I do not buy that the current recession belongs to President Bush.
During my adult life, every time we get a new administration in the President’s office, there is a brief economic slowdown. Businesses put a hold on expansion and investment, investors stop activity, everything slows down while determining how the new administration will affect the economy. Once businesses get a grasp of the likely changes, they adjust their plans accordingly and then resume normal activity.
This happened when Reagan took office, when Clinton took office and again when George Bush took office.
The current slowdown started as soon as Obama became a viable contender for the office. The Dow was at about 14,000 at the time and it bottomed at 6,000 several months into his presidency. It did not bottom because there was any turn around, but because it simply could not fall any lower. The market was not reacting to Obama personally, but to the threat of socialism that hangs over his shoulder much as the cloud of dirt follows Pigpen from frame to frame in Charles Schultz’s comics.
Both of his parents were socialists. His grandparents on his mother’s side, who reared him after his mother and Mr. Sotero determined he was too much trouble, were both socialists. His mentor during adolescence was a well-known communist. These are all very antipathetic influences to free markets. This threat is what put undue pressure on the markets causing every weak spot to spring leaks (with the assistance of some market manipulation in mid September of 2008 which has still not been fully explained).
We have had numerous bubble bursts in the past, but never before have we seen the economy crumble in its entirety like a row of dominos.
Now, all of the weak or corrupt elements of the economy have imploded and formerly sound sectors of the economy are now being ground down and are threatened.
The vigorous resistance to the nationalized health care legislation is generating a few positive indicators. Do not be deceived and become complacent that the worst is over. The worst is taking a break as the resistance to socialism gives hope to the markets. If HR 3200 is passed, the market will sink again and if it is defeated, recovery will escalate.
If HR 3200 is defeated and the recovery does escalate, this tells us we must repeal the Stimulus and Omnibus spending legislation. Then, we must recall the Budget, prune it to a rational level and re-submit it.
Socialism fails. Socialism destroys the nations that embark upon it. If we do not want to fail, we must repeal all socialist legislation, including legacy socialist programs like welfare, social security and medicare/medicaid. It will not be necessary to abruptly eraticate these programs, but we must outlaw them and demand of Congress a strategy to eliminate them with the least amount of disruption. There will be some disruption and it must be made very clear that it is not the government’s responsibility to ensure that no one ever experience any challenge or hardship. It is only the government’s responsibility to ensure a sufficiently stable nation, free of foreign invasion and crime so that individuals are free to face their respective challenges with courage, ingenuity and decency.