Freddie, Fannie, many more and it is not over. Wall Street has to have McCain!
Can the government actually afford to take over and support Freddie and Fannie. Answer! absolutely not! There is just way too much money and too many mortgages to shore up. But despite the fact that necessary steps had to be taken and unfortunately incrementally only reinforces the fact that our market is losing luster and the world’s confidence is waning in light of the meltdown.
So who cares? Everyone! That’s why the election is also crucial and why the people may love Barrack, even in Europe, but the fact is he will crater the economy if elected. The Wall Street crowd and many overseas will just puke if his tax plans are implemented. It may help the middle class by redistribution of wealth but the economy is only supported by their spending not kept afloat in a volatile and dangerous world economy.
If confidence is lost in American markets just think of the catastrophic issues it would cause. In the early 90’s Japan hinted at selling some government securities and our markets cratered. Today, only one of the major debt holders in the world would need to balk and either raise the interest demanded on US securities or just not buy new issues. It is appalling to think how fragile our economy is and that’s why the government must intervene. The government must keep the markets afloat long enough to the see this through and to keep all the panicked investors here and abroad under control so they don’t write America off.
We all know the plans and tactics both parties want to use to shore up the economy. America needs to get away from the $200 million brand war for office – eating it all up on TV as its served – and realize that if Barack Obama is elected the markets would immediately react very negatively. McCain on the other hand plans to reduce the corporate tax rate now 2nd highest in the world. He plans to deliver more relief to small business and yes even to US shareholders – you and me. After all we are a capitalist nation and we need a real CEO in place to help bring America back from the brink.
I hate to say it but I have been on air for months telling markets that Freddie and Fannie and hundreds of financial institutions were melting down and the government needed to step in to shore things up. I am disappointed that it is being done incrementally. We need a massive intervention and we need stewardship beyond that will loosen up Wall Street not make the investors skittish because that alone will leave America out dangling in the wind.
Can the government actually afford to take over and support Freddie and Fannie. Answer! absolutely not! There is just way too much money and too many mortgages to shore up. But despite the fact that necessary steps had to be taken and unfortunately incrementally only reinforces the fact that our market is losing luster and the world’s confidence is waning in light of the meltdown.
So who cares? Everyone! That’s why the election is also crucial and why the people may love Barrack, even in Europe, but the fact is he will crater the economy if elected. The Wall Street crowd and many overseas will just puke if his tax plans are implemented. It may help the middle class by redistribution of wealth but the economy is only supported by their spending not kept afloat in a volatile and dangerous world economy.
If confidence is lost in American markets just think of the catastrophic issues it would cause. In the early 90’s Japan hinted at selling some government securities and our markets cratered. Today, only one of the major debt holders in the world would need to balk and either raise the interest demanded on US securities or just not buy new issues. It is appalling to think how fragile our economy is and that’s why the government must intervene. The government must keep the markets afloat long enough to the see this through and to keep all the panicked investors here and abroad under control so they don’t write America off.
We all know the plans and tactics both parties want to use to shore up the economy. America needs to get away from the $200 million brand war for office – eating it all up on TV as its served – and realize that if Barack Obama is elected the markets would immediately react very negatively. McCain on the other hand plans to reduce the corporate tax rate now 2nd highest in the world. He plans to deliver more relief to small business and yes even to US shareholders – you and me. After all we are a capitalist nation and we need a real CEO in place to help bring America back from the brink.
I hate to say it but I have been on air for months telling markets that Freddie and Fannie and hundreds of financial institutions were melting down and the government needed to step in to shore things up. I am disappointed that it is being done incrementally. We need a massive intervention and we need stewardship beyond that will loosen up Wall Street not make the investors skittish because that alone will leave America out dangling in the wind.
No comments:
Post a Comment