2 thoughts on “Perspective

  1. I heard some talking heads this weekend try to use the rise in the Dow as demonstration that Bush is doing a great job (to deflect from the latest Heck of a job Brownie, Heck of job Hassert…).
    Of course, the market has roughly risen since its inception. There is a thing called inflation. So if the market doesn’t rise, something is wrong. The fact that there is a new high is nothing new.
    Then I look at the market, the fact that it has hit a new high means that it has regained its level as of the end of the Clinton administration. So as of this point, the market has made it to being flat for the past 5 years.
    Then the kicker – an interview on NPR made the following point: the Dow only looks at a small, select group of humongous companies. In times of worry, folks tend to put their money into these big companies as being safe. Nasdaq is only 1/2 of what it was at the end of Clinton.
    In short, touting the Dow reaching back to the level it was before Bush destroyed it isn’t such a wonderful thing. If that’s the best they have to point to their successes…

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