The Conservative Cave

Current Events => Economics => Topic started by: bijou on March 07, 2009, 11:27:18 AM

Title: Understand the Crash
Post by: bijou on March 07, 2009, 11:27:18 AM

(http://2.bp.blogspot.com/_ZI9ZC-oL5KQ/SbFKq0ADolI/AAAAAAAAEWY/WSRPfz8RcOM/s1600/four-bears-extended-large.gif)

I thought this might be a useful graphic for people to email round.
Hat tip to Dizzy Thinks (http://dizzythinks.net/2009/03/understand-crash.html)

Title: Re: Understand the Crash
Post by: docstew on March 07, 2009, 12:34:25 PM

I don't really get it.  How can the current crash be the new low when the '29-'32 crash lost 89.1%?  I mean, I know we haven't hit bottom yet, but I doubt it'll drop 90% or more overall before recovery starts, even with 0 talking it down.

Title: Re: Understand the Crash
Post by: Lacarnut on March 07, 2009, 12:53:53 PM

Quote from: docstew on March 07, 2009, 12:34:25 PM

I don't really get it.  How can the current crash be the new low when the '29-'32 crash lost 89.1%?  I mean, I know we haven't hit bottom yet, but I doubt it'll drop 90% or more overall before recovery starts, even with 0 talking it down.

I think what the chart shows is that after 16 months of a downward spiral, the recession is only half way to the level of 29 to 32 crash. The bad news is that we have gotten there faster than at any other bear market period with the exception of the depression years.   

Title: Re: Understand the Crash
Post by: Jim on March 07, 2009, 03:03:33 PM

thanks for the depressing chart


no really, we need to comprehend what the dems have wrought us again....