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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: LTK007 who wrote (101702)2/27/2009 3:43:22 PM
From: Ken Reidy5 Recommendations  Read Replies (2) of 110194
 
Utilizing the Federal Reserve Bank's inflation calculator...740 S&P equals roughly 327 S&P in 1982 dollars. The S&P averaged around 120 in 1982. Per John Williams of ShadowStat.com(?), the Fed's inflation calculator grossly understates true inflation...especially since 1995. So we probably aren't far from 1982 levels as it is. Then, factor in the fact the stock indexes all reindex by taking out weak companies and replacing with strong companies...we may already be at 1982 levels. If not, we are close...and one could argue that we are much worse off today than in 1982.
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