Stocks close at all time high; oil at 6 month high

Posted by $ mminnick 1 year, 3 months ago to Economics
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Stock Market and the economy seem to like the current administration.

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  • Posted by CircuitGuy 1 year, 3 months ago
    "Stock Market and the economy seem to like the current administration."
    I understand what any politician takes credit for what happens under his watch, e.g. stock market tripling under President Obama's watch or end of the recession of '91 and subsequent tech boom under President Clinton's watch. But it's complete nonsense. The tech boom peaked in early 2001 when President Bush took office, and it had absolutely nothing to do with him.

    The economy isn't presidents. It's millions of people finding ways to help one another in honest mutual trades.

    I often think about how my 10- and 8-y/o kids are the economy. Last month my wife's business got busy, and they offered to help for money, which they plan to spend on video games and books. They made a little assembly line of mailings with her assistant doing quality control. The kids weren't that great at it, but they were really trying, and they will get better, because they like things like huge stuffed animals that seem like a waste to me. That's "the economy".
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    • Posted by $ 1 year, 3 months ago
      Of course the President is not the economy. The president sets policy as well as the Fed. (Federal Reserve) set monitary policy. The two work together or occasionally against each other. I'm talking about the confidence and mind set of the people. The people see reduced taxes, Job crowth, etc. etc. They believe the economy is growing/good and feel inclined to spend money and invest in varius things such as the stock market, durable goods etc. For this the President may clainm credit. It is the people as you correctly say that are the drivers or brakes.
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      • Posted by CircuitGuy 1 year, 3 months ago
        Yes. The part about them working against each other has me more and more critical of a central bank setting monetary policy. Regarding fiscal policy, I think this level of deficit is unsustainable. The table is set for the next mini-crisis. We won't act until the mini-crisis occurs because politicians have a perverse incentive to borrow now and use the crisis to pass other things that would be hard to pass in good times. President HW Bush (41) accepted budget cuts and tax increases. New Gingrich pushed the issue. A few years later the budget was balanced and we had lower interest rates and prosperity. But Bush (41) and Gingrich didn't get much credit for their work.
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