Friday, March 27, 2009
Bank CEOs meet with Obama
Ladies and Gentlemen, there is a situation concerning all of us far and wide throughout the land. A financial Crisis. Wait, we already knew that! However, the stars are aligning and the sea is parting for the path to the promise land. Besides our lovely President, Mr. Obama, speaking his usual line of change, emphasis on speaking....we are actually seeing some type of physical progress. Can’t exactly say which side organized the meeting, but I am leaning towards the banking side. Today, bank CEOs met today with Mr. Obama about the new regulations and concerns in the banking industry. Their biggest concern was to show them that they are there to cooperate.
As we all know, the banking industry is in a very low point. Credit is basically frozen for those whose credit score is below about 720 (considered excellent credit + 720). This is causing a problem for consumers especially with these record low interest rates on loans. Interest rates have been lowered to help boost spending and consumption, however, without people being able to get approved for these rates credit is near frozen. Also, with the amount of toxic assets being held on by the banks, unpaid debt lowers the amount that banks can afford to lend.
To help rectify the situation that exists currently, the White House is looking into more regulations on the banking industry. Quote from Mr. Obama, told by Mr. Gibbs, white house spokesman says "He had no agenda beyond working to get a solution, the right solution for our financial system, and to get it stabilized and working again for the American people," As we are lead further and further down the rabbit hole to socialism, bank CEOs met with Obama to discuss the further changes to come.
During the meeting, bank CEOs showed nothing but their main goal to cooperate with the government as we move towards a controlled and regulated economy. Whether this is to suck up and maybe hit up Obama with a cut of their yearly bonus, who knows. Basically, the main things that they are agreeing to cooperate with is the the additional rules and regulations soon to come, as well as toxic asset cleaning. Plans were revealed by the Treasury not too long ago about removing bad or toxic assets from banks balance sheets, thus reducing their debt. However, banks only plead that the rules and regulations are clearly revealed to them as well as in a fashionable quick time.
This really effects us as college students because we get to watch the voyage as we go from a capitalist country to a socialist economy. Free Market economies, which we are based off of, are meant to run with minimal government involvement. The problem doesn’t lie with the banks and the people, the problem occurred from the governments mistake of not taking care of fiscal policy and monetary policy during the economic boom around Y2K, after this boom peaked the ballon popped and We landed in the position that we are in today. Not because of loose regulations on the market.