The Dow Jones industrial average fell 1,175 points yesterday in the largest drop in terms of points in the history of the Dow.
Coupled with the 666 point loss on Friday, the Dow had lost its gains for the year.
The previous record for losses was 777.68 points on Sept. 29, 2008, as the country slid into the worst economic recession since the Great Depression.
Of course, Donald Trump has hitched his wagon to the rising stock market since his election.
From The New York Times:
No president in modern times has connected his political fortunes to the stock market as much as Mr. Trump, who relentlessly cited its meteoric rise as a sign of his success at restoring confidence in the American economy. But the drastic sell-off on Friday and Monday demonstrated why most presidents scrupulously avoid talking about short-term gyrations in share prices: If you live by the Dow, you may die by the Dow.
Barely a week went by last year when Mr. Trump did not crow about the rising market, making it a major talking point for his case to the country that he had made a difference. He took credit for the market at least 25 times in January alone. Even when the Dow fell 363 points on the day of his State of the Union address last week, Mr. Trump simply ignored the drop and talked about how the market had “smashed one record after another” since his election.
Even as the world markets react to the news, some conservatives looked to find an escape hatch for Trump. Fox News host Sean Hannity even tried to blame President Obama, who’s been out of office over year, for the debacle.
I kid you not.
During his radio program yesterday afternoon, Fox News’ Sean Hannity claimed that we are seeing the impact of the previous administration’s economy on today’s market. Referring to a segment he had just seen on Fox News, Hannity said the analysis is that it was largely President Barack Obama’s fault.
“Because the Obama economy was so weak all of these years we had just artificially cheap money,” the Fox News host said. “Now what’s cheap money? Cheap money is when you can borrow at ridiculously low rates.”
He continued, “The era of cheap money at some point has to come to an end. The government has artificially, the Fed has artificially kept the price of money down and the price borrowing down and now that’s going to come to an end.”