Today was a very exciting today in politics as well as in the markets. We are living in a time to remember, like nothing we have seen in our lifetime. The question for us remains “what does the future hold?” I would like to look on the bright side. I am certainly hopeful after the election of Barack Obama as President of the United States because it signals, at a minimum, change from the status quo. And that is a very good thing.
Now, for the specifics. There has been a lot of debate and speculation as to who will be in an Obama Administration. The articles below discuss this in detail. Rahm Emanuel looks to be Chief of Staff. Names bandied about for Treasury are Jamie Dimon, Tim Geithner, James Galbraith, Jon Corzine and Larry Summers. I would love Galbraith and Dimon. Let the jockeying begin
Obama asks Rep. Emanuel to lead White House staff – Reuters
Obama’s Dream Team – The Nation
The Treasury Secretary Speculation – Calculated Risk
Would Obama’s Treasury Secretary Be Another Goldman Banker? – Deal Book
Lugar Says No, Hagel Says Maybe – Political Wire
Kerry Seeks Cabinet Post – Political Wire
Americans and Foreigners are expecting a lot from the United States in a new Obama Administration. I am hopeful but not irrational. Many of these hopes will be dashed. We have to be realistic about what can be achieved and what cannot. Look below to see the speculations being made around the globe from Afghanistan to Cuba as well as what Obama himself had to say in his acceptance speech last night.
Latin America sees Obama bridging ideological divide – Reuters
Obama as the New Reagan – Politcal Wire
Obama win raises Cubans hopes for change – Reuters
Senator Barack Obama’s Presidential Acceptance Speech – Mashable!
In the meantime, we still have a lot of worries in the U.S. domestic economy to contend with. That sent stocks plummeting 5% today and caused House Democrats to urge passing a new stimulus bill. Credit cards are something I think we will be hearing a lot about in thenear future as I expect writedowns there to be considerable. By the way, the U.S. government is issuing massive amounts of debt to deal with these problems on the back of Paulson’s Economic Patriot Act. See the story below.
Wall Street ends down 5 percent as economic woe eclipses Obama – Reuters
ISM Services Index in U.S. Slumped to Record Low – Bloomberg.com: Economy
Factory orders tumble again – Reuters
New York City Budget Plan Has 3,000 Job Cuts, Official Says – Bloomberg.com: U.S.
‘Time is very short’ to save GM, advisor warns – National Post
GMAC has $2.52 billion loss; ResCap unit may fail – Reuters
Credit outlook darkens for auto finance market – Reuters
Credit Card Bond Sales Plunge to Zero, First Time in 15 Years – Bloomberg.com: News
Ambac posts $2.4 billion quarterly loss – Reuters
Glaxo to cut 1,000 U.S. sales force jobs – Reuters
House seeks quick economic stimulus passage – Reuters
U.S. treasury sells bail-out bonds – BBC News
Meanwhile, abroad the economic picture continues to darken. Europe is in recession and even in places like Canada and Mexico at our borders, trouble is near. The global economy is in deep trouble and Obama will have tough road to how if he is to solve these difficulties.
The Rising Risk of a Hard Landing in China: The Two Engines of Global Growth – U.S. and China – are Now Stalling
Irish jobless rate at decade high – BBC News
Spanish unemployment jumps – FT
Swiss Re reports surprise deficit – BBC News
M&S suffers sharp fall in profits – BBC News
UBS wary despite return to profit – BBC News
RBS sees more writedowns, eyes 2010 dividend restart – Reuters
BT pension deficit soars by £5bn – Telegraph
Massive Redemptions Are Forcing German Property Funds To Freeze € 34 Billion Or 40 % Of Assets Under Management
WestLB becomes latest bank to tap German state’s bailout fund
Fall in eurozone retail sales – BBC News
Banking crisis wipes 56% off BNP Paribas profits – Times Online
As Ukraine Staggers, Its Leaders Quarrel – Deal Book
There are some bright spots here. Energy firms are doing better than some might think given the crashing oil price and, stocks on the whole, are not nearly as expensive as they were just a year ago. Even in the financial sector, global consolidation is going to help support equity prices. Morgan Stanley thinks a bull market is underway.
And, finally, below are some odds and ends that I follow in Technology, politics, finance and sport. apologize to my liberal friends for my penchant of quoting Pat Buchanan. I can’t help myself apparently. Enjoy.
PJB: But Where Did Bush Go Wrong? – Patrick Buchanan
Google abandons deal with Yahoo – BBC News
Chelsea Has Biggest European Loss Since 2004 to Struggling Roma- Bloomberg.com: Europe
Credit-Default Swaps Top $33 Trillion, Depository Trust Says – Bloomberg
Goldman Hedge Fund Said to Lose $1 Billion Since Jan. – Deal Book
New Private Browsing Feature In Firefox Browser Remove Traceable Tracks – My Digital Life
All of these links are in our news feed on our site. Feel free to subscribe to our News Feed