Pictures of a Stock Market Mania (Updated)

[On the Road]

Extremely good comparison of recent market activity to long-term historical norms. A new version is released every few months.

http://www.cross-currents.net/charts.htm

Click the link for "archives" and it gives you the entire series. The page is preview-only, so you can't cut and paste excerpts.

[slor]

1. I will check it out when I get home...

thanks for the link.

[KoKo]

2. It's excellent....still reading it...but just wanted to give a heads up.

Thanks.. Particularly like the part about folks accepting that "1995" started the "New Model," in investing and the markets.. HA! for ten years we've been sold that hogwash.. and the Bushies and IMF and Greenspan have been propping the lie using every available tool to keep it going.

I have a feeling that the "lie" is going to be like our Invasion of Iraq
spreading "Democracy" to the ME...and that 9/11 couldn't have been anticipated. One wonders how they can keep juggling all these plates in the air and will they all crash at the same time, or one by one.

[On the Road]

5. Check Out Those Previous Articles, Too

There's a certain amount of overlap, but a lot of it is different. It's really helped me to get a handle on what's going on.

[mhr]

3. Thanks For The Link

eom

[s-cubed]

4. thanks

[German-Lefty]

6. There are so many fun theories why the economy will meltdown!

Fannie Mae/Fredie Mac, the increase in money supply possibly leading to inflation I pointed out, countries switching reservesfrom dollar to euro, oil going elsewhere, and the 5 or 6 things on your site that seem screwy.

I sometimes wonder if all these fun things somehow cancel each other out, to keep the system from crashing. I also think some of the prophecies of an economic apocalyps have something of a religious psychological nature to them. Talk to a LaRouche-ite about how everything is going to crash he may not no jack about economics, but he believes.

[sendero]

7. All those reasons are good..

... but the real reason is that America has been systematically dismantling its manufacturing capabilities and sending them offshore for a long time.

Ecnomists blithely talk about "service" jobs, but do they actually create wealth? Certainly some types like software development might, but there is no barrier to entry to that work other than a cheap pc and a lot of time so we are losing that also.

When all the wealth creation goes offshore so does all the money. The attempts to correct this problem with devaluation or inflation will simply bring down other effects.

I'll admit that there have been folks here talking about economic chaos since the 70s at least. In the late 70s, the huge inflation definitely hurt us but Volcker managed, with some pain, to regain equilibrium. The current crew don't seem to have the slightest grasp of economics. That is what worries me. This 'recession' would already be over if the correct steps were taken - as it is, I don't see it being over any time soon.