tag:blogger.com,1999:blog-1194375569044391746.post5298554498085736359..comments2024-03-27T14:39:42.067-04:00Comments on Corporate Justice Blog: Business-Related Changes During the First Few Months of Obama's TenureSteven Ramirezhttp://www.blogger.com/profile/16741346526253732489noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1194375569044391746.post-14714349750339853722009-11-13T15:56:51.980-05:002009-11-13T15:56:51.980-05:00I must confess that I do not share Cheryl's op...I must confess that I do not share Cheryl's optimism.<br /><br />First, I do no think that the Obama administration has done anything to address the flaws in financial regulation that gave rise to the present crisis. Perhaps I am missing something, but too-big-to-fail is now apparently going to be codified. We are still burdened with a ridiculous system of corporate governance. Derivatives regulation seems unlikely. The financial sector can still use absurd levels of leverage.<br /><br />Second, and more importantly, most of the money spent to address the crisis has been targeted at the very banks that caused the crisis. It has definitely been a trickle down bailout. And, it is not working. The banks are terrified of their own portfolios and they hoarding cash. They now have over one trillion dollars at the Fed earning 0.25 percent in government subsidized interest. The banks are sucking the lifeblood out of the economy.<br /><br />Right now the Fed is singlehandedly propping up the residential real estate market. Commercial real estate is about to collapse. And credit is so tight WalMart had to announce today that it will be guaranteeing the obligations of its suppliers. <br /><br />I too was thrilled to shake Obama's hand. And, the evening of the election in Grant Park is a highlight of my life.<br /><br />But, if you follow the money there has been little change from the Bush financial policies that got us into this mess. The bailout can truly be termed the Paulson-Obama bailout.<br /><br />And, the future? We are are now well down the road to the Japan Syndrome. More on Monday.Steven Ramirezhttps://www.blogger.com/profile/16741346526253732489noreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-81056553179785580382009-11-13T12:25:48.117-05:002009-11-13T12:25:48.117-05:00Anonymous,
I feel your pain! Things are still ba...Anonymous,<br /><br />I feel your pain! Things are still bad in many regards. It has been a long time since unemployment was at 10%, and other indicators lagged like they do currently. The Obama Administration was handed a mess. I like to think of myself as a hopeful optimist. I think in a relatively short period of time the pain that we all face will subside in some ways. Our economy and history is littered with cycles of bust and enormous boom. Better days are ahead.Joseph Karl Granthttps://www.blogger.com/profile/03663885334430832561noreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-31535427604908793542009-11-13T02:06:00.431-05:002009-11-13T02:06:00.431-05:00Professor Wade:
Is it your sense that things ARE ...Professor Wade:<br /><br />Is it your sense that things ARE better than they were nine months ago? Unemployment continues to rise. Executive bonuses are being handed out like candy again. The new AIG chief is belligerent about the administration's efforts to contain pay for executives from companies that took TARP money. are things better? Or is the President just optimistically hoping that things are improving?Anonymousnoreply@blogger.com