A New Direction
Do you remember in 2006 when the Democrats were pushing their slogan "A New Direction for America"? Well, they have definitely taken the stock market in a "new direction". If you click on the following images, you can see the enlarged versions. Please note that although both charts are the same width, the Republican chart covers 6 years, while the Democrat chart covers only 2 years. So, one way to look at these charts is to say that while it took Republicans a whole 6 years to push the Dow Jones up 13-14% or so, it only took Democrats only a bit more than 2 years to drop it more than 40%!
Click to enlarge
Click to enlarge
People wanted "Change" and they got it... their 401K's changed dramatically for the minus side. People wanted "Hope" and here it is... people are hoping the markets will go back up.
posted by Hawkeye® -- Thursday, March 12, 2009
16 Comments
16 Comments:
You keep the change, let me keep the dollars
Ms RW,
Your wish is my command.
(:D) Best regards...
A lovely fiction. When today markes the 3rd dramatic uptick un the markets in 4 days I assume the praises will begin for Obama's plan...correct?
of course up/down/sideways has little or nothing to do with what any particular person (president or not) does but it's still fun to poke those in power even if the lions share of the decline came prior to them gaining said power
These short fluctuations may be a "lovely fiction", but the trend toward more government intervention in the market and greater debt and inflation is no fiction and this administration (and their equally misled congress)is striding..nay, running towards that end...
And George is the one that gave them a "running start" that would have been very challenging to back away from...and both administrations are (were) out of their tiny little minds to even consider such things
People wanted "Change" and they got it...
Some people, maybe...and now they're learning that change isn't necessarily a good thing.
For boberin, a short lesson in how the stock market operates: "Perception is reality". IOW, when investors perceive that the market will go down, down it goes. When it drops precipitously (as outlined by our host) after every speech by Obama, yes, that is a "cause and effect" scenario.
Regarding Mr. Bush? Quit living in the past; deal with the present. Let's "hope" it'll "change".
We now return you to your regularly scheduled program(ming)...
Bob,
A lovely fiction indeed. Democrats didn't drag down the markets by themselves.
Nevertheless, they did play a major role in creating the root causes for the collapse. The housing bubble was largely their making. We can thank people like Chris Dodd, Bawney Fwanks, Maxine Waters, Greg Meeks, Franklin Raines, Jim Johnson, and Angelo Mozilo (Democrats all) for that mess.
As for praising Obama, if the markets went up in the last 4 days, then it's because some of the banks said they were profitable and lending has increased a bit.
And if the banks got better because money got pumped into them, then Bush and Obama must share the credit.
And yes, it is fun to poke at the Dems. Sorry, but I've been doing it so long I just can't help myself.
I did think it was interesting however to see the steady market increases after Bush signed the tax cuts. It should be a lesson for Obama, but I don't think he gets it.
Beerme,
Spot on. In fact, yesterday Chinese Premier Wen Jiabao expressed concerns about their holdings in U.S. debt. I think it was a hint that they might not be buying a lot more of our debt since they already own nearly $1 trillion in U.S. Treasuries. If the Chinese stop buying, inflation will go rampant.
Camo,
Correctomundo. "Perception is reality". Investors have not been too impressed with Obama yet.
I find it interesting that most of the Wall Street types (Warren Buffet, et al. excluded) were warning for months that Obama would be bad for the economy. Is it any surprise then that the closer we got to the election, the stock market would plummet as investors decided to pull money out?
BTW, Warren Buffet should have listened to the other guys. His net worth dropped 40% last year.
I haven't been too impressed with Obama yet, either, and sincerely doubt that'll change any time soon...or (in all likelihood) ever, for that matter.
Oh yeah, and...
ELEVENTEEN!!! ;-)
As the saying goes, "You can't fix stupid but you can vote it out."
Of course there are plenty of stupid voters, too, mostly Democrats and big government "independents" ... dead or alive.
Hank
You're not serious, are you? Please, tell me you don't mean this, that it's another attempt at 'satire', that you do really know what caused the GFC, because I'm concerned for your sanity.
On second thoughts, maybe its a good thing that y'all think this way as it'll keep keep the GOP from the levers of power for a generation, or two, or forever!
Cheers
Elroy
Hank,
If we can't fix stupid, then I am concerned about our future... There's too many stupid (or "stupored") voters in this country.
(:D) Best regards...
Elroy,
Good to hear from you. I thought you fell off the face of the earth or something.
Actually, I think I do know what caused the GFC, but I would be happy to hear your take on it. No doubt it's all Dubya's fault?
(:D) Best regards...
Hey, Hawkeye, nice to find a friendly voice in the conservative firmament – I'm afraid that some of your fellow travelers have been less than pleasant to ol' Elroy lately.
So. Who stole the bongos? It has been a cumulative effort by neo-classical economic conservatives over the past 30 years. However, I will single out Ronnie Reagan, Alan Greenspan, Phil Gramm and George W. Bush for being particularly negligent/stupid/evil/greedy, whatever.
What do you think happened? (Note: Saying 'Fannie Mae and Freddie Mac!' is an instant fail. Must try harder.)
Cheers
Elroy
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