Barack Obama Pitches Economic Plan Tonight

President Barack Obama takes center stage on Tuesday to try to sell the American people on his broader agenda for jolting the United States out of deep recession and confronting long-term economic challenges.

Riding high in opinion polls, Obama will deliver a State of the Union-style address at 9 p.m. EST in his first appearance before a joint session of Congress since he took office five weeks ago.

The primetime speech, the opening act on Capitol Hill for any new president, comes in a pivotal week for Obama. He will roll out his firstbudget proposal on Thursday against a backdrop of growing public anxiety over the worst economic crisis in decades.

In a stark reminder of how grim the situation has become, Wall Street slumped to a 12-year low on Monday as investors worried about the government nationalizing ailing major banks, a prospect the White House tried to play down.

 

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Barack Obama Expand Bush Faith-Based Initiatives

President Obama established his own faith-based initiatives office Thursday, reversing a Bush administration policy that allowed churches to discriminate in their hiring practices.

"Whatever our differences, there is one law that binds all great religions together . . . It is, of course, the golden rule, the call to love one another, to understand one another, to treat with dignity and respect those with whom we share a brief moment on this Earth," Obama said at the National Prayer Breakfast.

"It is an ancient rule, a simple rule, but also perhaps the most challenging, for it asks each of us to take some measure of responsibility for the well-being of people we may not know or worship with, or agree with on every issue or any issue," he added as he unveiled his faith-based agenda.

Obama signed an executive order creating the Office of Faith-based and Neighborhood Partnerships. Unlike ex-President Bush, churches with hiring policies that discriminate won't be eligible for federal grants under the executive order.

 

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Black Financial Expert Boyce Watkins speaks on the Economic Downturn

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Dr. Boyce Watkins

www.BoyceWatkins.com

Hey peeps!

I am going to be on the Jesse Jackson Show Sunday morning at 8 am to discuss the Obama stimulus package.  The show is syndicated and you can click here to see a list of affiliate cities.  I'll be joined by my good friends and respected colleagues, Dr. Marc Lamont Hill (Columbia University) and Dr. Julianne Malveaux (President of Bennett College for Women).  I have a lot of thoughts on this measure, and I plan to write about it a great deal in the coming month. 

I also want to give a shout out to our friends and family in the Kentucky storm.  Their power has been out for several days now and I wish you all the very best as you confront this ordeal.  We have a lot of YBW family members in Kentucky, so my thoughts and prayers are with you.

I should also quickly note that Juan Williams from Fox News, the man I labeled as "Bill O'Reilly's Happly Little Negro", has struck once again.  Making reference to the first lady, Michelle Obama, Juan referred to her as "Stokely Carmichael in a designer dress." 

Most of you know how I feel about Juan, so there isn't much else to say.  I will only end this by saying that as long as there is money to be made, people will always be willing to embarrass themselves on TV.  The same way that Juan refers to Michelle as "Stokely Carmichael in a designer dress", I would refer to Juan as the "Flavor Flav who went to college".  Your integrity should be of greater value than your paycheck.  Juan should be ashamed of himself.

I write on the state of the economy below.  Please enjoy!

Boyce

www.BoyceWatkins.com

To join the Dr. Boyce Money Advice List, please click here.

Could the Economic Downturn possibly be a GOOD thing?

By Dr. Boyce Watkins

www.BoyceWatkins.com

I hate being the doctor who has to tell the patient he has cancer, but the truth usually sets you free (or so my mother told me): We are in the midst of an economic bloodbath. It’s tough to argue that an economy which shrinks by an annualized rate of 5% is still healthy. It’s hard to tell someone that 7.2% unemployment, with the most job losses since 1945, is a good thing. A 4,000 point drop in the Dow is nothing to sneeze at, even if you have plenty of tissue. Times are tough, we know that.

But if we focus hard enough, we might be able to find a few bright sides to all this. With hopes that no one chooses to kill the messenger, I am going to give it a shot.

1) It could always be much worse.

The United States has, according to some, the strongest economy in the world. Our economy could shrink like Rush Limbaugh’s body on drugs and still be disgustingly rich compared to the rest of the world. Don’t believe me? Consider the “fast-growing” Chinese economy, the one that everyone thinks is going to outpace the United States in the next few years. Our annual tax revenues are nearly 4 times greater than China’s ($2.5 Trillion vs. $670 Billion) and they have over 4 times more people than we do (300 million vs. 1.3 Billion). In other words, our per capita tax receipts are over 16 times greater than China’s. So, we’re far better off than most of the world, even when we’re broke.

2) If there were ever an argument for getting out of Iraq, this might be it.

It’s hard to declare war on random countries if you don’t have the money to do it. War is big business and attacking other countries is a huge financial investment. If you don’t think war is about money, then you may want to take a couple of Political Science and History classes. Perhaps these troubles at home will keep us from creating trouble abroad, since Americans have lost patience with irresponsible, arrogant war-mongering. The Obama stimulus plan is asking for over $800 Billion dollars to boost our economy. We’ve already spent nearly $600 Billion in Iraq. Rather than declaring War on Terror, President Obama has declared War on the Recession, which seems to be a far better investment.

3) If you want to buy cheap stocks or real estate, this is the time to do it.

When the market rises, everyone wants to buy stocks. People forget that you shouldn’t buy stocks when prices are high, you buy when the prices are low. Companies with plenty of cash are grabbing investment and real estate bargains that were hardly available a year ago. You should be doing the same if you can afford to do it. Investors who purchase stocks after major market declines tend to do much better than those who buy during booms. You hear me Warren Buffet?

4) Struggle makes us FOCUSED.

Although I tend to be a hardcore capitalist, a part of me misses the activism of the 1960s, when people cared about more than making a dollar. OK, I wasn’t around in the 1960s, but I’ve watched enough old movies. Going through tough times not only teaches one to pursue a higher purpose in life, it also leads individuals to more carefully scrutinize the state of affairs in our government. In fact, I dare to argue that the financial crisis was just what Barack Obama needed to secure his election over John McCain. Economic prosperity allows us the luxury of choosing our politicians based on silly issues, like gay marriage (as we did in 2004). When we are worried about putting food on the table, we look beyond the silliness and choose the most qualified and most intelligent person for the job (after ensuring that he knows Africa really is a continent). Finally, tough economic times make you more responsible in your own money management, as the threat of financial insecurity keeps us all on high alert.

Those are my points, so again, please don’t kill the messenger. I certainly do not celebrate a weak economy, but I am a firm believer that focusing too much on the door that shuts keeps us from appreciating the ones that just opened. There’s always light at the end of the tunnel, a pot of gold at the end of every rainbow, and….well, you get the point. It’s the toughness of tough times that make the good times good. Keep hanging in there, it’ll be ok.

Dr. Boyce Watkins is a Finance Professor at Syracuse University. For more information, please visit www.BoyceWatkins.com.  To join the Dr. Boyce Money Advice List, please click here.

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The Government - Can We Trust Them To Protect Our Money

By Dr. Boyce Watkins
www.BoyceWatkins.com

Media reports show that many Americans are not quite sure of what to do with their money. Watching banks fail left and right, people are logically afraid of what might happen to their savings. This fear is justified, as we are seeing our accounts beaten and stomped by the global financial meltdown.

This grave concern is magnified by the fact that those we’ve trusted are the ones who’ve left us vulnerable. Our most cherished financial experts handled our retirement accounts like flashy vehicles on a Nascar speedway. Our elected officials allowed executives in the banking industry to run rampant like 3-year olds with dirty diapers. Then, when the crash came, a massive bailout package was created for those most responsible for the damage, while the rest of us were left holding the tax bill.

This begs the question: Why in the hell should we trust the government?

I recall that during the failure of Enron, one of the most respected companies in America at the time, the firm made several statements designed to create confidence in the company’s financial condition. Like captains of the Titanic, company leaders explained that there was nothing to worry about, even as they themselves were preparing their lifeboats. When the company failed, those who did not protect themselves reminded us of one grim and fundamental truth: when the “you know what” hits the fan, it’s every man for himself….and every woman too, in case you’re wondering.

In response to such sentiment, the American consumer has been working overtime to protect his/her resources: people have (against my advice) moved their money away from the frightening stock market, they are diversifying money into different banks, and some are taking their money out of banks altogether. All of these actions are occurring in spite of government calls for calm in a world on the verge of financial panic.

The honest to goodness truth is that I don’t blame Americans for being afraid. I don’t blame them for not trusting the government right now. Trust must be earned in any relationship, whether it is a tough marriage of the relationship between a government and its citizens. Our government must work to regain that trust through sound and efficient financial management. It will NOT regenerate the public trust through excessive spending on meaningless wars, selfish pork-filled bills being passed through Congress and budget deficits that strain the resources of Americans everywhere.

I can’t tell you if the government is lying to you, but I can tell you this: There was a time when government guarantees such as FDIC insurance were as pure as the driven snow. There was a time when the United States Federal Government had pockets and resources so deep that even God himself could be bailed out with our cash. The sad truth, however, is that no empire lasts forever, and there is destined to be a day in the future when we are no longer the unquestionable economic super power that we once were. A country that can’t even afford its social security obligations is hardly a nation that has risen beyond economic risk.

Another sad truth is that if the financial world really were coming to an end, the citizens would be the last to find out about any such crisis. We would, simultaneously, be the first ones asked to suffer the burden of irresponsible behavior by our leaders. If that doesn’t justify a bit of skepticism, I am not sure what does.

Dr. Boyce Watkins is a Finance Professor at Syracuse University. He does regular commentary in national media, including CNN, ESPN, CBS and BET. For more information, please visit www.BoyceWatkins.com.