It’s the busiest travel day of the year and before you head over the river and through the woods join us for an hour of open phones where your calls and comments determine the topics.
The Marc Steiner Show currently airs on The Real News Network. The show covers the topics that matter, engaging real voices, from Charm City to Cairo and beyond. Email us to share your comments with us.
In today’s open phones segment, a comment was made about a stock market bubble or a dot com bubble in the 1990s. I don’t know exactly what was said because the podcast isn’t available yet, but it might have been a comment made in passing, not worth much one way or another. I’d like to comment, however, because many uninformed people use that “bubble” term to thoughtlessly and wrongly characterize U.S. financial markets in the ’90s.
The Dow Jones Index closed at 10,587 on January 19, 2001. That was a 327% increase for the Clinton years, the increase coming at a rate of about 16% compounded annually. (DJI closed at 3,242 on January 20, 1993.) That was the Dow Jones Index, folks. That wasn’t a Silicon Valley bubble, it wasn’t inet startups with no business plans, it wasn’t techno-weird nor irrationally exuberant. Those numbers represent 8 years of solid performance by mainstream American businesses.
In contrast, the DJI closed today at 12,792. That is an increase of 20.8% for the Bush years so far, at a rate of less than 3% compounded annually. Inflation was 19.3% from January 2001 through October 2007. The Bush DJI struggles to keep up with inflation, and surely performance will be seen to be significantly worse a year from now.
Tax cuts for the rich? Trickle down economics? Piffle. Pshaw.
Why aren’t Democrats talking about this, instead of the garbage they are talking about?
By the way, I predict that the euro will reach $1.50 Bush dollars within one week of when oil hits $100/bl.
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