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Obamanomics and How It Can Impact Investments

Friday, September 4, 2009 17:03 No Comments

I am sure you know that many of us are tired of the same old government spending and huge national debt, and not seeing any return for our monies and with president Obama it is no different . You may see by now that the Obama administration who promised change have just given us more of the same spending, more government involvement and ownership of large corporations, government in talking about health care take over, and the huge and not very helpful Stimulus package, and the Affordable Housing program that the banks are slow to respond to put in place. The almost socialist Obama administration programs and involvement are making planing a investment portfolio more difficult.

With the government owning AIG and General Motors, it will be harder for a stronger company like Ford for to compete when the government is financially behind their competition. You will soon with health care reform, knowing health care is 1/6 of our economy, and the government deciding who will give care and what companies will be favored in the health care plan that this will change the financial strength of companies that are not favored in health care plan. We all need health care and the health care companies need to be reined in reduce affordability to all Americans, though the way we are going seems to be toward a more Socialized plan where care and all will suffer.

The Stimulus plan of the Obama administration are stopping the natural flow of our economy and have bailed out failing banks many of which got into financial difficulty over reckless lending practices. Then you take Bank of America who received huge amounts of TARP funds and has yet to pay it back yet Bank of America is under SEC investigation regarding misleading share holders regarding Merrill Lynch deal. Bank of America is also one of the slowest to work with customers to refinance troubled mortgages, blaming lack of people to deal with huge number of loans to be modified. We are giving good money after bad to companies that are working to make their bottom lines better, but is it really helping the American people, and are the companies like Bank of America really even trying to do what they are supposed to be doing.

With the huge government involvement in the economy the free market is not so free after all, with the huge involvement in large corporations and ties to banks. You should consider Obama’s plan is rewarding the banks and corporations that have not done well, while making it hard for the companies that have stayed strong to compete in this biased economy. With all the government involvement in business and banking, and soon in health care Americans will have to be happy with slower corporate growth and lower returns on stock investments. Investors will no longer be able to put monies in investments for long periods as they did in the 80′s and 90′s, to make good investments in these times you will need to look for strategic stock advantages rather than broad index investing. In these more difficult trading times you should consider a good investment brokerage firm or investment planner.

The one rock solid investment is ” Gold ” which will stay strong and show high returns as it is not tied to paper money, and no matter how out of control the Obama spending seems to be or how it changes stock returns. You might also keep in mind the talk that the G20 and Ben Bernanke are working to reduce the value of paper monies and greatly increase the value of Gold to offset debt.

“BOTTOM LINE BUY GOLD AND HOLD ON TO IT AS LONG AS YOU CAN AS YOU WILL SEE HUGE AND CONSISTENT RETURNS” In these crazy times with Obamanomics it is hard to find a safe investment, but Gold is and will stay strong.

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