As 2009 began, three weeks before Barack Obama took office, the Dow Jones Industrial Average closed at 9034 on January 2, its highest level since the autumn panic. On March 2, the Dow fell another 4.24% to 6763, for an overall decline of 25% in two months and to its lowest level since 1997. The alarming message here is that President Obama’s policies have become part of the economy’s problem. Investors with “skin in the game” aren’t falling for the socialist trillion dollar spending plans from the Democrat Party in full power in Washington D.C. They have it all for two years minimum.
After five weeks in office, it has become apparent that Obama’s Big Brother spending policies are slowing, if not stopping, what would otherwise be the normal cycle of economic recovery. From punishing business and eliminating legal deductions to wasting scarce national treasury, Obama is creating more anxiety and less confidence in the economy — and is helping prolong what may have been a minor recession.
In fact, by historic standards, two successive quarters of negative GNP will have not been reached until the end of March. And early numbers point to growth in January.
The “blame Bush” game is over and has been since the election last November. In fact Congress has been ruled by the Democrat Party the past two years. Bush and Cheney were lame ducks. Had there been a vice president groomed for the presidency, there may have been more blame to pin to Bush.
Former President Bush warned of the financial problems eight times the past two years and was downplayed by the Democrats in power, aided by the mass media. Barney Frank in fact, was as guilty as Ken Lay of Enron for “happy talk” about Fanny and Freddie bad loan policies.
The Democrats who now run Washington don’t want to hear this, because they benefit from blaming all bad economic news on President Bush. And Mr. Obama has inherited an unusual recession deepened by credit problems, both of which will take time to climb out of. But it’s also true that the economy has fallen far enough, and long enough, that much of the excess that led to recession is being worked off. Already 15 months old, the current recession will soon match the average length — and average job loss — of the last three postwar downturns. What goes down will come up — unless destructive policies interfere with the sources of potential recovery.
— Wall Street Journal