Mr. President is back among scheme of things with a hard fought battle with Republican rival Mr. Mitt Romney. In the history of US electorate, no battle was as hard fought as this one. But at the last Mr. Obama proved it; the one who sticks throughout the period eventually comes out with flying colors.
As he is re-elected for second term, means he would continue with the top job in the world for another four years, several promises he made during his campaign in the race for presidential election need to be fulfilled. Amid the looming fiscal crisis, his re-election has sent a wave of happiness and ray of hope on the Wall Street.
Certainly, the president has more works to do now for bringing the economy on track. He is assigned to overhaul the economy that is troubled by slow growth rate, high unemployment, sluggish wages, financial crisis in Europe and US companies still apprehensive about expansion.
Just hours after Obama won the re-election bid; he announced that very rich Americans might have to cough up more taxes for fueling the economy but hinted that others might not see equal treatments by the tax department.
In the meantime, the workaholic president, in no mood to savor his victory, after a meeting with John Boehner, the house speaker indicated that a compromise might reach for tax standings that have resulted into budget stalemate.
The talks on the budget are due next week in which certain decisions are expected to turn away the ongoing fiscal catastrophe. Congressional leaders from both the party, Democratic and Republic are invited to the White House next week for the discussion.
Remember, during the Bush era a senate bill was passed in the congress stating tax cuts on household earning less than $200,000 a year for individuals and under $250,000 for couples. Obama called on the house to extend bush-era cuts, and most probably the issue might get discussed in the meeting scheduled Friday, next week.
Whatever is the outcome of this talk between senators but Mr. President is trying everything in his might to keep up with the expectations of his countrymen.
Expectations are very high from the President and he has to live up to it. It is ciphered that next four years will overlap with a better growing economy in comparison with last four that was immediate after the Great Recession.
He is also suggesting that unemployment could be tackled keeping low income tax for others except high earning Americans. The Government can infuse more money into works related with public and tax breaks to businesses could also be given at the same time.
Though, In USA the job vacancies have been improving slowly and gradually. According to a data, in the October month a significant addition of 171,000 jobs was done by the employers. Employment rate in the months of August and September was equally higher, overhauling previous months.
In fact the data has more to show, Low gas rates and on the boom house prices have made Americans much confident for spending a few more bucks on their standard of living, benefitting retailers, auto dealers and manufacturers.
Though, these are mere data, if facts are to be believed, Obama’s re-election coincided with highest unemployment rate in the tenure of any incumbent president. Only Franklin Roosevelt went through such discouraging figures in his re-election bid.
Meanwhile, a biggest weekly slowdown since June was recorded in the US stocks as the president was discussing budget matters in House of Representatives with Republicans in majority. It seems that the challenges are not going to provide spaces to the President with all 10 groups in the Standard and Poor’s 500 index slumped in the week.
Dividend tax rise is the concern for falling of Utilities and phone companies. Also the banking sector was not left with the crisis as Bank of America’s shares were down 3.1 percent and coal companies’ shares too witnessed hitch.
Similarly, shares of the most valued company in the world, Apple also went 5.2 percent down to $547.06. It’s the seventh straight weekly loss and longest recoil since 2008 recorded against share value of the giant manufacturer.
Though, amid speculations of preserving health care services, hospitals such as HCA rallied on the share market.
This slowdown in the share market was recorded before some signs of recovery on Friday.
Going back to the fiscal issues, about $607 billion in the forms of tax increases and government spending cuts that is to kick start in January might prevent the economy slowing down by 0.5 percent. It is sure to give the required boost to the financial capacity of the country.
Banking sector too is holding lots of expectations from the win of Barack Obama. As in the near past, one of the biggest banks in world needed government funds for keeping afloat in the market, so its time when he chalks out the plans for banks not meeting similar fate.
In the current market slump, banks are finding it tough keeping their feet firm on the ground. Lack of proper inflow of capital is one major concern that needs an overhaul as quick as possible.
Banker around the country is hoping some respite for them in the due budget session. Not only in America but the whole world is keeping a close eye on the decisions that President Obama take in coming few months.
In between talks, news coming out from the White House is that the US Treasury Secretary Timothy Geithner will not vacate his chair until important negotiations on fiscal crisis are done in the year 2013.
It’s time to act now if major catastrophes are to be avoided. All the promises he kept in the run up for the most admirable job in the world need to be kept otherwise the world is into another major economic stalemate like the Great Recession.
The President needs to deliver for the sake of fellow Americans, for the sake of his very own United States of America and for the whole world. Everybody has one or other hopes from him and they are keeping an eagle eye on the President.