Here is a graph of the different depressions...since the great one...

[~Hanna~]

Wow......it's not looking too good, is it?

[muman613]

Hi ~Hanna~

Could you please provide a source for this graph?

My perception of the market in the last 10 years has been pretty prosperous.

Also please note that this graph only shows the bear markets... 1929-1932 1973-74 2000-2002 and 2007-2008... In each case the bear markets only lasted 2-4 years.

[~Hanna~]

Ok, here is a link that came with the email of this chart...I didn't see that earlier....

http://dshort.com/

[briann]

I will tell you that even if the economy goes into a depression... the stock market will not lose 80% of its value, and return to 2600. 

For one... we have huge institutional investing now... which acts as a buffer.   Also.... the Stock Market in 1929 WAS the bubble.  The prices were completely outrageous... and earnings compared with stock price analysis analysis became irrelevant.

HOWEVER!!!! this does not mean that our current economy cant go through a horrific depression.  I think... the worst is way ahead of us.

[muman613]

Here is a picture of the Dow Jones industrial average for the last 100 years...


http://en.wikipedia.org/wiki/DJIA

Linear Graph

http://finance.yahoo.com/q/B.C.E.?s=^DJI&t=my&l=off&z=l&q=l&c=

[Zelhar]

The Graph is a graph of different depressions on a time period of up to 810 days. It is NOT a graph of the dow since the depression.

[syyuge]

The comparison of the graphs shows that the overall rate of depression at present is faster than that of 1929 depression. 

[~Hanna~]

Ok, I changed the title, I was confused...

what can I say?

 

[muman613]

The comparison of the graphs shows that the overall rate of depression at present is faster than that of 1929 depression. 

syyuge,

How do you figure that? According to the graph the 1929 depression fell 49% in only 60 days while the current bear market has taken over 300 days to fall 52%... To me that doesnt indicate that this market is worse than the market in 1929.. My estimate, from this graph, is that the current market fell some 30% {From -20% to -50%} in 75 days {day 240 - day 315}. In no way is this anywhere near as bad as the market in 1929...

muman613

[~Hanna~]

Is the title I put now, a better reflection of what it actually is?

 

[cjd]

I think the down turn we are dealing with this time around has the potential to cause our country to go through some serious changes. Unless President Bush's successor chirps up and say's the words """ No tax increases on capital gains""" people will continue to pull their money out of the market. Why can't the stupid baboon understand that people are not going to have their money invested in places that they will be taxed at levels that make investing pointless. The marked has been in free fall since President Bush's successor was elected what more needs to be said. Usually a new president does the market some good. If we are starting off like this I hate to see where we are going to end up.

[syyuge]

The comparison of the graphs shows that the overall rate of depression at present is faster than that of 1929 depression. 

syyuge,

How do you figure that? According to the graph the 1929 depression fell 49% in only 60 days while the current bear market has taken over 300 days to fall 52%... To me that doesnt indicate that this market is worse than the market in 1929.. My estimate, from this graph, is that the current market fell some 30% {From -20% to -50%} in 75 days {day 240 - day 315}. In no way is this anywhere near as bad as the market in 1929...

muman613

It may please be seen that overall in 300 days the present curve went down by 51.9%, whereas the 1929 curve could never fall down to this extent rather it could go down only by 47.9% within similar 300 days.

The 1929 drop was sudden and shocking but present drop is consistent and dangerous.

The 1929 drop was more of manipulation and less of deterioration but present drop is more of deterioration and less of manipulation.

[briann]

The comparison of the graphs shows that the overall rate of depression at present is faster than that of 1929 depression. 

syyuge,

How do you figure that? According to the graph the 1929 depression fell 49% in only 60 days while the current bear market has taken over 300 days to fall 52%... To me that doesnt indicate that this market is worse than the market in 1929.. My estimate, from this graph, is that the current market fell some 30% {From -20% to -50%} in 75 days {day 240 - day 315}. In no way is this anywhere near as bad as the market in 1929...

muman613

It may please be seen that overall in 300 days the present curve went down by 51.9%, whereas the 1929 curve could never fall down to this extent rather it could go down only by 47.9% within similar 300 days.

The 1929 drop was sudden and shocking but present drop is consistent and dangerous.

The 1929 drop was more of manipulation and less of deterioration but present drop is more of deterioration and less of manipulation.

well said

[syyuge]

Thanx...

[Zionist Revolutionary]

Linear Graph

http://finance.yahoo.com/q/B.C.E.?s=^DJI&t=my&l=off&z=l&q=l&c=

This is the graph Al Gore uses when discussing global warming :)

[briann]

Linear Graph

http://finance.yahoo.com/q/B.C.E.?s=^DJI&t=my&l=off&z=l&q=l&c=

This is the graph Al Gore uses when discussing global warming

I think I heard that Al Gore invented charts   

[Zelhar]

Is the title I put now, a better reflection of what it actually is?

Yes it is... although to be more accurate it is a graph of stock market index depression which is very different from a real economic depression. Stock market can collapse for different reasons and for example the tech bubble led to a dramatic collapse in the market but not for a real economic depression, more like a cool down of an over-heated economy. This time things look pretty dire because banks won't lend money and in extreme cases this may lead to a complete economic meltdown. I suppose that is why this depression is compared to the great depression.

Anyway I think that a more accurate measure to the severeness of the depressions should be the GDP and unemployment.