This is a Chart of the Stock Market (The Dow Jones Avg.) since the most recent market bottom in early 2003.
The stock market has risen every year for the past 5 years.
If the stock market would fall to 11,000 – that would be 2,806 points down or 20.3% – If that happened most people would loose their jobs, because the credit markets would tighten, borrowing money would all but disappear and consumer confidence would crash and everyone would pull back and not spend any money.
If this happens the Federal Reserve Bank will print more money (why not they can do it) and the U.S. Dollar will decline even further – The value of our money if becoming worthless becuse when the Fed prints more money, it is not tied to anything material – they just decide to print more, and the more money there is in circulation, the less it is worth – Basically what we have in our pockets and bank accounts is slowing diminishing – better start saving harder.
Dow Jones Industrial Average | DJIA | Close on 10/26/2007 | 13,806.70 |
Filed under: Credit Crunch, Economy, Investing, Market History | Tagged: consumer confidence, DJIA, Stock Chart, Stock Market | Leave a comment »