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Chart of the Day: Anatomy of a Bear Market

The parallels to the early 1970s are eerie - high energy costs, a wasteful US consumer (then: big family sedan guzzlers; now: big SUVs), surging demand from emerging economies, volatility in the Middle East, low levels of consumer and investor confidence.

At least in the 1970s you could get around 13% in a Fidelity money market. Back then, people actually tried this amazing & revolutionary concept: you know - saving money! Lately, we've just preferred to spend 1.5 times what we make and incur 30.99% APR, and when that fails take out huge HELOCs which then become part of CDOs rated AAA.

We've tried to stave off a natural correction in our economy for so long with cheap money that this correction is going to be much more painful than it ever would have if we'd tightened up liquidity in the first place! But don't tell Alan Greenspan.