Financial Updates

Most people are placing their hope on Obama for The Economic stability. But Wall Street is not so optimistic about that as they are frightened of future bank problems.

Everyone round the world was happy and excited at the time of inauguration as 44th President of USA. But the Wall Street was not so excited.

The average Americans were happy and eager for the change but the investors were not as confident as usual. Almost every stock went downwards on January 20.

STT has already reached its half value after the premonition of 2009 as the tougher year. Some banks like Bank of America and Citigroup have touched its lowest value.

The only question which rises in mind is that what President Barack Hussein Obama can do to take the Economy back on its track.

In his Inaugural Address Obama expressed that the economy has been under bad stress and is now weak. He said that there is a fear among Americans that America's decline is unavoidable, so the next generation has to lower its vision. Obama also asked for more "bold and swift" action to restore the wrecked economy.

But the experts are not happy only with the call for action, they are looking for drastic steps like a plan to help to restore the America`s ailing banks.

Obama has said that economic crisis cannot be solved in a quick, it will need sometime. But some market strategist predicted that the new Government’s initiative will show some results for solving its credit crisis and the $800 billion package will stimulate some blood to the dying economy. The market analysts imagining Obama as a positive catalyst who can show us better economy later in the summer. The package cannot beat all the problems but it can heal some of its wounds and can give the market a hope for new life.

In his first 100 days as president, Barack Obama has to face many challenges. The recession wrecked, hammered and bruised from the 8 years of Bushism, America has placed great burden of hope on his shoulder.

With 73% favorite rating (most in recent days), Barack Hussain Obama has to do something for everyone. The scale and magnitude of his problems that he is going to inherit can only be matched with the irony “stratospheric expectations”. Among these pressures he is going to face the real situation at White House.

In his first 100 days, to satisfy all who are dreaming him as a ray of hope, will be the biggest challenge for him. The major fronts he is going to face are like economy, foreign policy for Middle East, Iran, Pakistan and Afganistan etc. Lets have a look at his challenges in the financial front.

ECONOMY:

TARP (Troubled Asset Relief Programme) and ARRP (American Recovery and Reinvestment Plan) will guzzle $1.5 trillion. The experts are also not confident about its outcome, whether it will restore the confidence in the financial system or not. Officially the US Economy has been in recession since the starting of the 2008. Since then 2.6 million people has lost their jobs and the optimists too hope that this situation will also last at least one or two year.

The decreasing housing market and record foreclosures can increase the tension of the Democratic President. Will he be going to spend big to be the instant hit or he choose the middle way? Like- he is going to spend $800 billion to provide infrastructure jobs. Will it be better if he choose to have tax cuts? Will it be better to take long gestation projects like bridges, roads or to take other short-term remedies? He also has to tackle the budget deficit of $1 trillion-plus.