Is the Obama Bank Tax the Start of a Makeover?
Dow Jones ended the week sharply down together with the global markets reacting to The Obama Bank Tax. Was that Obama´s fault? Here is what Dow Live Report thinks.
See it this way: the Banks have been blamed for the financial turmoil of last year. Right or wrong, when you identify a culprit society demands punitive action. If the culprit is a whole group of financial institutions you will see different action than related to say alley muggings. In the mind of the individual though, the offense is seen as the same.
The moneylenders have global impact on macro and micro level affecting both the financial markets and the private lives of most family households and individuals. The government is displeased at the malfunction of the financial engine, but the grassroots are crying bloody murder because they were scammed. This is when the wheels start turning in earnest.
President Obama may have shaken the Dow and global markets with the Bank Tax but come on, it should have been expected. When regulation is not working and even abused, it is time to bring out the big guns. Banks deal in money and “tax” is one of the few weapons they fear. Banks have more power than governments and grabbing a piece of the cake is perhaps the only strongarm left in the gov armory that truly works.
The Banks may be the ones crying bloody murder this time but the Obama Bank Tax as suggested is minor and the current whining is deplorable. If you gang-raped everyone you could touch be prepared to take some punishment. Especially after immorally coming back and begging for more help than you needed..
The Banks should stop whining as the tax is a minor slap. Take it with at least a grain of dignity and start thinking long-term PR or face further punitive measures fueled by the voter´s anger.
The market reaction to the Obama Bank tax etc has nothing much to do with the Banks themselves or what effect a taxation might have. The world is partly in a feudal state with the Banks fortified outside the live markets. It should have been expected as things cannot stay the same. So, what is the forecast and what’s looming over the next bump?
- New Fed faces.
- More regulatory battles with high probability of extension into more than Banks.
- Continued shift on the global economic map.
- The potential for new grassroot support of change and the spark of a new “movement”. It won’t be Flower Power, but it might be just as powerful
Related posts:
- Obama turns Wall Street reform bill into law
- Bank executives are paying back TARP funds
- Weak start of market week supported by Caterpillar
- Is Goldman Sachs a crooked bank?
- Do or die for Wall Street this week
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