THE TRUTH ABOUT TRUTH:

All truth passes through three stages.
First, it is ridiculed.
Second, it is violently opposed.
Third, it is accepted as being self-evident.



Wednesday, October 29, 2008

GOING BY THE BOOK(s)...

The DOW JONES INDUSTRIAL AVERAGE:
(from Wikipedia)

On October 9, 2007, the Dow Jones Industrial Average closed at the record level of 14,164.53. Roughly on-par with the 2000 record when adjusted for inflation, this represented the final high of the cyclical bull.

On July 2, 2008, with record-high oil and gasoline prices well above $140 per barrel and $4 per gallon, the Dow Jones Industrial Average closed in bear market territory. Two weeks later, its subsequent close below the 11,000 mark for the first time since 2006 was followed by a 500-point rally that accompanied a three-day 15% correction in energy prices.

On September 15, 2008, a wider financial crisis became evident when Lehman Brothers filed Chapter 11 bankruptcy. The DJIA lost more than 500 points for only the sixth time in history, returning to its mid-July lows below the 11,000 level. A series of bailout packages, including the Emergency Economic Stabilization Act of 2008, proposed and implemented by the Federal Reserve and U.S. Treasury, as well as FDIC-sponsored bank mergers, did not prevent further volatility. September 29 brought a decline of 777.68 points (6.98%), the largest one day point loss, followed on September 30 by a rebound of 485.21 points (4.68%), the third largest one-day point gain in history at the time.

October 2008 brought a rapid acceleration of the bear market, as the DJIA plowed back below the 10,000 level, lost more than 20% in the first seven trading days of the month alone, and set multiple volatility records. A record 800-point intraday tumble occurred on October 6. Although the Dow lost only 128 points on October 10, its intraday range spanned more than 1,000 points for the first time in history.

On "Manic Monday", October 13, the Dow rebounded 936.42 points to nearly double the largest daily point gain in history and record the first gain of more than 10% since 1933. However, these gains were wiped out by the largest percentage loss (7.87%) since 1987 on October 15 and the index experienced another 815-point swing (fourth largest ever) the following day.

On the morning of October 24, the futures market lost 550 points (limit-down) and was locked until the market opened to prevent further panic.

On October 28, after another five-year closing low, the index gained 889 points (10.9%), its second largest in points to date, to close just above 9,000.


RANDOM HOUSE WEBSTER’S UNABRIDGED DICTIONARY:

sta*ble, adj.,
1. not likely to fall or give way, as a structure, support, foundation, etc.; firm; steady. 2. able or likely to continue or last; firmly established; enduring or permanent. 3. resistant to sudden change or deterioration. 4. steadfast; not wavering or changeable, as in characer or purpose; dependable. 5. not subject to emotional instability or illness; sane; mentally sound.
--Syn. 1. fixed, strong, sturdy. 4. invariable, unvarying, staunch, constant, reliable, steady, solid.

un*sta*ble, adj.,
1. not stable; not firm or firmly fixed; unsteady. 2. liable to fall or sway. 3. unsteadfast; inconstant; wavering. 4. marked by emotional instability. 5. irregular in movement.
--Syn. 2. precarious. 2, 3. See unsettled. 3. vacillating.


THE BOOK OF STEPHEN T. McCARTHYISMS:

"As a dog returns to his own vomit, so a fool reinvests in the stock market."
~ S.T.McC-ism 26:11


Links For Thought:
The Strong Dollar Illusion And The Coming Dollar Panic

Storm-Proof Your Financial House

America's Financial 9/11

Prepare To Reduce Your Standard Of Living – Now!
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