The Dow and S&P have the worst Thanksgiving week since, gasp, 1932.

Market falls after jobs plan

So we know what the stock market thinks of the Obama jobs plan?

Where is the bottom?

The stock market is down over 500 points today, the third time in the past five trading days.

down down down

The stock market fell like a rock today, down 634 points. Is more to come?

Why this market crash is different

It feels the same but it's different because:
1. The Fed already has interest rates at zero.
2. Our budget deficit is already out of control, so I don't see this Congress passing another stimulus.
3. Everyone is sick of bailouts.

This means the government can't do anything about this crash. The difference is not good.

May has been a bad month for the stock market, but the WSJ and other economists think that the market may be in a long slide that could continue for years.

An unsurprising correlation

Ed Morrissey's post deals with a possible a correlation between the stock market and the prospects for Obama's congressional agenda. Since health care reform and other plans have run into snags, the stock market has trended upward. The idea that government actions may be predictors of market trends is not a new idea. I first ran across the relationship in Jude Wanniski's The Way the World Works. He argued that the stock market in 1929 was keying on the progress of the Smoot-Hawley tariff through Congress, which played a large role in plunging the nation into the Depression. When the legislation appeared to gain support, the market went south and vice versa. Of course Smoot-Hawley passed after the 1929 crash, but Wanniski followed this relationship well before the tariff passed. See also here.