Obaba speech loses shine; stocks tumble

Obama Speech Effect has been shrugged off by world market. It lasted a total of 4-5 hours in the world. Then stocks plunged worldwide.

Since Speculative Securities trade is the most cherished and weighed profession, January results will be a dampener for growth of global economy (if any such thing exists). As the hawks of Davos are contemplating, whether there will be a double dip in the recession, the economies all across the globe are heading towards the second dip of the great recession ( We will wait till 2011 for the Depression coinage). This July at least 7 out of G-20s will be back in recession (based on Q2 GDP) and another 8 will plunge by Q3 results.

Bad news, indeed; But if we continue to re-select Dr. Dangerous Bernanke over and over again, what else would you expect. One who never stopped the easy credit for stupid housing, bailed out his super buddy banks and insurance companies and yes; Gave us the “Too big to fail” connotation to big business.

There would be a barrage of JVs launched by Davos-returnee crooks, beware and stay out of it. There would be a spate of Merger & acquisitions by Davos-returnees as well, mostly across distant geographies. It is the task of the governments to ensure that both local consumer interest and local workforce interests are given primary importance. Governments must discourage further job-losses and place punitive strictures in place to prevent such efforts by big business.

Obama speech review

Obama has got it wrong in the President’s speech. The state of the nation speech has been a stage the Presidents are supposed to be populist and they had even lied outright, Remember George W. Bush.

Obama simply toed the line. Let’s bust his theories one by one:

Theory No 1:

China is not waiting for USA to grow.

To tell you the fact based on GDP figures China had never in recession. China had a double digit GDP growth under super low interest rates. Commonsense economics says if it is not sustainable on a long run, then interest rates must go up to prevent the overheating of the economy. But so far China has only hinted an interest rate hike and not tightened it.

So how can China grow at this rate even at this rate? It has a single window for clearing projects, addressing concerns and disputes when it comes to “Modernization & Industrialization”. Without being concerned about health hazard, labor problems and destruction of environment, American investors go hunky dory on investing in China and dump Detroit by the sideline.

China need not depend on USA as US$ is freely available to the Chinese government through Wall Street investment bankers. Besides they have worlds biggest US$ reserves as well.

Theory No 2:

Germany is not waiting for USA to grow.

In fact German exports to USA are completely on shaky grounds, as the consumer base in USA shrinks, so does German need to produce more. Germany never had a local. Economic problem, this was all USA’s fault.

Theory No 3:

India is not waiting for USA.

Man! Please buy Obama a TV with lots of good channels preloaded.

Ever since Obama’s angry speech after Brown’s speech; Indian stock markets has lost 9% of its value. Ever since Obama has spoken and declared “Worst of the storm has passed”, nearly 3% of market capital revived; by day end it should reclaim 6%; by week end it might be even more than 10% as American banks put their money back in so called “Emerging markets”.

Obama wanted to halt the tumbling dominos of major stock markets and by the look of it, he has been successful. So what’s in it for ordinary Americans besides the consolation that trading is still done in USD.

Failure of Copenhagen & Obama-ism

Thanks to CNN-IBN for posting the 7 page pdf, actually it has a single cover page, 2.5 pages of text and 3 pages for empty wishlist.

The (by now) infamous paragraph of 2 degree temperature change, states that signatories "would enhance long-term cooperative action to combat climate change". What would you enhance upon my dear, you have not even met the kyoto accord?

No timeline mentioned in that para and no need for inspection regime.

Lets come down to the next paragraph, this talks about need to cut emissions to go to 50% percent. This is a reiteration but that point is used to side-step the peaking year issue.

Next paragraph talks about adapting to changed climate and developed nations would help without specifying any pledge.

I hate to say this document don't even qualify as a declaration.

We were one step up and this has taken two steps back.

Fossil fuel industry wins again, Obama is nothing but a show-boat.

Obama's actions have proved him to be as pro-oil as a Neo-con.