Franklin Delano Roosevelt
The Obama administration will be certainly be put under the litmus test for the 1st 100 days of power. The 100 days test was made famous by Franklin Roosevelt, one of the most loved and famous US presidents who is known to be a steadfast & firm president that brought the US out of the Great Depression. Now i am reading his a book on his biography albeit a very slow pace.
Sudden violatility upwards will certainly be a quick death to short sellers if Obama wants to have a great start to the 1st 100 days by pumping MORE cash into the market. The 100 days seems to be grading period for the US presidents before he/she begins the 4 year tenure. He cannot afford to screw up this and don't hope for a 2nd term re-election.
Good luck Obama. :)
THE FIRST 100 DAYS
Roosevelt entered office at a time when fear and panic had paralyzed the nation. In a famous passage, historian Arthur Schlesinger described the mood at FDR's inauguration: "It was now a matter of seeing whether a representative democracy could conquer economic collapse. It was a matter of staving off violence -- even, some though -- revolution."
FDR's natural air of confidence and optimism did much to reassure the nation. His inauguration on March 4 occurred literally in the middle of a terrifying bank panic -- hence the backdrop for his famous words: "The only thing we have to fear is fear itself." The very next day, to prevent a run on banks, he declared a "bank holiday," closing all banks indefinitely until bankers and government could regain control of the situation. The term "holiday" was meant to give a festive air to what was actually a desperate situation, but such was FDR's desire to provide hope to the nation.
Congress was almost entirely compliant and gave the President everything he wanted. The Emergency Banking Bill, which strengthened, reorganized and reopened the most solvent banks, was passed overwhelmingly by Congress with little debate. On March 12, Roosevelt announced that the soundest banks would reopen. On March 13, deposits at those banks exceeded withdrawals -- a tremendous relief to a worried nation. "Capitalism was saved in eight days," said Raymond Moley, a member of the President's Brain Trust.
The bank holiday was a vivid example of the effectiveness of government intervention in an economic crisis. Hoover had allowed two previous bank panics to run their course, which contributed to over 10,000 bank failures and $2 billion in lost deposits. The bank holiday secured Roosevelt's political reputation, and convinced both Congress and the public that the New Deal was the right road to follow.
Roosevelt's strategy consisted of two parts: first, provide relief for those who needed it most, which often involved a redistribution of wealth from the rich to the poor. Second, provide long-lasting reform to the nation's economy, through reorganization and the creation of new agencies. Most of Roosevelt's policies can be described as "taking from one pocket to put in the other." Fixated with a balanced budget, and fretful when it was not, Roosevelt made sure that anything given to one sector of the economy was taken from somewhere else. He did not accept Keynes' recommendation to begin heavy deficit spending, and did not do so until the threat of World War II forced him to.
Roosevelt's legendary "First 100 Days" concentrated on the first part of his strategy: immediate relief. From March 9 to June 16, 1933, FDR sent Congress a record number of bills, all of which passed easily. These included the creation of the Federal Emergency Relief Administration, the Civilian Conservation Corps, the Reconstruction Finance Corporation, and the Tennessee Valley Authority. Congress also gave the Federal Trade Commission broad new regulatory powers, and provided mortgage relief to millions of farmers and homeowners.
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