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Thursday, January 8, 2009

Financial Crisis Deepens: Obama

From The Hoss's Mouth

Just twelve days before his inauguration President Elect Obama delivered a major speech on the economy, or rather the financial crisis in America. Hoss Cents Free Financial Money Magazine presents highlights of his speech.

Obama's opening remarks clearly demonstrate the seriousness of the financial crisis facing Americans. He highlighted the following :

  • Nearly two million jobs lost
  • More jobs lost last year than at any time since World War II
  • 2.8 million Americans working part time rather than full time
  • Manufacturing at a 28-year low
  • Many businesses cannot meet financial obligations
  • Many families cannot meet their financial obligations (pay bills, mortgages)
  • Recession could linger for years
  • Unemployment could reach double digits
  • Economy could fall $1 trillion short of its capacity

President Elect Obama summed up the financial crisis by stating, "In short, a bad situation could become dramatically worse."

Obama did not stop there. He went on to explain how this financial crisis occurred. He did not pull any punches.

"We arrived at this point due to an era of profound irresponsibility that stretched from corporate boardrooms to the halls of power in Washington, DC." His honesty about how the Americans came to be in this economic crisis is refreshing. He further provided examples of this irresponsibility:

  • Imprudent and dangerous decisions by Wall Street executives seeking profits without regard to risk
  • Too little regulatory scrutiny
  • Too little accountability
  • Banks making loans with no concern for whether borrowers could repay
  • Borrowers taking on loans they couldn't afford
  • Politicians spending taxpayer money without wisdom or concern
President Elect Obama summed it up this way: "The result has been a devastating loss of trust and confidence in our economy, our financial markets and our government."

After presenting this factual assessment of the current financial crisis, President Elect Obama then spoke of the action he has already taken and intends to take to solve the financial problems facing Americans.

He his currently working with his economic team and leaders of both political parties on an "American Recovery and Reinvestment Plan".

He openly admitted that the budget deficit would increase in the short-term, but the alternative of doing too little, or nothing at all, would result in a worsening of the financial crisis.

financial crisis

The primary steps in this financial plan (in no particular order) are as follows:

  • The creation of a clean energy plan
  • Lower the cost and improve the quality of health care
  • Improve the educational system
  • Rebuild the American infrastructure
  • Provide immediate relief to States, workers and families
  • Eliminate unwise and unnecessary spending
He promises to make the plan transparent and that every American will be able to go online and see where their tax dollars are being spent.

Their will be nay sayers who will claim the steps he is taking are not part of the financial plan outlined in his election campaign. The Hoss says, way to go President elect Obama. You have recognized the fact the financial crisis has deepened and are taking action to address this very serious financial crisis. You, as promised in your election campaign, are listening to economic experts from both sides of the political spectrum and with their help and that of your own economic team you just may, over time, be able to mend the American financial crisis.

Stay on track,
The Hoss

Next Hoss Cents Free Financial Money Magazine Post: Record Job Losses
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