Retirefund is for sale!

Saturday, January 23, 2010

Obama burned by big bank bonuses!

Barack Obama speaking at a campaign rally in A...Image via Wikipedia

There once was a guy named Obama,
who caused quite a financial drama,
when he scolded the banks, their share prices tanked,
and investors went running to Momma!

John Heinzl - The Globe and Mail.

Wow, what a week on Wall Street. The big dogs of gluttony were given a kick in the rear by no less than the President of the United States. Did they derserve it. Yes they did. Do they deserve the financial and regulatory chains that will envelope them over the next few years. Most certainly.

When "banks" like Goldman Sachs use their clients money to buy tankers full of oil, sitting in docks around the world until the price of oil spikes, and when J.P. Morgan owns wind farms in direct competition with some of it's own clients and investors during a green energy revolution, it's time for change. When Goldman Sachs and other big banks drive up food prices in both the developing world and the developed world, it is time for change. When they pay out $160 Billion dollars in executive bonuses in the face of the devastation of the U.S. economy, it's time for change!

What do these companies make? Why they make money, lots and lots of money, and they make "no apologies". Now I know that statement goes to the very heart of capitalism, but at what cost. For each and every member of the United States congress, they have three lobbyists in Washington to look after their interests. For clarity, the American public have one person speaking for them for every "three" people speaking for the banking lobby, and that doesn't even address the tie in with actual Government bodies that were meant to regulate these behemoths and did not.

Maybe President Obama should consider financial advisers who "are not" the alumni of Goldman Sachs and J.P. Morgan. Just maybe, an outsiders point of view might bring clarity to a bungled regulatory regime. After a full year of "back burner" status while the health care debate took center stage, the economy is finally and decisively, in Obama's sights.

So where does this leave the small investor trying to find sense from the current fiasco? Technology, green energy and resource companies. Companies that actually make things that will make the world a better place and that will make life easier, and the environment cleaner. Companies where they still "make things" as well as make money. Buying such companies on the current dips could boost your Retirefund tremendously over the coming year.

Don't cry for the big banks. They always find a way to wriggle free. Watch for that to happen over the coming months.

Also see: Seeking Alpha


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