Expectations

So, yes, Obama has made the first of what I guess will be many efforts to tackle the situation, and he has failed to live up to my expectations. I thought so! and I said so! His Treasury Secretary, Timothy Geithner came out and said... nothing. And the markets lost nearly 5%.

This poses further questions. Do we know the quantity of toxic assets? Have we been told the truth up to now?

I must say I am extremely disappointed. I have written before that we need Obama and strong leaders as much as the US does, over here in Europe. And this is his first go at the problems that still await us ahead this year and the next.

The press coverage has been tremendous. Most believe that the plan was not well thought out. It is probably better if this is true. The other side of course, is the possibility that nobody wants the influx of money the Administration is wanting to pump in the system.

This has happened in some European countries also. In Spain, banks have been very reluctant to accept the money injected via auctions by the Government.

Governments are complaining that banks are failing to meet demand for credit. Banks, on the other hand, have started saying out loud that they would be irresponsible if they lend to those demanding credit now, and that solvent businesses and individuals are not among those demanding credit in these times.