In spite of the huge infusions of capital to purchase debt, and now shares, the stock markets of the world continue to plunge. Today, the Dow was down 7.87%. This was the 9th worst percentage loss in one day, for the entire history of the stock market. Twelve more days like today, and the value of the market will be zero – the end of capital.
At 10:30pm, today, the Dow futures are down 1.63%, predicting another bad day.
In Japan, the Nikkei is down 8.92%, on a trajectory to reach zero in 11.25 market days.
So far, we have see, if I may, the end of about half of stock market capital. If the stock markets flame out, then what? No pensions, no retirement, and no stockbrokers for starters.
To stop the burning of stock market capital the United States (and other) are passing out and burning the cash. The crashing markets are proof positive that passing out the cash is not a solution to the financial problem.
Nero now looks like a wise man – he fiddled while Rome burned. The United States and friends are attempting to put out the flames with combustible piles of cash. It just isn’t working
We and future generations will pay heavily for the end of capital – which could lead to the end of that “ism” part of the equation.
I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.
Tim Ramsey
Tim – thanks a lot. Encouragement always helps.