Reason why I don't believe the stock market is rigged by rich right-wingers:

[scheming daemons]

Dow Jones Returns by President, since 1920:

(Average annual return)


+16% : Clinton (D)
+11% : Reagan (R)
+10% : Eisenhower (R)
+10% : Bush I (R)
+ 9% : Roosevelt (D)
+ 9% : Ford (R)
+ 8% : Obama (D) *
+ 7% : Truman (D)
+ 5% : Coolidge (R)
+ 5% : Kennedy (D)
+ 4% : Johnson (D)
+ 0% : Carter (D)
- 3% : Nixon (R)
- 3% : Bush II (R)
-32% : Hoover (R)

* - as of July 15, 2009 the Dow Jones is up 4.8% since Obama's inauguration. Annualized, that's about 8%.

Average Democratic annual return: +8%
Average Republican annual return: +2%


In other words, over the past 88.5 years (48 under Republican Presidents, 40.5 under Democrats), The Dow Jones Annualized Rate of Return is four times higher under Democratic Presidents than under Republicans.


Maybe it's a big ponzi scheme being manipulated by the rich. Who knows? But for some reason, those of us invested in the market (and with 401K's, 529's, and other plans, most of us are) seemingly do much better when there's a "D" in the White House.


ps. Even if you take out Hoover (let's just let the Repukes "drop their lowest score"), the Republican rate of return only goes up to 4.7%. Still well below Democrats.

[elleng]

1. Its typical, as you see,

BUT PEOPLE AREN'T AWARE OF IT!

What else is new?

:shrug:

[SleeplessInAlabama]

2. The financial world is rigged by money and influence, nothing more nothing less

Those with the money adjust their positions in the market, socially, in who they donate to and work with and lobby with etc. in the manner that is most advantageous to them at the time, and actual political policies tend to take a backseat to merely retaining their power.

It just happens the Repubs like to give them a whole lot of money.

[scheming daemons]

3. Well... those with the money must love it when a Dem is President

They sure didn't do well under Bush, Nixon, or Hoover.

[SleeplessInAlabama]

8. My point is that the stock market's moves

aren't necessarily correlated to the "Wall Street Big Boy Approval level" of a President. The Treasury bond squeeze under Carter, for example, was a pretty direct rejection of his monetary policies by large firms and international governments, while the stock market still ended flat. The T-bond market is several trillion dollars as opposed to the stock market which is only several hundred billion dollars.

Wall Street as a whole is still massively influenced by rich right-wingers because Republicans are the constant source of free money through tax cuts and accounting loopholes, while a rising stock market is instead a more "general public" view of investor confidence, which still looks GREAT for all of the Democratic Presidents at the top of the list. I love it when a Dem is President and so does the market. But Wall Street is still ruled by rich right-wingers.

[scheming daemons]

11. It's put the lie to the myth that "Republicans are good for business" though

...

[Selatius]

13. It depends on which businesses, though. War contractors made a killing.

Pardon the pun. When the big banks got into trouble with the funny money they were peddling, GWB was there to grease the wheels with taxpayer dollars to keep the wheels turning, the same wheels these bankers almost knocked off in the first place. Oil companies seemed to have made hefty profits despite a weak economy as well, but that comes with the fact that the war in Iraq drove up oil prices over the last several years and the so-called Enron loophole passed into law by Republicans and signed by Clinton under the now infamous Commodity Futures Modernization Act of 2000, which has also been blamed for helping to facilitate the housing bubble by allowing investment banks to merge with commercial banks causing "conflicts of interest" between banks that generate loans and banks that takes these loans, slices them up into tranches, and sells them as AAA rated securities when sub-prime mortgages may be in those tranches.

[DaveinJapan]

4. I'm no big fan of Reagan but

that 11% is pretty damned impressive when you consider that the crash of 1987 (Black Monday..-23% in one session!) happened on his watch.

[scheming daemons]

5. And Clinton had the dotcom bust... but STILL managed a +16/year

[zbdent]

15. Remember, Dumbya "inherited" the "Clinton recession" (which started in March 2001),

BUT ...

the second Republican Depression, which started in December 2007, is all "Obama's fault" ...

:eyes:

also, 9/11/2001 was Clinton's fault, despite the fact that it was 8 months into Bush's reign, but Waco was Clinton's fault, despite it being barely into Clinton's first term ...

[DaveinJapan]

17. The mechanics did happen on his watch

But the markets were still on fire til 2 months after he left office.

[ibegurpard]

6. tip

put your money in insurance companies
they're in for some big windfalls...

[scheming daemons]

7. Not any more than they were getting BEFORE the health care plan

[ibegurpard]

9. sure they will

they just got a future pool of addtional legally mandated premium payers.

[scheming daemons]

10. Those go into the "Public Option", not private insurance

[Lasher]

12. S&P 500 performance tells the same story.

FYI, I looked into S&P 500 annualized gains and my conclusion is the same as yours:

[TexasObserver]

14. Because under Democratic presidents, federal regulation helps business perform better.

It's true that the economy does better under Democratic presidents, but this does not prove that the stock market isn't "rigged by rich rightwingers."

It's evidence that under Democratic presidents, the federal government acts to limit the excesses of the "rich rightwingers" who run amok under Republican presidents "rigging" the stock market.

Let me be clear. I don't think the stock market is fixed in a traditional sense, even under the GOP presidents, but it is easily manipulated under them. The role of government as ballast is removed, and the result is an economy in decline. They don't intend to drive it into the ditch, but the lack of quality regulation really does allow the excess which results in economic decline.

Yes, the economy does better under Democrat presidents, but No, that does not prove the stock market isn't rigged by rich rightwingers. It is rigged under GOP presidents.

[scheming daemons]

16. Interesting..... thanks for the response