On January 2, 2009, the Dow Jones close was 9034, its highest since the financial mess blew apart in the fall.  On March 2, 2009, it closed at 6763, representing a decline of 25% in those two months, and hitting its lowest level since 1997.  What happened in those two months?  The market was introduced to The Obama Economy.

The Wall Street Journal’s conclusion?  The President has seen the enemy, and he is us.

The market has notably plunged since Mr. Obama introduced his budget last week, and that should be no surprise. The document was a declaration of hostility toward capitalists across the economy. Health-care stocks have dived on fears of new government mandates and price controls. Private lenders to students have been told they’re no longer wanted. Anyone who uses carbon energy has been warned to expect a huge tax increase from cap and trade. And every risk-taker and investor now knows that another tax increase will slam the economy in 2011, unless Mr. Obama lets Speaker Nancy Pelosi impose one even earlier.

Meanwhile, Congress demands more bank lending even as it assails lenders and threatens to let judges rewrite mortgage contracts. The powers in Congress — unrebuked by Mr. Obama — are ridiculing and punishing the very capitalists who are essential to a sustainable recovery. The result has been a capital strike, and the return of the fear from last year that we could face a far deeper downturn. This is no way to nurture a wounded economy back to health.

It’s a great way to increase the demand for more government intervention, though.

H/T  Ace of Spades who has links to other good articles.


Powerline has some thoughts on Obamanomics.