More

Trey Ellis

Trey Ellis

Posted March 16, 2009 | 11:40 AM (EST)

Mr. President, When Should We Sell?


The president's almost unprecedented popularity makes him our single best weapon against the death grip of this recession. The surge of volunteerism, of communalism that thrust him from obscurity to the most powerful job on the planet now needs to be re-harnessed and focused on aiding our enfeebled economy.

Obama seems to realize this. That is why, at the beginning of this month, with the market cratering, the president suggested that ordinary Americans go out and buy stocks. He was so right.

If this presidential thing doesn't work out he could have whole 'nother career on CNBC.

Since he spoke stocks have risen by double-digit percentages. Wouldn't now be a great time to sell and then use the short-term gain for some durable good like a new washing machine, or with spring coming, maybe a lawnmower? If folks keep their small holdings indefinitely then this paper gain could vaporize as quickly as it came, as quickly as the equity in their house went up in smoke.

Short of another war with Germany and Japan, the only thing that is going to get the planet out of this mess is consumer spending. The president should lead us in creative, micro ways of stimulating the economy. I've got a few ideas that I will float in the upcoming days but I'd also love to hear from you.

In the meantime, Mr. President, please urge us to sell now and then buy.

The president's almost unprecedented popularity makes him our single best weapon against the death grip of this recession. The surge of volunteerism, of communalism that thrust him from obscurity to ...
The president's almost unprecedented popularity makes him our single best weapon against the death grip of this recession. The surge of volunteerism, of communalism that thrust him from obscurity to ...
 
 
  • Comments
  • 4
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Recency  | 
Popularity
04:35 AM on 03/17/2009
All President Obama has to do is recommend that we consider moving our savings to local credit unions.

Despite the fact that the Big Four money center banks account for the vast majority of the derivative losses, well over half of our national wealth is deposited or invested with these banks, and consequently more than half of the credit is allocated by these overgrown zombie institutions.

Why are we still letting them manage our savings? They aren't investing in our communities. They aren't creating new jobs. They're just playing high-stakes casino games, like trading interest rate futures and arbitraging debt securities.

If we just parked our savings at local credit unions, the impact would be far more profound than any financial recovery plan that could possibly come from Washington. It would be a revolutionary advance in equal opportunity that would transform our communities from the ground up.
05:03 PM on 03/16/2009
Do what I've been doing, which is buying as investment. I've bought supplies for insulating our older, uninsulated house. That's putting money into the economy and eventually putting money in my pocket, too. Somebody else might want to buy seeds and a rake to start a garden, which again puts money into the economy and puts money in the mini-farmer's pocket (by selling some of the fresh vegetables grown or by not having to buy fresh vegetables).

(Mr. Knause, you are sincere, and I thank you for your concern for the afflicted. But I think you missed the author's tongue in his cheek--Obama's second career on CNBC--and the author's point, in the penultimate paragraph.)

I await better suggestions than mine.
This user has chosen to opt out of the Badges program
04:24 PM on 03/16/2009
Mr. Trey Ellis how are the homeless, unemployed, and the underemployed suppose to buy stocks? I am afraid people are more concerned about feeding themselves, clothing themselves, and keeping a roof over their head. Even working people who do have a little money do not trust Wall Street or the banking industry and rightly so. I think most people will hold on to every penny that they have because we don't think we have seen the worst of this mess. As long as unemployment keeps going up and the banks keep getting millions in bonuses I think it is irresponsible of you or anyone to tell people to be spending money that could literally mean the difference between eating or starving, or having a roof over their head or being homeless. Maybe after we see some proof that Wall Street is being regulated and the banks have been regulated our confidence might rise. At this point nothing has been done to keep any one's money safe. CEO's haven't been arrested or haven't even been fired, governors are refusing stimulus money for unemployment benefits, and foreclosures are still rapidly rising.
01:29 PM on 03/16/2009
I think the Grameen Bank business model of micro banking/financing might be applicable in parts of the US. If it works in the so-called Third World and warrants a Nobel Award, why not here? Given the state of the economy we probably no different, we just don't realize it yet. Or we can continue the same thing with established Shylocks... not the ones down in Little Italy or Bensonhurst, but the one's called Wells Fargo, etc....