Obama And The Stock Market

Ken AshfordEconomy & Jobs & DeficitLeave a Comment

US News & World Report, yesterday:

Jim Cramer, at the beginning of CNBC's Mad Money, reported that President Obama "actually said it was a good time to buy stocks," and added, "Given that it was Obama who knocked the whole darn thing down, he might have some inside information that he's done enough damage for now. …

Blaming the plunging Dow — even the plunging Dow of the last few days — is silly.  The Dow dropped yesterday, for example, largely on the news that AIG would need more bailout money.  Obama had nothing to do with the perilous state that AIG is in.

Furthermore, the Dow will continue to go down, I suspect, until credit frees up from the banks, and employment rises.  Obama's policies cannot make this turnaround happen overnight.

That said, if Obama can be blamed for day-to-day downturns in the stock market, shouldn't he be given credit when the stock market goes up…. like today?

Dow Jones Industrial Average


Index Value: 6,891.77
Trade Time: 2:09PM ET
Change: Up 165.75 (2.46%)
Prev Close: 6,726.02
Open: 6,726.50
Day's Range: 6,726.426,900.21
52wk Range: 6,661.7413,191.50
Just asking….
FURTHER THOUGHT:  We all remember Jim Cramer's sage advice in 2007 to buy Bear Stearns even though it was heavily leveraged in subprime mortgage-based toxic assets, don't we?