Forget The New Economy, It's Time For The New Recession
from the overreacting-as-a-way-of-life dept
Maybe I should just declare war on extremes. During the dot com boom days I wasn’t a big fan of people claiming that the “new economy” changed everything, and basic economics didn’t apply. I’m a mostly optimistic person when it comes to technology, but that doesn’t mean rules of economics get thrown out the window. Now, however, people are going to the other extreme. Here is the first article I’ve seen suggesting the opposite effect. Apparently, people are talking about how this bear market isn’t your ordinary bear market. Why is it that we always think that the experience we’re going through is completely different than what’s happened in the past?
Comments on “Forget The New Economy, It's Time For The New Recession”
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Why is it that we always think that the experience we’re going through is completely different than what’s happened in the past?
Because to admit this is the same ole thing is also to admit we are complete idiots for not learning from the past. And none of us wants to admit we are an idiot!
The Big Bad Bear Market
If we are going to base what is happening now to what happened in history then lets look at ’29. During the Market’s run up then it went from 100 to a high of 381 and then crashed down to 42. In the ?73 crash we see a high of 1051 and a drop to 577, about it?s pre-bull run up price. (http://www.fiendbear.com/bearenc1.htm)
Now depending on when you want to say the “Bull” market started to gauge where are going to in the dow, if you say ’95 then we are looking at below 4000 and if it is ’90 then below 2000. So IMHO we have a long way to drop before we hit bottom.
Oh and one more thing about history is that if it follows to form the Real Estate market is about to tumble around a lot of peoples ears. (http://www.business2.com/articles/web/0,1653,9764,00.html)