In 1929 Wall Street first crashed on Thursday, October 24, then continued through Monday and Tuesday, with October 29 dealing the temporary death blow. The market had been rocked with metastability for months, as on September 3, the Dow Jones Industrials had increased fivefold to 381.17. On Black Tuesday, October 29, a record 16 millions shares were traded (not be exceeded for 40 years) dropping the DJI to 230. By November 13 the Dow was down to 199, then peaked at 294 in April of 1930, only to drop again to 41.22 on July 8, 1932, the lowest in the 20th century. There are frightening similarities of that period to today, nearly 80 years later.
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Today, October 29, the DJI merely dropped 74 to 8991. The market waffled all day awaiting the Federal Reserve decision to drop the prime interest rate to 1% (where it was as recently as 2004), which stimulated a three hundred point rise, only to precipitously drop more than 400 points during the final twenty minutes, to slightly jerk upwards in the final minutes to 8991. This means that the most credible borrower will be able to get a 4% loan from a bank...not you. Can you believe that the DJI has yet to post two consecutive days of gains this month, which ends on Thursday. Except for Germany, European markets leaped up more than 5%, with Japan increasing by almost 8%. It's that volatility factor that is dangerous. We show all the signs of 1929.
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So that I would place my money where my pontification suggests, I thought I would access my internet Ameritrade and E-Trade accounts and buy Microsoft, General Electric and Johnson/Johnson. To my shock, I found out that I am actually ahead from the last time I checked a year or so ago, at least on E-Trade. Well, I did not have enough money in those accounts to do much, so I thought I would instantaneously transfer funds from my bank. This I did by clicking on the appropriate sites, but, there, apparently, are people and policies to hurdle, and finality takes up to a week to go through the motions. Can you believe this? If I flew over to their headquarters and handed them the money it would be faster, by several days. So I called Ameritrade and was told that if I immediately went to my bank and wired them this money, I might just make it for tomorrow's opening. This I did, and found out that money is not wired out of Hawaiian banks after 10AM if to the continental United States, and the whole process would take 2 days to become official. What? Here I am, then, at the threshold of taking advantage of the stock market when prices are down, and I can't do a thing! Now, if the market experiences a truly horrific Black Thursday tomorrow, I will be in great shape.
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Gold increased by $4 to $757/toz and platinum dropped 14 to $816/toz. Silver looks particularly attractive, having inched up 6o cents to $9.93/toz, because it exceeded $50/toz in the 1970s. The world market for silver is increasing while supplies are disappearing. I wonder if I should take this step, as I can't seem to buy stocks today. A discussion on what is a toz and other precious metal secrets can be found in the Golden Evolution (religion) chapter of SIMPLE SOLUTIONS for Humanity. What has gold to do with the afterlife? Read the book and find out.
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Crude oil jumped 7.6%, or $4.77/barrel, to $67.50/bbl. All commodities surged on the one half of one percent prime rate cut. Why did stocks drop? This rate cut was anticipated yesterday, when Wall Street prices skyrocketed up. If you understand the process, rate is seconday to liquidity operations, something way beyond my comprehension.
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No storms are currently being tracked in the Atlantic and Pacific Oceans?
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