As the Dow keeps dropping, the President has nobody to blame
Sorry, I had to tweak the title in order to make it fit.
http://online.wsj.com/article/SB123604419092515347.html
As the Dow keeps dropping, the President is running out of people to blame.
As 2009 opened, three weeks before Barack Obama took office, the Dow Jones Industrial Average closed at 9034 on January 2, its highest level since the autumn panic. Yesterday the Dow fell another 4.24% to 6763, for an overall decline of 25% in two months and to its lowest level since 1997. The dismaying message here is that President Obama's policies have become part of the economy's problem.
Americans have welcomed the Obama era in the same spirit of hope the President campaigned on. But after five weeks in office, it's become clear that Mr. Obama's policies are slowing, if not stopping, what would otherwise be the normal process of economic recovery. From punishing business to squandering scarce national public resources, Team Obama is creating more uncertainty and less confidence -- and thus a longer period of recession or subpar growth.
The Democrats who now run Washington don't want to hear this, because they benefit from blaming all bad economic news on President Bush. And Mr. Obama has inherited an unusual recession deepened by credit problems, both of which will take time to climb out of. But it's also true that the economy has fallen far enough, and long enough, that much of the excess that led to recession is being worked off. Already 15 months old, the current recession will soon match the average length -- and average job loss -- of the last three postwar downturns. What goes down will come up -- unless destructive policies interfere with the sources of potential recovery.
And those sources have been forming for some time. The price of oil and other commodities have fallen by two-thirds since their 2008 summer peak, which has the effect of a major tax cut. The world is awash in liquidity, thanks to monetary ease by the Federal Reserve and other central banks. Monetary policy operates with a lag, but last year's easing will eventually stir economic activity.
Re: As the Dow keeps dropping, the President has nobody to blame
I think it's a bit disingenuous to blame Obama for this. There were predictions months ago that to truly correct itself, the Dow would fall to 6500 or worse no matter what Obama did.
Re: As the Dow keeps dropping, the President has nobody to blame
The Dow was as high as 14,000 points when Bush was in power and went down to about 8,000 when he left office. That's a drop of about 6,000 points, but I don't see the WSJ blaming Bush.
You can't blame Obama for this and as crazy as it sounds, the Dow is far more stable now than it was back in Q4 08. Then, we saw drops of 5%-8% on a daily basis. Here, the most we'll see is a 4% fall, if even that.
WSJ has really fallen the wayside the last year, pretty much since Murdock took it over.
Re: As the Dow keeps dropping, the President has nobody to blame
Quote:
Originally Posted by bonanzabucks
The Dow was as high as 14,000 points when Bush was in power and went down to about 8,000 when he left office. That's a drop of about 6,000 points, but I don't see the WSJ blaming Bush.
You can't blame Obama for this and as crazy as it sounds, the Dow is far more stable now than it was back in Q4 08. Then, we saw drops of 5%-8% on a daily basis. Here, the most we'll see is a 4% fall, if even that.
WSJ has really fallen the wayside the last year, pretty much since Murdock took it over.
The Dow has reacted negatively to President Obama since he won the Presidential election back in November/2008.
http://s.wsj.net/public/resources/im...0302200015.gif
The Dow is always looking ahead & once Obama won the big seat, the market has been reacting to President Obama, something else, back in 2008, then, President-Elect Obama took an active role in the state of the economy in order to calm the economy down, which did not work.
http://images.newsmax.com/headline_vertical/office.jpg
Re: As the Dow keeps dropping, the President has nobody to blame
Let's take a look at Google Finance and check out the Dow for the last year. It was as high as 14,000, but went down to 8,000 even before Obama was elected in November. This was way, way, way before we knew who was going to be in office. So, while the Dow is in the toilet now and Obama hasn't inspired much confidence, can you tell me with a straight face that Bush did since October '07?
http://www.google.com/finance?chdnp=1&c ... DJI&ntsp=0
Look at the chart here. Pretty dismal record from October '07 until November '08, don't you think? Or you going to make excuses?
