The Dow Jones industrial average plummeted during President George W. Bush’s time in office, in a way not seen since Herbert Hoover’s term during the Great Depression. That makes Bush the first president since Richard Nixon to preside over a declining Dow. In percentage terms, Bush’s 21.8 percent Dow drop is the worst showing since an 83.2 percent decline under President Herbert Hoover, whose term included the 1929 stock-market crash.
During the entire ramp-up of the Dow I claimed the market was too high. When the crash began I said the Dow should settle around 8500. While it’s nice to be right there is no joy as the economy continues to deteriorate. Interest rates fueled the problem, while many people claim the Bush administration manufactured an economy using our home equity. Dropping Americans flat at the end of Bush’s term is not new for George Bush.
The main reason Bush failed to secure a clear win as President, and failed to get the popular vote, is because historically he always left situations in shambles. America, as Bush leaves office, is no exception.