Thursday, March 20, 2009
markets took another tumble today, dropping a bit less than 2%. The NASDAQ
ablated by 26.21
to end the day at 769.
below, shows how this current "Great Recession's" Dow Jones
Index compares to the Dow during the Great Depression. Of course, we won't
really know what's going to happen next until it happens. Heroic efforts
are being made by government officials to avert a replay of the
Paul Krugman has returned from "Yurp":
Permanent Link to Iím baaaack.
He asks, "Anything happen while I was away?" Hm-m-m. What's your
take on that?
In his Permanent Link to AIG,
he concludes, "This
administration, elected on the promise of change, has already managed, in
an astonishingly short time, to create the impression that itís owned by
the wheeler-dealers. And that leaves it with no ability to counter crude
In Permanent Link to Our failure proves our point,
he tees off on a couple of authors of an article in The Financial Times
who cite U.
S. "government failure effectively to prosecute the war in Iraq"
as evidence that governments shouldn't try to solve problems with
economies. Dr. Krugman refers them to "this
report, titled Ties to GOP Trumped Know-How Among Staff Sent to
Rebuild Iraq". The entry ends with "(bangs head on table)".
In Permanent Link to The Great Recession versus the Great Depression,
he presents the following chart:
He concludes: "At
first, the current recession didnít hit industrial production all that
hard. But the pace accelerated dramatically last fall, so that at this
point weíre sort of experiencing half a Great Depression. Thatís
One financial site has it that Treasury Secretary
Geithner is on "death watch" tonight, and is soon to be
In Playing the odds,
Mark Hulbert observes that in the 60-day trading period following the kind
of better-than-9-to-1 up days we've had in the last two weeks, stocks
yield an average annualized return of 18.3%, vs. 4.3% in the absence of
such 9-to1 up signals. The last two weeks have seen three better-than-9-to-1