{"id":3038,"date":"2009-03-30T22:44:07","date_gmt":"2009-03-31T03:44:07","guid":{"rendered":"http:\/\/1boringoldman.com\/?p=3038"},"modified":"2009-03-31T00:16:10","modified_gmt":"2009-03-31T05:16:10","slug":"fingers-crossed","status":"publish","type":"post","link":"https:\/\/1boringoldman.com\/index.php\/2009\/03\/30\/fingers-crossed\/","title":{"rendered":"fingers crossed, salt over left shoulder…"},"content":{"rendered":"
<\/div>\n
This graph of the Consumer Price Index is from my post in December 2008 [a few good republicans?…<\/strong><\/a>]. The worry then was a "Deflationary Spiral" [which is a very bad thing]. It’s when prices free-fall as panicky sellers hope to grab a dying market by dropping prices and portends sure doom. Here’s the graph now carried through February 2009:<\/div>\n
 <\/div>\n
It’s not much yet, and it’s hardly sustained, but that little tick upwards at the end is comforting [and a hell of a lot better than the alternative]. Here, for comparison, is what happened between 1925 and 1940:<\/div>\n
 <\/div>\n
However, the Dow Jones Average corrected for Inflation [CPI] marches onward<\/strike> downward:<\/div>\n
<\/div>\n
Which brings us to a particular conclusion: <\/div>\n
\n
Dow Jones Didn’t Gain for 43 Years, So Let’s Invest!<\/a><\/strong>
by: Chris Bowers
Mar 30, 2009<\/div>\n

From February 9th, 1966, through March 6th, 2009, the Dow Jones did not add any value at all<\/a><\/strong>, when adjusted for inflation:<\/p>\n

<\/a><\/a>
Note: Logrithmic Scale<\/sup><\/p>\n

Another, more optimistic estimate<\/a><\/strong> is that the Dow has gained about 1.64% a year, adjusted for inflation, from January 1924 through the present. However, even this optimistic estimate pales in comparison to historic bond yield rates<\/a><\/strong>… All of this makes you wonder why, as a nation, we have invested in the stock market as a means toward retirement via 401ks. It also makes you wonder about today’s news that forty-four million Americans could find their pensions wiped out by a decision at Pension Benefit Guaranty Corporation to shift from bond to stock investments last year. <\/div>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

This graph of the Consumer Price Index is from my post in December 2008 [a few good republicans?…]. The worry then was a "Deflationary Spiral" [which is a very bad thing]. It’s when prices free-fall as panicky sellers hope to grab a dying market by dropping prices and portends sure doom. Here’s the graph now […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3038","post","type-post","status-publish","format-standard","hentry","category-politics"],"_links":{"self":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/posts\/3038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/comments?post=3038"}],"version-history":[{"count":0,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/posts\/3038\/revisions"}],"wp:attachment":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/media?parent=3038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/categories?post=3038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/tags?post=3038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}