Not a day goes by when President Obama and/or his administration tell us that The Great Recession is something they inherited. Yes, it started in 2007, and yes, it got worse from 2007 through 2008, but when President Obama took office….that’s when it REALLY got worse.
Moreover, President Obama “inherited” this economy not from a President (because President Bush was a lame duck President in 2007 and 2008), but from a Democratic Congress of which
HE WAS A MAJOR LEADER. It’s true to say that President Obama inherited the economic recession, but he inherited as much or more from Senator Obama than from President “The Democrats’ Congress has more power than me” George Bush.
As they say, WELCOME TO THE SUCK President Obama
Moving on from President Obama, one can more importantly wonder, what happened to the economy when Democrats started running Congress in 2007? Hmmmm… Can anyone say MIDTERMS?
Author of “Reparations and America’s 2nd Civil War
Reparations and America’s 2nd Civil War: Malensek, Scott: 9798864028674: Amazon.com: Books
Exactly how did it start in 2007? It didn’t. To make that claim a partisan group (IIRC) had to toss out all the previous standards for measuring when a recession started.
It did start in 08 tho thanks to the dems. I agree it is their fault.
“ersdfghsdfgh”
Forget how to spell “etaoin shrdlu”?
Hold on now. Nobody noticed that the Democrats were in charge of Congress for 2007 and 2008, so that doesn’t count. Likewise, “The Won” was AWOL for those 2 years.
So it has to be somebody else’s fault.
Frankly, this thing started with CRA, then passed to Fannie and Freddie, then with the implied government “guarantee” attached, opportunitists of all parties and persuasions joined in till it came crashing down. The GRE’s, Fannie Mae and Freddie Mac, seem to have, at one time or another, bought off everybody in Washington, both Democrats and Republicans, that could have possibly done anything to stop this juggernaut to economic disaster.
Has anybody noticed that while there are loud noises about investigating the “torture” of 3 terrorists at Gitmo, there is no talk whatsoever about investigating what happened to destroy the economy of 300 million Americans? Why is that ?
I just love hearing Senators and Congress-critters, who have been in DC so long that their feet are attached, talk about the economy they “inherited” .. the fools.
They should all lose their pensions and be sent packing.
Neo, more like the economy they created thru their interference in the market/while looting it.
I agree with you he inherited a big problem. However he turned around the Dow which had fallen from 14,000 to 8,000 under Bush and after bottoming out at 6500 he has stopped that long slide and today the market has closed at 8700. The last 3 months were the BEST that the Dow has ever done. Imagine that, so soon after inheriting what we both agree was a sick and ailing economy.
I see John Ryan is long on BS and short of facts, as usual. The Dow closed at 6,547.05, (down 53.78% from the all time high on Oct 9, 2007) down 25.37% from the 2009 open, on March 9th, 2009. It took until Mar 23rd before it came up to 7,775.48.
And all that would be on Obama’s watch. Also on Obama’s watch, it was Feb 23 when the Dow posted it’s lowest close since the spring of 1997, dropping 250.73 points, to 7,114.94. March 2nd was when it closed below 7,000 for the first time since May 1997, dropping 299.64 points, to 6,763.29 before finally bottoming out at the 6,547 mentioned above on March 9th.
For perspective, on Jan 1st, it was 8,772.75. Nov 04 2008 Election Day it was at 9,323.89. At the big Zero’s inaugural, it was at 8,279.63. That means between Obama’s election and his inaugural, it dropped 1044.26 points. Yeah… lots of confidence in the future there.
Under Bush it hit the all time high. The lowest under the Bush admin was 7,552.59 … down 5.56%, and the lowest close since June 23, 1997 under Clinton.
Now that you may have a few facts straight, John Ryan, why don’t you tell us what simulus money Obama has spent that has made an iota of difference in the market or the unemployment numbers, that are continuing to rise?
And perhaps you’ll tell us why the short term investors, playing the market during this time, seems to polish up that halo you have over the big spender’s head? Maybe you’ll explain why the upward-sloping treasury yield curve isn’t the reason for the perceived stability or bounce in the market, and not Obama’s spending plans… that haven’t even been doled out yet.
Point is Obama’s stimulus has got nothing to do with it. Passing the banks money to make them stable, giving them a profitable treasury yield to make bucks on what they *do* loan out, does. And that wasn’t Obama, that was Bush/Bernanke and Paulson with the original TARP.
Obama set another record… in May 2009, the US dollar hit a new low against the Euro. Congrats, oh POTUS/TOTUS and czars. As Larry Doyle at Sense on Cents asked last week… why does this government want to devalue the dollar?
Yeah, John Ryan… go put some big money in the market, then go home and light candles in front of your Obama altar.
John Ryan,
So put some big money in the market, partner.
Sucker.
Tom in CA
The definition of a recession two back to back quarters of negative GDP — Q2 2008 was the start.
Democrats controlled the money since Jan 2007.
@John ryan: I’m not much of an analysist, but if you look at how the One was doing in the polls during the election year, and watch the drop in the stock market, I think you see some correlation. That’s also the period that the “surprise” housing market fail, which by the way, Pres. Bush tried to reign in for years, long before FM and FM tanked. The biggest drop in the market was when the One cinched the nomination going until after the inauguration. Not an expert in these matters, but seems to me there’s a conclusion to be made.
Sarge
John Ryan didn’t read the post/just the headline. The fact is, Bush may have been President from 11/06/06 to 1/21/09, but his power was subservient to the Democratic Party which held both Houses of Congress; ie Obama inherited a bad economy….from Congressional Democrats-including SENATOR OBAMA. The chart shows that when Democrats took power, people lost their jobs and have done so at an increasing rate since. There is no more debate on it.
It’s a bizarre system which has the leader of the country at odds with the legislative branch. Why even have a lame duck system? It would make more sense to have 4 year terms for the President and Congress in step with each other so when there is a change of guard then it is obvious who gets the bouquets or brickbats.
‘Tried’ and obviously failed. Talking of control of congress – didn’t Dubya’s own party – the republicans have control of Congress for 6 YEARS – plenty of time to reform FM & FM if he so wished. Talk is indeed cheap.
And doesn’t the President have VETO powers? If the Democrats were running the US into recession by their measures – they why not use his veto?
President Harry S. Truman
So what Dubya’s quote going to be – “It wasn’t me?”
Pointing the finger at Bill Clinton for Freddie Mac & Fannie Mae & the Democratic Congress for US current finiancial issues over the last 2 years is reasonable as they had a part to play but seemingly absolving Bush & the Republicans completely and somehow blaming Obama for causing the Credit Crunch is laughable.
@GaffaUK:
Actually, that sounds more like O’s quote. 🙂
Sarge
By October 2008, it was clear Mr. O would be elected president. And that’s precisely why our public relations firm’s many clients refused to sign a 2009 contract. They were effectively “circling the wagons” in anticipation of a president whose actions and beliefs proved hostile to business.
An excellent book titled “Culture Matters” verifies — through social research — that BUSINESS is the core creator of a nation’s wealth. Like “Wrong Way” Corrigan, Mr. O is subscribing to a stimulus model that completely opposes the actions needed for economic recovery.
Gaffa,
You’re stuck in the past bud. Not many are looking back for answers. We have a leader who said he could produce change and hope. Looking forward now …… his administration will be responsible when the economic malaise we are in gets into full swing. As one who is out there every day in the business world, I can tell you there are no great economic ‘green shoots’. People in my business are off 45 to 50%.
No one at that time – without job prospects, is going to blame Mr. Bush. The great affirmative action President is on the tellie every stinking day. It’s his smug puss they will blame.
Facts from 2006 back are hard to argue about, that’s why democrats never mention the 14,000+ stock market and 4.5% unemployment rate. They took over in Jan 2007 and promised to change the direction of the country. Well 14,000 to 6,500 and 4.5% to 10% is change. Taking over private businesses and industry is a communist trait and leads to slavery. Original slavery was possible because black leaders sold their people in the slave market (Islam and Africa still practice that) and O’Dumbo has a touch of both. Bad news for the black panthers, we are not ruled by a black man, you are ruled by a half white/half Arab and bending over to kiss his butt won’t change that. Anyone notice that O’Dumbo’s deep black color comes and goes as the situation requires, much like Shrillary’s southern accent. In 2 years the democrats accomplished what the USSR promised in 1959, they destroyed the United States (as a free country) without firing a shot.
anyone else having a problem seeing Scott’s gif? I even tried going to the BLS site direct, and it gives me a “page cannot be displayed” error.
Fixed it Mata
The economy is improving and will continue to improve because of/in spite of the Obama adminstration. Unemployment numbers are a lagging indicator and will continue to rise for at least a few months. Americans always excell.
The GOP made a rather foolish wager when they bet against the American people as their chosen path back to power.
Really? What indicators are there that the economy is improving? GM goes bankrupt, Chrysler still bankrupt (though Obama Admin is pressuring judge to end that). Please, what indicators are there? Falling gasoline prices? Nope. Cost of milk dropping? Nope.
LINK
LINK
Fit, yes the existing home sales are improving. And while it’s area specific, trends are mostly for the first time homes buyers (including those who haven’t owned a home for three years) in the more modest budget range. But anything is better than last years dead zone. So I wouldn’t get too excited about an article that says pending home sales posted the biggest gain in 7.5 years. When you go from nothing to some activity, that’s a big jump.
And fact is, it’s a great time to buy while the rates are still low, and house prices still dropping. You wouldn’t want to know where my gut fears we will be 3-4 years from now.
INRE the construction sales, notice that is private construction and not residential or commercial construction. The reason for that is people are often letting land go (pardon the pun) dirt cheap. If you want instant equity in these times, you build new.
But there’s three reason for the housing market going.
One is lenders lending again to someone. Albeit, the criteria is strict, they’ve changed the way lenders and appraisers work by inserting a middle man that slows the process. But the banks at least in the business of loans again is a help. That would be TARP. Wise move? Not in my book. This is a false start, IMHO.
Second is the Obama $8000 giveaway. Buy a house, and I’ll give you $8000 if you close on it before the end of this year. You can amend your 2008 taxes and get an $8000 check with Geithner’s autograph, or take it off your next year’s tax returns. Needless to say, people are cashing in retro on that offer. I think that is the only stimulus money I can think of that is having an effect…. to the good or bad.
Third is the foreclosures and short sales. The best purchase deal is in the short sale, if you can live thru it, and you’re the lucky one who gets the place. Foreclosures are no particular deal. The bank has already done an appraisal to find fair value, and tagged on as much of their foreclosure costs as possible. But people still view them as “deals”, and perception can be quite important. Either way, when you have low prices or fire sales, people who can buy… *will* buy.
Do I think this will last? Hope so. I’m really uncomfortable tho. Barring an unforeseen events, and using the path we’re on now… plus taking a stab at dusting off my crystal ball… I see the house prices still sliding until at least the end of this year and perhaps stabilizing next year. In some areas perhaps token appreciation, but nothing more than the 1-3% annually.
And then I see the rates take off to over 10% at least in order to control the inevitable inflation from the spending. And that’s where the problem lies. That will tank home prices faster than the bubble burst. A $200K mortgage payment at 5.8% is $1173.50 (without property taxes and insurance included). Take that same mortgage up to 10% and that payment jumps to $1755.14…. just lost a lot of qualified buyers for that price range. If it goes up to 18% as it did in the 70s-80s, that $200K mortgage is now a McMansion with a $3014 monthly payment.
So while I’m with you in enjoying the housing market start to stretch and awaken, I can say very little of it has to do with Obama… and enjoy it while it lasts.
Don’t forget that the Chinese are no longer lending us money.
Don’t forget that the Chinese actually laughed out loud at TurboTax Timmy last week.
Don’t forget that during the last Treasury auction, the Fed was the only buyer.
Don’t forget that there is no possible way that GM will ever pay back the US taxpayer for all the money we’ve flushed into the company ($100 billion approx).
The economy is getting better though……yeah…
@ Fit fit
This is true.
This is for damn sure true.
Why you wanna mess it up. How you figure this is true? You got a link that supports this statement?
Let’s not forget the oil prices. It raised abt. $5/month under Bush and $5/wk after Dems took control – until mid july ’08 when Bush said “Drill Offshore”, then it dropped $20 in 2 wks and kept dropping ’till Obama took office. Now it’s rising but ‘lower than last year’ – only for a few more weeks, lemmings.