I know this is a chart of the Stock Market, as it was back in 1929 - 1932.
Layman as I am, I make the claim that this chart is more a flow chart for the national economy of "ancient" America than simply a Market analysis of '29 -'32.
With that premise in mind, you are looking at the Great Recession charted through 1932.
That assumption being true, the economy "fell off a cliff" in '29 and almost immediately began a recovery, only to descend into an even more radical and prolonged decline.
Does history repeat itself? If "yes," we have not begun to be finished with the current financial crisis.
On charts I have taken time to study, the economy really did not return to 1929 levels until the very early in1950's. One of the most obvious differences between "then and now," as relates to the stock market is to be found in how stocks were/are traded. Back in the 30's, stocks were traded by individual traders. Today, we have stock brokers who do most of the trading for us. They are specialists in the field of Market Analysis. There was no such thing, in years gone by. These brokers came onto the scene in the mid to late 1950's.
Point of post: rather than getting into a detailed analysis of the causative influences contributing to this crisis, something I am working on, in fact, I just wanted to take us back to the past and scare the blazes out of you with the notion that if history repeats itself, we are "in for it" regardless of what anyone in Washington is doing.
Obama did not cause this recession anymore than did Bush, but his policies can certainly effect the scope of the recovery and its degree of immediacy. One thing Clinton did, that was rather brilliant, was to cut corporate taxes and then, get out of the way. The economy healed itself and Billy Boy got the credit.
But, sense this clown in our White House is so determined to ignore our history, he would not know of the reasons for Clinton's successes.
No comments:
Post a Comment