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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.
#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.
# 28 Breetai said “And for that matter why is Fox news being silent about it as well.? They did write an article about it but buried it.”
Fox is in a worse position then the other major networks. If they tout it, half of their audience believe the black helicopters are on the way to put them in work camps. If they’re against it, the other half thinks we are opening America up for another 9-11.
And there lies the problem for the Repubs in 2012. Those who think Obama is out of the running, it depends on who the other side runs against him.
Huffington Post Reported on it. Why can’t CNN?
http://www.huffingtonpost.com/huff-wires/20100227/us-obama-patriot-act/
Where’s the passion against this shit?! the silence is deafening you douchebags!
Depends. The shit is still in the Depends.
#12 & #14 – That’s why I don’t trust democrats or republicans. They are all full of crap!
I wouldn’t trust ANY politician as far as I could throw em! Yet, the left wingers defend their democratic masters no matter what and the right wingers defend their republican masters no matter what. Hey massa, we sick, our house is burnin down…how delusional!
#17 TheOne – it’s easy. Reduce government to a size where the economy can rely on the free market.
#18 Dallas – Not many service jobs can be exports. Technical assistance by phone is already dominated by India. Of course, in a free market, these things would sort themselves out. One man cannot steer a ship this big. It takes the interaction of millions of people who are free to do so.
So, if Obama is so great, why is he still in Iraq & ramping things up in Afganistan & Pakistan? He’s just as bad as Bush. You accuse republicans of being sheep yet follow their same logic when it comes to your guy.
#22 Hmeyers – You posted after I wrote some of my commentary above…I couldn’t agree with you more. But partisans will only look at the short-sighted good, but ignore the bad. I guess they feel their team needs to win to validate their party affiliation or something. That’s why I don’t associate with any party. Their only goal is to grow in power and wealth while screwing the very people they pretend to represent.
#27 Guyver – Except for Fox news…which is why I always watch the opposite of whatever administration is in power. I never watched Fox news when Bush was in power. Now, I stay the hell away from msnbc…
#28 Bree – None of the news agencies want to be excluded from the white house press briefing parties.
#28
NO.
@Dallas
“Easy fix. Ignore what you consider partisan speak and just look for the facts.”
Fair enough …
“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.”
Our trade deficit is about $700 billion a year. One reason for the huge trade deficit is that have to import a great deal since we no longer produce it domestically.
That in itself, isn’t surmountable.
What is insurmountable is that almost any company will build a factory in Mexico and ship to the US tariff-free instead of building here.
“Clean energy technology …”
That may pay off 10 or 20 years down the road.
“What’s your point? This is common knowledge.”
It may be common knowledge and a long-time trend, but I think you are glossing over the fact that this country is becoming extremely poor, extremely quickly.
” ..that is why the credit rating of the federal and state governments will eventually hit the skids…
Yep. So?”
Imagine the California budget crisis multiplied times 10, 30, or 50. This isn’t concerning you at all?
Let’s see, how hard is it really. If you want to buy congress it won’t work to finance the campaign of just the republicans or just the democrats. If you finance both sides your pork is safe and legislation will favor you, because regardless of who wins the election, your man will win. This ain’t a party issue at all, These people want to be in the government, and that means campaign financing, you need it to get in, and you need it to stay in. So you’ve got to try not to bite the hand that feeds you. Some how we’ve got to get special interests and lobbyists away from our politicians, but instead of reforming campaign financing regulations they’re doing the opposite. Wake up Zombies! Democrat, Republican, who the hell cares, they’re both equally owned.
#36 @Hmeyers
We agree more than disagree.
Trade deficit high? Yes. Oil contributes nearly a third of that which takes me back to my original point that clean, domestic energy is key to our future.
Clean energy . Clean energy , clean energy
1. Produced here
2. Lowers trade deficit
3. A place for Americans to innovate and actually export.
4. Better environment
5. Less money to terrorist nutcase
Explain to me why the conservative nutbags still want to drill drill drill? Are they still into that strategy or did they see another shiny thing? I’ve lost track.
10-20 years? Wrong. Hybrids are here now. Innovation in batter technology. Now is a lot closer to now than 10 or 20 years. Right?
California budget crisis concerning? Yes sit is. Why do you say it is not? Of course it is.
Maybe if we stop incarcerating pot smokers that would help. Protecting our borders. Deal with health care.
This is where I get political on you so shut down.
Republicans are out for a power grab in 2012 as they see as Americans frustrated Obama could not click his heals and make the Cheney abyss go away.
Their answer is suspend governing to shut down progress and prevent any further economic improvement. A growth in the jobs market and unemployment below 8% will be fatal for a Republican comeback. They know it.
The GOP will sell their mother if it meant regaining power. With them comes the Christian taliban that will cling to the GOP again like a parasite clings to a host.
#38 Dallas – Not maybe, definitely. If the war on drugs was ended today, money spent on law enforcement on prohibition would be saved, not to mention saving money spent on jails to incarcerate victimless crimes such as possession of a plant or voluntary transactions. Crime would go down, just like after the prohibition of alcohol was repealed, because the cost of drugs would plummet.
Yeah, Obama’s strategy of bailing out the rich to make himself look good with a successful stock market while unemployment remains high is working out so far, but what will happen in 10 to 20 years when the USA’s debt is 90% of GDP? And you’re right, the GOP would do anything to get power back. But where you falter is that so would the Dems. That’s why much of the stimulus money won’t go into effect until right before 2010 elections (can’t remember where I read that). Politicians are corrupt, end of story. I don’t understand why people put faith and trust in politicians. Even the most trustworthy politician is being paid through extortion. That’s like supporting one gang over another because one is hurting and robbing you less.
One man can’t fix all the problems. It is foolish to think so. Instead of looking to some superman to solve our problems, we should trust ourselves to deal with our neighbors in a voluntary way.
@Dallas
“Explain to me why the conservative nutbags still want to drill drill drill?”
More drilling is absolutely absurd. But why isn’t Obama heftily demanding the gas mileage standard be lifted? Is it because General Motors is now owned by the government?
Why not build some more nuclear power plants?
I almost puked when George W. Bush gave the banks 3/4 of a trillion dollars in bailout money. Then Obama did it too.
There is plenty of blame to go around. I really get tired of hearing it is “the other guy’s” fault.
This country is in grave economic trouble.
All it will take is ONE large company to get the idea of moving it’s research labs to Mexico or Canada and then other companies will jump aboard and all the California/Texas/Seattle white collar jobs will be pushed across the borders. Microsoft could end up being the trend setter.
Even worse if they don’t, they’d probably angle for special interest legislation to keep them in the US for tax breaks.
This is the horrible bargaining position the US is in.