In a year when so many baby boomers are approaching FIFTY years old, it is the next FIFTY days of President Obama's administration that will make or break the back of the 'Great Recession' of 2008-2009. The President has realized that leadership and a positive attitude are important ingredients for success in dealing with the economy.
The politicians are beginning to understand and deal with some of the basic issues that have sabotaged the economy. We can expect the so called 'uptick rule' to be reinstated within a few weeks. This will make it more difficult for short sellers to drive down the price of stocks. I also expect a revision in the 'mark to market' rules that will add some flexibility in dealing with the write downs of bank assets. The fiscal and monetary stimulus that were instituted in the last six months will begin showing some progress.
The most important policy decision of the Treasury will be the plan for dealing with the 'toxic assets' that are on the balance sheets of most banks. These policies must be viewed positively by Wall Street so that we can begin the process of healing our banking system. I expect the President and his staff to spend as much time as necessary in the next few weeks to make sure that the plan will work. Hopefully, the next FIFTY days will put a smile on all of us as we head to the stores to start spending money again.
Random thoughts.....I think it is time for the press and the politicians to stop worrying about the bonuses that everyone is getting on Wall Street...it is time to calm down and start spending some money....
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