Have the US government gone too far this time?
President Obama yesterday announced a raft of regulations and legislative changes which will limit the size and trading power of Wall Street financial institutions in the future. The move prompted a sell-off on Wall Street, followed by a sell-off in London which has been followed overnight by a sell-off in the Far East. It seems that investors believe the American government has gone too far this time and if this particular strategy is replicated across the world there could be enormous implications for future worldwide economic growth.
There is a feeling in America that the US president was literally looking to deflect attention from his troubled health care bill and chose the financial sector, still public enemy number one around the world, as his next victim. However, in a bid to perhaps try and attract the popular vote it looks as though President Obama may well have alienated Wall Street, caught investors by surprise and his moves could have a major impact on future worldwide economic growth.
Despite the fact that the financial sector has been the engine room of the worldwide economy for many years it seems as though the fuel supply required for future growth may well be stopped at source.
Share this..
Related stories
UK budget back in the black
The public sector purse showed a surplus in April as a growth in value-added tax (VAT) payments helped shift the UK's finances back into the black during the first month of the new fiscal year.Figures released by the Office for National Statistics (ONS) showed a surplus of £0.2 billion on the current budget, compared to a deficit of £0.9 billion in April 2006.Meanwhile public sector net borrowin...
Read MoreGeorge Osborne announces partial reduction in planned national insurance rise
George Osborne yesterday grabbed the moral high ground in the battle for the hearts and minds of UK workers with an announcement that the Conservative party would partially reduce the planned national insurance rise announced by the Labour government. George Osborne has guaranteed there will be no national insurance rise for those earning under £35,000 a year in the UK and while this will cost th...
Read MoreLocal councils set to hit motorists again!
The Local Government Association has unveiled plans by a number of local authorities across the UK to charge employees to park their cars at work. This is something which was suggested a couple of years ago as a means of cutting down on inner-city traffic but it now seems as though many local councils are looking to introduce new income streams in this manner rather than focusing upon the help to...
Read MoreGreek authorities admit major problems
The Greek authorities have today admitted there are major problems within the Greek economy and the Greek budget deficit has the potential to drag down the country and its people. As a consequence, it seems likely that the Greek authorities will make use of the international bailout package which has been on the table for some time but until today remains untouched. While no specific timescale...
Read MoreGovernment lip-service to public sector reform revealed
The Press Association has today issued the details of a research project carried out over the last few weeks into public sector bonuses. In a damning indictment of the UK government's promise to reform the public sector it reveals that almost £130 million has been paid out to civil servants in the UK over the last year. This equates to almost £2.5 million a week on "performance related bonuses"...
Read More