PAUL KRUGMAN ON ELECTION NIGHT: “If the question is when markets will recover, a first-pass answer is never.”

Today: Dow Breaks 20,000 Milestone. “The Dow Jones Industrial Average finally broke through the psychologically important 20,000 barrier for the first time Wednesday, continuing a sharp rally that began after Donald Trump’s election as the nation’s 45th president. The Dow, which rose 134 points to 20,046 in midday trading on Wednesday, is now up over 1,700 points, or around 9 percent, since Trump’s stunning victory over Hillary Clinton in November, defying some predictions that a win by the unpredictable Republican could hurt stock prices.”

So this suggests that markets don’t believe the Democrats’ inevitable-stagnation explanation for the slow growth of the Obama years, but rather think that it was a problem caused by bad government, that can be fixed by better government.