Dow Jones Average

I was looking at the Dow just prior too and just after the great depression in 1929-1930. What I saw was not what we have been taught. The Stock Market Crashed dropping to the floor then staying there until 1932. That's not what happened at all.

In mid 1929 the market took a plunge. The Wall Street Banks poured millions into the market to shore it up and it worked for a while but confidence was shaken. By early October the market sagged to new lows and the banks along with the FED dumped more millions into the market to shore it up again. By the end of the month it was clear confidence was completely gone and the market lost 99% of it's value ending up at 28, dropping from 381.

What do I see now? Look at the graph above of the past month. I see the same pertinacious drops, followed by infusions of cash, followed by drops. Over the past year the Dow has lost 13% of it's entire value.

The question is why hasn't it done the 99% drop it did in 1929? Easy answer. Just prior to the Great Depression the Dow measured the productivity of stocks for companies who manufactured mainly in America. What do we have today is a totally different story. Now we have companies like GE, GM, Chrysler and so on who manufacture mostly over seas and Economic Disasters like Wal-Mart who buy mostly from China, while the Department of Energy under the Obama Administration along with OPEC play games with the oil prices to drive American small companies out of business.

It would be interesting to remove those factors from the current Dow Jones Average. I suspect we would find 1929 all over again. Remember that the "Rate of Unemployed" (which is different than the "Unemployment Rate") stood at 20%. What is the real number of unemployed in America today? 18-20%. DEPRESSION!

Stop lying, Barry. I and all Americans can see the real picture of our economy every week at the grocery store.