Due to the enormous loss of wealth that was ubiquitous in the US, 2009 is a year to forget for most Americans. As we welcome in a new year—and a new decade—there is a higher level of uncertainty about the country’s future than there has been in my lifetime: we are in multiple foreign wars, facing an energy crisis and global warming, trying to piece together and reform a shattered financial sector, completely revamping the health care system—and those are just the topics that came to me through automatic writing.

As the year comes to a close, the federal government and the biggest corporations are hurriedly trying to get things in order before the inevitable holiday hiatus. The House of Representatives closed out their last session of the year yesterday, passing some key pieces of legislation as members were already thinking about their holiday plans. Before leaving for their annual break, the House passed a bill that will extend unemployment benefits and health insurance subsidies for laid-off workers, as well as approving $290 billion of new loans to keep the government operational for the next six weeks. The Senate, on the other hand, is still in session and Democrats are working fervently to get their version of a healthcare reform bill passed before the first of the year.

One of the most scrutinized banks following the financial meltdown has been Bank of America. For months there has been speculation as to who will be the successor to Kenneth Lewis, the bank’s begrudged CEO. In the past few years, the bank has made a multitude of ill-advised acquisitions that have severely tarnished the company’s public image and financial standing. Today the Charlotte-based banking giant announced that Brian Moynihan, the current head of BoA’s retail bank, will be the new CEO at the start of the year, a decision that is touted by analysts.

“Brian is uniquely qualified because I think he’s a force for continuity and I think he’s a force for change,” said Donald Powell, a BoA board member and former FDIC chairman. “He has a lot of strategic initiatives that he’s talked about, he’s got vision and he’s got energy to execute under that strategy.”

Although his reappointment is consider imminent by most, today’s nomination of Federal Reserve Chairman Ben Bernanke is still big news in the ongoing recovery efforts for the economy. The Fed has, arguably, the biggest role in determining the financial future of the country, and Bernanke has been under strict scrutiny due to the perceived shortcomings of the economic stimulus efforts. The decision was made by the Senate Banking Committee, who approved the nomination by a vote of 16-7.

“I strongly support this nomination. But I want to be clear with my support comes my insistence that we carefully examine the role of the institution that runs the risk of becoming too complicated to succeed,” said Connecticut Senator Christopher Dodd, the panel’s chairman.

At a more global level, the US made their first major announcement at the Copenhagen climate negotiations today, where they agreed to help raise $100 billion a year by 2020 in an effort to help poor nations adapt to potential climate change regulations. This comes in the wake of walkouts and protestations from many developing nations and third world countries claiming that climate regulations hamper their ability to grow and compete on a global scale.

Heading into 2010, predictions about the future are fairly optimistic, but there is still rampant fear and uncertainty throughout the country. The last eight reports from the Conference Board have shown an increase in the nation’s economic condition. The latest report, however, has reduced their expectations for the next six months, with high unemployment and a lack of credit availability being the main factors. Even with this data, Conference Board Economist Ken Goldstein is still optimistic for the prospects of 2010.

While this economic data is good news for investors, it is less of a windfall for those on Main Street still facing double-digit unemployment numbers. Unfortunately, unemployment tends to be a lagging indicator, and even if the stock markets and currencies stabilize, there could still be millions of people with jobs.

Popularity: 1% [?]

View James Gelfer's Profile      Subscribe via RSS