Obama Wall Street Rally

November 20 2008: Wall street was on a permanent downward spiral. The sell off that had started since the Lehman crumble, multiple huge bank failures, and eventually a Wall Street bailout had become a consistently downward spiral in the week of November 17th culminating in an 7586 low of the DJIA. Organizations that measure recession finally did make it official that we had been in a recession since December 2007 - how hard it is to figure that is quite startling - unless this was to avoid affecting the election).

The flailing of the Bush-Paulson treasury from a bailout to buy toxic assets which was switched to investing in bank equity could not stem the spiral. The cause was deep rooted, unemployment numbers continued to pour in, the general global economy was also not doing well, it was becoming clear that a lot of our economic base was based on puff as more and more of the products we rely on was bearing the Made in China insignia. Indeed there is very little to do in the short term to instill confidence in the market that things would turn around - enough for investors to put at least a price on the assets we currently had. It was clear that the new administration needed to do something if they wanted to have an economy to take over in January. Enter the Obama plan - instill some confidence in the market to at least put a bottom to the slide by demonstrating that better days are ahead and American assets are still worth something - something valuable.

Friday November 21 2008. The Obama team release word that Tim Geithner would be the next Treasury Secretary. The markets rose by 500 points. The markets had known Tim for several years as the president of the New York Federal Reserve and saw in him a competent and pragmatic steward as the economy. Even most republican in economic decision making positions praise the selection.

Monday November 24 2008. Obama officially announced four members of his economic team. Saying he had sought leaders who could offer both experience and new ideas, he said New York Federal Reserve President Timothy Geithner would be his pick for Treasury secretary, named Lawrence Summers, a former Treasury secretary in the Clinton administration, as the director of the National Economic Council, Christina Romer, as chair of the Council of Economic Advisors and Melody Barnes to be director of the Domestic Policy Council. He also announced detailed plans to stimulate new growth in the economy and create jobs. For the first time in nearly a week, the Dow rose consecutively in two days.

Tuesday November 25 2008. This day Obama addressed fiscal responsiblity while stressing the importance of crafting an efficient and responsible budget, while arguing that middle-class tax cuts must be put in place quickly to help stimulate the flagging economy. At the same time, he named Peter Orszag as director of the Office of Management and Budget, and Rob Nabors as Orszag's deputy. Another day of Dow gains.

Wednessday November 26 2008. Three days, three press conferences, more details on solving the economic problem and growing the economy. This time, Obama reveals his economic advisory board. The board of economic experts from outside the government to advise him, in his latest bid to reassure nervous consumers and financial markets that he will bring swift economic relief as president. Another day of Dow gains.

While this may have permanently put a bottom on the free fall, recent news regarding terror arracks in India might make for more uncertainty in the next week but few can ask for more from a president elect that still has more than 50 days to take office. This also highlights again why we have remained the greatest country for some many decades - the ability to find and select the right person in the most trying times. Of course we continue to watch and wish him and us all the best.

A full energy proposal is here. Please also review the 10-point action areas categorized into short and long term plans, and the detailed projections and contribute your knowledge.