MSNBC this morning mentioned that President Obama's approval rating is now down to 50%. I am not sure what that means, except that it is moving in the wrong direction. The health care bill may never get passed by Congress, and that will leave millions of people twisting in the wind as far as their health care is concerned. The economy is coming back if we can use the DOW Index as an indication that the stock market players think corporate earnings are coming back. But, who is going to tell President Obama that structured debt financing is a necessary ingredient if we want to see housing, manufactured housing, campers, cars and truck financing back on its feet. In order to do this, securitization of debt is the simple answer. But, who is going to buy securitized debt obligations now? Banking in the 21st century requires that debt obligations be bundled and sold. There is every day billions of dollars sitting in money market funds because fixed income portfolio managers are not ready to invest in structured debt obligations. It will come down to whether this President is going for one or two terms. My advice, take the triple-A rating and place its responsibility with the Fed. When the market can trust the process, the economy will take off. Not before.
Stay tuned.
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1 comment:
Hola! Frederico. Como esta usted? If this stuff all falls apart here, in the U.S., we can always move to Mexico, no?
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