Free Republic
Browse · Search
Topics · Post Article

Skip to comments.

Bush Did Inherit a Bad Economy(FR FLASHBACK POST circa 2000)
NY DAILY NEWS ^ | 12/04/2000 | Martin Crutsinger, AP

Posted on 10/09/2004 1:32:56 PM PDT by paltz

WASHINGTON -- President Clinton may be taking more with him than his suitcase when he leaves the White House on Jan. 20. His amazing run of luck with the economy seems to be disappearing as well, right on cue with the end of his second term.

That means that his predecessor, either George W. Bush or Al Gore, will have to navigate stormier seas. Some forecasters are even worried about a recession next year — a problem Clinton never had to confront as he presided over most of a record stretch, now in its 10th year, of uninterrupted economic growth.

"However one looks at it, the economic data recently have been quite negative and the possibility of a serious hard landing is rising," says Allen Sinai, chief economist at Decision Economics in New York.

While Sinai said he believed the chances of an outright recession — where economic growth actually contracts — are still small, he was concerned about a prolonged period of weak growth that would translate into a rising unemployment rate.

David Levy, an economist at Bard College, was even more pessimistic, putting the odds of a full-fledged recession next year at 70%. "When you put all the problems facing the economy together, it is not a pretty picture," Levy said.

Things were not supposed to turn out this way. The overwhelming view among economists had been that the United States was headed for a soft landing in which a series of interest rate increases by the Federal Reserve would slow economic growth enough to keep inflation in check without tipping the country into a recession.

But since the Nov. 7 election, while the country has been transfixed by the ballot battle in Florida, the economic ship of state has been springing leaks.

A series of government reports has shown unexpected weakness in areas ranging from consumer spending to U.S. factory orders.

The weaker economic data have added to pessimism on Wall Street, which has been on a stomach-churning ride for most of the fall. The technology-heavy Nasdaq index has lost almost half of its value since reaching record highs in March.

The concern is that the sharp fall in stock values will lead to a cutback in business investment and consumer spending, two of the major driving forces behind the current expansion.

Clinton had the good fortune of taking office as the country was pulling out of the 1990-91 recession.

"The economy was a good friend to the Clinton administration, and it is just not going to be as friendly to the next administration," said Mark Zandi, chief economist at, a West Chester, Pa., forecasting firm.

Jerry Jasinowski, the head of the National Association of Manufacturers, said business executives are also concerned that the rising level of bitterness over the undecided presidential election will stalemate Republicans and Democrats, preventing the government from acting to bolster a faltering economy.

"It's still 'the economy, stupid,' and politicians seem to be forgetting that just when the economy is headed south," Jasinowski said.

Copyright 2000.

TOPICS: Miscellaneous; News/Current Events; Politics/Elections
KEYWORDS: bushrecovery
I'm just getting sick and tired of hearing that Bush inherited this incredible economy from x42. A little reminder here folks from the paper that endorsed Gore.
1 posted on 10/09/2004 1:32:56 PM PDT by paltz
[ Post Reply | Private Reply | View Replies]

To: paltz


It is a reality check. Sometimes things get fuzzy.

Bush will win!

Ignore the Kerry stacked polls. Let it be a HUGE shock to Demoncrats when Bush creams em.

2 posted on 10/09/2004 1:36:01 PM PDT by nmh (Intelligent people recognize Intelligent Design (God).)
[ Post Reply | Private Reply | To 1 | View Replies]

To: lepton

bookmark bump

3 posted on 10/09/2004 1:44:16 PM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

January 2001, Bush had already lost 56,000 jobs before he was even sworn in.

4 posted on 10/09/2004 1:47:39 PM PDT by Always Right
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

The internet bubble began to burst in August, 1999!! The market fell that month but made up some ground for the rest of 1999. By mid-2000, it was clear we were in trouble. A colleague is proud to brag that he moved his 401(k) to cash on the last business day of 1999 and didn't lose a cent over the next three years. It was Willie's depression, not Bush's!!

5 posted on 10/09/2004 1:54:14 PM PDT by Tacis (When Kerry Farts, You Can Hear McAuliffe's Voice And Smell Lockhart's Breath!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: paltz

Bookmarked and bumped.

6 posted on 10/09/2004 2:22:32 PM PDT by Otta B Sleepin ("Iraq isn't Vietnam, it's Guadalcanal." Powl Smith)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Always Right
January 2001, Bush had already lost 56,000 jobs before he was even sworn in.

January 2002, Bush had already lost HOW MANY jobs before his budget even kicked in.

7 posted on 10/09/2004 2:24:17 PM PDT by WildTurkey
[ Post Reply | Private Reply | To 4 | View Replies]

To: Tacis
I think the bear started in July-August 1998
The following is a 1/4 snip of a group of clinton apologists talking about the drop in the market back to Nov. '97 low's.

Jim Lehrer August 31, 1998

"JAMES GLASSMAN: And about half of Americans now own stocks, and I think that the majority of them have not gone through anything like this. And they're certainly frightened, although they've been taught year after year by the mutual fund companies and by commentators on television and in newspapers, people like me, to hang on, maybe to buy on dips. And we'll see what they do. Certainly up to this point they have held on. Whether they're going to continue to do that or not, I just don't know. And really a lot depends on what happens in the real economy. You know, the stock market is often a harbinger, very frequently a harbinger of what's gong to happen in the real economy. When the market goes down 19 percent, that is sometimes a pretty strong indicator that we could be headed toward a slowdown or a recession. We also have an inverted yield curve. In other words, interest rates are higher on the short-term than they are on the long-term. That's also a bad sign. So we could be headed for bad economic times--

8 posted on 10/09/2004 2:52:27 PM PDT by malia ( No one washes a rental car.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: malia

Don't you remember the '98 downturn was GW's fault too...</eyes rolling>

9 posted on 10/09/2004 3:03:46 PM PDT by paltz
[ Post Reply | Private Reply | To 8 | View Replies]

To: freedomlover
I have ALWAYS said, the minute the economy is perceived to be in the hands of the Republicans, "downsizing" will then again become "firings".

Hey you! said this on the original post 4 years ago...and that's EXACTLY what happened...kudos!

10 posted on 10/09/2004 3:10:30 PM PDT by paltz
[ Post Reply | Private Reply | To 1 | View Replies]

To: malia
I wish I knew how to forward to the President Bush's email address.

I think this and the article from the New York times should be read by ALL of the President's advisers. I am sure many either haven't seen or don't remember these facts.
It's something my husband, who passed away last year, had said ever since the tech firms skyrocketed. Around that time Stowall stated some of these stocks had P.E.ratios of 300 and 500 percent. Their income was high but no profit.

It doesn't take a rocket scientist to figure out something is wrong.Just some thoughts I think are worth expressing.

11 posted on 10/09/2004 3:41:02 PM PDT by frannie (The truth will set us ALL free)
[ Post Reply | Private Reply | To 8 | View Replies]

To: frannie
The complete transcript of the August 31, 1998 Jim Lehrer program

The Jim Lehrer Hour

12 posted on 10/09/2004 4:03:44 PM PDT by malia ( No one washes a rental car.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: malia

Thank you.

I read the complete article and once again wonder if the president's "handlers" and "advisers" will get this information, study it and the article in the New York Daily News.

If they would just give him the facts and turn him loose.


13 posted on 10/09/2004 4:33:07 PM PDT by frannie (The truth will set us ALL free)
[ Post Reply | Private Reply | To 12 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794 is powered by software copyright 2000-2008 John Robinson