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

[knowhelpnow]

We can not afford to bailout wall street period. We should not bailout these greedy, overpaid, morons.
This may have been the biggest Dow loss in history but it wasn't even 10% of the Dow.
We're in a recession and have been for awhile no matter who at the top crunches numbers we feel it here in the middle and lower incomes and we can not afford to go into more debt now. This bailout will not stop this recession/­depression it's not going to make it better.
If they are going to use probably well over a trillion dollars for a bailout they should put us in debt by creating green jobs, fixing our infrastructure, and developing independent energy sources here in the USA. These we need to do now anyway to get out of these wars that were created to get the oil. We don't need 700 bases around the world, we no longer need to police the world or make every country our enemy because they don't do what we say.

[Revanchist]

The real value of America is likely closer to 8300 if you'd use the Dow as a barometer.

[SLBD]

If you are not better off than you were 8 years ago....

Well you know what to do.

Vote Mc_Cain and you will think the last 8 were paradise.

**snicker**

[mike42nola]

If you don't you may as well go live in Venuzuala and subject yourself to Chavez's dictatorship. Redistribution of the wealth is exactly what he is doing there.

[Zingaro Zorro]

The Rise and Fall of Wall Street during the 'W' years will be a great chapter in the nation's future college economics textbooks.

[Chavista]

No to extortion. No to the bailout.

"We can't solve problems by using the same kind of thinking we used when
we created them." Albert Einstein

We got into this mess to a large extent due to over borrowing. We will not get out of this mess by continuing to over borrow. We need to get off credit like a bad drug. There will be withdrawals (no pun intended), but the end result will be far, far better than living lives of indebtedness and constant need for more credit. No Bailout!!! Saying no to this travesty, this so-called bailout, is the first step toward regaining integrity and honesty in America. Don't let Bush and the other greedies scare you and extort money from you. They did this when they illegally attacked Iraq, don't let them get away with it this time. The banks and financial institutions have too cruel and too selfish for too long. Let them fail. Maybe America has a chance to return to democracy.

[Parkhurst]

Why, in the middle of the greatest financial crisis since the Great Depression, has Pelosi recessed the House for two working days?

This is insane.

[abby4ever]

I thought it was to do with the Jewish holiday.

[MNmommy]

No respect for high holy days in other religions I take it?

[Parkhurst]

We are in the middle of a crisis, my life savings are going down the drain, and they may forclose on my house, and you talk to me about high holy days!

How about you have some respect for the plight of your country and your fellow citizens?

[abby4ever]

I thought it was to do with the J e w i s h holiday.

[BeyondGoodAndEvil]

So on Christmas Day, you'd expect all the Talibangelicals to work?

[SLBD]

On baby jaysus day? yup ya must be joking.

[mike42nola]

Does everyone always get holidays off not matter what is going on? No, sometimes they are required to work holiday, sometimes they are required to work overtime, sometimes they are required to miss lunch.
No disrespect for any religious holiday or any beliefs, Congress should be expected to do the peoples work no matter what.
I am glad they recessed because they are pretty useless even when in session. At least during the recess we can save the per diem pay that they get at our expense for doing nothing but getting themselves fatter off of our dime.

[mike42nola]

Because she is weak and not in tune to what is needed to better our country. She did the same thing with the summer recess by not even having enough brains and intestinal fortitude to allow the OCS drilling bill come to a vote. Not even allowing a vote, in my opinion, should be grounds for her to be thrown out of office and stripped of any benefits she would have received.
She needs to be replaced by someone who can bring both sides together and work together for the greater benefit of the country.

[LucyGoosey]

Republicans are a bunch of cry babies.

The fact that 2/3 of them voted AGAINST the bailout says they are a mess with no leader.

[LanceAlworth]

Who's crying? Besides your side, I mean.

Nancy had her say and Republicans had their say. You guys have been whining since.

I'll bet Nancy watches her mouth next time.

[RnR]

I bet she had nothing to do with it this time. The votes weren't there - I heard that early in the morning.

[AtlantaBlueNProud]

Poor baby ! You ever take those rose-colored glasses off?

[Parkhurst]

40% of her own party in the House voted against the bill and against her and Obama's leadership. She needs to step down and Obama needs to apologize to the American people.

[TiffanyHusseinBanned]

Are you kidding? Did you see Joe Scarborhoe this morning? He cried and cried and then he got checked.

[mike42nola]

The Repulicans along with 93 sensible Democrats had their say and Pelosi had to run for cover with her tail tucked.
All she spews is divisive, hate filled meaningless rhetoric that does the country no good. She and all of her kind need to be chased out of office so the country can begin to recover under good, strong bi partisan leadership.
As long as this negative rhetoric continues we will suffer.

[Meggie]

You are right on the target! Nobody would even write the drivel they came out with at the end of the day! Nancy said mean stuff? Hey loser, come over to my house and you'll hear some REAL mean stuff! I have a lot to say about Repub borrow-and-spend policies and the lack of oversight by the Repub administration!

[SCG]

"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little."

- Franklin Roosevelt

[Revanchist]

The horses are approaching the starting gate...

[JohnFromCensornati]

When will you realize that this isn't about Wall Street? - Thunderclap Newman

That's right. It's not. It's about lost equity in homes. That equity is not coming back. No matter how much we hand over to those banks, they will not give loans to people that have no equity.

[scottowego]

Good point!
Also, besides the imediate damage done by losing their homes. Think about these folks futures.... Their credit is shot to H...l for at least seven years so we can kiss a home recovery goodbye for a while. Possible senario..... investors swoop in and grab up a lot of great bargains and in turn rent them out to the poor slobs who lost them in the first place.

[IntelligentDesign]

Alternative # 2: Seize the assets of any and all financial institutions implicated in irresponsible lending and/or bundling practices - indict the senior management on charges of gross negligence and fraud - restructure the companies under new leadership with strict government oversight - offer retraining packages to the rank and file.

[scottowego]

What a great communistic answer to all our problems! Re-education?

[jdw1981]

So why are these bailout plans being worked out solely by the White House and Congress, behind closed doors and out of the view of the American people? Why aren't there OPEN HEARINGS and why isn't there a large panel of economic experts involved in making a plan that's more workable, more practical, and CHEAPER?

Why has there been so little talk of putting money directly into the housing market in order to help distressed homeowners keep their homes, rather than buying up these toxic assets with taxpayer dollars?

And why is practically everyone in the media (including Keith Olbermann) crowing about how a bailout plan of the same type that failed NEEDS to be passed, except for the most conservative commentators... who I can't believe I'm in agreement with? I heard one talking head last night saying that while "the American people" were in favor of a bailout, the "constituents" are strongly against it.
W TF kind of doublespeak is that??

[Meggie]

If the stockmarket opens up hundreds of points, it shows that the whole crisis is quite a scam.
No Bailout.

[scooperss]

NEW YORK - U.S. stocks headed for a partial rebound Tuesday, though financial markets remained troubled a day after the House voted down a proposed $700 billion rescue plan for the financial sector. A key rate that banks charge to lend to one another shot higher, a tightening of the availability of credit that could spill through the economy.

http://news.yahoo.com/s/ap/wall_street

[packerfans]

Republicans-

Please publish the names of the 12 outraged members that changed their vote.
Let them stand before the American public, face to face, and explain their change in vote.

Where are they? Who are they?

Tell you what, I'll settle for 6....

[buyaclueplease]

I hate to break it to you all... this was a nicely crafted setup by Dems. It worked perfectly. They had no intention of passing it. That is why Barney called it off the revote when they were gathering the extra votes.

It backfired on McCain and the repubs, but Pelosi ended up looking like a hack in the process. In all Obama came out looking like the only one who doesn't have his head up his rear, which is exactly how a candidate should act.

The bill was a mess, the market will rebound today... don't trip, it's all good. Next topic please.

[scottowego]

The market rebound????
In case you haven't been watching the Dow hit 10,600 today. This time last year it was at 1600! This is a temporary blip on the screen It's still headed down, down, down. Predictions are that it wil go to 6000. Housing is predicted to drop another 25 to 30%. In 1929 the market crashed like this and it took almost a year for it to hit the general economy so we all better fasten our seatbelts cause this ain't jus a bumpy ride. It very well could be a crash in a year from now. Plus.... with trillions and trillions of dollars in debt. and no real industrial base left in this country. We are moving to the bottom of the food chain. Move over 1970's Brazil! You've got company!

[Parkhurst]

More to the point, why did 40% of Democrats in the House vote against this bill and their own leadership?

[MNmommy]

Clyburn gave you this answer this morning.

Guess your deaf.

[SLBD]

Cuz thits Y.

[packerfans]

Why did such a large percentage vote against the party leadership of McC and W?

[jdw1981]

Because the vast majority of their constituents want NO BAILOUT. I'm proud that my Democratic representative voted against it. If the Democratic elites (Pelosi, Frank and the rest) want to follow Bush out the door in a vain effort to protect their WEALTHY CONTRIBUTORS, let them.

I'm still supporting Obama/Biden, but this whole debacle has only made me realize how corrupt my own party is.

[TiffanyHusseinBanned]

If conservatives believe Sarah is unqualified, wait until shadow VP Todd “snowmobiling” Palin gets into office.

Only in America could a VP this dumb be taken serious.

Sad time for America. If O were white, McCain would probably suspend his campaign indefinitely.

[MNmommy]

Dangit!!!

It's snowmachine not snowmobile in AK, dontcha know.

LO

[SLBD]

However it might be fun watching her bite Putin's leg.

;)

[abby4ever]

Her favorability ratings are dropping hard, so perhaps not very many people ARE taking her seriously.­..anymore. The question is: why did they EVER take her seriously?!

[mike42nola]

Did you know that he is actually 50% white and only 8.275% black?
Bet you didn't know that.

[IntelligentDesign]

Alternative # 1: Require Bush and Cheney to return 125% of what they have stollen.

[NatteringNabob]

And levy a special tax on everyone who voted for Bush in 2000 and 2004.

Oh, and Reagan in 1980 and 1984.

[mike42nola]

What have they STOLLEN (sip)? It is stolen and I have never heard anyone accuse either of them of being theives! Do you think they stole all of Iraq's national treasures? That is probably the most valuable items that they could have stolen.
Some people should not have the word intelligent associated in any form or fashion with their name.

[grizhead63]

I'm with you. They should both be given the Congressional Medal of Honor and all these Liberal socialist give-away whiner-wimps should shut up and go home! Yup!

[VOD]

Remember Donald Rumsfield when Baghdad was being looted? So America is being looted. Don't worry STUFF HAPPENS

[larazon]

Or a pound of flesh? Let's be real. These guys are going into a cushy retirement after leaving chaos, bodi-es and devastation behind them. They have squandered American blo-od, sweat and tears,

[Meggie]

True. Halliburto­n/KBR/Blac­kwater stock is still raking it in.

[ensure]

Obama Proposes Increasing Federal Deposit Insurance to $250,000:

Barack Obama, the Democratic presidential nominee, today proposed increasing the Federal Deposit Insurance Corp. limit to $250,000 from the current level of $100,000. This is ``a step that would boost small businesses, make our banking system more secure and help restore public confidence in our financial system,'' Obama, an Illinois senator, said in an e- mailed statement.

http://www.sefermpost.com/sefermpost/2008/09/obama-proposes.html

[Shannon2008]

After the fact, the McCain campaign adopted the same proposal.