After the crash in '29 there was a sucker rally in '30

[meisje]

As we prepare for another week in the markets, it bears remembering that Bear markets are not an orgy of pain with indices going straight down. Along the way, there are always brief rallies which bring optimism that the worst is over. But, the indices then resume their downtrend until capitulation is reached and almost everyone is bearish.

This certainly was the pattern in the Bear market from 1929-1932 during the Great Depression. There were six separate bear market rallies during that brief 3-year span. Below are the charts for the Dow Jones from 1928-1932.


http://www.creditwritedowns.com/2008/06/chart-of-day-dow-1928-1932.html

[Jackpine Radical]

1. The link didn't work for me.

[gravity]

2. The government is on top of the crisis this time

We learned from our mistakes, and won't let that type of catastrophe to happen again. We will still probably experience a serious recession, but nothing like the Great Depression

[Stellabella]

3. I don't think so.

What about the derivatives market, that is said to top $527 trillion?

And the credit card bubble is due to burst next year. I don't think we're out of the woods yet.

[TwixVoy]

6. ROFL bahahaahah

"the government". "The government" is composed of bush and his appointed fools. Yes, I am sure they will have everything running smooth before leaving office in january.

[endthewar]

11. There's one in every crowd

:rofl:

[lligrd]

12. Bush Is On Top Of It?

Some people never learn.

[Vanje]

4. Clicked on the link....Didnt work nt

[meisje]

5. Link Fixed!

[Vanje]

13. Sweet.

This post needs a morning coffee KICK!

[jkshaw]

7. "Sucker Rally" -- a great term, meisje.

I'm assuming it's a finance term and nice to know. Good charts and commentary. Thanks.

[Selatius]

8. Wait until Quarter 3 results are posted. It may send the Dow down a bit more.

That's my take on it.

[bertman]

9. If it fits the current methodology of CRISIS/PANIC followed by MASSIVE INFUSION of

taxpayer-financed giveaways to the corporate financial pirates, my prediction is we'll probably have at least three or four more "slides" and sucker rallies (love that terminology) before they get the last dime out of the treasury.

By then, we'll have more of our troops back in the U.S. from Iraq, so they can defend the Fascist corporatists from the angry, jobless, starving American populace.

But then, I'm just a bit cynical about the Republican/Democratic corporate cabal.

[Crowman1979]

15. Maybe the military should raid those blackwater compounds when they get back.

I'm sure their just waiting to take a shot at them. I know I would.

[jwirr]

10. Both before the fall and after the fall the market went from one extreme

to another so that no one could trust the data any more. The week before it was very erratic.

[ProfessorGAC]

14. The Market Bottomed Finally, In Early 1933.

That was when the true recovery began. About 2Q33
The Professor