August 07, 2013
Despite renewed interest by some in breaking up the large banks, thanks to government bailouts most of the large financial institutions responsible for the financial crisis are bigger – and more profitable – than ever. And, as CEPR showed , their too-big-to-fail (TBTF) status means that they will get subsidies on an ongoing basis by getting funds at below market interest rates.
Meanwhile here at CEPR we continue to scrape along, relying on the generosity of individuals – many of whom are suffering themselves because of the shoddy practices of the large banks – to fund our work. We do receive funding from some foundations and we are very grateful for that support. But many of our supporting foundations have also seen their funds cut, and changes to corporate boards of other foundations mean that many progressive organizations like CEPR are left out in the cold. We make do with what we’ve got – quite effectively we might add – but still, every year it becomes more and more difficult to meet our budget. This year has been particularly hard as we’ve lost some major sources of support.
So, we give up. We decided that if you can’t beat ‘em, join ‘em. We’ve decided to adopt a TBTF policy of our own. The CEPR-TBTF Subsidy. And we need your help to get it up and running. Please give what you can. Help CEPR become too big to fail. Help us to continue to be able to call out the people responsible:
“The Wall Street gang must really be partying these days. Profits and bonuses are as high as ever as these super-rich takers were able to use trillions of dollars of below-market government loans to get themselves through the crisis they created. The rest of the country is still struggling with high unemployment, stagnant wages, underwater mortgages and hollowed-out retirement accounts, but life is good again on Wall Street” (Dean Baker, 2013).
Not only do we call out those responsible, we also back up what we say with numbers and facts and solid research. If we’re silenced, progressives will lose a valuable ally in the fight against growing inequality.
But if we get too big to fail, we can continue to publish research and analysis and blog posts and op-eds and articles and press releases showing how the bloated financial system is a source of instability, while also offering policy solutions that will bring about a recovery that truly benefits the people and not the bankers. A CEPR that is TBTF might just begin to help level the playing field. Won’t you help us?
P.S. We’re also following in the banks’ footsteps by offering a FREE PRIZE for “opening” your CEPR TBTF “account”. Everyone who donates $75 or more will receive an advance chapter of Dean Baker and Jared Bernstein’s upcoming book on the benefits of full employment. The book won’t be available to the general public until the fall. Donate and get yours today!
