Is it possible for the United States government to own our largest banks? Will Bank of America, Wells Fargo, Citi, and JPM be owned by the USA by the end of 2009? As the economy heads to depression (20% chance), the banks will need more and more capital to stay in business. President-elect Obama will pull out all of the stops. He will have $ Trillions to invest in our country. If the decline moderates, the banks will get stronger. If we enter a period of deflation and depression, the banks will be nationalized.
My hope begins next Tuesday. Consumer psychology can turn on a dime. The new President will instill confidence in his leadership abilities which will lead to consumer confidence. As I have said, the demand for products and services has dropped precipitously in the last four months. It is up to the new government to change this psychology.
Random thoughts......forget about seeing the movie CHE......today is option expiration day on Wall Street......I worry about the stock of GE......no market on Monday. ....it is MLK day.....I hope the pilot of the US Air plane is honored by President Obama......Who will be the next senator from New York?
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2 comments:
Dont worry about GE
The bonds are still AAA rated
I m afraid Consumer wont turn on a dime with out credit and banks are not offering any lately...They are cutting credit lines and modifying existing contracts ....
Loose credit must return again
Lord Marshall Allenby
It's all about the psychology of the people...so true. Let the confidence REBUILD sooner vs. later! ;) Hugs, M
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