On 11/06/2009 I began posting and documenting the Dow Jones on 11/06/2009 at Worst post-election day in at least 28 years for the Dow stating: "I am only posting this to document for this year and years to come something I am interested in finding out whether or not the presidential elections and presidential policies have an effect on the economy either way."

Since then there have been some interesting correlations between politics and the Dow. Whenever Obama would talk about tax breaks last year and so forth the Dow responded well and then when Obama started talking about the stimulus package and his plans were put into action the Dow continued to drop. But over the last week or so the Dow has gained. So why did it gain? Did Obama say something or did congress do something or was there some good news in the market or is the stimulus package working?

Now Obama has been speaking about small business and spoke at a business group on Tuesday and Tuesday the 10th the Dow had its best day this year and jumped 379.44 points. Obama spoke that very same day to a business group of chief executives (see Pres. Obama Meets with Business Roundtable). But that meeting was held as you will note if you click on the link after the Market closed for that day. The Market closes at 4:00 pm ET. So it can't be said because of Obama's speech.

Now if you are following the Dow it is clear that Citi's report of profit during the first few months of the year is probabily what really gave encouragement to many to invest. So we have the success of a bank that the market is responding well to and it's the market that creates our jobs. See Citi Lights Up Wall Street; Best Day of '09 for other reasons for this good day and see below another seemingly important issue.



The other item that investors have been concerned about that Democrat Barney Frank spoke about that same day according to the above article was "the mark-to-market accounting rule, which has forced billions of writedowns for banks, must be improved and made more flexible." In other words a deregulation!!!

Apparently this is huge to investors and thus to the market and thus to job creation and our economy. Congress had shown bi-partisan support of this mark-to-market issue on Thursday as congress held over 5 hours hearing on this very issue (see House Financial Services Subcmte. Hearing on Mark-to-Market Rule-"Chairman Kanjorski (D-PA) indicated that Congress might act to change the rules if regulators don’t move more quickly to do so.")

Today Obama is setting forth a plan targeting small business growth. "The goal is to unlock the frozen credit market to help small business owners fuel growth in their communities."-Obama Plans Small Business Lending Boost

So my conclusion from this so far is that the recovery of the market has more to do with fixing the banking system then it does with Big Government spending. And that Big Government spending is really not the answer to resolving the economic downturn even though those on the left justify the spending to this end. Actually Big Government spending will hurt the market for eventually it will tax the market to pay for the spending.

But when Government begins to work on the real problem which is the banking system in a way that is beneficial to the market and thus job creation then the market responds well which is good for being able to pay off all the Government spending, jobs and our economy.

Also, this leads me to believe that all this talk about Bush tax cuts as Obama campaigned on and the war in Iraq whether you agreed with it or no as the problem to our economy is meaningless without the market bouncing back. And as noted above the market bouncing back depends on the banking system. See Time Magazines Top 25 People to Blame for the Financial Crisis and every single one has some connection to the banking system. I mean we have spent as much as we spent on the war in Iraq here at home with the economic stimulus package just this year and the market is not responding to that. But the market is responding to fixing the banking system.

Now if we can narrow it down to the banking system being the major problem for our economy then we should try to figure out how it got this way in the first place. Was it conservative politics or liberal politics that created within our market a credit freeze on the banking system or maybe a combination of both?

For more on that see a blog of history of articles going back some years concerning the The Mortgage Crisis here from one conservative perspective with very interesting points and lessons to learn from either way whether you at base agree or no.

Related: America come back to the Savior of your forefathers....(This related blog may seem a little off track but I believe God is in control of history ultimately and that this economic issue is more of a judgment of God against us though it played out in the stupidity of men which is a view that our forefathers would have applauded as they themselves held to it)