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Has President Obama Had Any Impact on the Stock Marketís Success?
Townhall.com ^ | July 26, 2014 | Mark Skousen

Posted on 07/26/2014 8:29:09 AM PDT by Kaslin

I received a note the other day from a social Democrat, who wrote:

“When Obama came to power the Dow Jones Industrial Average was 7,900, today it is over 17,000.

When he came to power, the Federal Budget deficit was 11% of gross domestic product (GDP), today it is 2.8%.

When he came to power, the economy was in a free fall and losing 8 million jobs, today it is growing and all the lost jobs have been recovered.

We are poised today to become the greatest energy producer in the world and North America will produce more oil and gas than the entire Middle East. Pennsylvania alone by next year will produce more gas than Qatar. It is estimated that the economy will grow 3.5-4% next year fueled in great part by the energy boom.

Inflation is low, interest rates are low, credit is becoming plentiful. Tourism has broken all records. What is it that makes you dislike him so much?”

It’s a good question. We must not let partisan politics interfere with our view of the economy.

Certainly, under Obama, the stock market has done well. In fact, when Democrats have been in the Oval Office, Wall Street tends to do better.

But that’s a superficial analysis. This time the recovery on Wall Street is due more to the Federal Reserve’s easy-money policies than the Executive Office of the President’s fiscal policies or leadership.

The energy boom in the United States has little to do with the Obama Administration. In fact, the White House has been trying to thwart the fracking-technology boom through Environmental Protection Agency (EPA) regulations, etc.

Certainly, fiscal policy has improved lately, with the budget deficit falling to under $400 billion this year. But that’s due to gridlock and the Republicans controlling the House more than responsible spending by the President.

Yes, the official unemployment rate has declined under Obama, but that’s largely because more adults and teenagers are dropping out of the labor force. The labor participation rate is at a 30-year low.

Moreover, ObamaCare has caused a huge increase in part-time work. ObamaCare mandates that employers provide health insurance for those working 30 hours a week or more. Consequently, employers are hiring more part-time workers who therefore earn less money than when they worked more hours.

In short, I’d say that the stock market has done well despite Obama and the Democrats.

You Blew it! Is Michael Moore a Hypocrite?

Like Al Gore, Paul Krugman and other critics of free-market capitalism, Michael Moore profits handsomely on the system he attacks. Moore is famous for taking the working man’s side in various documentaries criticizing corporate CEOs and big business. Those films include “Roger and Me” (about GM) and “Capitalism, a Love Story.”

In a recent divorce settlement, it was learned that Moore has a 10,000 square-foot house in the same neighborhood as Madonna and Bruce Willis. Moore owns multiple homes (nine) around the country. And he is reportedly worth more than $50 million.

On CNN in 2012, Moore vehemently denied he was a rich man. Pierce Morgan asked him point blank:

“I need you to sit here and say ‘I’m in the 1 percent.’” stated Morgan.

“Of course I’m not, how can I be in the 1 percent?” responded Moore.

“Because you’re worth millions.”

Moore can no longer be in denial.

To be fair, I have nothing against people making lots of money, even in criticizing the system. But if you are going to be a critic, you might have a better case if you live a low-profile lifestyle and give most of your money away to causes you support. I admire people like Warren Buffett, who still lives in a modest middle-class house in Omaha, and the late Sam Walton, who drove an old pick-up truck around Arkansas.

But one thing you can say about Michael Moore: He still dresses and looks like a poor slob. He would fit right into the classic TV series, “The Beverly Hillbillies.”


TOPICS: Business/Economy; Culture/Society
KEYWORDS: barack0bama; michaelmoore; recovery; wallstreet

1 posted on 07/26/2014 8:29:10 AM PDT by Kaslin
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To: Kaslin

Not unless he controls what Yellen is doing.


2 posted on 07/26/2014 8:31:00 AM PDT by celmak
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To: Kaslin

The stock market has not increased in value. Instead, it reflects inflation caused by more than tripling the money supply. The stocks are worth less, but it’s hidden under the fact that the dollar is worth less.


3 posted on 07/26/2014 8:32:18 AM PDT by Gen.Blather
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To: Kaslin

*snickering*


4 posted on 07/26/2014 8:32:46 AM PDT by skinkinthegrass (The end move in politics is always to pick up a weapon...0'Bathhouse/"Rustler" Reid? d8-)
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To: Kaslin

When he came to power, the economy was in a free fall and losing 8 million jobs, today it is growing and all the lost jobs have been recovered.

Well you can destroy him right there s that is total bullshit.
There are less people in the workforce today then before. Full time jobs were lost and almost all replacement jobs have been part time. The economy is still in a free fall when no one is hiring full time workers with benefits and only hiring part time with no benefits.


5 posted on 07/26/2014 8:34:24 AM PDT by SECURE AMERICA (I am an American Not a Republican or a Democrat.)
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To: Kaslin

Haven’t you heard? Is the reason for ALL success stories...ever. To believe otherwise is, well, racist.


6 posted on 07/26/2014 8:36:45 AM PDT by Puppage (You may disagree with what I have to say, but I shall defend to your death my right to say it)
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To: Kaslin

Who wrote this fantastic? Donald Duck?

The Stock market has but the what is, $85B a month into the market propped it up.

Debt 2.8% of GDP. and the unemployed are almost 100M? What drugs are they on that they can make this stuff up and still be able to write it down?


7 posted on 07/26/2014 8:40:42 AM PDT by mountainlion (Live well for those that did not make it back.)
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To: Gen.Blather

Right - that ‘Quantitative Easing’ scheme? That’s literally injecting new money into the economy that wasn’t created by growth. How we don’t have hyper inflation right now is beyond my (non-economics education) capabilities to fathom.


8 posted on 07/26/2014 8:41:02 AM PDT by alancarp
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To: Puppage
The stock market is the only game in town….Interest rates a to low…..Earning are at record highs because they have fired a lot of people and are not hiring unless they really need some one,..Oil companies in the shale area are booming no thanks to obama…it is mostly on private land..
9 posted on 07/26/2014 8:41:29 AM PDT by Hojczyk
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To: Gen.Blather
The stocks are worth less, but it’s hidden under the fact that the dollar is worth less.

Exactly right! The market is held up by the trillions that is cooking the books. When the crash happens is when the Fed Reserve quits manufacturing fake money. The Fed Reserve needs to be destroyed and our money backed in gold or silver, not paper. This currently is impossible.

10 posted on 07/26/2014 8:41:45 AM PDT by Logical me
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To: Kaslin

The money’s got to go somewhere.


11 posted on 07/26/2014 8:43:58 AM PDT by skeeter
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To: alancarp

All the money is sitting at the Federal Reserve….banks are not lending…just collecting a very low interest rate..inflation under Obama has skyrocketed in energy and food…


12 posted on 07/26/2014 8:44:06 AM PDT by Hojczyk
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To: Kaslin

Well, they say that figures don’t lie. But one has to take into account that it may be liars that do the figuring.


13 posted on 07/26/2014 8:45:44 AM PDT by imardmd1 (Fiat Lux)
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To: alancarp

“How we don’t have hyper inflation right now is beyond my (non-economics education) capabilities to fathom.”

I suspect its due to the fact that the bulk of the new money is in banks and not in the hands of consumers. So it’s manipulating stuff that doesn’t yet affect us. Also, there’s a general insecurity that is preventing people from spending. Inflation is too much money chasing too few goods. Hyper-inflation is fleeing money for hard assets. If a “recovery” does start, the floodgates will open.


14 posted on 07/26/2014 8:46:17 AM PDT by Gen.Blather
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To: Kaslin

The stock market’s high valuation is a direct result of Federal Reserve money-printing and central banks throughout the world buying stocks to prop them up. This plus the zero interest rate policies that make it impossible for middle class Americans to grow their savings is largely responsible for the growing “income inequality” that the Democrats have the nerve to use as a political issue.

What it boils down to is that after the 2008 crash America had two options - we could endure massive financial pain and restore actual value to our currency, real-estate and stock markets, or we could print and borrow money like crazy trying to reinflate everything no matter what.

We chose the latter. What’s happening now cannot be sustained for much longer and it won’t be pretty when all these chickens come home to roost.


15 posted on 07/26/2014 8:48:24 AM PDT by Junk Silver
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To: Kaslin

It’s not a success... It is inflation.

17,000 today is only worth half it was when Obama took office- if they were reporting the inflation rate honestly. It’s the equivalent of 8,500

With them printing money like crazy, and the cost of everything at least twice what it was when Odumbass took over.


16 posted on 07/26/2014 8:51:12 AM PDT by Mr. K (Palin/Cruz 2016)
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To: Kaslin

>>and all the lost jobs have been recovered.

And all the lost jobs have been replaced with lower-wage, mostly part-time jobs. But hey, a job’s a job as long as government bureaucrat can count it!


17 posted on 07/26/2014 8:53:46 AM PDT by Bryanw92 (Sic semper tyranni)
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To: Kaslin

Bernanke and the Fed’s ability to `print’ money with a few computer key strokes, and throw it at business has a lot to do with the current happy bulls’ hit economy. They make the money, issue the T-bills and call the printers with the order.
He would if he could, but Obama can’t kill the stock market all at once.
That bubble is going to pop eventually, something like paying off charge cards with new charge cards. Eventually you run out of other peoples’ patience and then we fall a very long way.
Banks can loan ten bucks for every dollar they have in the vault? Feds, same/same. We’re doomed.


18 posted on 07/26/2014 8:54:12 AM PDT by tumblindice (America's founding fathers: all armed conservatives)
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To: Kaslin

Printing monopoly money has kept the stock market going. Such sneakiness leads to the hidden tax of inflation over time.


19 posted on 07/26/2014 8:55:15 AM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Kaslin; All
"Has President Obama Had Any Impact
on the Stock Market’s Success?"


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20 posted on 07/26/2014 8:55:26 AM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: alancarp

The US dollar is still a refuge for people in other countries. Not everyone with some wealth buys gold.

The US economy is still seen as safer than the dictates of the Chinese or Russian governments or the EU. Third World governments’ economy dictates don’t even need to be mentioned.


21 posted on 07/26/2014 8:57:31 AM PDT by jjotto ("Ya could look it up!")
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To: Kaslin
Yes. He has significant dampened it.

The market and underlying fundamentals would be much, MUCH greater without Obama regularly damaging them and discouraging investors.

22 posted on 07/26/2014 9:05:34 AM PDT by RoosterRedux (Obama: Race is his cover...jihad is his game.)
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To: Kaslin

A trend based on two points is often about the two points selected. Yes, the economy was doing badly when Obama came to office. That was two years after the Democrats had taken control of Congress. It took them two years to crash the economy. Two years before that, with a Republican Congress and George Bush as President, the economy was doing very well.

A better comparison would be between 2006 (Republican Congress, Republican President) and 2010 (Democrat President, Democrat Congress).


23 posted on 07/26/2014 9:06:55 AM PDT by ChessExpert (The unemployment rate was 4.5% when Democrats took control of Congress in 2006.)
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To: Kaslin
When Obama came to power the Dow Jones Industrial Average was 7,900, today it is over 17,000.

So it's risen in almost direct proportion to the cost of a gallon of gasoline, a pound of bacon and my monthly health insurance bill.

That's called inflation. And to anyone with even a passing familiarity with the real world, it's a bad thing.

24 posted on 07/26/2014 9:08:25 AM PDT by WhistlingPastTheGraveyard (The greatest trick the Soviets ever pulled was convincing the world they didn't exist.)
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To: Kaslin

If it was not for the fed pumping billions into equity’s and then making the bonds too cheap to make a profit on the yield so they moved into equities as well.

The market would a over a thousand points lower.

When the fed has to pull back in a bigger hurry because they are inflating the economy, you will see the carnage.


25 posted on 07/26/2014 9:10:59 AM PDT by Cold Heat (Have you reached your breaking point yet? If not now....then when?)
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To: alancarp

” How we don’t have hyper inflation right now is beyond my (non-economics education) capabilities to fathom.”

They are saying that it’s excess capacity, but that capacity is gradually drying up as plants downsize to make better profits.

Sooner or later the excess money will spill into the pipeline and create that inflation.

Right now it’s piling up at the banks so that they can meet Dodd Frank rules. They will have to unload the excess if the fed does not pull it back...eventually.

But you are right, it’s the craziest stuff I have ever seen or contemplated. And it’s just not happening yet. It’s a bubble or maybe a few of them waiting for a catalyst to pop them.


26 posted on 07/26/2014 9:17:08 AM PDT by Cold Heat (Have you reached your breaking point yet? If not now....then when?)
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To: Cold Heat

Forgot to mention the fake federal numbers as well..


27 posted on 07/26/2014 9:19:57 AM PDT by Cold Heat (Have you reached your breaking point yet? If not now....then when?)
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To: Kaslin; All

he actually has...obama’s regulatory strangulation has made hiring new employees as unattractive as it gets...yet even with less employees corporations are still making as much revenues as previous years...same revenues - less employees = more profits = higher stock prices!!!


28 posted on 07/26/2014 9:19:59 AM PDT by God luvs America (63.5 million pay no income tax and vote for DemoKrats...)
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To: Kaslin

When Obama took over the stock market crashed (before and after he took office). Thus it started rebounding. It is not that much higher than 2008 it only looks better compared to the trough of the crash. The only reason it has rebounded is money has nowhere else to go with near zero interest rates pushed by the fed. The market held on with a modest rebound in spite of Obama. Had there been conservative economic policies and growth the market would be much higher now IMO.


29 posted on 07/26/2014 9:21:11 AM PDT by plain talk
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To: Kaslin

0bama cut the dollar in half by printing $1trillion his second month in office

$14,000 in 0bama dollars == $7,000 in GWBush dollars


30 posted on 07/26/2014 9:21:40 AM PDT by sten (fighting tyranny never goes out of style)
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To: Gen.Blather
“The stock market has not increased in value. Instead, it reflects inflation caused by more than tripling the money supply. The stocks are worth less, but it’s hidden under the fact that the dollar is worth less.”

Bingo. In addition, stocks have been the only investment vehicle that has somewhat kept up with inflation. Cash - worth less. Real estate - worth less. Money in the Bank - earns way less than inflation - and with an expanding money supply is worth less. Ironically, the people Obama says he's trying to help don't generally invest in the Stock market - so even by his own stated hypocritical criteria he is failing.

Also, when you are looking at employment numbers, you have to look at the number of people of employment age and calculate the percentages. IF we have an increase in the absolute number of people working - it is probably driven by 1) an increase in work-age population, 2) people working longer because they can't afford retirement, and 3) people working in lower paying jobs. If that's what counts as success, then we might as well just choose our next President from a kennel.

31 posted on 07/26/2014 9:24:38 AM PDT by pieceofthepuzzle
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To: pieceofthepuzzle

“people working longer because they can’t afford retirement,”

I’ve seen a couple of bag “boys” lately who appeared to be in their late 80’s or early 90’s. One literally teetered when he walked. These people aren’t working because the want to.


32 posted on 07/26/2014 9:33:22 AM PDT by Gen.Blather
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To: Kaslin
All the extra cash Obama's Fed has created and on which companies are sitting is doing wonders for the stock market. But here's the overall effect of the Obama Disaster:

33 posted on 07/26/2014 10:02:24 AM PDT by twister881
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To: Kaslin

The only reason the market has gone up is because of the money being pumped in it by the government. It is the largest bubble in history and when it bust’s it is going to be something to be seen. It’s to the point now that nothing can be done to prevent it. But no worry the fric can always blame it on Bush.


34 posted on 07/26/2014 10:05:54 AM PDT by GT1945 (islim is a satanic cult)
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To: SECURE AMERICA

Actually, I think Obama has been good for the economy. Wall Street funds both candidates anyway to cover their rear ends and it works.

Michael Moore is, of course an idiot


35 posted on 07/26/2014 10:05:54 AM PDT by Ligyron
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To: twister881

Energy boom under Obama? Gas is twice the price since Bush left office. Food prices have doubled.

Wall street is for the rich and the poor who can ride out the 401k fluctuations.


36 posted on 07/26/2014 10:09:37 AM PDT by EQAndyBuzz (GM is dead and Al Queada is alive.)
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To: Moonman62

“Printing monopoly money has kept the stock market going. Such sneakiness leads to the hidden tax of inflation over time.”

Exactly right. Known as QE1, QE2, QE3 and so on.


37 posted on 07/26/2014 10:18:54 AM PDT by Parley Baer
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To: Kaslin

Yes. He has the printing presses making millions of $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ every day. The market may be up, but the worth of the dollar is way down.


38 posted on 07/26/2014 10:53:35 AM PDT by Arrowhead1952 (The Second Amendment is NOT about the right to hunt. It IS a right to shoot tyrants.)
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To: Ligyron

“Actually, I think Obama has been good for the economy. Wall Street funds both candidates anyway to cover their rear ends and it works.”

You’re on the wrong forum noob. July 26 2014


39 posted on 07/26/2014 10:56:06 AM PDT by Carthego delenda est
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To: EQAndyBuzz

Agree. Obama is adulterated Evil, and he’s doing his worst to destroy America. Many Wall Street firms are run by Obama’s buddies who only care about the DJIA, NASDAQ, and S&P indices, and how fat are their bank accounts.


40 posted on 07/26/2014 5:40:21 PM PDT by twister881
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