Obama goes for the jugular
Obama’s latest proposal to curb proprietary trading and limit the size of financial institutions sounds like populism policies to many due to Massachusetts loss.
Actually Paul Volcker and a few others have been talking about this but no one took notice because they thought that Wall Street lobby will stop Congress from pushing it.
However, they must have been drinking Wall street’s Kool-aid for too long. times are changing, the grapes of wrath has been awakened. Obama has no choice but to take action, Massachusetts loss was just a catalyst.
Although stocks drop due to the fear of the unknown due to this proposed change, its long term effects will be good for the health of the financial sector if implemented correctly. With the financial sector stabilised, real economy will not be backstabbed again by financial engineering.(at least until another round of financial liberalization starts)
i leave you with this message from a former US secretary of state under Woodrow wilson.
William Jennings Bryan at the Democratic National Convention in Chicago in 1896. “There are those who believe that you just legislate to make the well-to-do prosperous, that their prosperity will leak through on those below. The Democratic idea has been that if you legislate to make the masses prosperous their prosperity will find its way up and through every class that rests upon it.” He couldn’t have said it better.
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