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The political consensus may be that President Barack Obama’s handling of the economy has been weak. The judgment of money in all its forms has been overwhelmingly positive, and that may be the more lasting appraisal.
One year after U.S stocks hit their post-financial-crisis low on March 9, 2009, the benchmark Standard & Poor’s 500 Index has risen more than 68 percent, and it’s up more than 41 percent since Obama took office. Credit spreads have narrowed. Commodity prices have surged. Housing prices have stabilized.
“We’ve had a phenomenal run in asset classes across the board,” said Dan Greenhaus, chief economic strategist for Miller Tabak & Co. in New York. “If he was a Republican, we would hear a never-ending drumbeat of news stories about markets voting in favor of the president.”
The economy has also strengthened beyond expectations at the time Obama took office. The gross domestic product grew at a 5.9 percent annual pace in the fourth quarter, compared with a median forecast of 2.0 percent in a Bloomberg survey of economists a week before Obama’s Jan. 20, 2009, inauguration. The median forecast for GDP growth this year is 3.0 percent, according to Bloomberg’s February survey of economists, versus 2.1 percent for 2010 in the survey taken 13 months earlier.
“You have to give them — along with the Federal Reserve – – a lot of credit,” said Joseph Carson, director of economic research at AllianceBernstein LP in New York. “A year ago, there was panic, as well as concern. And a lot of the expectations were not only that we were going to have declines in activity but they would stretch all the way to 2010, if not 2011.”
Since then, monthly job losses have abated, from 779,000 during the month Obama took office to 36,000 last month. Corporate profits have grown; among 491 companies in the S&P 500 that reported fourth-quarter earnings, profits rose 180 percent from a year ago, according to Bloomberg data. Durable goods orders in January were up 9.3 percent from a year earlier. Inflation is tame, and long-term interest rates remain low.
Most business news sources are strictly regimented to satisfy conservative investors. Supposedly broader analyses are allowed only to reflect the views of folks investing in buggy whips and Halliburton.
Big surprise, the nation dips head long into an economic crisis and our leaders bailout the ultra-rich with the money they took from the poor and middle class through taxes. Who has the largest portion of the pie. I think it’s wrong that the largest portion of the nation’s wealth is in the hands of a small subset of the population. Sure they saved these companies billions, more than that, Goldman Sachs and other bailed out financial institutions are showing record profits. But saving them has only been a temporary solution. Because it’s generated zero jobs, and a pyramid without a solid base is likely to crumble and fall.
And if my mom had wheels she’d be a wagon…
Stabilized?? Maybe to the negative. How much lower can you go??? This country would have stabilized without Obama. I think Democrat’s need to stop thinking they have done anything to really help this economy because its laughable at best. In the time since Obama has taken office we have seen a .3 reduction in national unemployment. But look how much debt we have added to stimulate job creation or retention. Sorry, I don’t by the argument.
Now that the Obama administration has stabilized the economy in the depicted above, the next phase is a jobs recovery in 2010.
The economic abyss left by the Cheney administration was on the throes of a full fledged depression that was averted.
The lending markets (banks) and investment markets are stabilized. Corporate profits are on the upswing and we are closing Bush’s “Don’t call my daddy a pussy” war, the light is at the end of the tunnel.
The trick is to get the GOP slugs to legislate or arrest them for treason, terrorism and job abandonment. Let’s hope it comes down to arrest.
I swing to the Left in the majority of my views, but I always make it a point to listen to the more crazy Right-Wing radio nuts and pay attention to the propaganda being pushed by Fox News. Two weeks after Obama was sworn in they where blaming the economy on him. Two weeks! He hadn’t even had time to get settled in yet.
It’s funny because I remember when the economy was strong under Clinton non of them would give him credit for it. I would always hear how he was feeding off Reaganomics and how non of the policies he enacted where having any real effect on the economy at that point. Well now we have a Liberal in charge again and guess what, it’s all his fault right after he gets in office.
I honestly want to give up sometimes…
Yes, the bias reported is STRONG and OBVIOUS==all to the end of creating our current social meme.
If it weren’t that way, like focusing on employment, or value of the dollar, or deficits might do, then maybe the bailout would not have even been considered.
Yes, BIAS. It will never be eliminated, but it should be recognized.
Isn’t it ironic that a Democrat President who railed against the big fat cats on Wall St during the campaign is the one who came to their aid and gave them billions of our tax money to help them out? Where are the leftist on Dvorak and the in the media crying foul play over this very devious act by this corrupt Chicago pol?
Yeah I know…lefties will always protect their guy even if he’s a fraud just as they are protecting Charles Rangle.
@4 Dallas
“tion has stabilized the economy in the depicted above, the next phase is a jobs recovery in 2010”
There isn’t going to be a jobs recovery in the United States in at least the next 3 years and likely 5-7 years.
The entire economic structure of this country is warped.
The foundation of a strong economic is domestic production of goods. And then you have a services and sales economy built on that. And then research and development and consulting built upon that.
The problem the economy faces is there is far less domestic production than in the past.
* The means no job growth
* Most of our taxes are income taxes, which tax jobs, which is what we do not have
* Means deficits on the state and federal level
* Higher interest expenses
The US is in a situation that only tariffs can solve. The US isn’t competitive on any level and cannot compete in the free market; the only solution is a certain level of protectionism at this point.
This article is silly.
The stock exchange doesn’t list American companies like in the 1980s.
Now almost all companies are highly international and they could care less whether or not the USA is doing well.
And the rise is the stock market is because the value of these foreign subsidiaries has increased due to our own CURRENCY DROPPING in value.
I love articles where the author doesn’t know anything about economics.
Warden==excellent point there you have.
1. Dems want change. Obama sells out to the fat cats but fights (sic!) for expanded health care for everyone.
2. Non-Dem positio is NO CHANGE. Other Fat cats continuing to feed at the trough while American social safety net and basic human services continue to erode.
So–given the alternatives, where’s the hypocrisy? ((YOU calling hypocrisy is rather rich!!))
Retarded Republicans are outraged by hypocrisy—tell me another one!!!!
The market’s reaction could be because it is now clear, and has been for a while, that none of his economy and nation crippling bills are going to get out of Congress and not because of Republicans but because of Democrats.
I LOVE LOVE all the Republicans saying how this is just a NORMAL cycle and the economy improving isn’t because of Obama but it would have anyway as a normal business cycle.
Golly, I don’t remember them making that argument in 1981 when Reagan was in office and the economy was coming back from a recession (before another double dip though). Then it was CLEARLY the magic of Saint Reagan who made everything good.
If the economy is better under a Democrat (Obama, Clinton) then it’s just a random business cycle. If the economy is better under a Republican it’s due to their brilliant management. Gotcha.
#9 “Now almost all companies are highly international and they could care less whether or not the USA is doing well.”
Wow, you think America’s economy doesn’t impact the world, you don’t know much about economics. You might want to take a class.
@#12
Are you naive or something?
Companies have been shipping jobs out of the United States by the truckloads since NAFTA.
CEOs and executives could care less about the American economy as long as they get their king-sized bonuses.
So What song do we play at the funeral for the American Empire?
Greece is being literally being plundered by the banks like pirates CNN isn’t covering it.
United States v Lemus destroyed the 4th amendment so cops don’t need warrant’s anymore. CNN isn’t covering it.
Obama Reauthorizes the patriot act…. Where’s CNN on that?!
And you guys wonder why people are turning to alternative news sources and conspiracy theories are growing more popular? That’s a list of some fundamentally nation changing shit that’s not getting covered.
douchebaggery –
1.Actions of an individual lacking effective deduction skills and true empathy. For instance, an individual wanting to fund a massive government program while ignoring that the tax base is eroding, usually in the morning.
2. Bailing out banks and insurance companies because they’re to big to fail.
3. Making a farce of the government because you think you’re King George or Emperor Napoleon.
4. Eating your own.
Dallas, Jm, bobbo and Glass, don’t waste your keystrokes with facts, this group doesn’t care. All of the negative comments here proves what Greenhause says in the article.
Stabilize is not the correct word to use lol. It’s more like “stopped” the recession. And yes, there is a difference when using either words.
Recovery is NOT going to be easy or quick. I don’t care if you’re a Dem/Rep or racist hole, we’re in this for the long haul. Always has been, always will be…unless we nuke IRAN, China and then ourselves. So please spare comments of who’s to blame because we’re not moving quick enough; because really, I’m 100% sure you and I don’t know sht how or where to even begin.
#8 HMeyers, I think you are underestimating American economy resilience. Keep the faith!
The American economy has been service oriented for a long time and will continue to be. We went from farming to manufacturing to services. What was missing was a good general to steer the ship and we have one now.
Note that the first thing a surgeon does to save a patient is to stem the bleeding. That was Obama’s objective and key results for 2009. The facts speak for themselves despite the belly aching from the republican sheep spewing what they hear from the FOX News sheepherders. Job recover will take a while but come it will.
Note three VERY important reasons how the Cheney administration created this abyss.
1. Tax cuts without spending cuts = huge deficits
2. Bush’s “don’t call my daddy a pussy” war with Iraq = huge deficits
3. The Recession = huge deficits caused by drop in tax revenue and increase in unemployment payments.
These things are not solved in one year. In addition, nobody likes the bitter medicine to stabilize the banking industry but it is a foundational expense that republican sheep cannot understand. Just feel sorry for them and move on.
The key to quick recovery is infrastructure spending right here at home. The Republicans like the pull out of a recession with a war blowing shit up and replacing it.
Obama instead went the path of spending on needed infrastructure that prepares the US to lead in the future – like clean energy.
Stay with me. Let the republican sheep do their shit. O’Really and Rush LimpAss will soon die and hopefully republicans will change the channel.
Start with what Obama ran on: forming a green economy and becoming energy self sufficient===aka jobs, jobs, jobs.
And then because I hate the rich: tax capital gains the same as regular income. I have never understood the rational that people that don’t even earn the money by working should get the appreciation nearly tax free now.
Who here would rather earn $50K per year fully taxed by counting coupons, or the same amount fully taxed by working in a coal mine?
We shouldn’t treat trust fund babies like Paris Hilton this way. She might not invest her money and create all those jobs.
PS–yea, repuglicans still irk me a bit too!
As jmrouse #5 said- when the stock market would dip, it was Pres. Obama’s policies that were at fault. This was going on in December ’08, remember? Before he was even sworn into office! But as the market improved, there was a quiet shift away from trying to establish linkage between his policies and stock market performance. Kind of like my neighbor- bitching about ‘where’s the stimulus money’ until they repaved several rural roads around here. Suddenly, all I hear is crickets.
Most Republicans are smart enough to see the outline of things to come- an improved economic picture, including increased employment, is on the way and does not bode well for the party of No. They need to demonstrate the superiority of their vision- and pushing fantasy numbers, like their original alternative ‘budge’ or Ryan’s so-called budget isn’t going to cut it.
#16 Mike. I hear you but it is our civic duty to promote the truth and the facts.
Facts will always trump rhetoric. The Republicans can only fight with rhetoric.
Our challenge is the American public responds to rhetoric because they are largely too stupid to comprehend the facts – which are complex to explain. We have our work cut out!!
@Dallas
Some of you partisan people clog your head like a toilet with the party politics stuff it blows my mind.
We have no exports. We’ve had a big negative export deficit for a long time now.
Factories have been moving across borders and overseas reducing domestic production of goods. And with moving the factories, the jobs go with it.
Services cannot be exported. And the few circumstances where they can be, no multinational company will do it here — they’d do it from India.
One analogy is viewing the country as an organ with blood (money) flowing in and out.
This country, all the money flows out. The only inflow is borrowing. It isn’t sustainable.
And that is why the credit rating of the federal and state governments will eventually hit the skids. We have no way to pay back debts except by borrowing more money to make payments.
What a bunch of crap. The economy still sucks. The little recovery that has happen has nothing to do with Obama. The Dems spending money faster than the Rep, and they’re misleading where the money is going. If you think the Dems are doing any good, or even care about anyone but themselves, you’re blind, stupid or a part of the theft.
Frankly the economy has sucked since 2000. They like to pretend that we recovered from that one fully. Things got better somewhat, but it was mostly a shell game to paint a rosy picture.
Its good to see the Repubs focus on what the country really cares about and needs addressed: the ethics violation of the resigned Congressman Massa.
Way to go Team America!!!
#23: “What a bunch of crap. The economy still sucks. ”
And the Repubs aren’t helping. Their agenda is apparently to stuff their pockets with as much money as they can, and ignore the rest of us, unless of course we contribute to the Repubs.
If he was a Republican, we would hear a never-ending drumbeat of news stories about the daily KIAs for Iraq and Afghanistan? 🙂
Anyone notice the Deafening silence from the media about Obama reinstating the Patriot Act?
And for that matter why is Fox news being silent about it as well.? They did write an article about it but buried it.
Is the Patriot Act Okay with you guys now that Bush isn’t president?
#22 “… you partisan people clog your head like a toilet with the party politics ..”
Easy fix. Ignore what you consider partisan speak and just look for the facts.
“..we have no exports. We’ve had a big negative export deficit for a long time now..”
Wrong. We do have exports – and the right ones. I work for Intel. We export a lot of technology. You want to export Barbie Dolls? I don’t. What we want to export is clean energy technology. That is Obama’s vision.
Factories have been moving across borders and overseas r…the jobs go with it.
What’s your point? This is common knowledge.
Services cannot be exported.
That’s right. That’s good.
…This country, all the money flows out. The only inflow is borrowing. It isn’t sustainable…. blah blah
Yep.
..that is why the credit rating of the federal and state governments will eventually hit the skids…
Yep. So?
Yes, the rich are recovering much of what they lost. Give Obama credit for that. The middle class and the poor continue to get poorer. Give the Republicans and Obama credit for that.