Dow Repeats Great Depression Pattern: Charts

CNBC ^ | 7/5/2010

[advance_copy]

The Dow Jones Industrial Average is repeating a pattern that appeared just before markets fell during the Great Depression, Daryl Guppy, CEO at Guppytraders.com, told CNBC Monday.

[advance_copy]

Since Obama became President, his administration has spent over one and half TRILLION dollars on bailouts and so-called “economic stimulus”. Cash for clunkers, TARP second traunch, Porkulus, mortgage “modifications”, union bailouts; none of it has worked.

We are in a depression. The gulf oil spill is the 21st century dust bowl. And we have a President weaker than FDR. All he knows how to do is spend, spend, spend, and spend everybody’s money.

That is exactly the wrong thing to do. The way you fix the economy is to make tax cuts permanent, reduce (not increase) regulation, and cut government spending.

The U.S. government budget, outside of social security and defense, should be cut in half. The government wastes so much money it is unreal. And government spending does not increase GDP. Wasteful government spending reduces our economy. That is a fact.

Some people complain about “crony capitalism” -- wrong. The problem is CRONY GOVERNMENTISM. Government cronies have gotten hundreds of billions from the U.S. They orchestrated a crisis and are keeping that crisis going so they can bleed us dry.

Once again – Make the tax cuts permanent, reduce regulation, and cut government spending.

[Mobties]

I read Amity Schlaes’ “The Forgotten Man” in 2007, right after it was published and before Obama was elected. It is both uncanny and exasperating to see daily how closely the Obama administration has followed FDR's “Brain Trust” in doing exactly what is necessary to deepen and prolong the recession by destroying business confidence — particularly small business confidence — and acting through expensive symbolic measures that weakened the economy.

It's time to turn back.

[LomanBill]

>>Since Obama became President,

 

Barry's just the idiot in charge of the Derivative Titanic....

 

 

"We didn't truly know the dangers of the market, because it was a dark market," says Brooksley Born, the head of an obscure federal regulatory agency -- the Commodity Futures Trading Commission [CFTC] -- who not only warned of the potential for economic meltdown in the late 1990s, but also tried to convince the country's key economic powerbrokers to take actions that could have helped avert the crisis. "They were totally opposed to it," Born says. "That puzzled me. What was it that was in this market that had to be hidden?"

http://www.pbs.org/wgbh/pages/frontline/warning/view/

 

 

>>The problem is CRONY GOVERNMENTISM

 

No, the problem is the manifestation of this:

 "Fascism should more properly be called corporatism because it is the merger of state and corporate power."

-- Benito Mussolini

[screaminsunshine]

While we have Obama in the WH nothing good can happen. Our only hope is to get back the House and Impeach him in time to avoid catastrophic meltdown.

[downwdims]

If you want a better Primer look to Goldberg’s Liberal Fascism. Forgotten Man and LF go hand in hand.

Or go over to Heritage and watch his speech

[dirtboy]

What is telling is that all of that stimulus spending and quantitative easing has had no effect on turning around the economy. What a surprise.

[KC_Conspirator]

The pattern that I saw indicating a depression happened in 2008 when obama a democraps got elected.

[Atlas Sneezed]

If the pattern held precisely true (based on the peak price and date of the “head”) then the Dow will be at 5745 in less than four weeks and 1150 in May of 2013.

Or, maybe the prices are based on real factors in the economy, and not magical patterns that allegedly predictably repeat themselves.

[NaughtiusMaximus]

Chartists are, as Fred Shwed called them, pretty occult professors generally.

[Toddsterpatriot]

Greenspan didn't know there were laws against fraud?

You're funny.

[Sacajaweau]

Greenspan must have said it 100 times...A depression can't happen...we have too many controls.

If forgot to mention that running up the debt, over taxing and patronizing the unions is enough to bring us down.

[ottbmare]

Our only hope is to get back the House and Impeach him in time to avoid catastrophic meltdown.

We don't have time for that anymore. It would simply take too long. We will be ruined long before then.

[ottbmare]

The comments after the article are edifying.

[poindexter]

Or, maybe the prices are based on real factors in the economy, and not magical patterns that allegedly predictably repeat themselves.

Amen. Technical Analysis accurately predicts the market's future moves....until it doesn't.

[silverleaf]

back in 1929, 30, 32, they did not have computers and programs designed to manipulate the market like today

watch this short piece by Denninger as he watches manipulators (the “plunge protection team” or PPT) in action

http://market-ticker.org/archives/2474-Market-Manipulation-On-Display.html

[Darth Reardon]

Has this pattern occurred any other time in history, and if so what were the conditions and results?

[foxfield]

I read Amity Schlaes’ “The Forgotten Man” in 2007...

Ms. Schlaes nails it. I read it too, and plan to reread soon. Highly recommended for those who want to understand why 0bama's policies are so destructive.

[hennie pennie]

*ping*

[devere]

“Has this pattern occurred any other time in history, and if so what were the conditions and results?”

Head and shoulders chart patterns are very common. Sometimes they mean something, and sometimes they do not.

[A.Hun]

Further dramatic losses in the market are assured AFAIC. With no credit available, businesses can’t expand (or even maintain) current revenue, and they have stretched their productivity to the max.

I’ve been expecting it for some time. I hope everyone has taken advantage of the last 15 months to prepare for the coming meltdown (the stock market will be the least of worries).

http://www.freerepublic.com/focus/f-bloggers/2289314/posts#31