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?


Tom McCune 9 years, 2 months ago

4,700 on the Dow would be a decline of about 2/3. Maybe that will be the bottom.

Tom McCune 9 years, 2 months ago


Did you see that FIAT bought a share in Chrysler to help bail it out? OMG, that's not a corporate merger. That's a collision between two garbage trucks. And I speak as a former FIAT owner. I didn't think it was actually possible for a car to be that bad.

Chrysler was bailed out by the government years ago, then Diamler tried to fix it and failed, and now Cerberus is stuck with it, trying desperately to palm some of it off on FIAT. It's time for Chrysler to die. I would hate to see GM go under, although they so richly deserve it because of some of their stupid decisions.

Commenting has been disabled for this item.