This week President Obama has met with top US bankers to discuss with them about his new plan to stabilize the US financial system and to boost the economy.
Obama told the bankers that they were in this together and that he wants the bankers to show some restraint, he wants the bankers to show that everyone has to make sacrifices and not only the normal people. After the meeting all bankers were optimistic and they said that their problems would be solved but it would take some time and they have to work hard, but they already see results that some measures are really working. They also said that the money spent on stimulating and saving the economy is spent wisely.
The chief executive of Goldman Sachs said there are three measures necessary to turn the economy around ; stimulating the economy, stop the fall in asset prices and fixing the financial system.
The plan Obama talked about is called The “Public-Private Investment Programme” where the US government will work together with banks and private investors. The plan is designed to buy up to $1 trillion worth of toxic assets to help repair the banks’ balance sheet. But another part of the plan is an outline of a far-reaching plan to strengthen government authority over the US financial system. All the measures discussed here are designed to prevent a new financial crisis like we notice today.
I think this is one of the best measures that Obama could take because the financial sector is the most important part of the economy, when you fix the main point you can fix the other sectors too. It’s also good that those top bankers want to help Obama, but on the other hand this is normal because they are one of the factors that caused the financial crises. I also hope that these measures restore the confidence of the people in the financial sector, especially after what happened by AIG a week ago…
Source: http://news.bbc.co.uk/2/hi/business/7968705.stm
Let the assets of banks and companies rise by buying them (if demand rises the price of the share will rise) is a good way to improve the survival of many businesses. When they have more capital available they can start producing and hiring people again. According to me this is a great idea and it might be a start to a good looking economical future in the United States.
BeantwoordenVerwijderenAs said in my previous blogs it is very important for the U.S. government to find ways to strengthen their guidance over the economy in order to prevent a futur crisis would occur again.