New Obama Tax Credit

In his speech to Congress last night, Obama said he proposes a $5,000 tax credit as a incentive for businesses to hire new workers during the barred economic times. However, these companies who want the new tax credit cannot simply fire one employee and hire a new employee, but that is not the only tax incentive for small business. Obama wants to give small businesses an additional reimbursement for companies that raise its employee's paycheck. The business would receive a tax credit for higher Social Securities payroll taxes.

This tax credits seemed to please the Republicans, and they may even support Obama on this one. Obama took the right steps to encourage small businesses to hire an employees because these small companies are the "backbone of America." According to the White House, these tax credits would cost $33 billion dollars, but where are we acquire the money. Obama already spent a $800 billion dollar stimulus, and this hardly made any jobs.

Hopefully, Obama knows where he is going with this one.

Imax to Reveal Record Breaking Profits

With the new 3-D movies such as Avatar, directed by James Cameron, IMAX looks to break new records. Once a Canadian company, IMAX has struggled for years to make profits and interest investors. Over the past three years IMAX lost money every single year, but since last August things changed dramatically. IMAX reported net income of $2.6 million in August 2009, compared to a net loss of $12.2 million in 2008. Total revenues increased 94% to $41.0 million, compared to total revenues of $21.2 million last year.

Countries such as China are starting to invest in IMAX. Huayi Brothers Media Group, the largest movie studio in China just reached an agreement to include studios overseas. These agreements will open the door to IMAX of a new business opportunities, IMAX will become an even more active participant on the movie production.

IMAX also has another card up its sleeve: Michael Jackson's "THIS IS IT". This movie will be a huge money maker. We will have to wait and see what IMAX really has to show.

A Shortcoming in Bernanke's Job?

A shortcoming in Bernanke's job is highly doubtful. Bernanke was appointed by George W. Bush in 2005, and he was expected to change the invariable economy. Although many critics believe that the Fed's easy money policy will further impair the economy in the future, I see Bernanke as almost a profound superman; however, he could have utilized more regulation on banks. Bernanke saved the United States from what could happened. If Bernanke did not bail out the banks, the whole current banking system would have failed.

Bernanke is up for re-nomination for his second term of U.S. Federal Reserve chairman. Politicans seek a scapegoat who they can blame the current economic situation, and Bernanke's nomination vote couldn't come at a worse time. Politicians blame that the Fed's expansionary monetary policy will only cause acute inflation in the years to come. Obama supports Bernanke fully and says, "He [Bernanke] has my strongest support." However, there is a lurking indecision in Capital Hill towards Bernanke. Senators including John McCain plan to vote against Bernanke's nomination.

Most public ire comes from the huge bailouts by the Fed such companies include Well Fargo, Bank of America, and Citi Bank. The White House press secretary, Robert Gibbs, says, "There’s still a great amount of anxiety in our economy, but Chairman Bernanke helped the president and the economic team steer through some very turbulent times and rough waters." Senator Diane Feinstein of California and Joseph Lieberman plan to vote for Bernanke.

Well, if I was a senator, I'd plan to re-nominate Ben Bernanke as Fed Chairman for four more years. Since I am not a senator, I will continue to follow up on Bernanke's story.