I've been thinking the same thing lately. It just seems like too much of coincidence now that whenever Obama opens his mouth, the market crashes. The fact that some of of the stuff that has been proposed flat out looks insane in regards to the economy is worrisome too.
Yet the message we get out of Washington is more like the policitians putting their fingers in their ears and screaming at the top of their lungs "LALALALA THIS WILL WORK, IGNORE THE MARKET, HAVE COMPLETE AND TOTAL FAITH IN OUR PRESIDENT OR YOU ARE A BAD PERSON!"
Granted that is an exageration, but the fact a large part of the press has also been giving them a free ride is not helping things either.
Plainly put, if my company's stock dips much lower, I fear layoffs.
Bush did a great job driving the economy off of a cliff with TARP. The Obama administration is in a barrel-roll, plummeting toward the earth with its foot on the accelerator.
I don't know of many serious economists who think that the policies being set forth are good for the economy OR the stock market.
"You never want a serious crisis to go to waste." Way to go, O.
So what does it mean when the market jumps on a rate cut? I don't really get the connection that the market is voting in some rational sense for solid fiscal policy rather than a dismal panic of what's good for today.
There's no research I've looked at that says the market is doing anything but viscerally looking for the day's dollar in a vacuum, irrespective of what repercussions that may lead to down the road. When we literally had a President that was a cheerleader and told people to go shopping and everything was awesome, it didn't exactly gild anyone's pockets except the upper 1%.
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Yet the message we get out of Washington is more like the policitians putting their fingers in their ears and screaming at the top of their lungs "LALALALA THIS WILL WORK, IGNORE THE MARKET, HAVE COMPLETE AND TOTAL FAITH IN OUR PRESIDENT OR YOU ARE A BAD PERSON!"
Granted that is an exageration, but the fact a large part of the press has also been giving them a free ride is not helping things either.
Reply
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Bush did a great job driving the economy off of a cliff with TARP. The Obama administration is in a barrel-roll, plummeting toward the earth with its foot on the accelerator.
I don't know of many serious economists who think that the policies being set forth are good for the economy OR the stock market.
"You never want a serious crisis to go to waste." Way to go, O.
Reply
There's no research I've looked at that says the market is doing anything but viscerally looking for the day's dollar in a vacuum, irrespective of what repercussions that may lead to down the road. When we literally had a President that was a cheerleader and told people to go shopping and everything was awesome, it didn't exactly gild anyone's pockets except the upper 1%.
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