As January goes so does the year….

January recap:

The big banks went into Credit Crunch in January 2008 because they were afraid of the tiny subprime market implosion affecting the overall financial markets and the economy.

Despite the efforts of Paulson and Congress; the stock markets and the US economy went downhill from January 2008 resulting in the Great Recession.

Here we are now January 2010:

Obama welcomed the new the year with an opening salvo against the banks. An Obama vs. Banks war where honor and money are at stakes.

This time around, it is the giant 800-lb gorilla named Barrack Obama threatening their very existence. The honor and credibility of the President of the United States against the potential death or survival of the Banking and Finance sectors.

What are the giant banks going to do this time around?

This is the clash of the Titans.

Not a tiny tiny $1.2 Trillion Subprime Market Implosion that could have resulted in $200B to $400B losses back then in January 2008. The US stock markets lost more than $15 Trillion from January 2008 to March 2009 out of fear of the subprime market losing $200B to $400B.

Something much worse than Credit Crunch?

Credit Crunch was able to paralyze the whole economy since January 2008.

What can something worse than Credit Crunch possibly do to the economy?

Kill the economy?

Will the President of the United States starts acting like a president with the responsibility to the whole Nation? A president responsible to resolve conflicts rather then creates them?

Or will he keep acting in partisanship siding with one group and picking fights with another group? A fight of words or a fight to the death?

Does he really need grassroots popularity in order to destroy the capitalistic bourgeois elites just like the way Mao did in China before?

Destroy the capitalistic elites and more likely he will be destroying the legendary Financial Capital of the World, which is the Wall Street.

The United States had already lost the “Manufacturing Capital of the World” to China.

Not happy with that; Obama is now starting the Clash of the Titans. A war between behemoths. Each one of those TBTF banks is bigger than many countries in the world. One of them can be bigger than 10 times Afganistan. And potentially, they know how to fight when it comes to money. Why are they called “moneymen” for?

Therefore potentially bigger than the war George Bush II waged against Iraq and Afganistan.

And destroying the economy need not use guns and bullets nor nuclear bombs. Just remove the money, or something else surely the big banks know how to use, and the economy of any country will die.

This time around, the very survival of the United States as a nation is at risk.

The “Financial War of the Century” right after the “Financial Crisis of the Century”?

How good is Obama when it comes to money and the economy?

Does he know how to protect the economy; or his youth, inexperience, and impulsive character will destroy the economy he is supposed to protect?

No wonder, the stock markets kept melting down for 8 trading days despite a constant feed of good news.

XXX and YYY and ZZZ companies beat estimates. Revenues up, profits up = SELL, SELL, SELL!

Bernanke to be re-appointed = SELL, SELL, SELL!

5.7% GDP = SELL, SELL, SELL! and SELL, SELL, SELL! some more.

Nip this in the bud or it will grow a lot worse. But then Obama seems intent on making mountains out of molehills.

- aarc

Related Posts:

• The bottom line: In less than one decade, investors who trusted Washington and Wall Street were fleeced to the tune of $22.1 TRILLION!
• The Banking system along with Citi, BAC, and Goldman Sachs in particular, are in the process of breaking the US into little pieces.
• “Bernanke says Fed still has arrows in its a$$, Bernanke is clueless and is starting to quiver.”
• One wrong move, and the entire thing could come crashing down.
• This can’t be good… “US, UK and Japan. The GDPs of these nations are not expected to have average growth better than 3% over the next ten years.”

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