DOW 10,000!!!! Oh Wait, Make That 7,537

Tyler Durden's picture

Another great representation of the amazing loss of purchasing power by the US public are today's oblivious statements about the Dow at 10,000. While in absolute terms the Dow may cross whatever the Fed thinks is a necessary and sufficient mark before QE begins to taper off (Dow crosses 10k just as Treasury purchases expire), the truth is that over the past 10 years (the first time the DJIA was at 10,000) the dollar has lost 25% of its value. Therefore, we present the Dow over the last decade indexed for the DXY, which has dropped from 100 to about 75. On a real basis (not nominal) the Dow at 10,000 ten years ago is equivalent to 7,537 today! In other words, not only have we had a lost decade for all those who focus on the absolute flatness of the DJIA, but it is also a decade where the US Consumer has lost 25% of purchasing power from the perspective of stocks! You won't hear this fact on the MSM.

And if you want to be really scared, here is the comparable representation for the DJIA in ounces of gold. It cost about 30 ounces to buy the 10,000 Dow last time. Now it costs less than 10.

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etrader's picture

You can almost hear Jimbo & MCC....

"Boo-ya bubba.... its still the same dollar in your pocket!!

 ....yee har 12K here we come!"


Benthamite's picture

right, as long as people feel wealthier, what's the problem?  chalk one up for bernanke, geithner, llc.

Anonymous's picture

I don't feel wealthier, :(

In fact I feel as stretched out as a finger cot on john homes!

Ivanovich's picture

Get your very own "Thank You, Banana Ben"  T-Shirt.

Cursive's picture

LOL.  They ruined my country and all I got was this T-shirt.

Anonymous's picture

Until the repo man takes it.

Gwynplaine's picture
Gwynplaine (not verified) Cursive Oct 14, 2009 6:30 PM

ROFL.  I want that T-shirt.  Where can I get one?

Careless Whisper's picture

Today on cnbc:

Bob Pisani: I'm here with Joe Ratterman, President of BATS, the third largest exchange. Joe, the Dow broke 10,000 have you seen any increase in volume?

Joe Ratterman: (silence)


Unscarred's picture

You caught that too?  Says everything we need to know.

pinkboxtrader's picture

i hope there's as much fanfare when i wear my CL 100 hat.

ozziindaus's picture

True but his doesn't bode well for the Deflationist argument unless you consider the deflationary portion starting early March.

crosey's picture

Gotta trade your ass off just to keep up!

lizzy36's picture

does that mean the cnbc closing bell, circle jerk has been cancelled?

a rhetorical question since once can guarantee there is no "djREALLY 7537" hat. in the absence of a hat, the real number will not be reported on cnbc. 

seriously, stunning when faced with that stark truth. 

etrader's picture

Amazingly Erin Bernett   was mumbling about 25% down in real terms before Jimbo

jumped in.

What a great shame Jimbo's been bumped........

Unscarred's picture

Even more amazingly, Erin Burnett is the only female CNBC host who hasn't let her body go to complete shit! To continue this rally, I'm going long on whoever does the catering to the CNBC offices!

TD-  Time to tighten up the CAPTCHA (31 plus __ equals 37 ?!)

Anonymous's picture

MCCs is ugly in so many ways. Erin is OK.

Anonymous's picture

...I don't know I still prefer Becky Quick. Also cause she reports the news and usually doesn't throw her opinion in the mix.

chet's picture

Well, as long as I never travel again, or buy anything imported, or made with imported parts, then I'll be just fine!  Is much of our stuff made in China?

koaj's picture

stick with hookers and Coors and you'll be just fine

Village Idiot's picture

And look for the girl who considers a lavish date to be "a six pack of beer and some loud music".

buzzsaw99's picture

teh bull rally is fee-nominal!

VegasBD's picture

Dow will get down to 2-3oz of gold eventually.

One way or the other.

Rusty Shorts's picture

My people are saying, get out of the water before Oct 19.2009.

stedanrac's picture

 ...over the past 10 years (the last time the DJIA was at 10,000) 


 Should read "the first time the DJIA was at 10,000".

That level has been criss crossed a couple of dozen times in the last decade. 

TaroASSo's picture

Can I say capital flight?

phaesed's picture

Oh, deflation will come, unfortunately the banks will be nice and liquid after having sold back all our shit to us at inflated prices and then down they'll go and we'll sell them all this nicely pumped stocks at bargain basement prices... then 7 months later, the market will skyrocket and the cycle continues.


Keep buying equities and sending our money to the corporations people! Don't buy Treasuries, buy high yield! Don't buy our country, make our dollar weaker!

We will never unite because we are too stupid and this country deserves to fail since no one wants it to win.

That's right, don't buy Treasuries, buy Wells Fargo FDIC insured paper!



Benthamite's picture

Quite the change in tone in the last 24 hours.

phaesed's picture

Oh no, I absolutely believe everyone should be buying Treasuries out their ass and completely fuck the banks due to capital ratio requirements, but nobody believes it so hey, what does it matter. I'll still make fun of people for sending money to China and then bitching about a weak dollar.

That's like taking a shit and complaining that it stinks.

faustian bargain's picture

I want my ten years back.

phaesed's picture

I want to understand how it ever got to be that we give the corporations our money and they give it to the government to tell them how to rule us.


Why the fuck do people still invest with these shitty companies?

cougar_w's picture

Because we all love a winner.

Seriously. Taking over the worlds most powerful democracy and turning into your personal demesne is one leet bit of work. It's all profit from there.

Dixie Normous's picture

Where would the Dow be if stocks weren't moved in and out?

Anonymous's picture

The DOW would be the price of GE because that is the only company still in there since the start :p

If you mean 10 years then its probably negative in a similar way

Anonymous's picture

What would the DJIA be with GM still in it?

Ed Cormack's picture


aus_punter's picture

sounds like the least crowded trade out there

BlueStreak's picture

What if GM were a dow component?

Bam_Man's picture

Not just GM.

Now-worthless-piece-of-shit stocks like Eastman Kodak, Citigroup and Woolworth have also been dropped from the index to inflate its value.


max2205's picture

So, it's more under valued that before I read this.?!!!!!!!

Anonymous's picture

That's what I was thinking. There is some truth to that I think.

Abraham Snake's picture

It's more like the entire US was hit by a giant shrink ray, our neighbors, houses, businesses, and currency all look relatively normal to us inside our shrunken bubble. But if we were to ride a time machine back to 2000, everything would look giant, everyone would appear to be 10 feet tall.

The point is basically to take the 10K Dow party with a grain of salt. Our tape measure has been shrunk, and by gold standards, it looks like a doll toy in our hands. It's not saying the Dow is under valued, It's like saying 3' tall is the new 6'11".

Anonymous's picture

My god. It's full of stars.

digalert's picture

People should be mad as hell, instead they've got "DOW 10,000" ball caps over in the CNBS cheering section for cryin out loud.

Cursive's picture

You'd be celebrating, too, if you had beaten the stock market equivalent of the 1986 Chicago Bears.  I know this rally has hurt anyone who has stepped in front of it, but these dirty ass sell-side pumpers from Wall Street and CNBS have pulled off the improbable.  More important question:  Who was the first person of the CNBS set to mention that the hats need to go back into storage for "next time 'round".

Anonymous's picture

this is f***ing great! laughing all the way to the bottom of the ravine! HAAHAHAHAHA

blindfaith's picture

people are MAD as hell, but THEY are NOT watching CNBC.  Hey, keep wtching but don't buy the sponsors products. 

Anonymous's picture

What this means is that the DOW is really, really cheap.


Anonymous's picture

any clues on when this ends. Market up 65% in 7 months without any pullback along the way.

I'm kinda sick of this