Wednesday, February 12, 2014

History repeating?

Concentration of nation's wealth in the hands of the super rich - check.




A government captured by the interests of the wealthy - check.
A financial system out of control - check.
A new dust bowl - check.

All we need now is the crash:

Scary 1929 market chart gains traction (MarketWatch)

Scary, indeed.

3 comments:

  1. Scary? I find it quite thrilling, actually. At the very least, one will find out the extent to which one is able to exercise autonomy and independence. I guess it will be sink or swim, once the DOW sinks.

    Sometimes the answer to a problem is the demise of the system that poses the question.

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  2. One needs to watch out for misinterpreting visual patterns. The brain is wonderful in seeing such things, whether or not they exist. Scales on graphs lend further distortions to reality. So, I decided to do a straight line approximation of the chart and see if the slope was even remotely similar.

    If one takes two 1929 points, let's say the start at 200 and the peak at 375, one gets a ratio of 1.875. Now, applying that ratio to today, the low looks to be about 12,800 so the high should be 24,000 (a nice round number). The high isn't remotely close. It is interesting that the WSJ published such a graph....

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    Replies
    1. You're not the only one who's skeptical:

      http://blogs.marketwatch.com/thetell/2014/02/14/consensus-on-scary-1929-chart-enough-already-its-not-happening/

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