Power Vacuum in Washington Spells Trouble for Wall Street

bush, financial crisis, lame duck, obama, Politics, power vacuum, wall street

21 Nov, 2008 by New York Herald in Politics

With nearly two months left before President-elect Obama takes office, many on Wall Street are wondering “who’s the boss?” The stock market has plunged in the last few days, to territory unseen since 1997, yet Hank Paulson, Treasury Secretary at large, seems to be preparing for an early departure. President-elect Obama meanwhile, is singularly focused on picking members of his cabinet – he is widely reported to be choosing for example, Janet Napolitano, governor of Arizona, (see: Napolitano, Obama’s 1st mistake) for Homeland Security and possibly even Hillary Clinton for Secretary of State – yet the most important position that he could’ve leaked is the one replacing Henry Paulson. By announcing or leaking that respected former Treasury Secretary Lawrence Sumners will replace Henry Paulson, he will be at the very least add a modicum of predictability to Wall Street.

President Bush’s relevance and popularity, especially during this lame-duck period is at an all-time low, yet the future President has chosen not to exert any leadership during this latest crisis of confidence on Wall Street.

Our suggestion – meet with Henry Paulson, announce, not leak his replacement, meet with the big three automakers and generally get on television – the nation feels rudderless and two more months of stock market declines would leave America with a disasterous economy. Not wanting to take the blame or responsibility until he takes office is no excuse to avoid such a dire economic situation.

photo: Wall Street, Ian Miller, via Flickr