Stock Preacher

President Barack Obama gave a teaser on Monday of the do-or-die address he will give tomorrow to the joint houses of Congress on healthcare reform. Having gone through the worst month of his presidency, with his approval ratings now at 52%, lower than any other president at a similar stage barring Bill Clinton, according to Gallup, Mr. Obama will need to deliver a game-changing performance when he addresses Congress during prime time tonight. “What are you going to do? What is your answer? What is your solution? And you know what? They don’t have one.” “I have got a question for all those folks (opposing reform),” the fired-up president told a large union rally on Labor Day.

Popularity: unranked [?]

In China the Government owns the Banks; the bankers do not own the Government. China’s stimulus plan is working better than in the US and the UK because the government is using the banks for public ends, rather than allowing the banks to use the government for private ends. In the USA, the banks are the most powerful lobby on Capitol Hill; they own the Government.

The USA is spending trillions of greenbacks to bail out its banking system, leaving its economy to languish, as China, now called a “miracle economy,” decoupled from the rest of the world, is maintaining a phenomenal 8% annual growth rate. That, by the way, is being questioned by lots of Pols, commentators, economists and other talking heads, as they ask how that growth is possible, when other countries relying heavily on exports have suffered major downturns and remain in the doldrums. Read more

Popularity: unranked [?]

US carmaker Ford Motor Co. announced yesterday that it is boosting Q-3 production in North America by another 10,000 units to meet increased demand for its vehicles. According to Ford Americas President Mark Fields, the company’s third-quarter production goal is now 495,000 units, about 18% higher than a year ago. Ford also increased its production targets for the fourth quarter to 570,000 vehicles, a 33% increase over the same period last year. Ford is one of the biggest beneficiaries of the federal government’s “cash for clunkers” program. Its Ford Focus compact has been one of the most popular choices for customers taking advantage of the program, which provides up to US$4,500 to motorists trading in gass guzzlers for new, more fuel-efficient vehicles. Recently US President Barack Obama signed into law a US$2B extension of cash for clunkers program after Transportation Secretary Ray LaHood warned Congress the program was about to use up the initial US$1B allocated by lawmakers.

Popularity: 2% [?]

Online gambling in the US is well on its way to becoming legal, regulated, and, most importantly for Uncle Sam, taxed. “Prohibition did not work for alcohol, and it is not working for online gambling.” –Rep. Barney Frank. Rep. Barney Frank will introduce legislation to legalize online gambling in the US in the next few weeks based on a new PricewaterhouseCoopers study estimates US$52 B could be generated by regulating online gambling over the next decade.

Popularity: 4% [?]

Over the weekend US President Obama ordered the US Treasury on Saturday to implement tax cuts for 95% of Americans, fulfilling a campaign pledge he hopes will help jolt the economy out of recession. The tax cuts are part of a US $787B economic recovery plan passed by the Congress. The aim is to put more money in the pockets of Americans and stimulate the economy by increasing consumer spending.”I’m pleased to announce that this morning the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks, meaning that by April 1st , a typical family will begin taking home at least US$65 more every month,” Obama said in his radio address.

Popularity: 5% [?]

President-elect Barack Obama recently stated that his stimulus proposal could save or create as many as 4 MM US jobs by 2010, nearly 90% of them in the private sector. Obama previously estimated that his estimated US$800B strategy to pull the US economy out of its year-long recession could save or create 3 MM jobs, but his new study has found that the actual number would range between 3 million and 4 million. The analysis was submitted by Christina Romer, head of Obama’s council of economic advisors, and Jared Bernstein, the economic adviser to Vice President-elect Joe Biden. The analysis directly follows an official government report showing that US employers slashed more than 500K jobs in December 2008, pushing the US unemployment rate to 7.2% and bringing the number of jobs lost in the US last year to 2.6MM, the worst since 1945. “The jobs we create will be in businesses large and small across a wide range of industries,” President-elect Obama said on his weekly radio and Internet address. “And they’ll be the kind of jobs that don’t just put people to work in the short term, but position our economy to lead the world in the long term.”

Federal Reserve Chairman Ben Bernanke said that the stimulus package being crafted by President-elect Barack Obama and Congress could provide a “significant boost” to the sinking economy. But he warned that such a recovery won’t last unless other steps are taken to stabilize the shaky financial system.

Although Bernanke has previously endorsed the notion for a fresh round of government stimulus to lift the country out of a recession, it marked the first time the Fed chief has referenced the roughly US$800B recovery plan now being worked on by Obama, who takes office next week. Obama envisions a blend of tax cuts and increased government spending, including on big public works projects, to make up the stimulus plan.

Bernanke, who didn’t weigh in on the details of the evolving package, made clear that such a recovery plan was needed as part of a broader, multi-pronged government response to combat the worst financial crisis to hit the U.S. and the global economy since the 1930s.

The world view: President-elect Barack Obama has unveiled his recovery plan for the US Economy as if the policies of the rest of the world had no bearing on the fate of the US. His POV is that a large US fiscal stimulus policy will be enough to restore prosperity. The world’s economy needs more that a US stimulus, as the problems are much deeper and global than the US alone.

Popularity: 5% [?]