The Greenspan Depression: New indicators of the financial carnage

Continued concerns regarding the credit crisis and the current depression sent the Dow down 1.2% yesterday, resulting in a new bear market low.

The Dow put in its record high of 14,164 back on October 9, 2007. Yesterday, the Dow closed at 7,465.95 – down 47.3% from its peak made 499 calendar days ago.

For a perspective on the on the magnitude of the current bear market, this chart (Courtesy of http://www.chartoftheday.com) compares the current, 499 calendar day old Dow correction to that of all other Dow corrections, 499 calendar days after their respective peak (and that were still ongoing).

This chart illustrates that, at this stage, the current correction has been by far the most severe correction in the post-World War II era and the second most severe correction since 1900. The only correction that was down more at this stage was the correction that began in 1929.

Indeed, The Great Greenspan Depression of the Millennium.


Source: chartoftheday