Barrack Obama: Banker in Chief
January 20, 2009 has proven to be a day that will go down in history. The first African-American President has been elected to the United States of America. This election has proven more historical in that this President was truly elected for his abilities. Barrack Obama is a graduate of Harvard University. This President is as smart as he is charismatic. Obama has the ability to bring about emotion from his crowd. He is one very good public speaker with the ability to inspire millions. The nation’s economy is the worst it has ever been in forty years. More job lay offs have been announced in recent weeks, corporate earnings are weaker and the stock market continues to decline. This year alone the market is already down almost 10%. It is now going to be up to Obama to fix our national economy before it gets worse. Mr. Obama has now earned himself the title of “Banker in Chief”.
Inauguration day proved to be a tough one on Wall Street today. The markets all lost significantly as a result of more problems in our banking systems. Bank of America shares tumbled almost 18% today setting a new 52 week low record. Bank of America posted a $2.39 billion dollar fourth-quarter loss due to rising credit costs. Shares still tumbled even though the Federal Reserve is going to provide Bank of America $20 billion to help it survive its acquisition of Merrill Lynch. Investors fear the uncertainty that the government will end up taking over and nationalize banking industry.
It will now be up to President Barrack Obama to restore confidence in the financial markets. I do not believe that the government is looking to get into the business of banking. Unfortunately, due to corporate excesses and lack of government control, our country has found itself in mess beyond comprehension. The focus of the Troubled Asset Relief Program is supposed to help banks and thus unfreeze the credit markets. However, it seems that our banking industry is not using the funds it has received from the TARP program to help businesses and individuals in need of money. Why did Bank of America invest $6 billion in a Chinese Construction firm? Why do other banking executives continue to receive lavish salaries while their firms are on the brink of collapse? This is a direct result of outlaw capitalism. Although greed (according to Gordon Gecko) is good, excess is bad. Regulation is needed in order to keep people honest. The lack of regulation has created a rouge Wall Street and instilled a lack of confidence in investors.
I am confident that our new Commander in Chief will lead our country to a better economy and new era of prosperity. In today’s inaugural speech Barrack Obama called for a responsible capitalistic society. The government is in business to govern our nation; they are not in the banking business. Regulations on banking must be enforced in order to prevent another possibly more catastrophic financial collapse. It should be the goal of the Obama Administration to regulate banking in order to revitalize lending. It will be the restored flow of credit that will eventually turn our economy around. Again, I am hopeful that this administration will bring about the kind of change that will propel our country into another era of renewed prosperity.
January 20, 2009 has proven to be a day that will go down in history. The first African-American President has been elected to the United States of America. This election has proven more historical in that this President was truly elected for his abilities. Barrack Obama is a graduate of Harvard University. This President is as smart as he is charismatic. Obama has the ability to bring about emotion from his crowd. He is one very good public speaker with the ability to inspire millions. The nation’s economy is the worst it has ever been in forty years. More job lay offs have been announced in recent weeks, corporate earnings are weaker and the stock market continues to decline. This year alone the market is already down almost 10%. It is now going to be up to Obama to fix our national economy before it gets worse. Mr. Obama has now earned himself the title of “Banker in Chief”.
Inauguration day proved to be a tough one on Wall Street today. The markets all lost significantly as a result of more problems in our banking systems. Bank of America shares tumbled almost 18% today setting a new 52 week low record. Bank of America posted a $2.39 billion dollar fourth-quarter loss due to rising credit costs. Shares still tumbled even though the Federal Reserve is going to provide Bank of America $20 billion to help it survive its acquisition of Merrill Lynch. Investors fear the uncertainty that the government will end up taking over and nationalize banking industry.
It will now be up to President Barrack Obama to restore confidence in the financial markets. I do not believe that the government is looking to get into the business of banking. Unfortunately, due to corporate excesses and lack of government control, our country has found itself in mess beyond comprehension. The focus of the Troubled Asset Relief Program is supposed to help banks and thus unfreeze the credit markets. However, it seems that our banking industry is not using the funds it has received from the TARP program to help businesses and individuals in need of money. Why did Bank of America invest $6 billion in a Chinese Construction firm? Why do other banking executives continue to receive lavish salaries while their firms are on the brink of collapse? This is a direct result of outlaw capitalism. Although greed (according to Gordon Gecko) is good, excess is bad. Regulation is needed in order to keep people honest. The lack of regulation has created a rouge Wall Street and instilled a lack of confidence in investors.
I am confident that our new Commander in Chief will lead our country to a better economy and new era of prosperity. In today’s inaugural speech Barrack Obama called for a responsible capitalistic society. The government is in business to govern our nation; they are not in the banking business. Regulations on banking must be enforced in order to prevent another possibly more catastrophic financial collapse. It should be the goal of the Obama Administration to regulate banking in order to revitalize lending. It will be the restored flow of credit that will eventually turn our economy around. Again, I am hopeful that this administration will bring about the kind of change that will propel our country into another era of renewed prosperity.
Labels: Bank of America, Barrack Obama, TARP
Credit Card / Financial news blog post by Todd Holliday at 7:36 PM 