Well if you’re paying any attention to global economics as of late, you’ll know that there’s a lot riding on the stability of the US markets. If you haven’t been paying attention, don’t read this and go back to your blissful ignorance of the situation; I wish I could.
Things have been pretty bad, but most people seem to agree that we’re not near the bottom yet. In order to compare this slide to other US market slides, the Times has put together this great graph. There are a couple of interesting points here. The first is just how sharply this fall has been. The graphs are all averaged out over months so any anomalous drops would be averaged out. Even still, it’s bee a sharp drop. That being said, we have a lot of investors involved and information has never been so fluid and accessible. That alone could account for a sharp drop. Everyone who was going to get out has gotten out and gotten out fast.
Another theory is that there’s a similar trend ahead and that people had better strap in because this is going to be the great depression all over. Nobody wants that, but there’s a possibility there. Finally, there’s an interesting perspective floating around. This one’s pretty dire but as legitimate as the other theories. The comparison is to the panic of 1893 or the long depression of 1873 rather than the great depression. Skimming the details of the panic of 1893, there are definitely a lot of similarities. Some would even say a disturbing amount of similarities.
In either case, most of us are in the passenger’s seat at this point. So really, all we can do is wait and watch. But for the paranoid out there, go pick up some Swedish Firesteel and precious metal bullion. I think I will, you know, just in case…
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8 responses so far ↓
1 Birth of Mothra // Oct 13, 2008 at 9:56 am
The one good thing about the economic situation is that it is forcing oil prices down and it opens up some good investing opportunities if you have some money available to invest.
2 Jordans // Oct 13, 2008 at 4:05 pm
It sucks, and honestly its sad how fast we got here. And with the news scaring people more and more. No one will go out and buy things.
3 Tim // Oct 13, 2008 at 9:58 pm
If stock prices and such can drop off so much, doesn’t that mean that they were over-valued to start with? Everyone keeps going on about how many billions were lost, but they don’t just vanish into thin air.
All we can do is continue on with ‘real’ life and stop focusing on the fearmongering.
4 cristian olteanu // Oct 15, 2008 at 4:43 am
People have already started committing suicide cause of this crisis. It’s really serious!
5 Sandero // Oct 15, 2008 at 10:30 am
I think the recovery is near, much closer than compared to last major crisis.
That’s because this is a crisis caused by over-investment.
6 Ruptured Seams // Oct 16, 2008 at 6:43 am
Another big fall in the markets today, it’s best to steer well clear of things for the time being until things shake themselves out. We seem to be seeing a heck of a lot of the PM on our TV screens here in Australia trying to assure everyone that we’ll be okay. There don’t seem to be many listening to him.
7 Ling // Oct 18, 2008 at 7:35 am
That’s scary stuff. I’m seeing long lines and no food and people fighting over groceries and things like that.
8 judith // Nov 11, 2008 at 8:04 am
Here in the UK things are pretty grim. The 3 main political parties can’t seem to agree on the best way forward. This is no time for party politics, they should get their heads together and come up with a joint plan for the good of the country and the world at large.
Will they do that? I doubt it.
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