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Can Obama save Wall Street?

November 6, 2008

It’s funny how the stock market manages to tell a story. This week’s euphoric pre-election surge is all but a memory now, with stocks back in their all-too-familiar slump. If Wall Street could talk, it would be saying: ”You’ve got your work cut out for you, Obama.”

Indeed, the President-elect faces what is likely the most daunting list of challenges ever faced by an incoming administration — and America’s precarious job situation is chief among them. A report by outplacement firm Challenger, Gray & Christmas indicates that planned layoffs surged to their highest level in nearly five years during October, with cuts in the finance industry leading the way.  Meanwhile, the private job sector took a hit to the tune of 157,000 lost jobs last month, with signs pointing to further deterioration to come.

Obama also has the dubious task of restoring investors’ bruised faith in the financial system. After he lamented its “complete lack of regulatory oversight” earlier this week, all eyes are on Obama as he takes on the Greenspan era. Regulating the markets is never a popular task, but neither is justifying a $700 billion bailout bill to furious Americans whose retirement savings just went down the tube.

Obama enters the White House with the hopes of the world pinned to him, with endorsements from everyone from The Economist to Oprah Winfrey propping him up.  But just how long the honeymoon lasts is anyone’s guess.

Do you think Barack Obama is good for Wall Street? Share your thoughts below.

Comments

Obama doesn’t have to save Wall Street. Main Street will save Wall Street.

So, Obama has to save Main Street, Mr. & Mrs. Reader. That’s me and you, isn’t it?

He can start by reducing the tax burden on couples and small businesses with taxable incomes of $250,000 and less from 24.5% to 19.5%…and then to 14.5%. This is 95% of working Americans and 98% of small businesses…who will then take that extra 10% = up to $25,000 CASH per working couple (10% = up to $12,500 CASH per single), and consume America (including Wall Street’s publicly traded companies and corporations) back to prosperity. Consumption is 75% of the fuel of America’s economic engine.

Notice that I said CASH. Credit isn’t necessary when one has CASH.

The budget must be balanced and the national debt paid down in the process. The masking of the true size of the budget deficit by borrowing from the social security trust fund (which belongs to 95% of working Americans & 98% of small businesses)…well…that must cease & desist also.

How can this be done? It’s a no brainer.

The 5% of taxpayers with taxable incomes over $250,000 must return to Obama’s promise of a 39.6% top marginal rate…and then to the pre-Reagan top rate of 70% (the top rate from 1964-1980). It’s time for tax-patriotism on the part of the privileged class.

After all, blood-patriotism is exhibited every day by members of the middle class and working class on the battlefields of Iraq and Afghanistan. Oh yes, it’s time for Our Best & Finest to come home too.

There is absolutely no reason in the world why Osama bin Laden and Ayman al-Zawahiri should still be walking around. They should either be dead…or locked away where the sun doesn’t shine. The sooner the better. The human and financial costs of conducting perpetual military-socio-economic counterinsurgencies in Afghanistan, Iraq…and northwestern Pakistan…must come to a screeching halt. The sooner the better.

OK Jack
oklahomajack.com

 

Obama will be wonderful for the bankers on wall street. He’s going to continue to rake the American people over the coals. Look at who he’s starting to surround himself with.

Posted by jason | Report as abusive
 

Obama has to save wall street, they paid his campaign!

Well let’s give him a break first and see what he does…
and who he takes on his team… but his choise for Rahm Emanuel seems like a big mistake..

Ask me I would fire Bernake, abolish the FED and the federal reserve notes and bring everyting back under the treasury. Connect the dollar to gold again. Fire Paulson.

Turn back the bailout and use the money for EDUCATION and start-up companies, and health care

Posted by Jack Michigan USA | Report as abusive
 

theres a rumour that the dems are going to buy toyota honder and bmw and close them down then appoint the auto unions to run the american car industry change we can trust.

Posted by brian lee | Report as abusive
 

Well, it took the republicans eight years to get us into this mess, do hope they have it in them to realize getting out of these various diasters cannot happen overnight.
Also, hope they realize the survival of our country will depend on the politicians working together.
The division has to stop and they all need to put country first.

Posted by katiec | Report as abusive
 

I agree with Jack on the point that Obama doesn’t need to save Wall Street. Economy at its base is still driven by small businesses, which need the support of politicians more than ever these days.

 

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