Are things that bad? World can either burn or not.

Very important: This is DJIA only!
There were some pretty huge companies back then...

I don't have the comple market cap / wilshire 5000 to gdp since 1900, can't find that.

Price to earnings is best I have. 2000 had the all time record high with all the start ups and all the new stuff going on that wasn't making money yet, doesn't mean it was the worse crisis ever.
But it is 1 more thing to look at.

Earnings can drop and price to earnings go up without price going up.

+ There is also the debt, but debt to gdp isn't even that historically high...


Situation is less tense when prices aren't so extended and people can pay their rent.
But also the populace easilly gets entitled, and wants every thing to go up all the time...
If you want more, do more. All of today's entitiled lazy useless millenials won't get their free stuff, and some say they'll do a revolution, but what revolution? They want free stuff because they are lazy. If they had what it takes to start a revolution then they would have what it takes to survive by themselves.

Before the great wagecucking revolution in the early 1800s, people were self sufficient, there were still revolutions when the weather was bad and the economy too and they were getting hungry.

The US revolution started as a rebellion against a tax, what happened here? After 50 years of bear market the british ended up having to get real money somewhere? It always catches up, the people support the government not the other way around.

If the government tries to bail out every company (because everything will crash) THEN things will get very very bad.

"In 1773, the British Parliament passes the Tea Act, a bill designed to save the faltering East India Company from bankruptcy".
Amazing idea, aged beautifully!

The majority of the population is incredibly stupid, hence they look to governments for solution.
Ye great idea, a nation can tax itself into prosperity as well all know.
And printing money is THE solution, this is why Zimbabwe today rules the world.

The mighty nation of Zimbabwe, simply saying its name causes fear in many. I'm definitely not laughing right now.

Look, till now the FED has been able to print trillions of magical imaginary money because the usd was in high demand and there were shortage fears even.
When that stops, OR if they print more and more at a faster rate, to try and bail out every one in the US (foreigners are doing the bailing, someone has to provide support), then it will get terrible.

Most of the US greatness and standard of living comes from the rest of the world using the dollar as reserve currency, if the FED & government gets greedy and tries to bail out every one, IT IS OVER. Russia has already been stacking gold lmao. With populism (Sanders, Trump) that pop out in 2016 and is still growing, it is likely those extremely idiotic ideas become reality, so... the world will drop the dollar standard and that will be the end of the USA. I hope no WW3, if those rich entitled lazy bums could die in silence, would be great.

Deflating the bubble and helping the debt cycle reset will be harder since the USA printed so much magical money, but it is possible they can help soothe things out by printing a bit, not too much, and not trying to bail out every one. With the coronavirus they have the perfect scapegoat.
The population is stupid enough to think the coronavirus is a mega apocalypse so they can play on this to explain the incoming depression and people could be understanding.

If every thing goes well the USA and the world even can experience a golden era.
If everything does not go well civil war!

I would laugh at the us going socialist and collapsing but the problem is they have a large army with a big projection ability, and at the present day they have a stockpile of 4000 nuclear warheads, and I don't have a bunker yet.

I don't want socialism to spread to europe either, I don't want more martial law, I don't want 90% taxes. Well I guess I can just leave and go to another country, but if a madman becomes us president and drops the tsar bomba in every major city, every one is fubar.

I'd love to see the world burn, but not while I am living in it.

I think the most likely scenario is that regular hard working wageslaves eventually see their standard of living go up, some companies will go down some people will get fired and people will whine about it but it is good: vulnerable companies die to make place for new better ones, and people will find a new jobs eventually.

As a result of the great depression unemployment went from an average of 6% to 20% in 4 years but then it went back down and below as fast as it went up.

The only danger is this short violent period where companies fail and lots of people lose jobs, they still have to buy supplies during these few years.

If we can all pass that period using the tools at our disposal (but not abusing any or it will make things worse), all can end up beautifully. The only fear is are governments and central banks competent? (spoiler: not they're not):

- Removing non essential or even wastful spending (population has to tighten their belt a bit & accept times are a little harsh)
- Offer solutions to reduce debt burdens
- Take form the rich to give to others
- Printing money at central banks

All of these solutions have to be used intelligently:

- Reduce spending but do not take it too far. You cannot tell people to stop living and only eat potatoes for 5 years or enjoy the consequences.

- Reducing debt / helping idiots that borrowed too much: they might deserve to get punished but life isn't fair. Now debt must not be forgotten entirely, maybe reduced or interest goes away, or postponed... No idiotic "I'll pay for all student debt" and other nonsense. No complete defaulting. Nations that defaulted ALL suffered dire consequences. Plus vulture capitalist end up going after them anyway (arguably they do more good than harm also).

- Take from the rich to give to others: take some of what they have because they can afford it, but it is unfair. Also the rich are getting their wealth destroyed by the crash already. And people still resent the rich and are ungrateful. If a dumb government makes a 99% tax or confiscates everything the rich have, or any idiotic idea, people WILL starve to death. Most politicians that have ideas like this cannot make a simple multiplication, understand basic concepts... AOC for example, AOC teachers literally suggested she goes to a "special class". Man when you have unironically retarded politicians taking decisions this important... Bad things happen.

- Printing money: it helps. But overdo it and Zimbabweeeeeeeeeee ;)

Educating people about this would help alot: if they know what needs to be done and understand the basics, the odds of a nutcase with dumb ideas to enter the government and then pass laws & orders that make no sense is decreased.

A bubble can deflate with or without a world war.
The right decisions have to be made.

Regardless of the world burning or not, the rich and dumb fomo buyers (tesla) will get rekt :)

Comment:

France, Italy, Belgium and Spain have prohibited shorting their indices, also outlawed shorting dozens of stocks, for france it will last 1 month from now I think.

Italy has outlawed short selling for 3 months.

Last time (in 2008 or 2009) it did more harm than good.

Let's see the markets crash.

Comment:

According to the french president that left the border totally open, NO ONE could have seen this crisis coming, NO ONE.

HAHAHAHAHA brainlet.

Comment:

New York governor Andrew Cuckmo says if Trump orders a federal quarantine it would be a declaration of war.

Markets should react well.

The civil war will be lit.