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President Obama addressing the press in a file photo
A proposal by President Obama for stricter limits on financial risk today caused a downward spiral to the stock market.
The President’s proposal included new rules that will prevent bans from owning, investing, or sponsoring hedge funds or private equity funds. The new proposal would also bar the banks from making proprietary trades that are unrelated to serving customers. In other words, banks would not be allowed to bet on the markets with their own money.
“We have to enact common-sense reforms that will protect American taxpayers and the American economy from future crises,” Obama told reporters.
“In recent years, too many financial firms have put taxpayer money at risk by operating hedge funds and private equity funds and making riskier investments to reap a quick reward … Never again will the American people be held hostage by a bank that’s too big to fail,” he added.
As of 1:15pm Eastern Time, The Dow is down 212, the NASDAQ is down 28.
Mr. Obama’s announcement has overshadowed an announcement by Goldman Sachs that stated they beat Wall Street analyst’s predictions and showed a profit of $8.20 a share. Wall Street had predicted only a $5.20 per share profit.
So NY Fed Chairman Tim Geithner approved the $182 billion bailout of AIG,on September 15, 2008. $12.9 billion went straight to Goldman Sachs, in essence, reimbursing them 100% for the loss they would have suffered if AIG had defaulted. Tim Geithner was then appointed Secretary of the Treasury.
TOTALLY UNRELATED is the fact that Barack Obama received $994,795 from GOLDMAN SACHS for his 2008 presidential election campaign. The payment from AIG to Goldman Sachs was not made public intil March 15, 2009.
So Geithner fixes Goldman Sach’s problem, Obama recieves nearly $1 million from Goldman Sachs, and Obama appoints Geithner to Secretary of the Treasury.
Does anyone see a conflict here?
USA is not only the country who has a problem with financial crisis. This only means that Obama wants people to be aware of the situation of their country.
The stock market is really affected by the speech that was made by Obama. Recently, this still remains a big issue because of the financial issues.