A Nominal Glimpse at Our Mega-Bear 2000
September 13, 2009 This morning I received an email from Michael in Coleford, Gloucestershire, UK, commenting on our “Real” Mega-Bear 2000 series: I think it is right to take the top of the Tech Bubble in March 2000 as the starting point. I have not yet seen this anywhere else. When the 2000 crash came the plunge was halted in its tracks by the new round of debt creation. Given the scale of the actions that were taken and the readiness of people to borrow it’s not surprising that the rebound was better than the other bears. I understand why you like inflation-adjusted measures, but for the sake of completeness could you do this chart without the inflation adjustment? Apart from anything else I don’t know which inflation measures to trust anymore! I would really like to see the chart as raw indices.