The following claims can be confirmed at these sites:
http://stockcharts.com/charts/historical/djia19201940.html http://seansrant.com/ive-said-it-before-and-ill-say-it-again-the-decline-still-isnt-over-and-heres-why-im-short-the-djia/
The DJIA high in 1929 was 381.17. After the 1929 “crash” the DJIA stood at 198.69, a 48% drop.
The DJIA “rebounded in 1930 to a high of 294.07, a gain of 95.38 points, a nearly 50% recovery, a recovery very similar to our current recovery in 2009/2010.
The real “crash” of the Great Depression began in late 1930 when the DJIA began a decline to a level of 41.22 in 1933. Between 1930 and 1933 there were several sharp “spikes” upward, followed by precipitous drops of the DJIA.
Does our current “spike” indicate a recovery? Certainly not!
The toxic assets are still on the Bank’s books, yet the financial marklets are leading the recovery. Commercial real estate is on the brink of collapse, home mortgage foreclosures continue to climb – while the Obama mortgage assistance program has resulted in less than 2000 permanently modified mortgages - the President pledged to help 9,000,000. Credit card defaults and personal bankrupties continue to climb and the unemployment rate – incorrectly called a “lagging indicator” – continues to climb. Unemployment doesn’t lag – it is “current” – unemployment can only be said to “lag” other indicators which are actually “predicting” future activity. The DJIA current level is “predciting” that “profits” and associated dividends will be better six months from now -that ”prediction” is based on a set of “assumptions”, one of the assumptions is that unemployment will improve and not worsen. The unemployment rate predicts nothing – it is a number that “understates” a current condition.
The DJIA is not predicative of economic health.
The following from: http://www.online-stock-trading-guide.com/great-depression-stock-chart.htm
AP – CHANGES headline and intro text; graphic shows total foreclosure filings for past 13 months …The foreclosure crisis affected nearly 938,000 properties in the July-September quarter, compared with about 890,000 in the prior three months, according to a report released Thursday by RealtyTrac Inc. That puts foreclosure-related filings on a pace to hit about 3.5 million this year, up from more than 2.3 million last year.
Unemployment is the main reason homeowners are falling into trouble. While the economy is likely out of recession, the unemployment rate — now at a 26-year high of 9.8 percent — isn’t expected to peak until the middle of next year.
This is after an 81% increase in mortage foreclosures between 2007 and 2008. http://www.thestandard.com.hk/breaking_news_detail.asp?id=11900
Credit card defaults up at major lenders
Over the past few months, banks had been releasing some promising figures regarding credit card defaults – but new data suggests that any signs of improvement may not be lasting.
The latest figures from major lenders implies that previous progress could be more accurately credited to seasonal factors and Americans paying down credit card debt with their tax refunds, according to Bloomberg.
Banks including JPMogan Chase, Bank of America, Citigroup and Discover all reported an increase in credit card defaults – also known as charge-offs – during August. Charge-offs reflect credit card accounts that issuers deem uncollectable.
In particular, BofA reported that charge-offs climbed from 13.8 percent to 14.5 percent last month, while Citigroup saw a rise from 10 percent to 12.1 percent during the same period.
http//www.credit.com/news/credit-debt/2009-09-16/credit-card-defaults-up-at-major-lenders.html
What is the truth about the underlying fundamentals is our economy ……
At foreclosure auctions, broken dreams on sale
On 11:52 am EDT, Thursday October 15, 2009
CHICAGO (Reuters) – The seven-bedroom, three-bath house in this city’s West Garfield Park neighborhood had once been someone’s American Dream.
But at a recent auction of about 100 foreclosed houses and condos, it was just Property No. 20 — and drawing no bids from a roomful of buyers despite its bargain-basement price.
“Any interest in this home at $7,000?” fast-talking auctioneer Renee Jones asked the crowd. “If not, we’ll move on.”
http://finance.yahoo.com/news/At-foreclosure-auctions-rb-853906128.html?x=0&.v=1
Foreclosures rise 5 percent from summer to fall
US foreclosures keep soaring as unemployment remains main cause of housing woes
By Alan Zibel, AP Real Estate Writer
On 1:59 pm EDT, Thursday October 15, 2009
WASHINGTON (AP) — The number of U.S. households caught up in the foreclosure crisis rose more than 5 percent from summer to fall as a federal effort to assist struggling borrowers was overwhelmed by a flood of defaults among people who lost their jobs.
Filed under: Banking Crisis, Economic Crisis, Economic Recovery, Economic Recovery Plan, Economy, Employment, Housing Crisis, Jobless Rate, Mortgage Crisis, Mortgage Foreclosures, Mortgage Modification, Recession, Stock Futures, Stock Market, Stock Market Recovery, Unemployment | Tagged: DJIA In Great Depression, Economic Recovery, Economy, Great Depression | Leave a Comment »
