Streams

Obama, Reagan, the Stock Market, and Twitter IPO

Thursday, November 07, 2013

The landmark Charging Bull in Lower Manhattan represents an aggressive financial culture. August 3, 2012 in New York, NY. (Stuart Monk/Shutterstock)

President Obama recently surpassed Ronald Reagan's record for stock market gains made while in office. The S&P 500 shows a 120% rise, beating the 118% gain made during Ronald Reagan's presidency, and catching up to President Clinton's 220% record. Roben Farzad, senior writer for Bloomberg Businessweek discusses the economy during the Obama tenure and how it compares to Reagan-era economics.

Then, Tim Carmody, technology, business, and culture writer, and former senior writer at Wired, joins Roben to discuss today's Twitter IPO and what it could mean for the user experience and for the tech sector generally.

 

Guests:

Tim Carmody and Roben Farzad

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Comments [23]

@Delores lake from Maine

"...raise the minimum wage..."

Wages are an expense and are deducted from earnings before being taxed. Presumably - if they are sane - an increase in wages passes through to the consumer as an increase in prices.

With inflation at 2.5%, personal savings accounts are (and have been for quite a while) a game for chumps - good for emergencies but little else. However, to get better rates you have to open an account and hand a broker yearly maintenance fees.

Clearly, wages do need to go up. Savings interest rates need to go up as well. However, putting MORE money into the pockets of the people that will spend those dollars on consumption creates EVEN MORE inflation (if production does not likewise increase.) Private thrift needs to be in vogue again. I am far from certain how to make that happen.

Nov. 07 2013 11:50 AM
Sheldon from Brooklyn

@Delores, to get "regular" people or anyone to save money, will entail money not being so artificially cheap.

Interest rates make saving accounts redundant for "regular" folk and the stock market and real estate (again) - a necessity, for the monied classes.

Nov. 07 2013 11:31 AM
Duh!

[[ph

The type at humor from the guests remind me of those from the people on "Wait Wait Don't Tell Me". Awful. Can they PLEASE STOP?
Nov. 07 2013 11:17 AM]]

Turn off your radio.

Simple.

Nov. 07 2013 11:25 AM
brian from midtown

nobody ever lies on twitter

Nov. 07 2013 11:24 AM
No babies

[[Delores lake from Maine To get regular folks to save money. Suggestions: raise the minimum wage. Yes, the argument is that small business can't afford to. So, how can we get small businesses to agree? They would gain by tax credit. Paying their employees more enables them to increase their business' tax deductions. Make sense? Please comment Nov. 07 2013 11:15 AM]]

In order to be able to save money, "regular people" should have fewer children. Period. Smaller housing needs, smaller food bill, smaller transportation demands, fewer phones needed, fewer televisions, lower education costs.

Instead of praying for a $15 minimum wage, which will only drive up your COL, invest in condoms.

Stop having children.

Nov. 07 2013 11:24 AM
ph

The type at humor from the guests remind me of those from the people on "Wait Wait Don't Tell Me". Awful. Can they PLEASE STOP?

Nov. 07 2013 11:17 AM
Aubrey from Cleveland, Ohio

The stock surge of the last few years funded my grad school hobby. I finished a $30,000 Master of Social Work program this spring with no debt.
I'm 34 and have been investing my meager surplus from each paycheck since 2008.

Nov. 07 2013 11:16 AM
Delores lake from Maine

To get regular folks to save money. Suggestions: raise the minimum wage. Yes, the argument is that small business can't afford to. So, how can we get small businesses to agree? They would gain by tax credit. Paying their employees more enables them to increase their business' tax deductions. Make sense? Please comment

Nov. 07 2013 11:15 AM

The S&P is what it is.

It's vested interests (mostly rich investors, S&P execs and elected officials) -- along with an understaffed and un- or underpaid media -- that assert the S&P's success in any way relates to a larger "economy."

Nov. 07 2013 11:15 AM
Amy from Manhattan

And of course, the people looking for those low-level, low-paying jobs are the ones who've pulled out of the stock market to pay their bills & are missing out on the record-high share prices.

Nov. 07 2013 11:15 AM
Taher from Croton on Hudson

I guess the idea is that American culture has become about self-promotional bombast. A lot BS and hot air about how great somebody is. What do they real do? Not a anything.

Nov. 07 2013 11:13 AM
Suze Q

[[Dee from Montclair

Talk about what happens to the stock tomorrow when all the early investors dump their stock. Pump and dump. Perfect IPO for Wall Street, which only thinks in 140 characters these days!
Nov. 07 2013 11:05 AM]]

You should focus on what you can control. Eliminate credit card debt, pay off your car note, get rid of cable/second phone line/massive cell data plan.

Go buy a Suze Orman book about personal finance.

Nov. 07 2013 11:12 AM
Dee from Montclair

Talk about what happens to the stock tomorrow when all the early investors dump their stock. Pump and dump. Perfect IPO for Wall Street, which only thinks in 140 characters these days!

Nov. 07 2013 11:05 AM
MichaelB from Morningside Heights

Why do companies like Twitter go through the roof? Because of segments like this, where the Gods of technology are worshiped and idolized.

It becomes a herd (and heard!) mentality write large. It continues to snowball.

BTW, it is this mentality that produces bubbles.

Nov. 07 2013 11:03 AM
Jeb from Brooklyn

As I mentioned:

"Instagram is growing in popularity, even among teens, with an impressive 11% growth in the last year. It’s also important to note that Twitter’s popularity was flat – it’s really Facebook’s game to lose, with a more even spread across networks occurring rapidly over the past year." - See more at: http://www.tnooz.com/article/true-next-generation-traveler-leaves-facebook-turns-twitter/#sthash.uJM23BRB.dpuf

Nov. 07 2013 11:03 AM
NYT

NYT stock price is $13.11.

Nov. 07 2013 11:02 AM
Otto Cosmopolis from NYC

Why when we hear news about how young people are constantly turning to the newest social network Myspace to Facebook to Twitter to Instagram do people rush to invest in a network based on potential future profitablility?

Nov. 07 2013 11:01 AM
Jeb from Brooklyn

Twitter is useless. Young people are already flocking to Instagram above Twitter and Facebook. Instagram has launched ads that are having killer response rates? Who's buying this stuff. Give me some Instagram stock!

Nov. 07 2013 11:00 AM
Starbucks

If you had bought Starbucks stock five years ago at its low of $7.83, you would have more than ten times as much money today with the price at $80 per share.

I think the lesson is what it always was...invest in products you actually use.

Also, can you talk about the dysfunctional relationship we have with gas prices?

Low gas prices means low demand, which means low global productivity. In effect, high gas prices means the global economy is doing well.

Thoughts?

Nov. 07 2013 10:59 AM
antonio from baySide

Hey can this be attributed to one man...

I know he appoints a council of business folks and of course the FED chairman...

But aren't there SOOO many variables?

To mention a tag from another show...'PLEASE EXPLAIN!'

Nov. 07 2013 10:54 AM
Sheldon from Brooklyn

For a full year, Sean Hannity blamed Obama's presidential win, literally, from the day of his inauguration, for the malaise of the stock market.

Now that the 1% have gotten their artificial wealth back, it's all good.

Nov. 07 2013 10:22 AM
Sheldon from Brooklyn

For a full year, Sean Hannity blamed Obama's presidential win, literally, from the day of his inauguration, for the malaise of the stock market.

Now that the 1% have gotten their artificial wealth back, it's all good.

Nov. 07 2013 10:21 AM

Yet personal savings and CD's founder at 1% per annum or less.

The Great Recession was just one more way of concentrating wealth in the pockets of the few, IMO. I am pleased that 401K plan balances have recovered, but the folks who actually needed the money TO LIVE during the recession have been completely hosed.

If you are a believer (as I am) in Keynesian macroeconomics, Savings = Investment. What do we need to do to get regular folk saving money again?

Nov. 07 2013 10:10 AM

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