Perspective of our economy -
Here we will explain the difference between a recession and a depression.
A recession is a pause in an otherwise healthy, growing economy.
A depression is when the economy drops dead. And when it drops dead, the assets that people owned – stocks, bonds, houses, derivatives, debt – are called into question and become of less value.
So far, the Crash of '09 has paralleled the Crash of '29...and the Crash of 1873.
All three began in early September. All three saw the big selling in late October. Both in the case of '29 and '09 a near-term bottom was hit in mid-November. "Moreover, the percentage declines," writes Frisby "were virtually identical. An initial decline from the high to a late October low of about 40%, then a rebound of about 15%, followed by a final low in late November - down about another 22%.
The parallels are uncanny.
"The worrying thing...it is not unreasonable to expect the eventual low to come no earlier than 2010-11."
the guides state that the low will more likely be in 2013.
Regards - Madame Mystic
I don't think the Great Depression was even named until it was starting to recover. It's been said many times that we are doomed to repeat history if we don't learn from it. But generations get careless and lazy and we are full into it this time. It's quite a statement that the top selling and in demand products are guns and ammunition.
ReplyDeleteI forgot to add--I was actually feeling good that the 6300 bottom looked like it was coming up pretty fast. But realistically, it could bounce the bottom like an anchor being dragged for a long time. Don watches a lot of financial programming and the "pros" don't know anymore than anyone else does. One tip however--as a contrary indicator--when they talking heads start touting an industry or stock group it's probably time to sell!
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