Three Presidential Terms of Dow Gains Erased

[Tim><]

So, we have completely erased Dow gains under Bush II. We have now just about erased Dow gains in Clinton's second term. On an an inflation adjusted basis, we are well into his first term.

As the dust settles, a portion of the loss would have to be due to an unwarranted bubble, and a portion of the loss would have to be due to real losses that occurred since the beginning of this period.

If we call the bubble portion the illusion, how much of the Dow gains over the last 3 terms have been illusion? Assuming that most would now agree that Bush's economic policies were disasterous, how do Clinton's policies now look? In my opinion, once history as been written, Bush will get an F, but Clinton would be lucky to get a C-. Bush will fail on all counts - Clinton will be blamed for not trimming the budget enough, not addressing organically increasing costs (SS, Medicare), and playing part in deregulation that did not come with corresponding increases in auditing.