Wednesday, 12 February 2014

seismograph or triple-witching

A certain breed of a meme has been circulating the internet since around last November, superimposing the contemporary US stock-market erratic-pulse with those of 1928 and 1929 in the period that led up to the crash and following world-wide Great Depression.

A market-watcher originally drew these parallels for entertainment, reportedly, but the analogy has held since. Projections often find their point-of-departure and yield something more surprising but it is nevertheless frightening what such a trend pre-supposes. This correlation and foreshadowing is especially interesting, as the announcement that the US House of Representatives support a capitulation that will raise, without conditions or visible trade-offs, the borrowing ability of the US government—the debt-ceiling. While it is money that America owes itself, the investors did not flinch, neither bombasting nor blanching at this development, and there are fictions about what this policy means at both extremes of the spectrum, it does seem like a delay of the inevitable, which is due in May of this year, according to the charts.