An MBS story never told

This is a splendid story. The origin of a world-famous structure is never heard in our media and history books, for a fucking obvious reason.

In 1930 San Francisco wanted to build the Golden Gate Bridge. Banks were collapsing and The Holy Market had decided to bomb the whole country. None of the usual funds or investors were willing to underwrite the 35 million in bonds needed for the bridge.

So the community, across all six counties of the Bay Area, WORKED TOGETHER. They set up a corporate structure and designed the contract so all properties in the six counties were effectively underwriting the bond. One man, Amadeo Giannini of Bank of America, decided to take on the bonds because he loved his community more than his fortune.

The bonds were issued, backed by six counties of property taxes in case the bridge didn’t succeed. All property owners would have to double up on tax payments to avoid default. If it did succeed, tolls would pay off the bonds. Of course it did succeed, and tolls paid.

This strongly resembles Mutual Benefit Societies. A group with common interests gets together and pledges mutual support, backed by real money, to keep the group alive through tough times.

Giannini wasn’t unique. Bankers and corporate leaders in other cities were helping in a less formal way. EW Marland(Conoco) and Lew Wentz spent their own money to keep Ponca alive. HH Champlin and George Failing did the same for Enid.

Modern corporate leaders and politicians are doing the opposite, stealing and shouting instead of helping. It doesn’t matter how loud you scream the magic words if you’re doing nothing to control crime or prices.