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Down in the Dow: Does the Stock Market Hate Obama?

The Dow Jones dropped below 7,000 yesterday, raising the how-low-can-it-go question once again. But the stock market over the last six weeks poses another question: What does the market think of President Obama?

Not much, apparently. The Dow Jones dropped Feb. 10, the day after Obama's bailout plan was announced, and again on Feb. 17, the day it was signed. Then last Wednesday, after his hopeful address to Congress, it tumbled yet again.

But it's too easy point fingers with the axis of a graph. The Daily Beast counters the theory with three solid points.

  1. The recession is over a year old and gained momentum with the fall of Lehman Brothers.
  2. Whenever the government intervenes, stocks drop; they did the same under former Treasury Secretary Paulson.
  3. Stocks are known to "rise on the rumor, and fall on the news." Other than that day-to-day fluctuations are random.

So what do you think now?

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stephley stephley 6 years
Passive-aggressive?
Grandpa Grandpa 6 years
awww, lighten up Steph. I guess you are right though if you could not accept my post in the spirit it was made.
jackiered jackiered 6 years
GP: I'm practicing up---here I go~ :jog: getting better with practice :speedy:
stephley stephley 6 years
Hmm, Gp - I would have thought you had me figured out better than you apparently do.
jackiered jackiered 6 years
How enterprising of you :fogey: I'm in but only if you and UnDave split the profits - what with the bad economy Steph & I need our fair share! :kool:
Grandpa Grandpa 6 years
One more thing, do you ladies prefer I fill the rink with jello or mud? I guess the red bikini for Pam, and a blue one for Steph. Hey UnDave, you handle the hot dog concession, and I will take the beer, we will split everything down the middle.
Grandpa Grandpa 6 years
Ouch Pam, that is harsh. Steph, you are going to have to think long and hard to come up with an adequate retort. :rotfl:
jackiered jackiered 6 years
:cheer:
ccpdm ccpdm 6 years
Pam :rotfl:
jackiered jackiered 6 years
http://www.nypost.com/seven/03052009/postopinion/opedcolumnists/brain_trust_bust_158067.htm?page=0
jackiered jackiered 6 years
Stephley, ever heard of KISS? just know you have. KEEP IT SIMPLE STEPH! lol!
stephley stephley 6 years
Nope.
Grandpa Grandpa 6 years
OMG Stephely, wouldn't you say the above "Simplifications and pseudo-clever retorts are so much more fun than thinking aren't they?!?!", is the pot calling the ketle black?
stephley stephley 6 years
Simplifications and pseudo-clever retorts are so much more fun than thinking aren't they?!?!
jackiered jackiered 6 years
steph, the definition of the word is is?
stephley stephley 6 years
"thats a fact and not a simplification." You may want to check the meaning of the word 'fact'.
jackiered jackiered 6 years
Oh spare me your condesencion. Obama essentially promised the moon to America. Instead of helping our economy he's spending like a wild man with no tomorrow. This is only sinking us more and more- thats a fact and not a simplification.
Jillness Jillness 6 years
Pamela, you can't say that the market' activity since Obama has been in office is ONLY based on the President. That is just absurd! It has far more to do with what is IN the global market, the toxic assets. Do you not understand how colossal this problem is? It is like our Stock Market got termites. A new president swearing in does not make the rot just fall away. Yes, the market is predicting bad things to come. But that has to do with many things, not just the President of one country. Your simplification might make you feel better, to have a clear cut scape goat, but reality is a bit more complex. And many, many economists and nobel prize winners are saying that the stimulus package will do a lot of good, but there is no one single bullet solution that will solve all of our problems. It is like Republicans are expecting a magic wand. This is a VERY complex situation Wall Street got us into.
jackiered jackiered 6 years
Are we arguing over the meaning of "is" here? (btw, thanks for reminding me of that Grandpa)-- It is a fact the market is down and down big since our new President takes office. How can you say that is NOT a FACT Jillness? The market doesn't see the Stimulus package (spendulus package) as a fix for anything other than big big government and historic deficits. period. fact. fact fact. Who has time to argue nonsense. The market is an indicator of the future- and its predicting bad things to come. fact.
Jillness Jillness 6 years
" all you point to was known while Bush was in office" I don't think you guys understand that this is all based on "credit default swaps" and bundling. No, they don't know where the bottom is. Are you kidding me? They don't even know the extent of their toxic assets because they have been sliced and diced and sold off to other people and bought from other people. Pamela, you didn't lay out any facts so I will dispute your comment. The market is down because investors have no confidence in the value of what they are supposed to be buying and trading. If the Government had a magic wand and could *poof* make all of the toxic assets disappear, then they would get confidence back, sure. But we have to deal with reality. And it wouldn't take a government action...it would take GLOBAL governmental action, since this is spread through financial institutions across the globe. Oh, and 5.) International Markets- Europe and Asia have their markets open before the US market opens. If they go down significantly in a day, it is more likely that the US will take that as bad news and follow them. Also, it was recently discovered that the big economic engine China is possibly in a recession. You think our market isn't affected by that?
jackiered jackiered 6 years
jillness, Like Grandpa said, the fact is the stock market is non partisan & is down because investors in the market have no confidence in what is happening. Can't dispute that fact.
stephley stephley 6 years
"which is why almost everyone, including me unfortunately thought we had hit the bottom in October." Who thought we hit bottom in October???? Nobel economists Paul Krugman and Joseph Stiglitz, economist Jeffrey Sachs, Financial Times columnist Martin Wolf, Warren Buffet, even Barney Frank - ALL cautioned that we were in for a tough new year if not longer - not one said all the bad news was in before the election, or anytime after that. In November, even Secretary Paulson said he couldn't predict when we'd hit bottom.
Grandpa Grandpa 6 years
jillness, all you point to was known while Bush was in office, and had already been factored into stock prices, which is why almost everyone, including me unfortunately thought we had hit the bottom in October. The current decline is a reaction to the "stimulus" package, and the debt incurred, the current 440 Billion dollar spending bill, that increased 8% well above the inflation rate, the proposed future spending as laid out by the president, and MOST of all Treasury Secretary Tim Geithner, failure to articulate a plan to ease the current credit crises.
Jillness Jillness 6 years
Here are links: http://www.economicpolicyjournal.com/2008/09/run-on-money-market-fund-reserve.html http://www.nypost.com/seven/09212008/business/almost_armageddon_130110.htm http://www.dailykos.com/story/2009/2/9/234340/6189/142/695504
T-S T-S 6 years
Also, my point was that there was an article about Obama's possible negative affect on the DOW with no mention (at the time of my comment) of a HUGE story about the Bush memos.
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