Obama Calls for Limiting Size, Risk Taking of Banks (Update2) - Bloomberg.com.
I've stated before that what the financial markets need is not more regulatory oversight or more unnecessary regulation. Forced fragmentation is unlikely to help improve the financial markets or the economy. Better enforcement of the existing rules and regs by the appropriate regulatory authorities is more likely to be effective.
The market reaction suggests participants are in agreement. Right now, the focus should be on improving regulatory and fiscal clarity for businesses. This lack of visibility is a primary contributor to the "jobless recovery". Put it in context of an individual - if you're not sure if you're going to have to pay more taxes or if you're going to get a raise, you're going to be cautious about spending money. Companies are not going to hire if management believes costs are going to rise and/or growth prospects are going to be restricted.
As long as this uncertainty exists it is going to be difficult to reconcile 26% earnings growth expectations with 3% GPD growth expectations.
I've stated before that what the financial markets need is not more regulatory oversight or more unnecessary regulation. Forced fragmentation is unlikely to help improve the financial markets or the economy. Better enforcement of the existing rules and regs by the appropriate regulatory authorities is more likely to be effective.
The market reaction suggests participants are in agreement. Right now, the focus should be on improving regulatory and fiscal clarity for businesses. This lack of visibility is a primary contributor to the "jobless recovery". Put it in context of an individual - if you're not sure if you're going to have to pay more taxes or if you're going to get a raise, you're going to be cautious about spending money. Companies are not going to hire if management believes costs are going to rise and/or growth prospects are going to be restricted.
As long as this uncertainty exists it is going to be difficult to reconcile 26% earnings growth expectations with 3% GPD growth expectations.
