Dow drops to 5 year low after speech

[Undertoad]

I agree that GWB didn't go far enough, and so do investors (obviously). But let's keep things in perspective. Are stocks a good place to put your retirement funds?



This graph includes yesterday's drop. Doesn't include today's, which looks like another barn burner. But even if the Dow loses a THIRD of its value as of now, it will only be back to 1997 level.

Now, I think the idea of moving SS simply into index funds in the stock market is drop-dead dumb. I'd rather give the people the ability to move their money however they like. Even the ones who are going to put all their money into electric pen sharpeners and whatnot.

I also think that putting the entire scandal on Bush is wrong. Obviously the "bubble" happened on Clinton's watch. If one honestly believed that the President can do much at all about the economy, then we'd have to point out that CEOs were doing most of their scandalous tinkering during the previous administration. The current scandals are about things put on the wrong side of the books five years ago. We'd all have to agree that about half of the "Clinton economy" was a sham.

But I don't think the pres can do all that much about the economy. I think the natural business cycle just happens and whomever is in office during a boom should count themselves lucky.