Some context for the current bad times on Wall Street…
Rick Santelli and Steve Forbes want you to believe that the problems in the stock market lately have to do with what’s going on up on Capitol Hill in trying to regulate the financial industry. Whether that’s true or not, the financial industry has proven in spades that it needs regulating. The only question is whether Congress will do enough to actually restore faith in a segment of our economy that includes the biggest bailouts in the history of the planet and a band of too-big-to-fail robber barons who are only too happy to line their pockets while others go broke in their casino.
The other day, somebody in one of the local newspaper’s online comment sections was ragging about the “Obama recession.” What an absolute crock that really is, when you look at some numbers. On July 17, 2007, I wrote piece on how poorly the conservatives were taking care of the money. I purposely did it when the stock market was setting records because it was obviously an unsustainable situation. Take a look to see if I was right:
January 2001 – S&P 500: 1450
July 17, 2007 – S&P 500: 1,550
January 20, 2009 – S&P 500: 805; Dow Jones Industrials: 7,949
May 20, 2010 – S&P 500: 1,071; Dow Jones Industrials: 10,068
So yes, Mr. Santelli and Mr. Forbes, it has been a bad few weeks in the market and about a 10 percent haircut since April. You can decide for yourself who has fouls to give, but it sure as hell isn’t the financial industry. It’s unfortunate that after today’s latest hammering, folks have made only around 25% over past 16 months under President Obama. Do you really want to go back to the returns from 2001-2008 when you didn’t have all those nasty new regulations to worry about? REALLY?