Originally posted by Mobius:
Interesting to note that the previous biggest drop following an election was after the 1932 election of Franklin Roosevelt. Of course at the time we were in the midst of the Great Depression. And of course he was elected 4 times and is considered one of our greatest Presidents. And his New Deal helped us emerge from the Great Depression.
I still think these figures are reflections on the market and have little if nothing to do with an actual reaction to the election. More like selling gains after a run-up towards the election (sell the news).
now that my account has been re-activated, i must respond to this statement. . .
Two UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.
and, to get myself in tip-top shape to discuss economic theory in times of economic panics, i am reading this-
<img src="http://ecx.images-amazon.com/images/I/51KWZYnMjSL._BO2,204,203,200_PIsitb-sticker-arrow-click,TopRight,35,-76_AA240_SH20_OU01_.jpg" alt=" - " />
and yes, the drop last wednesday exceeded the one day drop after the election of FDR in 1932. but FDR didn't bring us out of the great depression, world war 2 did, and to argue otherwise is a serious lack of historical understanding. by all accounts, the depression ended in 1943, in the middle of WWII. . .a monkey could have been president at that time and the country would have come out of the depression.....the problem is the previous decade, where unemployment numbers during the 30s averaged near 18%; fdr's policies likely hurt more than help the economy. of course, i seriously doubt that another 4 years of hoover's policies would have done any better, mainly because hoover's policies were a new deal-lite, so to speak. after 1930 and hoover kicking out andrew mellon, social policies were economic policies. . .and did little to nothing to ease unemployment or the economy. . .