Bush, and the Economy

[raVeneyes]

The Nasdaq stock market crashed in March 2000. The implosion of the Economy was underway well before Bush took office. Deficits are inevitable in a crashed economy. Blaming Bush for them is absurd. In a crashed economy, you have to deficit spend to at least keep the economy treading water until the effects of the bubble and crash are completely over. After the 1929 crash that process took 8-10 years, or more.

Bush had the courage to insist on tax cuts, accelerated depreciation schedules for investment in new equipment, and investment in new workers. If it were not for these initiatives, we would be standing in breadlines. There is no question that Bush deserves complete respect for his handling of the Economy under extremely adverse circumstances.

This graph is useless and impossible to read...it looks like a sixth grader had a go at economic trending...

Comparing the NASDAQ to the Dow never works, long or short term over any period because the economic forces on industry move at a different rate than the economic forces on tech stocks. NASDAQ has as much gain and loss in a day as the Dow does in a week.

Granted, the idea that tax cuts and government spending are both sound ways to stabilize an economy, but Bush had no more idea what he was doing than a five year old pressing random buttons in a nuclear power plant.

 

[MonsterMark]

Granted, the idea that tax cuts and government spending are both sound ways to stabilize an economy, but Bush had no more idea what he was doing than a five year old pressing random buttons in a nuclear power plant.

To say that Presidents make decisions in a vacuum is a joke.

 

[raVeneyes]

To say that Presidents make decisions in a vacuum is a joke.

I didn't say his decisions had no effect nor that he didn't have any advice on his decisions...I just said that he himself had no idea what he was doing.

 

[MonsterMark]

Glad to hear you're perfect.

What Bush has done better than ANY other President is surround himself with great people. That is what a great leader does. You put together the best team you can and then you let them do their jobs. When it comes time for decisions, you call on these people and support staffs for advice and input, gather the information, and make the call.

To say Bush has no idea what he is doing is ludicrous.

 

[eL eS]

it is funny to hear all the punditry yet we are still recognized at the most prominent economy in the world. Further we are the most benevolent whe you consider the amount of persoanl giving and what is donated with our tax dollars.

The liberals heroic French and Germanys would love to trade economic positions with us. Sure everything can be improved upon but nothing can be controlled to an absolutle.

I think he should go full steam ahead on the flat or fair tax strengthen border security and moderate spending. I think it is ironic to hear liberals complain about spending still shaking my head over that.

They say that the rest of America follows California. Well we are destin for socialism if that cancer spreads.

 

[MonsterMark]

I think it is ironic to hear liberals complain about spending still shaking my head over that.

Isn't it amazing? You know why they complain? Because they are the ones that are supposed to spend the money. They are the compassionate ones, right?

 

[eL eS]

Isn't it amazing? You know why they complain? Because they are the ones that are supposed to spend the money. They are the compassionate ones, right?

I would love to see more fiscally conservative libs hmm sounds like a white elephant... white donkey abound though but more and more Americans are realizing what the donkeys are up to.

 

[barry2952]

Brian,

Why do you make it about Liberals and Conservatives when were all fed up with the bull:q:q:q:q pork projects that waste so much money? If we eliminated obvious pork there would be plenty of capital available for tax cuts and social programs.

 

[eL eS]

I do believe I made the assertion first when I said it is ironic to hear liberals complain about spend. Libs love to spen but only on their pork ehh hmmm I mean projects.

 

[barry2952]

You should really get an education on the Congress. It's Republican controlled and there is more pork now than in any previous administration. Lets talk about a bridge to an island where only 50 people live. Pure Republican Pork!

 

[Vitas]

There's a few small problems with your graphic here:

This graph only takes in to account the Dow Jones industrial average, which is pretty much useless pre New Deal, and still not very useful until after the end of WWII.

The trend line drawn on the graph does not indicate what it is, but I'm willing to bet it is an averaging trend line. To show a more realistic trend the trend line should be drawn along the line of inflation so that it shows true growth/depreciation.

The vertical scale of the graph is not constant.

-----------------------------------

Similar graphs were used to argue that there was no recession at the end of the first Bush administration, they have all been held out to not represent reality well.

There are no problems in the graph. The Dow Jones industrial average typically has represented the largest capitalization companies in America since the average was put together two centuries ago.

The line is a straight line placed on the top of the 1929 peak and the 1966 peak, and extended forward. If you draw a parallel line below it, you will have a gradually rising channel that has contained all market movement since the early 1800's. It is undisputed by anyone that the market did in fact breakout outside the channel in 1986 to the upside in a major way. There is such a chart in the Fidelity "War Room" that is hand drawn over the years that distinctly shows the breakout.

 

[Vitas]

This graph is useless and impossible to read...it looks like a sixth grader had a go at economic trending...

Comparing the NASDAQ to the Dow never works, long or short term over any period because the economic forces on industry move at a different rate than the economic forces on tech stocks. NASDAQ has as much gain and loss in a day as the Dow does in a week.

Granted, the idea that tax cuts and government spending are both sound ways to stabilize an economy, but Bush had no more idea what he was doing than a five year old pressing random buttons in a nuclear power plant.

The graph may be useless to you, but it is very useful to those trading the markets. It is a comparison of how two bubbles that resulted in crashes unfolded, and shows the similarity of crash patterns.

Just as the radio stocks were the market darlings in 1929, internet stocks were the darling in 2000, both communication mediums. In 1929, people thought that the radio would revolutionize the world.

"What are Crashes and Bubbles?

A bubble is a type of investing phenomenon that demonstrates the frailty of some facets of human emotion. A bubble occurs when investors put so much demand on a stock that they drive the price beyond any accurate or rational reflection of its actual worth, which should be determined by the performance of the underlying company. Like the soap bubbles a child likes to blow, investing bubbles often appear as though they will rise forever, but since they are not formed from anything substantial, they eventually pop. And when they do, the money that was invested into them dissipates into the wind.

A crash is a significant drop in the total value of a market, almost undoubtedly attributable to the popping of a bubble, creating a situation wherein the majority of investors are trying to flee the market at the same time and consequently incurring massive losses. Attempting to avoid more losses, investors during a crash are panic selling, hoping to unload their declining stocks onto other investors. This panic selling contributes to the declining market, which eventually crashes and affects everyone. Typically crashes in the stock market have been followed by a depression."


http://www.investopedia.com/features/crashes/crashes1.asp