In a new He Said/ She Said piece from the Wall Street Journal, we get the above chart, which compares the last 9 years of the NASDAQ to the Dow Jones Industrial Average of the Great Depression. Without question, there is an eerie similarity in the squiggles.
From the WSJ:
Editor’s Note: It was the worst thing to happen to the U.S. since Fort Sumter. October, 1929. Wall Street crashed and helped drive the country into the Great Depression—a deep economic and spiritual wound that has afflicted three generations of Americans. Eighty years later, as the country struggles through the harsh aftermath of another crash, two Sunday Journal contributors mark a grim anniversary and weigh the question that haunts everyone: “Is this the 1930s all over again?”
Brett Arends makes the case that yes, this is the next Great Depression, Dave Kansas calls BS on that. Some good citations from both debaters on the 80th anniversary of the ’29 crash.
Whether or not the NASDAQ is as representative of the 2009 US as the DJIA was in 1929? Far from resolved.