United States bear market of 2007–2009

The bear market was confirmed in June 2008 when the Dow Jones Industrial Average (DJIA) had fallen 20% from its October 11, 2007 high.

The DJIA, a price-weighted average (adjusted for splits and dividends) of 30 large companies on the New York Stock Exchange, peaked on October 9, 2007 with a closing price of 14,164.53.

[12] High oil prices have impacted global economic growth, causing the Dow's 12th bear market since 1962 and the first since 2002 according to The Washington Post.

In Japan, the Nikkei index hit a 26½ -year low this week.”[14] Dick Meyer of NPR believes that "the idea of blaming one person for the downfall of the economy with a gross domestic product of about $14 trillion, powered by 300 million people and engaged in complex global commerce is nuts — whether that person is Bush, Obama, Alan Greenspan, Bernard Madoff, Osama bin Laden or the editors of opinions at The Wall Street Journal.

"[15] Michael J. Panzner, author and 25-year Wall-Street veteran, says that "the real reasons behind the sell-off ... include the bursting of history's biggest housing bubble, which triggered a shockwave of wealth destruction that has wreaked widespread havoc throughout the economy, as well as the unraveling of a multi-trillion-dollar financial house of cards built on greed, ignorance, and fraud.

[17] Justin Fox of Time magazine pointed to eight major economic mistakes George W. Bush made: 1) A return to deficit spending, 2) Iraq, 3) Tax cuts for the rich, 4) Sarbanes–Oxley Act, 5) Encouraging consumer spending, 6) The lack of an energy policy, 7) State of denial, and 8) A muddled first bailout by Treasury Secretary Henry Paulson.

[18] In 2005, Congressman Ron Paul (R-Texas) said section 404 of the Sarbanes–Oxley Act (2002) which requires chief executive officers to certify the accuracy of financial statements caused capital flight away from the U.S. stock market.

"[21] A September 13, 2008, Wall Street Journal editorial prior to the election written by Phil Gramm, former Republican Senator and[22] campaign economic adviser to John McCain, and Mike Solon, former Policy Director under the George W. Bush Administration, suggested that looking at the Senators' respective states proved traditional Republican strategies, enacted by McCain, would be better for the economy than traditional Democratic strategies, enacted by Obama, arguing "Mr. Obama would stimulate the economy by increasing federal spending.

[34][35] After only a month and a half in office, in a media blitz including press conferences, interviews and public appearances, President Obama, Federal Reserve chair Ben Bernanke,[36][37] Federal Deposit Insurance Corporation chair Sheila Bair[38][39] and Treasury Secretary Tim Geithner[40] rolled out the details of numerous plans to tackle various elements of the economy, and began putting those plans into action.

Mortgage rates for homeowners dropped, limits on executive compensation were enacted, regulatory changes were proposed, and the Treasury announced its intention to purchase $1 trillion of troubled bank assets, such as the aforementioned derivatives, and enticing private investors to join them in making similar investments.

[42] On March 26, 2009, after just short of three weeks of gains which frequently defied the day's bad economic news, the DJIA rebounded to 7924.56.