The Last Time The Dow Was Here...

Tyler Durden's picture

"Mission Accomplished" - With CNBC now lost for countdown-able targets (though 20,000 is so close), we leave it to none other than Jim Cramer, quoting Stanley Druckenmiller, to sum up where we stand (oh and the following list of remarkable then-and-now macro, micro, and market variables), namely that "we all know it's going to end badly, but in the meantime we can make some money" - ZH translation: "just make sure to sell ahead of everyone else", just like everyone sold ahead of everyone else on October 11th 2007, the last time stocks were here...

  • Dow Jones Industrial Average: Then 14164.5; Now 14164.5
  • Regular Gas Price: Then $2.75; Now $3.73
  • GDP Growth: Then +2.5%; Now +1.6%
  • Americans Unemployed (in Labor Force): Then 6.7 million; Now 13.2 million
  • Americans On Food Stamps: Then 26.9 million; Now 47.69 million
  • Size of Fed's Balance Sheet: Then $0.89 trillion; Now $3.01 trillion
  • US Debt as a Percentage of GDP: Then ~38%; Now 74.2%
  • US Deficit (LTM): Then $97 billion; Now $975.6 billion
  • Total US Debt Oustanding: Then $9.008 trillion; Now $16.43 trillion
  • US Household Debt: Then $13.5 trillion; Now 12.87 trillion
  • Labor Force Particpation Rate: Then 65.8%; Now 63.6%
  • Consumer Confidence: Then 99.5; Now 69.6
  • S&P Rating of the US: Then AAA; Now AA+
  • VIX: Then 17.5%; Now 14%
  • 10 Year Treasury Yield: Then 4.64%; Now 1.89%
  • USDJPY: Then 117; Now 93
  • EURUSD: Then 1.4145; Now 1.3050
  • Gold: Then $748; Now $1583
  • NYSE Average LTM Volume (per day): Then 1.3 billion shares; Now 545 million shares

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thismarketisrigged's picture

hey bernanke and obama u fucking douchebags, if this economy that u guys brag about is doing so well that we r at all time highs, why the fuck dont u stop buying 85 billion in treasuries a month and then we will really see how much this market has to do with the real economy.


i fucking hate u 2 douchebags and i really wish u were jailed bc that is where u belong, along with mr blankfein, bullard, dimon, and all of wall st.


u fucking criminals, stealing from the hard working middle class ppl. u will be punished one day fuckers

resurger's picture

LNKD is P/E 9XX+,

Please buy!

Towgunner's picture

"we all know it's going to end badly, but in the meantime we can make some money" this pretty much encapsulates the current soul of our society. In other words, live of the moment.

Paper CRUSHer's picture

........ 'up up and awaaaay, although caution is advised the next line of resistance remains firmly at Dow 36000'.......said the dumbass analyst.

q99x2's picture

I used to like the idea of buying canned tuna for security. Then I was told it was radioactive. Then I found out it wasn't canned tuna but something else that they were putting in the cans. I no longer like the idea of buying canned tuna. 

Boxed Merlot's picture

buying canned tuna...I was told it was radioactive...


Nah, Steve Miller had it right,

"Had my money
I tell you what I'd do
I would go downtown
Buy a Mercury or two
Cause I'm crazy 'bout a Mercury
Cruise up and down this road
Up and down this road..."


I'm kinda sensititve about this because here in the central valley of CA we got our fair share of the stuff from the gold rush in the delta region still.  We got the mercury and the gold sits on bedrock in Manhatten.  Great trade, huh?

Black Markets's picture



It's called INFLATION, you dickheads.

Spastica Rex's picture

It's not inflation if you get more features. The Dow just has more features, now.

DaveyJones's picture

...and like new cars, the middle class are no longer participants

Black Markets's picture

No it's just plain old inflation. No need to add any complexity to explain it.


The DJIA is still 11% off the 2007 high in real terms.

Kirk2NCC1701's picture

BM, I'm swapping Ben-Bucks for 'Argie' cattle next month.  There's blood in the streets down there ... Deals galore.  Time to buy.  And time for... Tango Unchained.  Yi-haa, ride 'em, cowboy!  ;-)

jabba_67's picture

Well well well, and the winner is? BERNANKE

km4's picture

This Viral Video Will Change How You Think About Wealth Distribution in the U.S.

LawsofPhysics's picture

Roll the motherfucking guillotines already.

Kirk2NCC1701's picture

But "Phasers* off stun!" would be so much more fun.  Chekhov and Sulu are twitching already.  And I just want to hear Bones say "He's dead, Jim.  He's dead!"  Were it not for that pain-in-the-ass Vulcan citing me Starfleet rules & regulations.  Damn that Vulcan!

* And I had the Resonator cavity of my phaser re-tuned recently too.  The Hermetian modes are looking just right.  I'm ready for... "population inversion", baby!  ;-)   A physics/laser joke, I just made up.  LoP and a few others will 'get it'.  Really hope that Bernanke & Friends really "get it" one day too.  Kirk out.

Shizzmoney's picture

Banks and finance companies have been generally easing standards for car loans over the past three years. The shift has followed lower-than-expected losses on car loans during the financial crisis and increased competition among banks and debt investors for interest income.

Nothing bubblish about this at all.

adr's picture

They have only eased standards for certain corporations, like GM, and for certain buyers, those most likely to be getting government assistance.

I have an 820 credit score, no debt, and a $60k job. I was denied a loan for a new car for my wife. To try and save the sale I was given the option of a 6.9% 60 month loan from Wells Fargo, which I declined.

A black couple most likely on welfare with a 520 credit score, took a peak at the desk, got a 72 month 4.9% loan.

Banks now see working people as a higher risk because it is more likely that I will lose my job and not be able to pay, than the black welfare trash lose their government checks.

Example 987465321 that the middle class is screwed.

otto skorzeny's picture

i own a home free and clear that I bought after the bust for pretty much what it is still worth but the loan officers have a hard time returning my calls on a request for a HELOC

seek's picture

My brother's business is in automotive parts, and he's pretty well networked. Here is what he told me is happening in my state:

The dealers want to (have to!) move cars, and they will sell to anyone with a pulse, as long as they can sell the paper on the loan, which they can after a single payment has been made. That's why you got the Wells Fargo offer. Most likely, the dealer is getting a kickback on the loan based on rate, and since you had a good credit score, they were going for more $ on the rate kickback.

The welfare couple has to make that first payment and has no money, so they didn't go for a rate kickback and went with a low interest rate.

The crazy thing is, after the first payment, they can stop making any more. They'll get the car for six months, and it'll get repo'd.

The very next day, they can go to the exact same dealer, and get the exact same deal. No penalty. One dealer my brother works with has had this happen with someone four times.

I have to presume there's some sort of protection for the bank here or they'd put a stop to it, but I'm sure what you described happened. I don't believe it has anything to do with working people being higher risk, given the cars are getting repo'd from the low credit score people. The "risk" to the bank here looks more and more like you will make the payments, and in this fucked up world that's somehow a bad thing.

goldenbuddha454's picture

I dare not turn on CNBC today as I know I'll throw up all over my new tv.

Serfdom Highway's picture

Drudge just linked to this page.  Back away from your television.

tickhound's picture



MEMO to Drudgies:

It's called a PONZI SCHEME.


DaveyJones's picture

although they are far from alone, I do not think they have mentioned the name Bradley Manning in two years

mkucstars's picture

Thank you for the warning, this did not occur to me. Alas, it's too late but others may be saved...

Zen Bernanke's picture

RULES #1, #2, #3, #4, #5:  Don't Fight The Fed.  They have a bottomless pit of money in order to influence any markets they want in any direction they want. 

LawsofPhysics's picture

correct, well so long as their paper promises are still being accepted. Therein lies the rub for military spending, because without the U.S. military, that paper would not be accepted in many places.

Kirk2NCC1701's picture

Correct, LoP.  It's the MOM Principle:  Mind Over Matter.  Mind Over Matter.  They don't mind, and you/I don't matter.  /sarc

Vooter's picture

Yeah, don't fight the Fed...RAPE IT. With a baseball bat...

Falconsixone's picture

I'm going to go drive my DIM 652.

thismarketisrigged's picture

dont worry, the dow will correct tomorrow, we will drop a whopping 5 pts tomm, that of course will be followed by the next leg up to 15000 which should be reached by end of march at latest, whether govt shuts down or not on march 27th.


remember market is pricing in govt shut down(sarc), if it does not shutdown, dow 16000 by end of march


dont worry ppl on food stamps, out of jobs, dow is at all time high, all is good in bernanke and obamas world.


also, i love how these assholes will say if the market falls 4-5 percent in a week that its just a healthy correction and nothing else.


i fucking hate these ppl so much, i will throw a party the day they r all prosecuted

natronic's picture

74% of GDP?  Ummm Try 104% of GDP

poydras's picture

Did Cramer really state that?

They (the govi and the Fed) did it.  They backstopped everything required and effectively forgave all of the sins.  Buying the 2009 low (buying and holding forever; collecting dividends) was the way to go.  Many never imagined they would do what they did.  The debt and the money supply are the biggies.

Fezter's picture

Chance this shit will be fixed: Then 0%, Now 0%.........

Lord Of Finance's picture

Alrighty. So the last time we were here on the DOW, everything was either half the price, and twice as good, as well as half as bad.


  I've got some champagne, wine, and plenty of beer, as well as some fine coffee and my exquistehomemade herbal tea(these are for you non-alcohol drinkers out there)


So head on over everyone! Party at LoF's house! We aint gonna stop until the break of dawn.






Cheeseus Sonofdog's picture

Try to sell the DJIA and exchange it for cash. Can you buy the same goods you could when it was at these levels in 2007? Or, did your purchasing power get cut in half? 

SmallerGovNow2's picture

Gold is saying it's cut in half...

youngman's picture

I am in is the press...its a miracle I tell ya..a miracle...its amazing what printing can do....and if we keep doing it for ten more years like Krugman wants..where will we be????

Zola's picture

@Lord of Finance, indeed, that is the tragedy , the scumbags have made things 2x worse for the the average person while keeping them stable for the crooks in charge (still same lifestyle, still same money, still same power), while the cost has been passed on to everyone else. One day, the people will redress this crime of epic proportion, i am sure.

Ban KKiller's picture

JC is to be trusted. He is not a stooge. He is for the people! Tell me JC, when should I sell? I will keep it to myself...

Kirk2NCC1701's picture

Depends on which 'JC' you ask.  ;-)

FJ's picture

Behold! A tsunami of fiat currency right in front of youuuuuu....

yogibear's picture

And much more being printed by Bernanke and the Fed.

There is no way form them to stop, so they won't.

Trillions more in fiat coming to support this game. Ever more required to sustain. Until one day it triggers a currency crisis and it all collapses.



Meat Hammer's picture

The people who are popping champagne corks about the DOW are the same people who lament the widening gap between the rich and the poor and the erosion of the middle class.  Anybody got a wall I can use?  I need to bang my head on it for awhile.  

Son of Loki's picture

Bonds & No-Bells:


Barnes & Noble and Nook have no value together and minimal values apart. Sometimes it's best for shareholders and boards to admit defeat and take what they can get.


So where am I supposed to buy the latest edition, "Rehypothecation for Dummies" by Corzine?

Lord Of Finance's picture


  And did they mention that interest rates were around 5%, so even a non investor could save their money. Did you hear what I said? THEY COULD SAVE THEIR MONEY.




 Now I will cut off you keynesian jerks before you utter what I already know is on the tip of your two forked tongues!


   The middle and lower classes are squeezed tighter than Tim Geithners lips around Ben Bernankes cock, so they are not the ones buying all the new German imports at "0%" financing.

DaveyJones's picture

"DOW smashes record" - CNBC

at least they're using a violent analogy

Kirk2NCC1701's picture

The only 'record' they deserve is a Criminal Record.