CHICAGO--The Dow is closing down only a few ticks as I am writing this Tuesday afternoon, a few hours after President Obama touted the depressed stock market as a good deal. For some, Obama said, buying stocks now may be a "good deal."
Obama turned to the miserable economy during a joint session with British Prime Minister Gordon Brown.
"What I'm looking at is not the day-to-day gyrations of the stock market, but the long-term ability for the United States and the entire world economy to regain its footing. And, you know, the stock market is sort of like a tracking poll in politics. You know, it bobs up and down day to day. And if you spend all your time worrying about that, then you're probably going to get the long-term strategy wrong.
"Now, having said that, the banking system has been dealt a heavy blow.
"It has to do with many of the things that Prime Minister Brown alluded to: lax regulation, massive over-leverage, huge systemic risks taken by unregulated institutions as well as regulated institutions. And so there are a lot of losses that are working their way through the system. And it's not surprising that the market is hurting as a consequence.
"In fact, you know, I think what we're seeing is -- is that as people absorb the depths of the problem that existed in the banking system, as well as the international ramifications of it, that, you know, there's going to be a natural reaction.
"On the other hand, what you're now seeing is -- is profit and earning ratios are -- are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it.
I think that consumer confidence, as they see the American Recovery and Reinvestment Act taking root -- businesses are starting to see opportunities for investment and potential hiring. We are going to start creating jobs again. "