President Obama Speaks on CNBC… Here's What I Heard

I happen to respect the man greatly for his intelligence and his ability to handle situations. I also think his job in office has certainly been better than I could ever do, but certainly not one that deserves acclaim.

This opinion was shared by a devout Democrat who was a CFO and mother of two kids headed off to college, when she expressed her disappointment in the actions (or lack thereof) of the current administration. She was hoping for change, but like many of us has had yet to see it. I understand that changing the economic health and sentiment of a nation takes time, so maybe it's the grand promises that were made that are now blossoming into disappointments.

I did agree with some of his commentary and rationale yesterday. Some is the obvious operative word here.

While I think the bailout of the banks, brokerages, automakers, etc. may have helped buffer the catastrophe we were facing, I AM NOT a believer in big government. Nor do I think increasing regulation and reform can help the markets behave and operate more freely (as was suggested by the President).

The failure of U.S. corporations is unfortunately a part of the American way. As those companies fail, new companies – perhaps ones that are more efficient and innovative – take their place. Bailing companies out is almost like rewarding someone for doing the wrong thing.

In the President's defense, he did require massive changes in the way companies like General Motors did business and provided major concessions for many of the hard-working men and women there. Personally, I think it's a blow to a company like Ford Motor F, who manage to not only get through the tough times, but grow and improve their products. (Maybe that's the reason Ford has been around for so long).

The quality and ingenuity of American products and our nation's ability to innovate and overcome adversity are what set us apart from most of the world. These qualities are also what allowed this very young country to flourish and become the world's “super-power.” I feel that if we Americans just lay back and expect our government to bail us out when our backs are against the wall, we are doomed to failure or even worse, mediocrity.

Trust me, coming from a middle-class, hard-working family in Philadelphia, I don't want to see anyone lose their job. My mother struggled as a teacher and my father as an electrician to put food on the table and give us a good life.

But by the same token, why does the government get to decide who gets “bailed out” and who doesn't?  What about the thousands of small businesses that have failed and gone under and the millions of Americans who lost their jobs as a result?  Where is their bailout?

During yesterday's Town Hall meeting, Anthony Scaramucci brought up a good point, noting how it costs $90,000 for a company in New York City to employ one person who is drawing a salary of roughly $50,000. What's worse is that aside from the $40,000 the employer pays in taxes, healthcare, unemployment, and other costs, the employee takes home about $35,000, with that $15,000 (again) going to the government. Is that fair to both the employee and would-be employer?

Additionally it seemed, based on the Presidents words, that anyone making over $250,000 per year, can expect a tax hike. Maybe smaller government and less oversight could mean lower taxes?

Mr. Obama addressed housing minimally. I wasn't able to gather anything useful on that topic other than your local mortgage broker shouldn't put you in a 3/1 ARM that will pay him three points compared to a 30-year fixed that will pay him a point.

I don't think you should be blaming the banks and Wall Street for the housing bubble; there were plenty of unscrupulous loan officers and appraisers who greatly exacerbated the problem. Fault lies here mainly because they ignored or weren't aware of the fiduciary duties they have to their clients. Or maybe it was ignorance on both the clients' part and the brokers' part.

Remember that many loan officers during the past decade were brokers and able to place a loan with multiple lenders. They controlled where the loan was placed and they also were supposed to be asking questions to fit the buyer into the appropriate loan.

Many of them were only required to take a short state-issued exam (or none at all) and pay a fee to the state to broker loans. Perhaps we need to require a bit more knowledge, background, and credentials for the folks on the front line – those who are actually dealing with customers.

Other than some reminders about the programs that have been put in place along with some statistics, the President did not offer any real responses or direct solutions to the questions asked, nor were there any earth-shattering revelations on programs or policies that will be helping Americans moving forward.

He did remind us, however, that marriage, no matter what the cost, “is worth it.” This was his response to a question from a law student who has a family and is struggling to pay his student loans and can't find a job…

Photo Credit: methTICAL man

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