DOW Breaks 7,537!

[eagleseven]

DOW 10,000!!!! Oh Wait, Make That 7,537 | zero hedge

Another great representation of the amazing loss of purchasing power by the US public are today's oblivious statements about the Dow at 10,000. While in absolute terms the Dow may cross whatever the Fed thinks is a necessary and sufficient mark before QE begins to taper off (Dow crosses 10k just as Treasury purchases expire), the truth is that over the past 10 years (the first time the DJIA was at 10,000) the dollar has lost 25% of its value. Therefore, we present the Dow over the last decade indexed for the DXY, which has dropped from 100 to about 75. On a real basis (not nominal) the Dow at 10,000 ten years ago is equivalent to 7,537 today! In other words, not only have we had a lost decade for all those who focus on the absolute flatness of the DJIA, but it is also a decade where the US Consumer has lost 25% of purchasing power from the perspective of stocks! You won't hear this fact on the MSM.

And if you want to be really scared, here is the comparable representation for the DJIA in ounces of gold. It cost about 30 ounces to buy the 10,000 Dow last time. Now it costs less than 10.

If measured in purchasing power parity (PPP), the Stock Market today is dramatically below where it was in 2001.

Let that sink in.

 

[Elutherian]

The rich are getting richer while the poor are getting poorer... except this time the Democrats are glad it's happening. Ain't that a bitch.

 

[Godboy]

The rich are getting richer while the poor are getting poorer... except this time the Democrats are glad it's happening. Ain't that a bitch.

The rich get richer because they work hard at it. The poor get poorer because they dont work hard enough.

 

[Elutherian]

The rich are getting richer while the poor are getting poorer... except this time the Democrats are glad it's happening. Ain't that a bitch.

The rich get richer because they work hard at it. The poor get poorer because they dont work hard enough.

That would be true if we had a free market, but we don't. The Government is destroying our money, then looting us to pay off rich Banksters... you can't tell me that's fair.

 

[Old Rocks]

Very interesting that gold line. Very high under Clinton, constant decline under Bush, slowly reversing direction under Obama. Any meaning to that?

 

[eagleseven]

Very interesting that gold line. Very high under Clinton, constant decline under Bush, slowly reversing direction under Obama. Any meaning to that?

No.

Alan Greenspan was Chairman of the Fed from 1987-2006, and so bears primary responsibility for this trend. His successor, Ben Bernanke, bears recent responsibility.

 

[elvis]

Very interesting that gold line. Very high under Clinton, constant decline under Bush, slowly reversing direction under Obama. Any meaning to that?

maybe that you love to play the role of Lewinsky.

 

[JakeStarkey]

Very interesting that gold line. Very high under Clinton, constant decline under Bush, slowly reversing direction under Obama. Any meaning to that?

maybe that you love to play the role of Lewinsky.

But, Bingo, you are already wearing her dress.

 

[elvis]

Very interesting that gold line. Very high under Clinton, constant decline under Bush, slowly reversing direction under Obama. Any meaning to that?

maybe that you love to play the role of Lewinsky.

But, Bingo, you are already wearing her dress.

How noble of you to stick up for Old Rocks. You're going to make Chris jealous.