Three weeks ago the stock markets were in freefall. Three weeks ago conservatives locally and nationally were blaming Obama. Six weeks ago Obama signed the stimulus bill. Three weeks ago economic reports began to improve. Two weeks ago the stocks began their longest climb in months.
Any day now the conservatives are going to congratulate Obama on a job well done. I have faith. Stock prices are climbing and that means the economy’s in fine shape, right?
Addendum: Check out the post WordPressed attached hereto as “related.” First time the thing’s worked right that I’ve noticed.
Second addendum: Dkos provides a chart from the Republican budget plan.
Meanwhile, whowouldathunkit? An economic partnership between Sarah Palin and Hugo Chavez?
21 comments
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March 27, 2009 at 9:09 am
Moonshadow
As long as the markets don’t get overheated again.
March 27, 2009 at 9:42 am
Eric Kirk
I think some of the first quarter reports in April will cool it a little bit. Also if Geithner ever gets around to specifying precisely what he wants in new/old regulations.
March 27, 2009 at 9:58 am
longwind
This is a slightly overdue ‘sucker’s rally,’ such as Wall Street fortunes used to be made of. After values fall 50 percent, they start looking pretty good–until they fall more, for the same reasons they already fell by half. The other common word for this phenom is ‘dead cat bounce,’ as in “Even a dead cat (or market) will bounce–but it’s still dead.”
Geithner is toast. We already know his plan that he and his gaggle executed for the past 8 years. Will we grassroots commies pressure Obama hard enough to act for us too? It won’t be easy.
March 27, 2009 at 10:51 am
Eric Kirk
I don’t think it’s a “sucker rally,” as durable goods orders and consumer spending are up. It may be the beginning of a recovery, or it could be just a temporary mitigation due to the sudden influx of stimulus money. I’ll start cheering when companies start hiring again and when the export/import traffic starts up again.
March 27, 2009 at 12:42 pm
hcn
It would be nice if the President would put more time into the problems at hand than continually giving campaign type speechs and rallys. The trip to LA to be on Jay Leno was like a campaign stunt. Not what I would call presidential.
And I too would like to see if he (the president) can speak effectivley on his own or if he can only read from a teleprompter things that others have written.
March 27, 2009 at 1:19 pm
crazy horse
Well, obviously you wrote this before todays close. This country is in deep doo-doo, there are foxes in the hen house ( yes, George Soros is one) and Treasury Sec. “Doogie Howser” and the president-in-training are yukking it up with their banking buddies………good luck, America.
March 27, 2009 at 1:24 pm
Eric Kirk
A one day fall and it’s Obama’s fault again? Really. Does he get credit for any of the advances? I mean fair is fair.
Really, I don’t think the rally means the end of the recession, and I don’t think a one day dump off after a couple of weeks of gains means the end of a rally.
hcn – the teleprompter meme. You obviously got the memo.
March 27, 2009 at 1:43 pm
Moonshadow
A healthy market has retrenchments after gains . . . that’s called consolidating your gains because investors are selling to lock in as much of the gain as they can.
March 27, 2009 at 1:51 pm
Eric Kirk
Pretty much the case today because there was no bad news to account for the decline. It’s Friday and they’re fatigued. It is the first three weeks of gain in over a year.
David Gergen is concerned about the unemployment figures which are still rising.
Clearly, as Ali explained, we are seeing glimmers of hope in the economy, and the country is breathing a sigh of relief. But is this the bottoming out that all of us have been looking for or is it a nice ledge that we are sliding across before we go over the edge again? I am not sure any of us could provide a confident answer on that question.
Granted, employment is generally a lagging indicator.
March 27, 2009 at 2:03 pm
crazy horse
No Eric, I am not talking about one days fall, and any gains are in spite of his policies. As far as the spendulus package, the main portions aren’t supposed to kick in until 2010….remember? Around the time of midterm elections? but regardless, that package won’t affect the stock market. Long-term investors are worried and worried investors don’t invest. Especially with a capital gains tax that will double if the “tax cuts for the wealthy” expire. It seems your “one” is pretty one dimensional.
March 27, 2009 at 2:12 pm
Moonshadow
c. horse — maybe it is time the wealthy stopped being so selfish and began asking what they can do for their country and the people in it!
March 27, 2009 at 2:25 pm
crazy horse
hcn…..he cannot talk off the cuff without insulting some group or acting like a fool ( laughing about the economy on 60 minutes), and if a reporter catches him off guard with a pertinent question ( like how come you’re acting mad about the bonuses now when you knew about them three days ago??) he gets visibly pissed off. This is someone who was touted as eloquent and as a great speech giver……..speech READER that is. No, not very presidential.
March 27, 2009 at 2:32 pm
crazy horse
Moonshadow: do you know the most wealthy Senators are Democrats??? Are they taking a pay cut??…..is Nancy Pelosi paying for Air Force 2 out of her own exceedingly rich purse?? I don’t think Republicans are any different but where is the lead by example from the Democrats?? Double standard. Always.
March 27, 2009 at 2:53 pm
Moonshadow
C. Horse — they pay (or should pay) taxes just like the rest of us. They would be as affected by any tax increase as any other wealthy person and they should dig a shoehorn in their wallet and pay it. I pay taxes and on top of that I do volunteer work for US Fish and Wildlife helping them to do what they cannot with the meager budgets they receive. It is no different with the National Parks and National Forest . . . much needed work only happens because of volunteers.
Everyone has to pay their share . . . so since they have more means than many of us the wealthy should pay proportionally more.
March 27, 2009 at 3:15 pm
Eric Kirk
No Eric, I am not talking about one days fall, and any gains are in spite of his policies.
So would you then concede that the losses prior to the rally were also in spite of his policies?
March 27, 2009 at 3:50 pm
crazy horse
No, all losses are because of his policies ,all gains in spite of.
March 27, 2009 at 4:51 pm
Eric Kirk
I have to admit it’s symmetrical anyway.
March 27, 2009 at 5:02 pm
Ben
Two days of losses… Seems to be due to lack of confidence in the large banks. Still, not a bad drop. If real confidence is restored the influx of money from money hedges could produce an unstable market.
March 27, 2009 at 5:28 pm
Mr. Greenjeans
crazy horse is a funny person.
Talking about George Bush again?
No he wasn’t. He was laughing at the insane position that George Bush and the Republicans have put him into.
He was perturbed that a reporter who had thought for days about a question to ask the leader of the free world and that was the only thing he could up with. I thought President Obama was a very eloquent way to slap the guy around a little (figuratively of course).
Your…er, the Fox News talking point about the teleprompter is silly and born out of jealousy. As ridiculous as Karl Rove calling President Obama ‘arrogant.’
March 27, 2009 at 6:26 pm
Not A Native
Its funny that when markets fall there’s a lot of talk like “Its pointless to analyse daily market shifts to predict trends”. But as soon as markets rise, its all “Does this indicate a new trend?
A lot of greed is masked as rational thought. But really, people who want to “get ahead” by predicting market moves are only hoping to front run everyone else. Its not about the economy, its all about “What can I personally do to make excess profits by positioning my money?”. “Can I count on there being a “biggger fool” out there to pay me more tomorrow than what I paid today?”.
Well just who do you think the bigger fool is, if not your friends and neighbors, or someone else friends and neighbors? So you’re really asking, How can I move some money out of my neighbor’s pocket and into mine, without trading services or goods, putting out any effort, or providing anything?
If you believe the economy will improve, then buy, if you believe it will flounder, then hold, if you believe it will contract, sell. Hoping to divine some meaning from market prices is just gambling.
March 29, 2009 at 9:02 pm
textwrapper
“As long as the markets don’t get overheated again.”
The only overheating that’s going to happen will be caused by re-entry into the earth’s atmosphere.