Gizmo--
Here's the only point I was trying to make. We all know that Greenspan actively grabbed hold of the DJIA in March 2003, and has been blatently manipulating it ever since. At that time, everyone was getting murdered, and I'm not talking about us retail investors. I'm talking about every type of retirement and savings plan in the US, state pension funds, college endowments, and yes, even charities because giving was drying up. (If you think AG didn't grab control of the markets in March 2003--as 'mlsoft' speculated at the time--just look at a chart and remind youself that markets don't move in straight lines.)
In the autumn of 1939, after the English declared war on Germany, there followed a period of six months were nothing happened. Brits started calling it the "phony war." Likewise, I call this period the "phony prosperity."
But it still pays to keep in mind that the DJIA is the most watched economic indicator in the world and any Fed Chairman is going to do whatever it takes to keep it above 10,000 and hopefully rising--keep all the sheeples thinking that the economy is doing fine. It took me a while to see the endgame in this plan, and I have finally concluded that it will destroy the dollar as we know it. However, on paper, everyone will look like they are doing fine--home, worth more; stock portfolio, worth more; fine art and collectables, worth more. There will be some casualties--like the carmakers--but what the hell, no plan is foolproof, right?
And isn't this be preferable to a 1030s-style meltdown? I'm sure Greenspan thinks so, after studying Japan's deflationary mess.
schloss
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