Hurray! CNBC reports:
The Dow Jones Industrial Average is repeating a pattern that appeared just before markets fell during the Great Depression, Daryl Guppy, CEO at Guppytraders.com, told CNBC Monday.
“Those who don’t remember history are doomed to repeat it…there was a head and shoulders pattern that developed before the Depression in 1929, then with the recovery in 1930 we had another head and shoulders pattern that preceded a fall in the market, and in the current Dow situation we see an exact repeat of that environment,” Guppy said.
The Dow retreated 457.33 points, or 4.5 percent last week, to close at 9,686 Friday. Guppy said a Dow fall below 9,800 confirmed the head and shoulders pattern.
Head and Shoulders?
Financial fallout = dandruff???
…and the asshat Tea Baggers and obstructionist GOP are hell bent on doing exactly the same mistakes as Herbert Hoovers and giving us another one of their damn Conservative Great Depressions.
I, for one, am looking forward to a fascist state that restricts liberty in the name of God.
>> Shubee said, on July 5th, 2010 at 8:09 am
>> I, for one, am looking forward to a fascist state that restricts liberty in the name of God.
Whatever floats your boat… I guess.
#2 really? Do you have some details as to what economic policies Herbert Hoover pursued? What were his mistakes that led to a Great Depression? What caused that stock market crash in his first year?
Hey Greg Allen,
No, it couldn’t be Obama and his corrupt gang causing our problems! NO!!
“It’s time to call Obama what he is: The Great Jobs Killer. With his massive spending and tax hikes — rewarding big government and big unions, while punishing taxpayers and business owners — Obama has killed jobs, he has killed motivation to create new jobs, he has killed the motivation to invest in new businesses, or expand old ones. With all this killing, Obama should be given the top spot on the FBI’s Most Wanted List.”
http://lvrj.com/opinion/barack-obama–the-great-jobs-killer-97758294.html
Senate DEMS are saying ““Deficits should be a matter of concern, but I think we misread the American people,” Israel said. “The American people wouldn’t mind federal investments if they thought they were getting something for their money. The problem now is they don’t believe they’re getting anything for their money. So the issue isn’t spending. It’s results for the American people. … House Democrats, who express less and less trust in the motives of the president’s advisers by the day, increasingly view the White House’s actions as an effort to prevent Obama from getting stuck with political baggage for his own 2012 reelection race.”
http://politico.com/news/stories/0710/39352_Page2.html
Like I say to other crazy loon left-wing libs on this blog.
Grow up.
Oh, don’t waste me time and actually READ my posted articles before commenting, please!
You can find a pattern in anything if you look hard enough. He got lots of traffic for GuppyTraders.com. The first and most prominent entry on his resume is this “Daryl Guppy appears regularly on CNBCAsia and is known as “The Chart Man”.
In other words he’s a talking head who has to make shit up to get on TV.
#2 “…and the asshat Tea Baggers and obstructionist GOP….
Dallas, Dallas is that you? I thought I recognized you boy.
Uh guys, what got us out of TGD was WW2. Britain helped pay the costs of massive military buildup. The boom period following was due to massive pentup demand for everything. We’re going to enter this thing with massive debt, unlike last time. And, why am I (and my fellow citizens) doomed to repeat this when we didn’t cause it? It was caused by incompetence at the federal, state, and corporate levels. Not to mention the banks. Lemme off this idiot-go-round!
Problem with everyone saying the sky is falling is when enough people begin believing it and suddenly the sky really is falling.
Just like gas prices. Analysts predict this issue or that issue, investors believe it and sudden we have a self fulfilling prophecy.
[Correct sir. Remember the toilet paper debacle that Johnny Carson started? – ed.]
Reading the stock market graph–not any better than astrology. In fact, as equally predictive of what happened last year.
But even hindsight evades many chart readers: failure to understand what caused TGD. Most experts agree the Hoover response either caused or greatly worsened/extended/deepened TGD. Most experts agree that “stimulus” by war or artificially by make work programs will help recovery from a depression. Course that means we actually do that which we haven’t as yet. So far the stimulus has been in name only and is in fact pork and support of other government jobs that do not stimulate.
But it is a dismal science with few truths to be found. One of the few truths: we need to stimulate manufacturing. Right now, it seems a good fit would be a moon shot to energy independence. Lots of REAL JOBS there and other things. Only starting to TALK about it now. May be too bankrupt now to pull it off.
Obama is fiddling while the Repugs burn down the nation.
“Those who don’t remember history are doomed to repeat it…” Apparently the guy hasn’t watched any business reports that have been comparing this economic mess to the depression since it started, YEARS ago..
Mextli, I think you have come up with the same conclusion I have.
I think there are only maybe three or so trolls here posting under different names. I also believe I have seen at least one of these trolls post under one name and then login under another name to post supporting comments!
Bobbo, (NOT a troll!)
“Obama is fiddling while the Repugs burn down the nation.”
More like, “The Repugs lit the match while Obama pours on the Gasoline!”
The best I can figure it is when the repugs got in under Clinton they put the breaks on spending much against his wishes and things boomed and the dept was coming down.
The reforms put in place to prevent another great depression were repealed under Clinton, Bush and others and when the dems gained power Bush went along with massive negative numbers and the national dept surged.
What works to get a country out of depression is a major cut in taxes best done by a country that isn’t already drowning in dept.
What has absolutely no track record of success for getting a nation out of a depression is massive government spending. It may do a lot of other things but it doesn’t help end a depression.
What Obama has done is run up the dept while doing nothing with a track record of stimulating the economy.
Yes he has saved the jobs of many government workers. He increased their salaries on average I think by 20% and extended unemployment payments which are badly needed by many but I also know people that won’t take jobs they could get because the dole pays better.
I don’t see any way to fix the mess. Our long term obligations exceed the entire GNP of the nation by more than 10.
Raising taxes beyond some point means that business have to shed workers and cut wages as they struggle to find some way to continue to cover their bills and show a profit. Most progressives think profit is an ugly word when applied to private business.
Using borrowed money to run a nation long term is like setting on a ticking time bomb. Sooner or later the credit runs out. The government is down to paying bills with paper that is in over supply and nobody has any confidence in and you get things like billion dollar bills.
Without a solid medium of exchange people trust you are back to barter.
Yeah I know what the progressives think. We can’t go broke because this is the United States and I say horse apples.
#2
What really pushed us into the Great Depression more than anything else was Smoot-Hawley. So, if you want to blame the Republicans for coming up with that piece of crap and Hoover for signing it, by all means blame away. Flash back to today. Who is in power talking about putting up protection barriers so we can repeat the Great Depression? It isn’t the Republicans; it’s the Democrats and Obama.
At the end of the day, there is very little that the Federal government can do to stimulate the economy. However, there is no end to the damage it can do that will make it worse.
#14–Ah Yea==I benefit from your correction. Thank you.
#16–Thomas==while in general agreement, what do you think of a “moon shot” for energy independence? Roughly: a stated planned increase in oil tax increasing each year (eg, 5 cents per gallon per year) while funding research for alternative energy?
Would that “help” or hurt so many things?
Giving women the right to vote caused the great depression. If Daryl Guppy can come up with spurious correlations then so can I.
Hehe, trying to compare the stock market of today with that of the 1920s to glean some sort of predictor about general economic conditions.
Now, If you want to read something actually interesting about the crazy behavior of financial markets when people think they are smarter than they are, Justin Fox’s “The Myth of the Rational Market” is far for informative than anything that will be posted here.
But what about all the jobs Obama has ‘created or saved’?
#15
“What has absolutely no track record of success for getting a nation out of a depression is massive government spending. It may do a lot of other things but it doesn’t help end a depression.”
ROFLMAO DUDE!!
Go back and read your history. Not only did Franklin Roosevelt get us out of the Great Depression with massive spending but, Ronald Reagan did in the early 80’s as well!!
Funny how most of the more ridiculously rabid Obama supporters are totally silent right now. Dallas, that Idiot Fusion, and others are eerily silent. Like whipped dogs the scurry off into the night.
What’s wrong boys? Where is your fucking savior now? Are you fair weather friends only?
#24–Centrist==so what is your critique besides being totally irrelevant?
Think greater tax cuts while letting the banks fail was the way to go?
Or do you have nothing at all to contribute?
Bobbo:
Centrist is really some mouth breathing tea bagger that’s trying to start a flame war. Ignore the troll.
Getting back to the subject at hand:
Funny thing–it seems like recessions and depressions usually start in Republican administrations (see Dubya) when they decide to tighten up the money supply to the benefit of banking firms.
The supposedly reckless Democrats then have to repair the economy afterward.
I think humans are destine to keep repeating our mistakes. We keep having wars, we keep getting into too much debt and the stock market will always correct when the economy tanks.
Still no response as to what were Hoover’s policies that supposedly caused the Great Depression.
#16 Thomas, It has been argued that what caused the stock market crash was the Smoot Hawley tariff. Key stumbling blocks prior to passage, and once it became certain it would pass, the market crashed.
#23
Not true. Roosevelt tried increased government spending for years and it did nothing. It wasn’t until the build up for WWII that we started pulling out of the depression. No question that Reagan increased defense spending, but defense expenditures wasn’t what got us out of the recession and in fact, even when Reagan started the largest defense budget increase in decades in 1981, it wasn’t until late 1982 that we started pulling out of the recession and the vast majority of what pulled us out of the recession was not defense related jobs.
As I said earlier, the Federal government simply does not have the ability to stimulate the economy through spending. However, they have more than enough ability to impede economic growth.
#18
Here’s the problem I have with an oil tax: I have absolutely zero confidence that it will be solely spent on alternative energy. None. Here in CA, the stories of additional taxes to help this thing or that thing but were instead used to pay for some idiotic program are legion. In fact, not too long ago, a proposition had to be passed to force the State to actually spend the gas taxes on transportation needs since for years it had been spending them on anything but road repair even though the original justification for the gas taxes was for road use.
I think that taxes to fund alternative energy, for a host of reasons, is the wrong approach. Instead, incentives would be a better approach. Tax breaks and such for companies that use less petroleum and perhaps even for individuals does less to hurt middle class and more to spurn innovation than a tax IMO.
That should read:
Tax breaks and such for companies that use less petroleum and perhaps even for individuals does less to hurt middle class and does more to spur innovation than a tax IMO.
#28
I wouldn’t be surprised if that is the true. Still, Hoover signed it so he has to take responsibility for it just as Adams has to take responsibility for the Alien and Sedition Acts even through it was against his character and he fought against it. In an eerily similar fashion, Hoover caved to his party’s interests and signed a bill he hated. That means the fault lies in part with Hoover.