Wednesday, October 8, 2008
This chart, courtesy of Wikipedia, shows the Dow's initial fall from grace at the start of the Great Depression. From its high on Sept. 3 to Nov. 13, the Dow fell 48%. That's a bit more than the 35% decline in the Dow since its high last October, but not a great deal more. The total loss from '29 to the eventual bottom in '32 was 90%. Very hard to believe we're in store for a collapse of that magnitude. Back then the Fed was way too tight, and now they are undeniably easy. That's a huge difference.
Hat tip: Mike Churchill
UPDATE: Today, Oct. 9th, the Dow has fallen 39% from its high year ago. We're closing in on the pre-Depression collapse.
Posted by Scott Grannis at 4:02 PM