Obama’s Intentions

U.S. President Barack Obama is currently accused of being a communist by some Americans, or at least a socialist who tends to impose socialistic views on the U.S., the world’s top capitalist. This is what the demonstration organized by Republican extremist groups intended to say. And while some Republicans had reservations about, or made objections to, this demonstration, others applauded it.

Perhaps the main reason behind this accusation is Obama’s new health insurance plan, which is viewed by many as a threat to their interests and benefits. Yet, there are many other reasons. These include Obama’s insistence upon reforming the American stock market, as well as regulating rewards given to leaders of the banking industry and financial institutions.

As a matter of fact, Obama rightly believes that the mess made of the American stock market has made available the opportunity to commit innumerable mistakes. These faults have thrust the American economy into the worst global economic impasse since the 1930s. Although a year has now gone by, the American economy is yet to overcome this impasse, which erupted with the bankruptcy and collapse of one colossal American international bank. The recession still remains while American citizens are suffering from unemployment and scanty incomes.

Perceiving this, Obama looks forward to ending the chaotic practices of the American stock market, in addition to controlling its activities so that the American economy can escape any potential financial crisis.

However, this did not please some magnates of the American stock market and banking industry. On the contrary, they considered Obama’s plans “blatant” interference on the part of the government into Wall Street (the famous American stock market). They also claimed that such plans would hinder market mechanisms and consequently help separate them from the essence of capitalism. That is the message Republican extremist groups wished to drive home!

However, Obama assumed a defensive position. He did not yield or spare himself troubles. Rather, he counter-attacked those who wanted to maintain the chaotic situation of the stock market that exported the American economic crisis to the whole world. A year after the collapse of America’s first bank, Obama stressed that he is beset with the importunity of making amendments to laws regarding stock markets and getting the government more involved in monitoring financial institutions to avoid any similar instances in the future.

Meanwhile, the American head of state made it clear that the U.S., which strives to reform stock market rules, is committed to sharing its experience with the entire world. This is expected to be put forth by Obama during the next G-20 summit.

As such, Obama will at last be responding to what China was banking on. In this case, we will be dealing with international stock markets that adopt regulations with an outside government’s supervision.

In summary, I want to say that we need to understand the essence of Obama’s intentions. Mechanisms of different stock markets alone are insufficient to rectify their imperfections. Establishing a place for government supervision and interference will certainly fix matters.