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Hannity Blames Obama for Stock Market Drop

Fenton said:
He's somewhat right.

Obama's economy was a disaster. It was so anemic, it had to be propped up 8 years of unprecedented FED inflationary policies.

The Feds bond buying initiative drove up the value of Treasuries and that drives down interest rates, but lower interest rates without pro-growth economic and tax initiatives do little if anything to grow the economy.

The FEDs cheap money policies benefitted Corporations, Banks, the Stock market and big government advocates and politicians, but it didn't do much for the average American or small businesses.

FED policy through Obama's presidency was a glaring indicator of just how horrible his economy was.

The FED not only entered into a massive bond buying initiative, the FED zeroed out its discount rate which is the rate Banks pay to borrow money to meet their Fed reserve requirements

The Fed lowers this rate in bad economies to incentive new lending, because a lower discount rate makes it cheaper for Banks to lend, but Banks just wound up sitting on Trillions instead of lending it out
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You conveniently forget what Obama inherited too. Funny thing about that - selective amnesia.
 
jet57 said:
Hannity is a pure propagandist.
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I wonder. Does he have the sincerity of a propagandist, or is he more a pure opportunist? I wonder that about all those right-whinge mouthpieces. Started wondering when Glenn Beck was drawing lines on a white board, proving Obama was both a Nazi and a communist.
See, now I wonder if Hannity doesn't stand up when the cameras stop, when the closing credits are rolling, and chuckle about playing the great unwashed masses for whatever millions a year he's tapping their ignorance for.
Propagandist or grifter? Maybe it doesn't matter what his motivation is, the result is the same.
 
Fenton said:
Where's the inflation ? Lol !

FED inflationary policy on its own without pro-growth tax and economic initiatives leads to massive amounts of money sitting idle.

Like the Banks depositing trillions of dollars in excess reserves at the Fed

The fact there was very little inflation under Obama speaks to just how disastrous and economically restrictive his policies were

I mean 1.8 percent average GDP growth with a bottomed out Fed discount rate and 8 years of low interest rates is nothing to brag about. You realize that, dont you ?
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You can't have it both ways. You can't tell us that the policies are inflationary and then when inflation doesn't happen, say, 'a-ha, it's because the economy is weak.' We knew the economy was weak -- that's why these policies were instituted.

All through the Obama Presidency inflation was low. Why? Because when an economy is in a liquidity trap, as it was when Obama inherited Bush's economy, rates at the zero lower bound aren't inflationary.(Those of us who learned IS-LM know this.) Although the right-wing 'warned' that Obama's expansionary fiscal policies and the Fed's expansionary monetary policies would cause hyperinflation, high interest rates, higher unemployment, and a devaluation of the dollar -- the right-wing batted zero -- that's it, 100% wrong. Instead, the economy steadily improved -- a fact that conservatives can't bring themselves to admit -- because they're so invested in the 'Obama failure' fallacy.

To put it another way, if Trump had inherited a near-depression economy, as Obama did, that achieved the gains that it did by Jan. 2017, we'd never hear the end of his bragging.
 
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jghiretire said:
You conveniently forget what Obama inherited too. Funny thing about that - selective amnesia.
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I didn't forget it, I ignored it as the partisan hackery that it is.

For Obama's entire Presidency the FED had their discount rate zeroed out, and committed to a inflationary policy that grew the money supply by trillions of dollars

All that new money say idle, stagnant depostied on the Feds books as " excess reserves "
 
tres borrachos said:
Okay, there's something truly wrong with this man. But you know what? It doesn't surprise me at all. In fact yesterday I posted that I was going to watch him last night because he was sure to somehow blame Obama. I didn't get to watch him, but sadly, I was right.

Hannity is sick.
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Fake news meet flake news.
 
MTAtech said:
You can't have it both ways. You can't tell us that the policies are inflationary and then when inflation doesn't happen, say, 'a-ha, it's because the economy is weak.' We knew the economy was weak -- that's why these policies were instituted.

All through the Obama Presidency inflation was low. Why? Because when an economy is in a liquidity trap, as it was when Obama inherited Bush's economy, rates at the zero lower bound aren't inflationary.(Those of us who learned IS-LM know this.) Although the right-wing 'warned' that Obama's expansionary fiscal policies and the Fed's expansionary monetary policies would cause hyperinflation, high interest rates, higher unemployment, and a devaluation of the dollar -- the right-wing batted zero -- that's it, 100% wrong. Instead, the economy steadily improved -- a fact that conservatives can't bring themselves to admit -- because they're so invested in the 'Obama failure' fallacy.

To put it another way, if Trump had inherited a near-depression economy, as Obama did, that achieved the gains that it did by Jan. 2017, we'd never hear the end of his bragging.
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Im not trying to have it both ways, the fact that the Feds unprecedented inflationary policies had very little inflarionary impact is a testament to just how horrible Obama's economy really was.

Most of the new money never made it out into a economy that was being suffocated by excessive regulatory and tax burdens.

Trillions sat on the Feds books marked as " excess reserves " deposited by Banks who were supposed to respond to a zeroed out discount rate by making new loans.
 
Fenton said:
Im not trying to have it both ways, the fact that the Feds unprecedented inflationary policies had very little inflarionary impact is a testament to just how horrible Obama's economy really was.

Most of the new money never made it out into a economy that was being suffocated by excessive regulatory and tax burdens.

Trillions sat on the Feds books marked as " excess reserves " deposited by Banks who were supposed to respond to a zeroed out discount rate by making new loans.
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Yes, the Bush economy that Obama inherited was the worst since the Great Depression. That's why "unprecedented measures" had to be taken. At the time, those who understood the IS-LM model knew these that big deficits and huge increases in the monetary base would lead neither to soaring interest rates nor to soaring inflation -- and they didn't, as history shown.

There is no doubt that interest rates dropped and that banks were lending out money at record low rates (I refinanced my house at a bit over 3% and obtained a home equity line at 2-1/4%.) These low rates encouraged borrowing for individuals to buy homes and cars and businesses to buy plant and equipment. I dispute that the money never made it out -- I got some!

I also dispute that the economy " was being suffocated by excessive regulatory and tax burdens." They were the same regulations and tax burdens that existed under Bush, before the collapse.
 
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