Money here, money there, but not a drop to spend…
One year after the economic stimulus act took effect, the economy is still a shambles and people are hurting. And while President Obama and the rest of the muckety-mucks in Washington spent a good part of the week patting themselves on the back for a job well done, the reality is that all that has been accomplished is a record deficit that continues to grow out of control. CLICK TO READ
I am wondering what the heck is going on and why these people can’t seem to tell the truth about just how fragile and weak the economy is today. It’s great to talk about new infrastructure and the creation of jobs, but all this amounts to is more and more bureaucracy. Little if anything has been done to provide incentive to the private sector to create jobs or to start spending. Spending is the backbone to the success of the plan – and it is just not happening. Money is still tight all over. Banks are still unwilling to lend and growth is just not happening. The only thing that is happening is that the government is spending and to cover its debt it is going to have to raise taxes. As I have said before – you cannot tax a society back to prosperity.
President Obama knows what’s needed and I am sure the he is working with his economic team to figure out how to solve these and other crises at hand. Granted, he has a lot on his plate, and has had since day one. Still it is clear that people have lost faith in Washington’s ability to get the country back on track. Holding on to the House and not losing votes in the Senate is where the President has laser-like focus, but even that doesn’t seem to be working. He needs to make a change that he can believe in. He needs to get new advisors and most of all he needs to start listening and stop lecturing.
In the meantime, though, it makes for some good entertainment.
It’s funny to watch how desperate the Democrats have seemed in the last few weeks. Many, including their leader, have become masterful flip-floppers. The President’s favorite whipping boy from the time he started campaigning right up through the State of the Union address last month was Wall Street. Not anymore. Now he loves “these guys”. He thinks they’re worthy of the bonuses many receive and appreciates what they’re doing to get the economy moving again. CLICK TO READ
Come on, I mean really… Seeing this last week was both amusing and terribly sad.
It’s ridiculous to think that one day he criticizes the bankers for getting bonuses and the next day he applauds them and tells the world these folks (he calls terror suspects “folks,” too) deserve the money they make. Does he really think we’re that stupid? Doesn’t he know that we know what’s going on?
The deficit is at record levels and growing daily. Washington is spending money like a drunken sailor on programs that seem not to be working. Unemployment is at an all-time high. And the President is at risk of losing the House. The only people who can afford to contribute to the campaigns are those who just got paid and Wall Street has stopped giving him money. Without Wall Street’s money the powers-that-be may become powerless… so he has to start kissing their rings because he needs their wallets. Stay tuned, the silly season seems to have just gotten started.
THINGS THAT DRIVE ME CRAZY:
Nothing to write this week. Stay tuned this too shall pass…
Get in on the discussion – There is quite a bit to talk about!
The best thing about being involved in the hedge fund industry is that there is always something to talk about or discuss. There is never a dull moment. The print and broadcast media seems to be constantly filled with stories about the evil that these men and women do.
Every day there is another story about a hedge fund causing some sort of havoc in the market or about how a hedge fund manager is doing something that is wrong or shall I say perceived to be wrong. Last week’s topic du jour was John Paulson’s inability to raise money for his gold fund and the U.K.’s worry about the European Union’s pending hedge fund regulation. It is to early to tell what is going to hit the papers this week. (Read the recent posts)
One thing is for sure – Tuesday at 10:00 a.m. when HEDGEAnswers kicks off its February conference call the discussion will be fast, be furious and be informative. Pending regulation will be covered; launching a fund will be covered. Raising assets will be covered along with everything in between. The experts will be on the line answering questions in the unique forum that is HEDGEAnswers.
Get in on the discussion. Register today by clicking here.
This is the second to last call in the 2009-2010 series; you don’t want to miss it.
President Obama to Wall Street: Go for it!
If you don’t like the weather in London, people say, just wait a minute and it will change. Well, now that the President has seemed to digest the recent political and policy losses, his tune towards Wall Street is changing.
The President recently told Bloomberg Businessweek that both Jamie Dimon and Lloyd Blankfein of JP Morgan and Goldman Sachs, respectively, are worthy of their bonuses. After all, according to the Financial Times, he knows “these guys” and they deserve it. Read the story here.
Of course, it was a week or so ago that Senators Barbara Boxer and Jim Webb proposed a 50 percent surtax on Wall Street bonuses. I guess that’s what those people deserve. Read the Blog Post.
Could it be that the Executive Branch and the Legislative Branch are having some communication problems? The weather in the nation’s capital has been difficult over the last week, maybe the phone lines are getting crossed or the wires are down.
Maybe the President has decided to go it alone and is hoping to line his reelection war chest with some of the dollars being paid out to the bonus recipients. Or maybe one of them or both of them are vying for a position in the administration and, well, he doesn’t want to badmouth potential employees. I don’t know what it is, except to say that it’s funny. Or more simply, maybe these guys are F.O.B.
The President needs to move away from Wall Street, the banks and the world of finance and start focusing on jobs and getting people back to work. If he truly wants to effect change, well, he should do what he can to get the country working again. Hey, maybe he can ask Messers Dimon and Blankfein to start accepting resumes…
As I have been writing all week, HEDGEAnswers February call is on Tuesday the 16th at 10 am. I hope you will join me and get in on the discussion about to build a hedge fund business. Register here!