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Clothes already -are- animated. They have bone assignments that make them animate along with the sim's movement - each vertex is assigned to certain bones in the sim's skeleton at different weights. Depending on the location of the vertex, what bones it's assigned to, and how much to each bone, it will animate in a different way as the sim's skeleton moves.
Now, if you mean some sort of swishy animation, like a skirt or cape or something sort of billowing and swishing about similar to the way that hair does, following the movement of the sim in a realistic sort of way, no, that's not really possible. There aren't proper animation bones in that area for it to work that way.
Boob bounce animations are possible, sort of, and have been done:
http://www.modthesims2.com/showthread.php?t=239415
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