black friday approaching in usa tonight, page-182

you raise an interesting point Sara. Treggs was mucking around with that theory a while ago with the fall of the XJO vs the fall in the Oz dollar and what it all means.

Inflation WAS a feature of the 70s economy when we had a 45% fall. As you point out deflation/depression was all the rage in 1929.

I look at it this way. For a long while I said that the DOW would fall to 7300 based on the charts which is around 49%. On recent developing chart patterns I say it may go a little lower.....6000 - 6500.

In 1929 the DOW fell 89%. Many commentators believe fundamentals are far worse today than then. Yet we are suggesting a 50% to 60% fall in the DOW. The falls may be limited in the market by the inflationary policies of the Fed and other central banks......but really are we just shifting the problem. Could we see the stock market crash end as currency crashes begin ??

The DOW and other indices give a dollar value to the market. But what is the market really worth if a dollar can't even buy you a lolly wrapper ??