President Barack Obama’s statement last Friday that we’re “starting to see ... glimmers of hope across the economy” has gotten quite a bit of publicity. What has gotten less coverage is the president’s rationale for being so optimistic in the face of bad economic news such as the unemployment rate, which rose to 8.5 percent last month, the highest unemployment rate in over a quarter of a century. (This figure does not take into account long-term unemployed who have given up looking for jobs.)
After a record $192.3 billion federal budget deficit for March, the U.S. Treasury Department reported a $956.8 billion federal deficit for the first half of fiscal 2009 — already nearly $1 trillion. As the Treasury published the news of the deficit, President Obama told the press on April 10, “What we’re starting to see is glimmers of hope across the economy.”
It's official: the Obama administration intends to nationalize the entire financial sector. If there were any lingering doubts as to the intentions of President Barack Obama and Treasury Secretary Timothy Geithner, they were dispelled by an announcement on March 26 detailing the Treasury Department's new "framework for regulatory reform."
The Obama administration is now in the business of subsidizing the auto parts industry. In yet another slug of taxpayer money intended to prevent the collapse of GM and Chrysler, the Treasury announced on April 8 it was making available $5 billion in short-term financing for auto parts suppliers. The money is intended to keep manufacturers and suppliers of parts to GM and Chrysler afloat while the beleaguered automotive giants struggle for survival.
The Securities and Exchange Commission (SEC) made public on April 8 several alternative plans under consideration for regulating the activities of short sellers. Short selling, the inverse of purchasing stock shares in the hope that share prices will rise, consists of borrowing shares, selling them, and then repurchasing them at a later date and returning them to their owner. Short selling is undertaken when a stock is expected to decline in value; a short seller who borrows a thousand dollars worth of stock, sells them, and then repurchases them and returns them to their owner when the stock's value has declined to $500, pockets a profit of $500.00.