Normally, democratic politicians are better for the stock market. But under Biden, my stock prices are $6500 worse than they would be on average. I really hope Biden does better things for the stock market so my stocks do better. If my stocks were $6500 higher, I’d have no problem voting for Biden. But they are crap right now, and because of that, Let’s Go Brandon!
Why is the stock market so bad?
Posts
Total:
32
Stock Markets do better under Democratic Presidents but it would be a mistake to assume that the first two years are representative. If you went by the first two years, most Republican Presidents would look better than Democrats. Obama, Clinton, Carter, Roosevelt, Wilson would all look far, far worse than they looked at the end of their Presidencies. Likewise, if you just judged Republican Presidents by the last two years of their presidencies, all Republicans would be outperformed by all Democrats of the 20th and 21 centuries.
-->
@oromagi
Do you have a source for that?
-->
@TheUnderdog
How’d the stock market do under Bush? Especially in 2008. All the biggest dumps in the stock market happened on Republicans watch.
The Great Depression - Hoover
The S+L crisis and bailout - Reagan
The Financial Crisis of 2008 and bailout - Bush
The Covid Recession and 16% unemployment - Trump
-->
@TheUnderdog
The stock market is doing poorly because inflation has caused the Fed chair to raise interest rates which makes stock ownership less attractive which lowers the price of stocks. Also, the threat of recession caused by rising interest rates lowers the price of stocks.
-->
@cristo71
Since much of the stock market is based on the USD, when the government destroys the value of the dollar, it destroys the stock market values as well. People are less likely to sell at any price while the value of the dollar is unstable. What usually happens is people dump long term capital investments into presently valued commodities instead of future business enterprises, reducing the wealth of the nation which is also reflected in the value of the stock market.
There is also a knock-on effect where uncertainty in currency values drives uncertainty in the stock market.
-->
@TheUnderdog
Biden only indirectly caused inflation by passing government spending that wasn't paid for, requiring the printing of trillions of dollars during an economic downturn. If there was no extravagant government spending, there would have been no reason to print trillions of dollars. Trump also shares the blame on this.
-->
@IwantRooseveltagain
This is about Biden, not other politicians. It’s possible this is the first democratic president in recent history that has been bad for the stock market.
-->
@TheUnderdog
Normally, democratic politicians are better for the stock market.
And yeah, generally speaking Democrats are pretty good at passing regulations that favor the stock market, especially when it enriches themselves like Pelosi. They just made a really bad call with the predictions of the Covid shutdown on the economy.
-->
@Greyparrot
That’s right. Devaluation of currency devalues a company’s future profits, so businesses which have little pricing power or have been unprofitable have been hit especially hard. I should also mention that interest rates have been so low for so long— because of Fed Reserve policies, that stocks got to be overvalued and due for a drop.
-->
@TheUnderdog
-->
@Greyparrot
And yeah, generally speaking Democrats are pretty good at passing regulations that favor the stock market, especially when it enriches themselves like Pelosi.
Don’t regulations harm the stock market? An example of a regulation is the minimum wage. If there were no wage regulations, the stock market would do better.
They just made a really bad call with the predictions of the Covid shutdown on the economy.
Biden wasn’t in charge at the height of the pandemic; Trump was. He was in charge for the end of the pandemic (when the stock market should have skyrocketed).
The article you cited was written during the Trump administration.
An example of a regulation is the minimum wage. If there were no wage regulations, the stock market would do better.
Minimum wage destroys smaller competition so that larger companies can gouge the consumer. A great deal for the stockholders. You didn't actually think for a second Democrats cared about helping the little guy on this issue?
Democrats often support the same regulations their lobby donors suggest. Most of the regulations the past few years had to do with supporting Big Pharma of course, going so far as to threaten swaths of people with unemployment if they did not pay their vaccine tithe to big pharma.
-->
@TheUnderdog
Biden wasn’t in charge at the height of the pandemic; Trump was.
When I said "they" I meant the uniparty of Congressional Neocons/Neolibs that voted together for the Covid stimulus and encouraged lockdowns.
Lockdowns that absolutely gutted Middle class businesses. It had the effect of granting a huge temporary boost to the stock market under Trump as wealthy investors started gobbling up vacant market shares fueled with the freshly minted stimulus, but the supply chain mess eventually caught up.
Biden approved massive overspending.
Trump overestimated his ability to recover from the lockdowns.
Both at fault.
-->
@TheUnderdog
Its called QE1 and QE2. The federal reserve pumped the stock market with worthless dollars to prop it up and now it will collapse as none of the wealth pumped into it is real.
-->
@Greyparrot
Minimum wage destroys smaller competition so that larger companies can gouge the consumer. A great deal for the stockholders. You didn't actually think for a second Democrats cared about helping the little guy on this issue?
That is true, it the minimum wage is still bad for the stock market. But it’s good for me, because I make more because of it.
-->
@sadolite
That’s fair. But I want my stocks to do better without corporate welfare.
-->
@TheUnderdog
the minimum wage is still bad for the stock market.
Only over the long term. Eliminating the competition through crony regulations profits the major players of the stock market in the short term.
It also means a lot more worker competition for your job over the long term if you have a minimum wage job, which means you will probably have to work much harder to keep your job than the pay increase warrants.
Biden only indirectly caused inflation by passing government spending that wasn't paid for, requiring the printing of trillions of dollars during an economic downturn.
A. The President doesn’t pass government spending. The Congress does that.
B. The President doesn’t control what the Fed does.
C. The Fed doesn’t print money. The treasury department does that after they borrow money by selling treasury bills and bonds to investors.
D. The Fed does control the money supply by sending electronic credits to its member banks who then lend it out at rates largely determined by the Fed after purchasing Treasury bills and mortgaged back securities. (Quantitative Easing) This adds liquidity to the economy by freeing up cash.
-->
@TheUnderdog
The stock market doesn't operate based on cooperate earnings anymore. The stock market operates on speculation, stock buy backs, insider trading and Quantitive easing. Long gone are the days of a companies stock value based on earnings and productivity.
The President doesn’t pass government spending. The Congress does that.
Lol, someone needs to go back to grade/high school.
Signing the law is passing the law onto the books.
When a bill reaches the President, he has three choices. He can:
- Sign and pass the bill—the bill becomes a law.
- Refuse to sign, or veto, the bill—the bill is sent back to the U.S. House of Representatives, along with the President’s reasons for the veto. If the U.S. House of Representatives and the U.S. Senate still believe the bill should become a law, they can hold another vote on the bill. If two-thirds of the Representatives and Senators support the bill, the President’s veto is overridden and the bill becomes a law.
- Do nothing (pocket veto)—if Congress is in session, the bill automatically becomes law after 10 days. If Congress is not in session, the bill does not become a law.
Here is an example of a president NOT passing a spending bill.
Lol, someone needs to go back to grade/high school.
LOL, so when 535 members of the Senate and House vote to spend money only the President is responsible for that spending?
Trump added 8 trillion to the debt in 4 years. Was that inflationary? His stupid trade agreement the USMCA caused lumber prices to rise and his trade war with China caused everything else to go up in price. Then he stupidly claimed China was paying the import taxes.
Republicans ruin the economy whenever they are in charge. Because they are dummies like you.
Here is an example of a president NOT passing a spending bill.
Only you would cite an example of Trump being a cry baby as he is about to be thrown out of office as an example of Trump not passing a bill
an example of Trump...
Lol, little guy got fee fees.
only the President is responsible for that spending?
This is where I get to say go back to grade school to look up the word "indirectly", but your low hanging fruit is too rotten to go after.
Republicans ruin the economy whenever they are in charge.
And Democrats can ruin it without a single complaint. Enjoy the 2023 recession.
Enjoy the 2023 recession.
Recessions don’t impact me.
I pay more in taxes than you earn in a year.
Recessions don’t impact me.
Ok Pelosi.
I pay more in taxes than you earn in a year.
You shouldn't brag about not having a good tax advisor. But you seem like the kind of guy to send back his tax refunds anyway.
-->
@sadolite
If it’s all speculation, then eventually it will crash by 70% or more. Companies are selling 10% extra each year, but I don’t know why.
-->
@TheUnderdog
Of course it will collapse. The rest of the world will stop using and accepting the US dollar as payment eventually because the US govt is devaluing it exponentially every year by printing trillions of worthless counterfeit dollars ever year. It isn't if the market and the US economy crashes but when.
You shouldn't brag about not having a good tax advisor. But you seem like the kind of guy to send back his tax refunds anyway.
It was more of a comment on your pitiful earning ability.