CNBC "pundits" (read: idiots) including Larry Kudlow, Jim Kramer, Rick Santelli, et al would like everyone to think that the market is declining largely because Obama isn't saying the right things. Markets do not enter cyclical, systemic downturns and stay there because the president says "boo".
In fact, the vast majority of the drop in both the DJIA and the S+P 500 occurred during Bush's tenure (and most of that prior to the election).
Second, keep in mind that the Nikkei, the Hang Seng, The FTSE, the Dax and nearly every other bourse in the world has been on a sustained suicide power dive for the past year+.
The problem we are facing is that people are not yet comfortable recognizing and acknowledging the following:
- The fundamentals of the economy are NOT sound. Despite what Cramer or Kudlow tell you, there is a good reason that DJIA components are falling - because nobody is buying the things which the companies on the Dow make.
- Wage growth has been quite low in the past 9 years and people have no cushion or purchasing power