Big Picture Thinking

[kandrathe]

I find it curious that the current administration has done so much damage to the economy at home to (I would contend) markedly little response from the corporate community.

Sorry, I just can't let this slide. How?

During the Clinton administration, it was Greenspan who coined the understated phrase "irrational exuberance". I am one of those unfortunate (sort of) people who's retirement is invested in stocks and so have an avid (or maybe rabid) interest in the economy. The US economy in the late 90's was expanding rapidly, but the expansion was empty and hollow. Too many IPO's in companies started by people with a "great idea", but no idea on how to make a profit or run a company. Venture capital was literally hemorrhaging into Wall street. The bubble burst, and no the emperor was not wearing any clothes. The economy was well into decline (my Intel stock went from the high 70's to mid 30's), prior to 9/11. After that it has been a roller coaster full of analysts trying to figure out how, and when the economy will get started again.

This war is certainly a distraction for Wall street, but it will be over someday soon, and then we will see how businesses are going to move forward. The US government can do some things to stimulate the economy, and has within the oversights of congress. One could just as easily make the case that it was the poor business and trade decisions of the major EU countries, and the decade long economic woes of the Japanese that provided drag, and then the tech boom bubble bursting being the last straw for the world's investors. Having lived through the mid 80's recession, my experience is that when company's exhibit fear and retrench, the inevitable recession is a self-fulfilled prophecy.

Anyway, I'm interested in how you are ascribing blame on the Bush administration for this world wide recession?