevent duplication of effort involved in maintaining two sites.

Advocacy:
• Becky Thomas reported that Patriots’ Move On congressional advocacy training proved very effective in preparing for visit to Representative LaTourette’s office.
• Elliott Berenson attended similar Geauga Change training session but his report was deferred because he was unable to attend today’s meeting.

Education:
• Schedule is in place through May
• June/July programs were discussed. Judy Kramer suggested a less formal discussion of a “summer reading” book about Afghanistan: The Places In Between by Rory Stewart.
• President Obama’s policy for Afghanistan may shape up by summer so a discussion about that may be appropriate for a subsequent meeting.

Health Care Reform:
• The resignation of Jill Levine, a strong proponent of expanded and improved Medicare for all, and a leader Patriots’ health care effort, is sad but understandable.
• Ray DiCarlo and Lynne Rustad will continue to inform members and send health care Action Alerts but won’t be able to devote the time to it that Jill did.
• Efforts to influence the administration’s health care plan will continue and, although passage of HR 676 appears unrealistic at this point, we will certainly advocate for inclusion of a government-sponsored “public insurance” component.
• Ray encouraged phone calls to Kathleen Sibelius (the new HHS Secretary) to urge inclusion of a public insurance component. (877-696-6775) Her prior role as Kansas’ Insurance Commission has raised questions about how aggressively she would seek regulation of for-profit companies.

Operations:
• The role of Operations Committee needs clarification; especially since Communications, Treasurer and Community Relations now handle much of the membership function.
• Claire Rahn, head of Operations, will be asked for input and by-laws will be circulated with a view to amending them to more accurately reflect current function.
• Office operations, as well as lack of secretarial support, deserve attention.

New Business:
• Ted Buczek and Ray DiCarlo reported on attendance at “Jobs with Justice” meeting - the current emphasis being on the Employee Free Choice Act.
• There will be a EFCA rally on Public Square, 3/30 at 4:00PM
• Ed Fire will write an article about EFCA for the Newsletter to help inform community members about the issues involved.
• Online member vote will assess interest in supporting EFCA.

Continuation of Strategic Planning:
• Since a monthly meeting hasn’t allowed time for both strategic planning and normal committee business, an additional meeting will be added to finish planning.
• Next meeting will be Thurs. 3/26 at 9:30 if reasonable for most members.

Respectfully submitted by Acting Secretary,

Becky Thomas


February 10, 2009 Steering Committee Minutes

Newsletter:
• We are looking into providing a PayPal option in the Newsletter and on the Web for paying dues.
• All items for the newsletter are to be submitted to Lori Zaimby the 20th of the month for publication the following month. Items should be in Word format and photos as .jpg.

Website:
• Sherri Culver moved and Judy Kramer seconded a motion that Patriots for Change have a website that contains general information about the organization and has a link to the Google calendar for current activities and events. This will reduce the need for regular updating. Motion carried unanimously.

Advocacy:
• Ed Fire reported on a meeting with Congressman LaTourette regarding the stimulus bill. The Move-On method of advocacy was used and was helpful in guiding the discussion.

• Ed also reported on the Fair Elections Now Act. Ed Fire moved and Ray DiCarlo seconded a motion to place an article on the Act in the Newsletter and follow-up with a Survey Monkey survey of the membership to determine support. Motion carried.

Health Care:
• Ray DiCarlo reported on the status of the Health Care Act. A group supporting the bill will meet with Congresswoman Marsha Fudge on March 18.

Education:
• Judy Kramer outlined the upcoming Education program.
o March 21: Frontline presentation “Sick Around the World” at the Chagrin Falls Library.
o April 18: Book talk on “The Post-American World” by Fareed Zakaria.
o May 23: Volunteer Opportunity Fair at Chagrin Falls Township Hall.

Chagrin Falls Jail Issue:
• The consensus of the group was that this issue is not appropriate for Patriots for Change engagement.

Respectfully submitted,

Sherri Culver
Acting Secretary