Let’s call a spade a spade and quit trying to sugar coat yesterday’s financial debacle by calling it a recession. It is obvious, we are in a full blown depression, but stacking up the Great Depression to the current situation is simply not an “apples to apples” comparison, when it comes to the stock market. There is abundance of noise alluding to the fact, that since the 1929 depression saw the stock market fall 85% from its highs, then today’s stock market must also repeat the same fate, and eventually fall to the 2100 area. Nothing could be farther from the truth.

The differences between now and then are vast:

We are in a global economy.
We have the computer, incredible technology and the ability for instant communication.
We have the internet, the single most powerful business tool. Bears, put that in your pipe and smoke it.
We have the knowledge and ability to learn from the last economic debacle-history has basically made us smarter.
Margin buying power leverage of ten to one has been reduced by 80%.
The bottom line is we have a much better economic system (with better checks and balances-not perfect) in place than we did 80 years ago and a drop of another 1500 Dow points is about as bad it will probably get, if it happens at all. We could just as easily rally 2000 points in the next month.

What to do: Don’t listen to the “end of the world” prognosticators. They are simply trying to make a name for themselves by putting out the most outlandish predictions possible. Their gloom and doom stance should be taken with a grain of salt (maybe they are heavily invested on the short side) as everybody seems to have a “spin” these days, including me. Many figure if they throw enough garbage against the wall, something will stick. They should be ashamed of their sensationalistic antics. Their attempt to achieve some type of notoriety is simply disgusting.