ObamaNomics Drives Down The Dow
The Dow Jones Industrial Average is down 29% since Election Day. Roughly half of Americans are invested in the stock market, either directly or indirectly through pension funds. Retirement savings have been devastated by the stock market crash
This morning, at a photo-op with British Prime Minister Brown, President Obama was asked about the disastrous performance of the Stock market since he was elected, and especially since he began to announce his policy initiatives. 
His answer in part was:
What I’m looking at is not the day-to-day gyrations of the stock market, but the long-term ability for the United States and the entire world economy to regain its footing.
And, you know, the stock market is sort of like a tracking poll in politics. You know, it bobs up and down day to day. And if you spend all your time worrying about that, then you’re probably going to get the long-term strategy wrong.
As anyone who has ever observed politicians knows, President Obama would certainly be “looking at” the market and calling our attention to it with great gusto if it had gone up since election day.
The market reflects the collective future expectations of millions of investors. The market is always the first positive economic indicator when a recession is about to end and economic growth is about to begin. If there were any reason to believe the economy would begin to grow within a year, the current decline would stop and stocks would begin to advance.
Obama-nomics policy does not invite investors who are waiting on the sidelines to come back in to the market. Obama has conveyed an attitude of contempt for investors and his budget outline promises to further diminish the market value of stocks by increasing the tax on future gains and dividends.
The Bottom Line:
It’s clear that the folks who own the resources, the capital required to invest in American business and American jobs do not believe that massive, unprecedented, government borrowing will create a climate where business will be allowed to succeed and prosper.
Team Obama will attempt to slough off all bad news to the prior Administration. That’s politics. BS, but politics.
Here’s reality:
The current recession was destined to be a “U” type recession in the mold of 1975 or 1981. perhaps even worse. 18- 24 months. A 2-3% GDP contraction. But not some sort of “disaster.”
Things have changed. Japan in 1990 was just coming off a credit bubble, with asset blowoffs in real estate and equities. Sound familiar??
Their policy, now widely discredited: prop up the banks and corporations with sequential govt infusions of cash. Have the government put in sequential “stimulus” packages, based primarily upon public works projects. Sound familiar?
Result: A mess. 15 years of 1% growth. The so-called “L” recession. A debt ridden economy beholden to ever more govt “stimulus” packages to pave over every gd square inch of the country.
This is where Obama is going.
Any wonder the equity markets are tanking? Can you say DOW 4500??
Obama won’t pave over the whole country. That wouldn’t be “green.”
But He’ll waste even more money on green bureaucracy, or as he calls it green jobs.
This is the BUSH stock market. Bush policies got us here, not the six week old Obama administration.
you republicans kept blaming Clinton for Bush’s bad judgment for 7 of 8 years, but you want to blame Obama for the catastrophe he INHERITED after only a month!
Forget it. The American people aren’t buying your lies.
Bush deserves some of the blame. But Obama has already put his boot prints on it with that mountain sized so-called stimulus, and his mortgage program, and all his other big spending policies. Obama’s deficit will be the biggest ever by double or triple. .
It’s Obama’s stock market from now on. He can’t keep blaming Bush if it keeps going down. He’s too involved.
I graduated in 1986 and started working. ten years later I had a six figure tech job. Then Bush stole the election and it all went to hell. They tried to blame 9-11 but the economy was already in the dumper way before that.
The company shipped my job to Indonesia in 01 and I’ve been working for cow piddle ever since.
Blame This disaster on bush and the Repukes .
If anyone can set this broken country back on its feet Barack Obama is the man who can.
The stock market processes information and prices it instantaneously. The fact of the matter is that the market is down almost a third since the election, and the market is down precipitously since they’ve seen how Obama is going to govern.
People betting with their own money are not amused.
“They tried to blame 9-11 but the economy was already in the dumper way before that.”
Way before? So, you mean, when Bill Clinton was in office.
Way before means June or July of 2001. By September the layoffs were in the millions. Sure 9-11 hurt too, but it wasn’t the only cause of the recession.
Bush’s policy of allowing companies to ship good jobs off to cheap third world countries was criminal. You might as well slit a worker’s throat.
The market began going down way back in August or September. This will be known as the Bush bear market.
The BUSH stock market was alaready in free fall two months before the election. It was falling because BUSH policies of no regulation and allowing Wall Street crooks to act like they were placing bets on roulette wheel in las Vegas casinos, with other peoples money, knowing if the placed a bad bet they were backed up by the government and OUR money.
They pocketed the winning bets for their billion dollar bonuses and golden parachutes and left the losing bets for working families to pay back out of our tax money.
This is the BUSH system! The REPUBLICAN system! It’s not Obama’s system. Obama just inherited this Wall Street sewer 50 days ago!
Why don’t you give Obama a chance to fix these problems? If McCain had won you would be saying it takes time, and we have to be patient.
Your just trying to whitewash BUSH, who ought to be thrown in prison along with Cheney and the rest of his Wall Street scumbag buddies, who ripped off this whole country and eveybody in it, just to give thier billionaire friends even more billions!
Chuck, if this is the Bush system, why is Obama feeding it? Why is Obama continuing to shovel hundreds of billions into that bottomless pit called AIG?
Have you heard the term “zombie banks?” thats what Obama is creating. Banks that will never get well, but will drain all the money the treasury can possibly borrow before they finally die.
You could get away with blaming Bush before.
but Obama owns it now, after he rolled out all these super aggressive policies, borrowing trillions of dollars for our children to pay back, all at once.
Nine thousand earmarks, Chuck! What about that? Those aren’t Bush’s earmarks.
How many Billions to AIG since Obama started? How many billions to bail out banks that are stuck with mortgages they would otherwise have to foreclose on and lose money?
And Obama’s friend, Robert Rubin, walked away from Citibank with $120 million in golden parachute, after he did just what you complained about. Now he is a white house economic advisor. What about that, Chuck?
Boomer -
Its nice to see activity here at LW. Its a shame it has attracted two of the dumbest people I’ve seen posting anywhere.
It is interetsing to note each is, ahem, “underemployed.” Shocking !!