Originally Posted by Tallest Skil
If it happens, my generation will be in charge and we'll get blamed despite it being the fault of the previous three. If it happens, AAPL's stock price will be the least concern of anyone in the country.
We blew up a stock market bubble under Clinton that started to deflate in April of 2000, the effects of it were not felt until Bush took office and instead of doing the right thing and let the economy purge itself of the malinvestments and restructure Bush had his first stimulus with the tax refund from the budget surplus that Clinton left him. When this did not work Greenspan began cutting interest rates until they hit 1 percent and he kept them there for 1 year. The result of this wreckless monetary policy came to light with the 2008 meltdown, and instead of doing the right thing and let everything fail there was the bailouts, zero percent interest rates (currently at 15 basis points) and the stimulus. In 2008 the monetary base was 800 Billion, after everything that they did it currently resides somewhere north of 2.4 Trillion with more quantitative easing on the way.
The days of U.S. World Economic dominance will soon be behind us as the rest of the world will no longer squander their savings to support our standard of living. The dollar is going to lose half of its' value within the next 4 years, this will put the index in the 40's. If the government does not do the right thing and level with the American public about the pain that is necessary for us to take to get us out of this mess then we will could be looking at a hyper inflationary depression. Note this is the worst case but it is a definate possibility.
As far as blame goes, I would start it with Greenspan and Bush for creating the initial problem and then look to Bernanke and Obama for making it 5 times worse. The next election cycle will determine our fate.