Mar-09
06
The Bush/Obama Crash: Worse than 1929.
By
Dateline . . . March 5, 2009. After 513 days since the market peak (Oct. 9, 2007), the S.&P. 500 is down 56 %, the Dow is down 53 %.
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Dateline . . . Jan. 29, 1931. After 513 days since the market peaked (Sept. 5, 1929), the S.&P. 500 down 49 %, the Dow is down 56 %.
It’s now official, we have surpassed the crash of 1929 through the efforts and interventions of both the Bush Administration in its flagrant loose monetary policy, coupled with the utterly irrational stomp on the accelerator of disaster by the Obama crowd…
h/t and credits to dshort.com
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Flashy,
I find this comparison absolutley fascinating, but not surprising. As I and others have warned for the good part of two years, the decline in the stock market will greatly exceed the worst nightmares of most.
To recap, the Dow Jones Industrial Average hit bottom in 1933 almost 90% from the highs made in the summer of 1929. The Nasdaq crash, which continues today, lopped 80% off from its pinnacle. And nearly 19 years later, the Japanese stock market sits 80% from its lofty perch set in January 1990.
If the history of bubble inflated stock markets is repeated, then the S&P 500 will decline by over 50% from its presentl level to between 200 and 300 points. Correspondingly, the Dow Jones Industrial Average would drop in the neighborhood to 2000 and 3000.
Relating again to past experiences, it will take a generation or more for stock prices to recover.
I agree, and as you know, I advocate that what we are really witnessing is the evidence, the precipitate if you will, from the experiment with assetless currency and Keynesian economics. No one knew, back in 1911, how many years it would take to either prove conclusively, or disprove, the fiat currency, inflationary monetary, model.
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Point being is that all candid observers should clearly see that it was a 100 year experiment that has utterly failed.
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A rational public would see this, and conclude we need to immediately reverse course and rid ourselves of that which has caused this. But alas, we do not have a rational public, therefore one can be assured that this will either get much much worse, OR we will get one more boom bust cycle and it will be utterly catastophic.
You can only push the hurricane out to sea so many times, it will eventually come on shore with much more ferocity and simply wash you away…
A rational public, with an honest media, would know that Keynes himself repudiated much of what is known as Keynesian economics in his later years.
That we don’t know that is due to two factors: an apathetic public and a dishonest media.