A few days ago I posted an email my friend Adam sent me bragging about the Bush administration's effect on the DOW Jones which had just topped 14000 for the first time, and on the economy in general. I tried to be fair and asked what impact the president or the government in general could have on the DOW or the economy.
Adam's funny email here.
I didn't get much of a response. But the Dow took a big tumble today on news that mortgage borrowing has taken fallen. Bottom line? The market is volatile and I still need to learn more about it.
DOW drops more than 300 points.
Thursday, July 26, 2007
Re: Adam's Take
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3 comments:
I tend to agree with meehan that the president has little impact on the economy. yet, each side has no problem using it for political purposes when it suits their needs. for example, during the late 1990s, bill clinton was obviously responsible for economic growth that averaged 3.77% real GDP growth for 8 years according to the dems (the repbulicans said the president had nothing to do with it). now, bush has had an annual average real GDP growth rate of 2.78% per year for 7 years (that includes 2001 and the recession that came along with the internet bubble bursting in late 2000). obviously, the republicans say this growth rate is due to smart economic policies, while the dems say that bush has nothing to do with it.
let's just leave it to the federal reserve and give greenspan and bernake credit.
obviously i'm no expert on this stuff, but i think things like tax policy can influence an economy. i think the stock market is harder to pin down, it is subject to so much speculation and other factors. in my opinion, you really can't quantify it.
p.s. ly-naugh, ly-naugh, ly-naugh
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