by John Galt
August 26, 2015 18:30 ET
Ignore the hoopla. Ignore the CNBS specials where the used car salesman/stock brokers come out and tell everyone to start buying stocks again. Review the list below of the 10 largest point increases in DJIA history and note the common feature:
| 1 | 2008-10-13 | 9,387.61 | +936.42 | +11.08 |
| 2 | 2008-10-28 | 9,065.12 | +889.35 | +10.88 |
| 3 | 2015-08-26 | 16,285.51 | +619.07 | +3.95 |
| 4 | 2008-11-13 | 8,835.25 | +552.59 | +6.67 |
| 5 | 2000-03-16 | 10,630.60 | +499.19 | +4.93 |
| 6 | 2009-03-23 | 7,775.86 | +497.48 | +6.84 |
| 7 | 2008-11-21 | 8,046.42 | +494.13 | +6.54 |
| 8 | 2011-11-30 | 12,045.68 | +490.05 | +4.24 |
| 9 | 2002-07-24 | 8,191.29 | +488.95 | +6.35 |
| 10 | 2008-09-30 | 10,850.66 | +485.21 | +4.68 |
What is the commonality?
All of the declines were part of or precursors to major bear markets or bear phases. The 2011 rally was solely on the Bernank promising sunshine, lollipops, and free money to the banksters to stave off the correction which was so badly needed. Ever since that time the markets have been artificially inflated to appear that Dow 20K is a given and that no one can ever lose money buying stocks in companies with little if any earnings.
The accounting game is over however, with artificial balance sheets and bankster games being exposed by market reality every day now. China has illustrated that the Wall Street shuffle ultimately fails and it too will start another downleg, the question being is it tonight or the next few weeks. With the news that China is selling long date US Treasuries (thank you ZH for that one) the verification that a new bear market in addition to extreme economic difficulty could be starting at this time.
Unfortunately for the PPT and TPTB, this is only a set up for a disaster of ongoing proportions in September and October which will have dire consequences for the American consumer.
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Source:
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