Toro
Diamond Member
It's up because Obama dumped about $800 billion in stimulus money that wasn't needed. But the logic goes much deeper than simply saying "the Democrats took control of Congress in 2007." You need to look at why the economy was so frail before that and the fact that the Democrats had no solutions.
I'll say it again, if anyone did not see the imminent crash after the Democrats took control of Congress in 2007, you weren't paying attention. But the market is still extremely fragile. All eyes are on Washington and the oil markets now.
Good for you for missing the fall, but the market didn't go down because of the Democrats. It went down because the housing market was in the biggest bubble of all time and the financial system was rotten. If you look at the deterioration of other markets, financial markets began to deteriorate in 2006, long before Democrats took power. Spreads in mortgage markets, CMBS, and other risk assets began to widen in the Spring of 2006. It should also be noted that this occurred across many different countries no matter whom was in power, conservative, socialist, left, right. It didn't matter. This was a massive bubble that was going to collapse no matter who was in power.
In fairness, I would say the Republican majority has helped fuel this bounce over the past few months as it lessened the odds of any more anti-business legislation passing.