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Thoughts on the Obama Wall Street Lecture

09/15/2009

President Obama came to Wall Street yesterday, well kind of, sort of. I am still convinced his administration watches CNBC, more specifically Fast Money. My criticism of his lack of New York time seemed to be addressed by the President at the start of his speech/lecture. "Great to be back in New York. I was here last week." Sorry Mr. President, I didn't notice.

As he began his speech, it was clear that this was not a speech, but rather a lecture. I think the source of disappointment was that the opportunity to "hold hands" with Wall Street and walk through this impending regulation process together was lost. It was clearly a directive that regulation is coming "with or without you." Great title for a song, by the way.

The takeaway, besides his inability to walk 50 yards over to the trading floor, is that there is too much on the Administration's plate right now. The market recognizes this and shook off any potential negativity with a strong close. So the "chase for performance" continues to march higher.

Regulation is good and so is profitability, both beginning with corporations themselves. One of the reasons for the turnaround from March is just that - corporations have begun that process. It's a good thing we don't have to wait for the government to begin the process. That's what capitalism is all about; let the private sector blaze the trail.

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