Every “Unified Republican Government” Ever Has Led to a Financial Crash

Josh here – below, I bring you a guest post from the mysterious and clever Wall Street Ranter, whose work you’ve seen on these pages before. You can, of course, argue correlation vs causation about the below, and that’s fine. But the fact remains – unified GOP governments have universally led to financial crises and market crashes. I know this is at odds with the enthusiasm everyone seems to be feeling now. That’s fine. 

***

House Speaker Ryan1

House Speaker Ryan
While I believe the purpose of these types of headlines and tweets are to illicit positive emotions, readers would be well advised to look up the DISASTROUS history of extended periods of unified Republican governments.

In fact, the ONLY 3 PERIODS of extended unified Republican governments going back to 1900 ALL DIRECTLY led to banking crises….Arguably the 3 worst in US History. To be clear, I am defining ‘extended’ unified governments as anytime they control the House, Senate and White house for at least 4 years. This does not include short 2 year stints since it’s hard to screw things up that quick (FYI there was only 1 period of that anyway, 1953-1955). You can look up the periods yourself here and more detail here.

The list of Unified Republican Government crises include the Panic of 1907The Great Depression, and the Financial Crisis of 2007-2008. Interestingly, the record of extended Republican control of Congress has also only led to crises. There have only been 4 periods of extended Republican control of Congress (3 of which overlap with the periods of full unified control just mentioned). However, the 4th period (I KID YOU NOT) ended in the 2000 DotCom Bust where the Republicans controlled the House and Senate from 1995-2001.

In short, full Republican control has NO history of making America great…let alone AGAIN. Don’t feel like checking out that history yourself? Here’s what you’ll find….

WSR2
Technically Republicans took control in 1895 but this graph does not start there. And While I mentioned the Panic of 1907……I will just brush off the Panic of 1901. Markets fell over 43% before bottoming after both events. How they were not thrown out until 1911 is anyone’s guess

wsr3

Then we have the Great Depression fuelled by the unsustainable laissez-faire polices of the roaring 20’s

wsr4

Only led to the greatest market decline in history and total social devastation…..Is that the type of “Great” we want to make again?

wsr5
Oh and then we have the Financial Crisis of 2007-2008.

wsr6

This case meets the minimum for “extended” by getting to 4 years (although technically they almost had 6 full years as only 1 independent tipped the senate democrat in 2001). Again lax regulations created the housing bubble which popped in 2006 and lead to our famous bank failures and financial crisis. (Case Shiller housing price index

wsr7
While the Republicans managed to get kicked out of Congress in 2007 the coming disaster was already well in motion by then.
wsr8

While that wraps up the History of the 3 worst banking crises in American History…or um….I mean the History of the “Unified Republican Government”. It would not be complete without completing it with the final piece to the history of the extended Republican control of Congress….which is only complete with the DotCom Bust of 2000.

wsr9 wsr10

There we have it folks! The disastrous history which has accompanied EVERY extended Unified Republican Government (or control of congress) since 1900. Think I’m missing a period that didn’t end in disaster? Check for yourself. I’m not.

***

Source:

Wall Street Ranter 

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. online banking for business bmo commented on Dec 07

    … [Trackback]

    […] Find More on that Topic: thereformedbroker.com/2016/12/13/every-unified-republican-government-ever-has-led-to-a-financial-crash/ […]

  2. replica watches commented on Dec 17

    … [Trackback]

    […] Read More Info here to that Topic: thereformedbroker.com/2016/12/13/every-unified-republican-government-ever-has-led-to-a-financial-crash/ […]

  3. DevSecOps commented on Dec 21

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2016/12/13/every-unified-republican-government-ever-has-led-to-a-financial-crash/ […]

  4. replica watch commented on Dec 21

    … [Trackback]

    […] There you can find 67929 additional Info on that Topic: thereformedbroker.com/2016/12/13/every-unified-republican-government-ever-has-led-to-a-financial-crash/ […]

  5. rolex replika commented on Jan 14

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2016/12/13/every-unified-republican-government-ever-has-led-to-a-financial-crash/ […]