The stock market is famous for anticipating the future. But when it went down
right before Obama's election almost everyone seemed to blame Bush,
since, "Obama had not done anything yet". However, this is not
really accurate, as Obama had made his views, opinions, and plans well
know through his books, speeches, and voting history.
So it is very possible that the market understood what Obama
would do and that it would
be bad for American stocks
even before Obama was in office.
I think that when future historians write about this time
they will cite Obama's election as the trigger
for the current economic troubles even if people now don't.
Sept 12, 2009
Update Fri July 9, 2010
Nobel prize winning economist
has said a similar thing.
It is being called the
ridiculed by other economists.
But others are calling
Obama the Great Jobs Killer or saying
Obama is repeating FDR's mistakes.
When taxes go up in California or New Jersey it results in companies, people, jobs,
and money all leaving the state. The same is true between countries.
Once it is clear that Bush's tax cuts are going to expire and spending
and taxes are going to go up, then rational owners and investors will start
doing things differently.
In the same way that gun sales anticipated Obama's presidency,
the economy can as well.
Not all the trouble is Obama's fault, but he is at least the final
straw and making things worse.