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Sunday, January 24, 2010

Why Obama Does Not Get It?

Although I did not vote for him, I had high hopes that Obama would lead from the middle and develop plans to help our struggling economy recover. Unfortunately, he seems to have a need to blame people/industries who are making money for our problems. Right or wrong, the bank bailout worked. One year later, all the big banks (except Citi) have paid back the tarp money and many are making record profits. In normal times, this would be seen as good news for the following reasons:

  1. Profitable banks pay big bonuses to people who pay income tax on their bonuses.
  2. Profitable banks look for ways to make more money. They make loans and hire people to service them.

Instead of allowing our economy to profit from profitable banks, Obama sees them as the enemy. In addition to raising taxes on banks, he wants to punish them for their new profits.

Since he announce his new "plan" to attack our banks, our stock market has cratered. Good job!!

2 comments:

Anonymous said...

Banks haven't done anything that matters to me. I have no credit, no job and no stocks, so I don't see a need in my future for banks or for a rising Dow.

Why should I care?

Finance Guy said...

If you do not want to stay unemployed, you should want a strong economy. In a weak economy, employers do not grow and do not hire.