The New Contrarian » depression http://newcontrarian.com Just another Newcontrarian.com weblog Thu, 15 Mar 2012 16:58:04 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 The Real Economy and Long-Term Trends http://newcontrarian.com/2008/10/15/the-real-economy-and-long-term-trends/ http://newcontrarian.com/2008/10/15/the-real-economy-and-long-term-trends/#comments Wed, 15 Oct 2008 21:51:03 +0000 Damir Marusic http://americasfuture.org/conventionalfolly/?p=1716 Dow’s down a whole lot today. Is the end in sight? Probably not.

Financial sector troubles have started to affect consumption decisions on the part of individuals, with consumer purchases down 1.2% in September. Credit getting tight? No flat screen TV this year.

Why are chances good that the end is nowhere near in sight? Have a look at this awesome graph I found on the internets:

dow-trend-7000_thumb.png

You see where that line starts going crazy? That’s around 1996, when Greenspan made his famous “irrational exuberance” remark. (h/t Yves Smith).

In closing, let me introduce you to another awesome economics term: overshooting.

Fasten your seatbelts, my friends. It’s gonna be a bumpy ride.

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