Friday, June 27, 2008

Worst June since the Great Depression? Give me a break!!!!

Allow me to rant for a second....

ABC and a few other news outlets are using the sound bite this morning of "This was the worst June since the Great Depression!" Claiming that the 9% fall this month compares to the fall 78 years ago.

This is utterly ridiculous! While it may be technically correct (there have been no other Junes when the Dow has taken a 9%+ plunge), the spirit of the statement is meant to invoke fear, and fails to consider that for 2008, including June, both the Dow and the S&P are only off by 12%...a mild market correction. Compare that to the near 80% fall between late 1930 and July 1932. To compare these two is blatant fear mongering. (It is also reminiscent of the "creative statistics" recently used by the Clinton campaign when claiming Hillary had the popular vote.)

The few people whom I have personally known who lived through the Great Depression (including my grandfather) told me stories of those days such as only adults having shoes and saving pennies to bake a cake. Compare that to the multi-car families with 3000 sq. ft. houses, $300 footware, and spending billions on entertainment. Even the thought of comparing those two worlds gets me hot under the collar.

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