jasonraymondson wrote:Look at this chart. http://stockcharts.com/charts/historical/djia1900.html
People actually thought that this kind of BS growth was sustainable. Just goes to show you, that people REALLY are stupid.
Reminds me of the guy who wrote that book DOW 36000
smallpoxgirl wrote:Excellent chart. I didn't realize the 1929 crash was that severe. It went from 380 in 1929 down to 42 by 1933. That's a 89% drop. If this crash does that, we'll be looking at a bottom of 1540.
Concerned wrote:jasonraymondson wrote:Look at this chart. http://stockcharts.com/charts/historical/djia1900.html
People actually thought that this kind of BS growth was sustainable. Just goes to show you, that people REALLY are stupid.
Reminds me of the guy who wrote that book DOW 36000
Actually if they were willing to crank the printing presses the DOW could easily get to 36000 and beyond.
jbrovont wrote:Let me preface this with "I don't know how to determine where this point is."
That said, I have a feeling that the valuation of companies will approach a point where it reflects the real value of what they produce, or the service they render. I'm not sure of the best way to express this theory.
For instance, businesses that are running a constant deficit, or depend on deficit spending, are likely to have a real-world value of less that $0 per share - they consume more value (weath) than they create. I expect these to evaporate as easy debt dries up. Businesses that actually create value, I expect to increase in value - perhapse even hyperbolically and above their actual value as debt based money flees the collapsing debt-based companies.
Traders said that there were simply no buyers in the market and that selling was becoming indiscriminate as collapsing hedge funds liquidate their portfolios and private investors cut their losses.
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