>>What were your thoughts in the 80s when, under Ronald Reagan, the bull
market
began and money was being made hand-over-fist? Just curious.>>
I am not a fan of Reagan. Bit these are my thoughts.
1. Indeed the first leg of the bull market began under Reagan. I would
again point out that it began because inflation dropped due to the
Volker-induced tight-money recession. Reagan gets credit for not interfering.
2. Reagan then became the classic big spender, except instead of spending
on things that liberals like, like health plans, he spent on things that
conservatives like, like the military. It is possible (and what you think
seems to depend again on whether you are a hawk or a dove) that the huge
increases in military spending caused the Russians to throw in the towel,
creating an environment that allowed Clinton to cut military spending.
3. He also has to take some of the blame for the S&L crisis, the cleanup of
which threw the Bush economy into recession. In fact I would have to say
that Bush' failure to get reelected happened due to an economy that was
beyond his control. His tax increase was a neccessary and courageous thing
to do, and Clinton's taking advantage of that in the reelection campaign
was not pretty.
4. Once inflation was under control, the second leg of the bull market was
caused by a seriuos plan to eliminate the deficit.
I am trying to be an objective busininessman and not an idealogue. So, if
asked to rate the three presidents strictly on economics, I would have to
say that Reagan's record is mixed, Bush's was better but he was done in by
things beyond his control, and Clinton was the best of the three.
Unfortunately there is still work to be done in the area of middle-class
entitlements and it looks like it won't get done whether Clinton stays or
goes.
>>PS: Saw a great Callaghan cartoon today: Showed a man with a T-shirt
emblazoned with the words "Clinton Believer" leading a man with dark glasses
and a cane by the hand. I'll let you figure out the caption.>>
The blind leading the blind? :-)
Regards,
Denton Taylor
_______________________________
Photogallery at www.dentontaylor.com
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