Barney Frank: "Artificial Depression" In Market Due To Uncertainty, Not Decline In Economy
Barney Frank: Well, first, those who want to read the market as an indicator should have been the most enthusiastic supporters of the Obama administration -- since the market doubled from March of 2009 when the President was first taking over until a couple weeks ago. I donâ€™t remember people saying, â€śWell look at the market; how wonderful Obama must be.â€ť Secondly, I think what youâ€™re seeing now is an artificial depression of the market because of the uncertainty. I believe that it does not reflect the erosion of fundamentals. In fact, I think the economy has been doing reasonably well, particularly our economy compared with the rest of the world. Thereâ€™s some uncertainty about Europe. Itâ€™s important for us to deal with the tax and sequestration issues. I think once we have done those, this drop will come back up. This is an understandable reaction to the uncertainty, not a serious sign of a decline in the economy.