Wednesday, January 27, 2010

Lower Manhattan Screaming 'Oy Vey' After Obama's Lecture Against Risk Taking; Disingenuous State of the Union Speech ....

POTC believes the S&P will accelerate  lower after Obama's State of the Union. Proprietary trading in jeopardy under this anti Wall Street one-termer.
We see the S&P testing the 1,020 range sooner than later. (1 month) The latest political developments have been less than kind to the Obama Administration, and well they should be.
From attempting anti free-market public option healthcare legislation to the ongoing demonizing of Wall Street bodes negatively for long portfolios.
The impressive bounce the market experienced since March of 2009 is in jeopardy right here right now. Obama's speech was laced with jabs at Wall Street, as if they were solely responsible for the economic meltdown. Shame on the president and his shortsightedness.

Though financials have been backstopped through TARP, the question now is what the hangmen (regulators) will demand in return. Hangman-type behavior creates a paradox for turning the economy around, as taking away leverage prohibits growth, and only private sector growth is what will eventually solidify a healthy equilibrium.
Obama specifically mentioned that institutions holding deposits must not take risks.
If it wasn't for leverage and risk dear sir Mr. president, the United States would have never become the most powerful and innovative nation on the planet. What is it Obama missed in his studies?
Firms like Goldman Sachs: GS and JPMorgan JPM did not need TARP money to operate, yet these firms and their employees find themselves swimming in politically contaminated waters.

Non partisanship and confidence is never restored by a get even attitude, yet Obama continually used Wall Street as his punching bag. Why are there no corrective actions against politicians like Dodd, Frank, Geithner, and Summers, did a lot of this crisis not occur on their watches and their legislative actions?

Many of the same players with a different puppet: Definitely Not Change We Can Believe In.



Dave3428 said...

Goldman Sachs didnt need TARP. Are you sure?

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