Guest Post: Obama to Make a “Major Address on the Financial Crisis” on Monday

Served by Jesse of Le Café Américain

This news has appeared on the Agence France-Presse (hat tip Michel Proulx) and I have translated this into English for now.

One has to wonder if the great Speech Organizer will actually say anything that is worthy of the adjective, “major.”

Someone has possibly told him that if he makes speeches often, it will reassure the people of his country, in the manner of Franklin Roosevelt’s “fireside chats” from the 1930’s.

This sort of remedy wears thin quickly if one has nothing of substance or new to say. Roosevelt had a great flair for oratory, but first and foremost he was a man of substance and of action, like him or not. He was an experienced governor, and knew how to lead by action and example, as well as by words.

It also appears that he wishes to ‘send a message’ to the G20 about their upcoming meeting at the end of September. He is setting the tone, as he most recently did before the Congress with regard to his health care reforms.

President Obama may seem to many to be a man only of words, of rhetoric, treading lightly on the status quo especially when dealing with the corporate funders of his political party, the banks and the health corporations. This is a great obstacle to his Presidency.

He has perhaps another six months to change this perception, or deliver his Party to a serious setback in the 2010 mid-term elections.

In the meanwhile, gold and silver appear to be an attractive hedge against incompetence.

Agence France-Presse
Discours “majeur” d’Obama sur la crise financière lundi
Publié le 10 septembre 2009 à 20h44

(translation into English)

U.S. President Barack Obama will deliver a speech on this coming Monday, described as “major” by the White House, on the financial crisis, one year after the collapse of Lehman Brothers and ten days before the G20 summit, his administration announced Thursday.

It will address the strong measures that his administration has taken to move the economy from the abyss, its commitment to reducing the role of government after their recent interventions in the financial sector, and the need for the United States and the international community to prevent the repetition of such a crisis…

The developed countries and major emerging economies are striving to overcome their differences and agree on measures to prevent a repetition of financial crises, and also to appease those who are outraged by the excesses of the financial sector.

The G20 leaders will be in Pittsburgh on 24-25 September. Mr. Obama intends to advance the proposal for new “rules of conduct” in finance.

With the prospect of the end of the recession, Mr. Obama will also put the fight against unemployment at the center of their discussions.

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    1. Bruce Post

      Actually, Jimmy Carter never used the word “malaise.” Carter made his share of missteps as President, but I think that this particular speech was both an example of forward thinking and the difficulty of getting Americans to focus on dialing down our wasteful and acquisitive ways. I was working for former U.S. Cong. John B. Anderson prior to and during the 1980 presidential campaign. I had plenty to say then about the policies and actions of the Carter White House. Frankly, as the years have gone on, I have become ever more proud of Jimmy Carter, who has acted with considerable dignity since he left office rather than trading the status of ex-President for selfish gain, as have recent former Presidents. As an aside, John Anderson, as well, eschewed the temptations to turn his status into a high-paying lobbyist’s position, as have some many recent former Members of Congress. I wish Carter and Anderson were the rule, not the exceptions, in our present political culture.

  1. albrt

    I wonder if he will have a “Mission Accomplished” banner behind him during the speech? I also recommend landing a fighter plane outside the hall and then strutting up to the podium with a large codpiece under his flightsuit. This will reassure the American people. Or alternatively, he could wear a cardigan and talk about “malaise.” These approaches are equally valid, and represent the best ideas of both republicans and democrats, so maybe he should wear a flightsuit and a codpiece and a cardigan and talk about mission accomplished and malaise all at the same time.

  2. ndk

    It might be worthwhile going long equities for this event. We haven’t had a fall on a major event or speech since before the Stimulus Package was passed and President Obama gave the public wink that it was time to buy. I might sell out of my Treasuries and try to ride it.

  3. Francois T

    I expect to be totally underwhelmed by this coming speech.
    Now, should he replace Timmy and Larry before that, well, I’d be willing to say “Change we can believe in.”

    I’ll keep breathing in the meantime.

  4. fergerst

    I wouldn’t make any bets on this market period. I got out in may after one helluva run 550% up 650% up on some junior miners held late December. I could have been up 1250% on one of them but I got out a bit too early due to circumstance. Too bad the initial working sum was a pittance. The crisis is severe and definitely not over. The magnitude of the shock naturally lends itself to more bankruptcies than what appears on the headlines. In order to set up the next round of funds for the next set of bailouts, it must be proved that the stimulus cannot end just yet to gain support. as long as whatever obama does gains unforced support, he will be fine for mid term elections. Some massive market gyrations are needed to scare people into believing we need yet more stimuli. However people are fools, the further down it goes in panic, the more you can make on the recapitulation. I would recommend being in 100% or more in cash right now. If you happened to catch the march bottom that is a no brainer because your returns to date are sufficient for a good three years. To speculate that obama’s speech will corral the masses into a fervor after a 53% rise from march lows is quite frankly gibberish. Buy the rumor, sell the news.

  5. DrPsycho

    “It will address the strong measures that his administration has taken to move the economy from the abyss, its commitment to reducing the role of government after their recent interventions in the financial sector, and the need for the United States and the international community to prevent the repetition of such a crisis…”

    We can tell just from this paragraph what it’ll be: SPIN

    Hell I voted for the guy, with high hopes. He is deeply disappointing me, but at the same time illuminating for me the true nature of US national politics.

    nothing will be done till we fall into the abyss, and by then, nothing much can be done.

    If we’re lucky, some big criminal organizations like GS will be destroyed….but we’ll need luck for that.

    I’m thoroughly disgusted with my party.

  6. Blurtman

    I believe he is going to announce the arrest of the heads of the major investment banks and the heads of Moody’s and Standard and Poor’s. I heard that Paulson has already fled to Argentina.

  7. Hugh

    We already have seen the gist of Obama’s Monday remarks at the beginning of his healthcare speech to Congress on Wednesday:

    “When I spoke here last winter, this nation was facing the worst economic crisis since the Great Depression. We were losing an average of 700,000 jobs per month. Credit was frozen. And our financial system was on the verge of collapse.

    As any American who is still looking for work or a way to pay their bills will tell you, we are by no means out of the woods. A full and vibrant recovery is many months away. And I will not let up until those Americans who seek jobs can find them; until those businesses that seek capital and credit can thrive; until all responsible homeowners can stay in their homes. That is our ultimate goal. But thanks to the bold and decisive action we have taken since January, I can stand here with confidence and say that we have pulled this economy back from the brink.”

    It will be your standard self-congratulatory, work still needs to be done spiel. Given his previous rhetorical efforts, it will be well delivered corporatist blather.

    Sockpuppet or avatar, Obama is an expression of elite Establishment thinking, the same thinking which drove us over the cliff in the first place and continues to control policy during our fall, or as Obama likes to call it after he “pulled this economy back from the brink.” Those elites, political leaders and policymakers of both parties are simply not up to the task of dealing with our economic problems. They have steadfastly ignored looking at the fundamentals which are both horrendous and getting worse. For all our wasted trillions, they have only succeeded in creating mini- and evanescent bubbles in the stock and oil markets and on this basis are declaring victory with a few caveats for CYA purposes. Obama in giving this speech is only establishing a record of his own cluelessness and culpability in the face of economic collapse.

  8. fergerst

    What exactly by this time in their administrations did Clinton or the Bushes do for America? Iron fist style leadership in america is only appropriate when a republican takes office. Somehow we’ve come to expect this from the republicans but a democrat is not allowed to do so especially if he is black. People have been most critical of his tenure so far of which I really don’t understand given the circumstance. He is no doubt the most inspiring president we have had since Kennedy. But you see it differently. Perhaps you should advise Obama how to combat the clusterflock we are in. That’s a scary thought.

  9. Blurtman

    Obama ran on change. People are desperate for it. It remains to be seen if as Reverend Wright said, he is after all a politician.

    Appointing Summers and Geithner may indicate what he is really all about. And the looking forward crap. After WWII, imagine if the USA took that same attitude. There may have been war crimes committed, but lets look forward.

    Bush-lite? The above indicates “yes.”

  10. Charley

    If there is nothing in the speech about shortening hours of work – even if it includes getting rid of Bernanke, Summers and Geithner, or prosecuting the investment bankers – it will be of no consequence at all.

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