Here is a long-term chart of the SP500:
So, here we are, a clear double top. So… whats it going to be? A complete collaspe of the world as we know it, or are our leaders going to get some balls and step up to the plate and save our society?
If the market is to forecast, it is forecasting a decline in society if it continues to decline. Dramatic… yes… Is it true… i hope not.
During the great depression, the GDP decline some 25%, from around 800B to 600B. (Good write up on the Great Depression) Ultimately this caused an approximate 80% decline in the stock market. From intra day highs (1575) to today’s low (776) the SP500 has declined 50%.
questions that remain, and what I will try to look into…
1. Are we still flushing out leverage excesses within the market?
2. By how much will GDP contract this go around? (If it is below 25% does this mean the market will stop its decline? In relation to GDP, is the market inexpensive or expensive assuming a reasonable decline in GDP?)
3. Or will the market continue to decline, signalling the World is going to collapse? (If America collapses so goes the world. I am serious about this. American corporation are indicative of the rest of the world activity. Whether it be sudden or a slow deterioration. After all, 2012 is an important calendar date w/respect to the ancient calendars concerning the end-of-days or representing a major shift.)
I maybe taking a bit dramatic look at things since today was not a good day in general. Layoffs and reorganizations were announced at my company, and the market was not kind to me today. (I was safe, but witness the coldness of corporations and the relative stupidity of mid-tier management yet again.)
Anyway, the only thing I want to convey here is that our leaders have to step up and grow some balls. To do whatever needs to get done to save the most productive and functioning society history has ever witnessed, and to continue the path our previous leaders set forth.
