The Obama Banking Plan
Feb 12, 2010
Posted by Jody Eisenman | Filed under Uncategorized
For a good video explanation of Glass-Steagall and the proposed Obama banking plan, please see the video on the Financial Times website:
http://www.ft.com/cms/s/0/8c6665d2-11a6-11df-bceb-00144feab49a.html
Meanwhile, the markets continue to churn around the Dow 10,000 mark. Thus far this year, the DJIA has traded between a range based on closing prices of between 9908 and 10,725. This is a range of about 8 pct. During the same period last year, the range was between 9034 and 7888, a range of 13 pct. Of course, last year the selling really accelerated until the second week in March. Many traders remain focused overseas, where the 2 main issues are Greece and China. The European Union appears to be ready to bail out Greece, which led to a 100 point gain yesterday. Today, China announced that they are raising the bank reserve rate for the second time in a month in order to slow growth. The reason this is done is that China fears a boom and bust economy. However, many economists fear that this could hurt the global economic recovery. Eventually, traders here will turn toward to Washington, to see if the Federal Reserve will begin to raise rates. Chairman Bernanke has indicated that this could happen later this year.
