Quote:
Originally Posted by Schneed10
As soon as we begin to blame the President of the United States for what is happening to the stock market, you can pretty much call the market's behavior irrational. The president of the United States has very little control over the economy, big stimulus bills or otherwise.
The fact that people are blaming Obama shows that too many have no idea what's driving the downturn, which means prices have been driven down too far.
When lending turns around this market will bounce very high. Don't worry about whether you're getting in on the ground floor, just get in before you miss it.
|
The POTUS has very little control by himself. A Democratic POTUS with a Democratic Congress has a great deal of control. In this particular situation where the housing market has tanked due to bad loan policies, it will take some gov't intervention to fix the situation and remove the bad loans from the system. Hopefully this will restore banks confidence in each other and people's confidence in the banks. Credit should begin to flow and people will spend again.
However in the face of this economic crisis a tax increase targeted at those who drive the economy, a capital gains increase, restoration of a 45% death tax and energy/pollution taxes (which will be paid by every American who has electric service or puts gas in his/her car), coupled with huge spending increases has a great deal to do with the current drop in the markets. Will they rebound, at some point of course. We came out of the depression and the 70s, but as FRPLG mentioned, we will most likely wind up with another lost decade if Obama's administration doesn't do an about face on their current policies/positions.
For the record I'm betting on a floor of 4800.