Investing with the Obama Administration

My view of the current economic and political climate has been consistent since the election. Foreign competition has devastated the American economy and practically demolished the manufacturing and automobile industries. The standard of living for the American worker has been dramatically reduced. After the election, a new and irresistible consensus has emerged that we must rebuild America and restore the American worker, the American standard of living, and the American way of life. To accomplish this, we must put the American people back to work by rebuilding America itself. This will be accomplished by developing energy independence and rebuilding the aging and decaying infrastructure in this country. The American people are determined to develop their own sources of energy, and are no longer willing to waste American money on foreign oil. The American infrastructure must also be rebuilt. Their have been too many incidents of people being injured and killed on bridges that collapsed while in use. The American infrastructure must be rebuilt while there is still time.

My analysis is consistent with President Obama and his new incoming administration. The big winners in the Obama Administration's stimulus package are infrastructure development, public transportation, and alternative energy. Successful investing will require one to invest in accordance with this new national consensus and the new Obama Administration.

The article that really supports my analysis was written by Matthew Benjamin and was published by Bloomberg.com. The title of the article is "Obama to Boost Stimulus With Funds for Roads, Energy (Update1)". The rest of my essay is a summary of that article.

According to Benjamin, President elect Obama will propose an economic-stimulus package that is three times larger than the one he was considering before and the main focus will be on infrastructure. Senator Dick Durbin of Illinois is Obama's strongest ally in the Senate and the second ranking Democrat in that great institution. Obviously his views will be a major factor in determining where the money is spent and which industries and companies will benefit. Durbin believes that infusion of as much as $700 billion is needed to stimulate the economy and put the American people back to work. "You better stimulate with a number that will create measurable economic growth," Durbin stated.

President-elect Obama stated at a news conference on January 5, 2009, that he was dealing with an "economic crisis of historic proportions." He reinforced Durbin's point that the stimulus package must be large enough to restore confidence.

Government spending will be "of a size and scope that is necessary to get this economy back on track" and "significant enough that it really gives a jolt to the economy," he said.

Developing Jobs and Economic Growth

During the election, Obama proposed spending on school repair, bridges and roads, aid to states, and tax breaks for job development.

Aides to Obama state that the new director of the National Economic Council, Lawrence Summers, favors spending as much as possible to fuel growth. Many Democrats believe that much of the money should be spent on infrastructure projects as that would develop jobs and spark economic growth.

Massive Spending

Likely Page BreakA key economic adviser to President-elect Obama, Laura Thompson stated that the spending program may be used to finance highway projects, develop alternative energy, and support other projects. Tyson said the package could be as mush as $600 billion in the next two years.

Caterpillar Inc., which manufactures construction equipment to rebuild the nations infrastructure, and the engineering firm Fluor Corp. which can design the constructions projects are projected as big winners in the stimulus package. Caterpillar which is based in Peoria Illinois, has stated that the United States requires about $700 billion in new roads, bridges, airports, and ports to remain competitive with other countries. According to Ann Duigan, an analyst with JP Morgan Chase & Co. in New York, public projects account for approximately 30 percent of construction spending in the United States and increased spending in this area should help offset decreases in spending on residential buildings.

Terex Corp., the third largest producer of construction equipment may also benefit. Increased demand for raw materials may improve companies that manufacture mining equipment such as Joy Global Inc. and Bucyrus International Inc. In addition to the Fluor engineering company, the Jacobs Engineering Group may also benefit under the stimulus package.

According to Benjamin, President elect Obama will propose an economic-stimulus package that is three times larger than the one he was considering before and the main focus will be on infrastructure. Senator Dick Durbin of Illinois is Obama's strongest ally in the Senate and the second ranking Democrat in that great institution. Obviously his views will be a major factor in determining where the money is spent and which industries and companies will benefit. Durbin believes that infusion of as much as $700 billion is needed to stimulate the economy and put the American People back to work. "You better stimulate with a number that will create measurable economic growth," Durbin stated.

Caterpillar Inc., which manufactures construction equipment to rebuild the nations infrastructure, and the engineering firm Fluor Corp. which can design the constructions projects are projected as big winners in the stimulus package. These two companies were cited on Bloomberg.com. This web site was updated on January 6, 2009 and an article was published by Matthew Benjamin.