7 up - 7 down for (Jan 25th)

As stated last week - each Monday, Rich Karlgaard of Forbes posts 7 questions to ponder for 7 days. Below are his questions, his responses and mine as well.

1. How should big banks be reformed?
KARLGAARD = no comment from what I saw
VOIGHT = depends on if you want to go pure capitalist or pure socialist or somewhere in the middle. Pure capitalist, I prefer, would be not to regulate or reform them in any way that prevents them from entering into certain economic/business areas (such as investment banking with deposits, etc). However, I dont think that society can stomach what would be inevitable busts when a bank or any company did this and lost all its money. So that's, psychologically, our motivation for the regulation and spreading the risk. So in that sense, I think the recent reforms to limit risk-taking by banks and to tax them to pay for lesser societial fringes makes sense with that philosophy. Do I agree with that mindset? No, but if those are the rules of the game (which America largely is - mostly populist at the end of the day i think), then I think it makes sense.

2. Was Tim Geithner fired last week?
KARLGAARD = again, no comment from what I saw
VOIGHT = not sure - I think the presence of Volcker at the press conference/announcement was more symbolic of policy than an actual reprimand on Geithner. But I dont think Geithner tends to lean towards policies like the reform policies.

3. Bernanke to be reconfirmed? would you vote for him?
KARLGAARD = probably and then no comment
VOIGHT = yes, man would the markets tumble if he wasn't. And I think I would. Yes he missed the boat on the bubble in the first place but I can't see him missing it again with so much attention focused on it now and media scrutiny. So far I think his policies and decisions have been consistent with his belief and what he's promised.

4. Can the Pres. redeem his Presidency with a populist tone?
KARLGAARD = no
VOIGHT = doubtful - the Mass elections were a reprimand, in part, on big government, and now all that is being proposed are more governmental programs and spending. Moreover, people have lost faith in the idea that "government can do it better/more efficient". Its hard for Obama to be populist and rail against government when its a DEMOCRATIC led Congress.

5. What was last week's market tumble about?
KARLGAARD = no comment
VOIGHT = it was a sign of unease over the recent political climate as well as a recognition that the economy isn't as strong as the recent recovery has indicated. I don't expect a major correction though when this much stimulus and easy money exists to prop up the economy - and a Chinese bubble that isn't popping imminently.

6 & 7. comments about the apple tablet and a twitter hypothetical. No comment.

Anyone else's thoughts?