Stock Dive Is Bookend Of Bush Economics

The headline from the world of politics and economics today seems fairly self-evident: in the wake of the House of Representative's failure to pass a bailout package for Wall Street, the Dow dropped by the largest point margin in any single day in history.

But that number told only half the story. Indeed, much of what transpired on Wall Street and in the halls of politics put a bookend on what now seems to the final - poor - chapter of the Bush administration's economic record.

On Monday, the Dow finished lower than when George W. Bush assumed the presidency: 10,587.59 on January 19, 2001 compared to 10,365.45 at its close on September 29, 2008.

NASDAQ, the American stock exchange, too, was lower now than it was when Bush took office: 2770.38 on January 19, 2001 compared to 1983.73 on September 29, 2008. The dollar exchange with the Euro was lower than when Bush was elected: 1.068 on January 19, 2001 compared to .695 on September 29, 2008.

Some things have risen, but not the good economic indicators. The Consumer Price Index was at 175 on January 19, 2001 and 219 by September 29, 2008. Unemployment, meanwhile, stood at 4.2 percent when Bush came into power. Today, it is at 6.1 percent.

"It's a striking phenomenon," said Robert Shapiro, undersecretary of commerce during the Clinton White House years. "The reckless negligence and mismanagement of the country's financial markets by the White House, the Treasury and the Fed over the last several years has now produced a crisis that has wiped out all of the increase in the market value of America's companies from five years of record corporate profits, strong productivity gains, and reasonable growth. Bush has now run the table on presidential failure."

UPDATE: Dean Baker, co-director of the Center for Economic and Policy Research, doesn't disagree with the idea that the economy's struggles are evidence of Bush's failure. He just doesn't think the DOW's fall is the proper measurement.

"I actually consider it a plus,' he said of the tumble. "he stock market was still in a bubble when Bush took office. there is no public interest in an over-valued stock market. We have about 20,000 real measures that we can use to show how bad the economy has performed under President
Bush, the Dow is not one of them.

Comments

[grizhead63]

All of the neocons can keep bringing up Barney Frank, Fannie, Freddie and all that other stuff, but compared to the $700 Billion $$$ looting of middle America by the Wall Street high rollers, your complaints are like a patient dying from Ebola and the Black Plague complaining about a gnat flying around in the room. You just don’t get it yet but no one is listening to you. And if you took part in the looting, please note that the FBI is coming.

“History, what's history? We'll all be dead in history.” W

[QWERTY007]

Nice try, but the bad debt is way less than $700B and if you don't want to believe that this was caused by the Dems rejection of Fannie and Freddie regulation in order to promote "affordable housing, aka sub-prime mortgages), then you will be blind if it happens again.

[jmpurser]

Please keep in mind that economics is just one area the Bush administration get's failing grades in. There are also the two wars and thousands of wasted lives. There are the human and civil rights disasters like the Patriot Act and Gitmo. And finally there are all the ways in which we didn't improve America and which the next president won't be able to because of the Bush & Co disaster.

Economics is "just money". Please remember the blood, death, and human misery Bush cause in our name as well.

[twgbonehead]

Bush doesn't need bookends. He doesn't read, remember?

[scottowego]

yes he does! Remember.... when he "claimed" he reads 60 books during his summer break????
And if you believe that one I've got a bridge to sell you!

[FirstShirt]

"Five years ago, Barney Frank vouched for the "soundness" of Fannie Mae and Freddie Mac, and said "I do not see" any "possibility of serious financial losses to the treasury."

Moreover, he said that the federal government has "probably done too little rather than too much to push them to meet the goals of affordable housing."

Earlier this year, Senator Christopher Dodd praised Fannie Mae and Freddie Mac for "riding to the rescue" when other financial institutions were cutting back on mortgage loans. He too said that they "need to do more" to help subprime borrowers get better loans.

In other words, Congressman Frank and Senator Dodd wanted the government to push financial institutions to lend to people they would not lend to otherwise, because of the risk of default. "

Thomas Sowell....­....Townha­ll.com

[SCG]

Red Herrings, l.ies and avoiding responsibility.

2000 - 2006

[grizhead63]

Thomas Sow can say what he wants. The problem was not the program. It was the cro oked predatory lenders with their cr ooked mortgages and sales pitches taking advantage of honest, hardworking people. Sow, you better believe those lenders, Phil Gramm and John McCain knew exactly what they were doing.

[JoeBlough]

Congressman Frank and Senator Dodd were probably right at that time. In the intervening years, Bush pulled the rug out from under America.

[jdw1981]

From April 2008:
Federal prosecutors are investigating Wachovia Corp. as part of a broad probe of ALLEGED LAUNDERING OF DRUG PROCEEDS by Mexican and Colombian money-transfer companies, the Wall Street Journal reported Saturday.

http://www.marketwatch.com/news/story/wachovia-faces-money-laundering-probe-report/story.aspx?guid=%7BE1E1437A-47A1-4CF2-95B6-D54C3416C89E%7D&dist=msr_4

Hello, MSM!!! Could it be that this Bailout is a COVERUP to protect some very wealthy people from prosecution????

[grizhead63]

Well, the Columbian machine IS supporting Repulican McCain for El Presidente.

[OlderWoman]

The economy is one of Dubya's legacies to this country.

[Parkhurst]

S&P 500 now up 3 1/4 percent. Good for the market, good for your 401k, good for America.

America haters need not respond.

[grizhead63]

The American haters cant respond. They've taken their BePublican Billion$ and fled to Aruba, Jamaica, and the rest of the song.

[TiffanyHusseinBanned]

When was Newt elected to Congress? Is this Newt’s party or McCain’s party?

The Republican Party is in disarray. LOL

[breakingnews]

McCains own party cant stand him. Newt is the only one left with any standing.

And McCain was to work with both Parties? LOL! He should try winning over his own first

[abby4ever]

I just read the Huffington piece about him playing a double game, he is such a weasel.

[Superbus]

Florida
Oct. 13, 2007, PRNewswire
A Florida state attorney is investigating thousands of potentially fraudulent voter registrations associated with the leading organizer of Florida's Amendment 5 ballot initiative. But this is just the tip of an iceberg of illegalities, fraud and contradictions connected to the Association of Community Organizations for Reform Now (ACORN) ... Former ACORN Miami-Dade field director Mac Stuart has declared an intent to sue ACORN and has made charges of rampant voter fraud operations. Stuart was employed and specifically tasked by ACORN to generate 103,000 new voter registrations from Dade County. He reports that ACORN threw out Republican registrations while paying for Democratic ones. Stuart also charges that ACORN targeted ex-cons and that he personally set up registration tables outside the Miami police department and Dade County jail

[mike42nola]

This has been going on for years and played a huge part in the 2000 election. That is what caused Florida to become such a battleground state in the first place. Now ACORN has done the same thing in Ohio, talk about playing from behind, and numerous other states.
By the way, ACORN is who OBAMA worked for as a community organizer. I really appreciate American voters having their say diluted by fraud and manipulation.

[abby4ever]

I just read the Huffington piece about him playing a double game, he is such a w e a s e l .

[mnkors]

Newt, Will, McCain and other sanctimonious protectors of "conservative values" with their trousers down and with the private parts for general observation. These “free marketers” still blame Clinton and Democrats for all ills.

[Squigibo]

Bottom line is that Bush and McCain pushed for an Unregulated Wallstreet. This allowed for preditory lending by housing brokers.

True: I had just recovered from a personal bankruptcy, I moved into a small apartment. Within a week of moving into my little apartment with little or no money, I received a letter from a mortgage broker saying that I was approved for a loan TO PURCHASE THE RENTAL PROPERTY BUILDING of which my little apartment was part of. Here I was, barely able to afford a better brand of peanut butter, but I receive a letter showing I was APPROVED for a quarter million dollar loan BACKED BY THE GOVERNMENT.

I laughed so hard I wet myself. But my point is, that because of unrestrained lending practices by the government and predatory lendors allowed me to get approved.

[Squigibo]

oh, to follow up.

Now the same guys/gals that got us into this mess are saying "Trust Us." and Paulson / Bush /McCain saying we know how to fix it. Give me a break.

[thecanadian]

You should post your above story as a special "off the Bus" "Something like Dead Broke But Government Offered me a Quarter Million Dollar Loan"
Best example I have seen!

[mike42nola]

This is the root of the problem. Freshman college students approved for 21% interest rate credit cards the day they turn 18. People buying a house for $150k and refinancing it 5 years later for $275k. Debt everywhere you look and not enough wage earners to pay it back. Now taxes will go up no matter who wins in November and we will lose more.

[mike42nola]

I am curious as to how deregulation actually led to predatory lending practices. The Truth in Lending Act didn't get appealed. The lending institutions still have to disclose all fee and charges to the potential borrower. How is none of this the consumers fault? They knew what they were getting into before they signed on the dotted line.
But here we are blaming the guy at the top of the list because poor joe blow can't pay off his house note, car note, credit cards and get more loans. The bottom line is that the industry was deregulated which is good. More competition, better prices, lower fees. Just like the airlines and I can't wait for the public utilities to finally be deregulated so power companies can compete on a level playing field without some getting federal subsidies while others get nothing.
Like it or not the consumer got us into this mess and it is up to the American public, not some politician promising what some other politician is going to do sometime in the future when he never has done anything for you in the past, will have to work together to get us out of it.

[All in All]

I'm looking at the whole Bailout issue, what seems kind of backwards to Me since the start of these Bailout talks until Yesterday when "It reared Its Ugly Head" on/in the Stock Market, when Banks and Other Companies all of a sudden wanted a part of the Bailout that was fully on the table & within the progress of being passed, however most Companies had a turn-around once People noticed that the Bailout wasn't going to be passed Yesterday!

I guess We the People just don't get it ( The SERIOUSNess of the need for this BailOut, which now should be ref erred to as a "RESCUE Plan" now)....

There's a Song that some of the People in TV-Land & Big Company Land should listen to either while They're Driving, Flying, Speedboating, to Work or simply working from Home; It gos something like this: "We don't need no Water, Let the MuthaF(%@ Burn". That's if it's really going to burn that is.......

[Parkhurst]

AFTER WORLD RALLY, US MARKETS IN HUGE REBOUND ON OPENING!

SEE http://www.nytimes.com/ stock indices

[kdublya]

The fed injected funds into currency SWAPS and extended loan provisions amounting to $630B.
In order to preserve yields on foreign obligations, they're artificially propping up the dollar.

http://www.myiris.com/newsCentre/newsPopup.php?fileR=20080930165336196&dir=2008/09/30&secID=livenews

[breakingnews]

Japan NIKKEI was down over 400, FTSE only up 24, Hang Seng was down 900, rallied back to 135.

You are an id-iot

[Parkhurst]

No, the FTSE is up three quarters of a pecent and the Hang Seng is up 35 points. The U.S. indecies opened two percent up. What part of that don't you understand?

Sounds like you want a financial meltdown. Why do you want this country harmed?

[abby4ever]

Don't forget that 360 billion was pumped into the world markets yesterday, this after 80 billion was pumped in just a few days ago. That could help explain the clawback today. But they can't keep pumping that kind of money in o the markets forever, unless they just start printing it.

[TiffanyHusseinBanned]

Fed injected money. You need to pay attention.

[kdublya]

The stock market is being gamed. The fed pumped in $630B.
And other countries are doing the same.

http://news.yahoo.com/s/nm/20080930/bs_nm/us_financial_centralbanks

It's a global hot potato. With larger markets betting that developing economies are going to bite the dust first.

[boing007]

kdublya

The stock market is being gamed. The fed pumped in $630B.
And other countries are doing the same.

http://news.yahoo.com/s/nm/20080930/bs_nm/us_financial_centralbanks

It's a global hot potato. With larger markets betting that developing economies are going to bite the dust first.

It's not a national heist, it's international. Globalization at its worst.

[LetMeUnderstandThis]

Nobody is listening to Bush anymore, he is truly a Lame Duck POTUS. Shameful

[mike42nola]

Every President that is in his position at this time in his term is a LAME DUCK. It is not shameful and his actions have not been shameful. The haters that want to see him crash and burn are more to blame than he is and the polls bear this out.
Congress gets more than 50% of the blame for the economic crisis that we are faced with. The President only gets 5% of the blame while consumers who borrowed too much and can't pay it back get almost 30% of the blame. Do we need the federal government to tell us not to run up debt we can't pay for? What have they, themselves, been doing for over 60 years?

[Superbus]

Here's a novel idea. Bankruptcy. Noted Harvard economist explains why.

http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html?iref=mpstoryview

[TiffanyHusseinBanned]

Why did Rep. Boehner and Rep. Cantor lie yesterday? Why lie to the American people?

[Shannon2008]

It's a credit crisis. Bankruptcy isn't going to solve the problem. Companies aren't going to be able to meet their payrolls or maintain benefits. As a result, people are going to lose their jobs. This problem has a spiraling affect and no near term bottom.

[abby4ever]

If, as one CNN money analyst said, those who rejected the bill simply wanted to test the markets, to see what they would do, and if the markets s h o o t back up today and stabalize for a few days, I'd say the next bill has no more chance of passing than the one they voted on last night.

[Superbus]

Sounds like a plan to me. See my above post on bankruptcy.

[scottowego]

Even if they pass the bill we are doomed to our fate. The markets will rally short-term but when the credit crises hits home, ie. credit cards, student loans, and more home equity.... we will end up right back where we are at today. Also, what foreign institution will want to invest in our economy. I see some really dark clouds lying ahead of us. Maybe GW just wanted to pass this bill so things would turn around until he leaves.

[breakingnews]

The biggest gamble with this is that the Stock Market is not an indicator of the Credit Market. Failure to act on their part may take a few weeks to start showing up on Main Street and by then it will be too late to act. They are risking the livelihoods of every American.

[abby4ever]

True, true.

[jdw1981]

The realization of a workable, effective bailout plan rather than the drivel that rightfully failed yesterday is being limited by politics. There need to be ECONOMISTS, not politicians working on any bailout. There are so many better and CHEAPER ways of tackling this problem.

For example, why not let the government invest money in only the banks that are still making a profit and DON'T need bailing out? Helping them increase their market share in what is supposedly a free market?

The Democratic­-supported Bush bailout is nothing but a scam to protect wealthy individuals from losing their millions. The Democratic Congress is entirely complicit and don't care about the American people.

Anyone remember the revelation a few months back that all those wealthy people were illegally keeping their money in Offshore Banks, and that the government had their names and was supposed to be collecting billions in back taxes from them? Notice how THAT matter has conveniently dropped off the radar... I suppose Queen Nancy has decided it's "off the table".

[theplaintrutho1]

Excellent observation and truth, well said.

[necie]

when this hit the media a week ago, didnt the FBI come in and say ... Hey...wait a minute, no blank check for this...we have been investigating and there is a problem.....

why havent we heard anything back on that???