Things Look Eerily Similar to 1936: From Devaluations Lifting Stocks to Inflationary Side-Effects of Money Flow & from Short-Covering, Money-on-the-Sidelines, Jobs, Europe, Low-Volume Ramps…

1936 Redux – It’s Really Never Different This Time

While chart analogs provide optically pleasing (and often far too shockingly correct) indications of the human herd tendencies towards fear and greed, a glance through the headlines and reporting of prior periods can provide just as much of a concerning ‘analog’ as any chart. In this case, while a picture can paint a thousand words; a thousand words may also paint the biggest picture of all. It seems, socially and empirically, it is never different this time as these 1936 Wall Street Journal archives read only too well… from devaluations lifting stocks to inflationary side-effects of money flow and from short-covering, money-on-the-sidelines, Jobs, Europe, low-volume ramps, BTFD, and profit-taking, to brokers advising stocks for the long-run before a 40% decline.

Things look eerily similar eh?

But when we look at the headlines in the Wall Street Journal from mid 1936 to mid 1937 as the market topped out (orange oval), dipped, was bought back, then collapsed 40% in 3 months, nothing ever changes…

Government Bailouts Repaid – Bullish Implications…

N.Y. Central Has Repaid All Government Loans
The Wall Street Journal, 978 words
Dec 1, 1936
WASHINGTON Numerous railroad developments here yesterday were climaxed by the announcement of RFC Chairman Jesse H. Jones that New York Central had repaid all of its government loans, totaling $16,858,950, most of which was not due until 1941.

….

For a wonderful comparison of this Fiscal Cliff with the one in 1937 see Steve Keen’s presentation before congress in Dec of 2012:

http://www.debtdeflation.com/blogs/2012/12/11/briefing-on-the-fiscal-cliff-at-congress/

CENSUS: RECORD 1 IN 3 US COUNTIES ARE NOW DYING

WASHINGTON (AP) — A record number of U.S. counties – more than 1 in 3 – are now dying off, hit by an aging population and weakened local economies that are spurring young adults to seek jobs and build families elsewhere.

New 2012 census estimates released Thursday highlight the population shifts as the U.S. encounters its most sluggish growth levels since the Great Depression.

Major US CEOs’ Outlook On Rising Jobs, CapEx Worst Since Early 2010

Despite the plethora of propagandist panderings, the reality of the Business Roundtable (BRT – an association of chief executive officers of leading U.S. companies) findings are far less enthralling than the headlines might suggest. In fact, despite the protestation that their economic outlook ticked up – which as the chart below shows so evidently – is merely a reversion to the lows of 2011; the sad ‘fact’ is that expectations for higher Sales, CapEx, and Employment are as bad as they have been since early 2010. CapEx, the much-vaunted miracle driver of revenues this year, is below Q4 2009 levels of expectation. Even the BRT itself offers up the words ‘moderate’ when describing the changes and yet the mainstream media pounce on an uptick like cardinals to the new Pope. It appears that we will have to wait another quarter to see what the CEOs of the nations largest companies are really doing as their stocks soar to record highs.

continue article here:

http://investmentwatchblog.com/things-look-eerily-similar-to-1936-from-devaluations-lifting-stocks-to-inflationary-side-effects-of-money-flow-and-from-short-covering-money-on-the-sidelines-jobs-europe-low-volume-ramps/