Power Breakfast: Obama to Wall St., NCR, China trade

President Obama travels to Wall Street today, marking the anniversary of the Lehman Brothers collapse by pushing for an increased government role in overseeing the financial system.

But much of the American public is already leery of more government intervention than already has occurred.

The New York Times writes that the government is the nation’s biggest lender, insurer, automaker and guarantor against risk for investors.

Between financial rescue missions and the economic stimulus program, government spending accounts for a bigger share of the nation’s economy — 26 percent — than at any time since World War II, the Times writes. The government is financing 9 out of 10 new mortgages in the United States.

The Obama administration and its supporters argue that it has taken these actions as a temporary measure to prop up an economy that was headed for disaster. Things would have gotten a lot worse without such direct government intervention, they say.

For months, this issue has been widening the American divide over the proper role of government. That divide will likely grow in coming months as more regulation is proposed.

In the AJC:

In other media:

2 comments Add your comment

Buzz G

September 14th, 2009
6:23 am

Our government has become a monster and is crowding out capital which normally would go to business investments. Our taxes are now being used to buy off the unions by propping up inefficient auto manufacturers and subsidizing housing loans for people who could not normally qualify for such low rates. Now it has decided to pay off the unions by blocking tires from China. If we get a trade war going with China, the American people will pay a big price. This recession will turn into a full blown depression and will last for another decade.
But it doesn’t seem to matter to the AJC. All that seems to matter is that we have a black president who is implementing “social justice” by spreading the wealth around.

DeborahinAthens

September 14th, 2009
7:00 am

Buzz G, the government isn’t crowding out capital for business investments! How are you figuring that? I rather see the government pushing some much needed capital into the void left by the spineless venture capitalists. I have never seen so few IPOs being offered. If you own a business it is almost impossible to get money from the “capitalists” whether it is a debt or equity offering. If the credit markets are still frozen, and if no capital is forthcoming from the investment bankers, you better hope that someone steps in a gets the ball rolling. Whether you hate it or not, the government is doing this, and, if they didn’t one has to wonder what would happen to our “capitalist” system. By the way, one reason VXs aren’t doing more is because the people in this country have lost their courage. They only want to invest in a “sure thing” and most corporations are not sure things. If they invest and don’t get a return, if they lose money, then they sue the brokerage firms that bring the offerings. You talk a good game, but bottom line, capitalism spreads the wealth around, it just does it in a different way. I would ask you, where do you have your money invested? Have you bought a bond in the last year? Are you one of the fair weather investors that only keeps your money in the market when it’s going up? If you are, you have no right to criticize.