DJIA and NASDEQ

A divergence is developing between DJIA and NASDEQ. This might be a sign of slow capital investments by corporations in technology and weak consumer goods demand. Personally, I see little uptick in the economy and I believe there remain aftereffects from the financial turmoil of 2009.

The business press has spent little time discussing the prospects for an echo crisis even though history points to the high probability that episodes of near financial collapse like the 2009 catastrophe are never followed by a period of stability. The crash of 1929 is a good example. The long-term crash that began with the Panic of 1873 is another good example. The crisis culminated with the Panic of 1893, a serious disruption that led to high unemployment.

The lessons of economic history must be debated! History tells us many things if folks are open to study and reflection.