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Jstock market under obama foxnews1/1/2024 "When the market declines almost 15% in less than three months, I consider that a crash," the Fox Business Network host said. In a statement to PolitiFact, Payne defended his use of the word "crash." Sinclair said the 2008 financial crisis and market crash are generally attributed to "issues in housing markets and financial interconnectedness that wasn’t foreseen by policymakers." (For more on the causes, read our analysis from 2008). "The stock market can react strongly to news of all sorts, but the academic research is clear that the seeds of the global financial crisis and the Great Recession were sown well before Obama was elected." "The election of Obama did not cause the global financial crisis," said Tara Sinclair, professor of economics at George Washington University. Two weeks before that, a declaration of bankruptcy from the financial services firm Lehman Brothers also caused the Dow to drop 498.86 points in a day’s time. 29, 2008, before Obama’s election, the Dow fell 774.17 points in a single day. 9, 2007, when it reached its pre-recession peak at 14,166.97. In reality, the Dow had been slipping since Oct. So there was a slight drop in that time frame, too.īut those declines shouldn’t be considered a "crash," experts told us. It continued sinking after Obama’s inauguration, hitting its lowest mark on March 6, 2009, at 6,469.95. The Dow Jones Industrial Average opened at 9,323.89 on Nov. We found that the market did decline following Obama’s election, but it’s important to note that that window of decline was part of a larger trend set off by the 2008 financial crisis. Since Payne mentioned the period between Election Day and Inauguration Day, we first focused on that time frame, which for Obama was the window between Nov. Put simply, Payne is right about the market numbers but wrong about what caused them and how fast they happened. So we reviewed the numbers and talked to economists. We decided to check if Obama’s 2008 victory sent the stock market spiraling and, more generally, if elections do trigger immediate reactions on Wall Street. There is an instant reaction on Wall Street." "Trump was up 9%, President Obama was down 14.8% and President Bush was down almost 4%. "Conversely, when President Obama was elected, the market crashed," he said. Payne said the market went up 9% between the day Trump was elected and the day of his inauguration ceremony. "All you’ve got to do is look at history." "I think President Trump was talking about the knee-jerk reaction on Wall Street," Payne said. Obama was asked about whether universal government health care insurance would result in the type of rationing that can be seen in other countries, but Obama claimed that a government run system would be much less expensive than a private system.Fox Business Network host Charles Payne wrongly claimed the market crashed as an "instant reaction" to former President Barack Obama’s election in 2008.ĭuring a June 17 segment on "Your World with Neil Cavuto," Payne was asked about President Donald Trump’s tweet that his failure to win re-election would cause a major market crash. Obama’s faith in the government to solve problems could also be seen earlier this month in Pennsylvania. If accepting lower mortgage payments was such a clear solution, wouldn’t one think that even if the companies hadn’t seen this solution to begin with, you could just offer them the advice? Would it really be necessary to pass a law forcing them to do it? But a solution that he claims will prevent “larger losses” to the lenders requires that lenders must voluntarily “offer workouts and reduce the principal on mortgages in trouble.” He never even acknowledges that government regulations might be responsible. He is so much smarter than the bankers, who have their jobs and money at stake, and who he thinks have messed up the mortgage market. Unfortunately, Obama thinks that he is not just running for president, but for America’s chief banker.
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