LJWorld.com weblogs The Great Depression 2.0
The Great Depression 2.0
When the stock market started heading down over a year ago, I said I was always prepared for the DJIA to lose half its value. But if it fell more than that, prepare for the worst. Now it has happened. It closed today at 6,594, much less that half its peak value of over 14,000.
Obviously, we aren't in 1933 conditions yet. The national unemployment rate is now 7.6%. In 1933 it was near 25%. In the early 1930s the DJIA lost 90% of its value. How bad will it get this time around?