Just as the Dow and the S&P 500 are reaching new highs, many are suggesting further gains are possible. That’s why this summary of how things look when compared to October, 2007, the day the Dow hit its previous all-time high, is more than a little unnerving.

  • Regular Gas Price: Then $2.75; Now $3.73
  • GDP Growth: Then +2.5%; Now +1.6%
  • Americans Unemployed (in Labor Force): Then 6.7 million; Now 13.2 million
  • Americans On Food Stamps: Then 26.9 million; Now 47.69 million
  • Size of Fed’s Balance Sheet: Then $0.89 trillion; Now $3.01 trillion
  • US Debt as a Percentage of GDP: Then 38%; Now 74.2%
  • US Deficit : Then $97 billion; Now $975.6 billion
  • Total US Debt Outstanding: Then $9 trillion; Now $16.4 trillion
  • Labor Force Participation Rate: Then 65.8%; Now 63.6%
  • Consumer Confidence: Then 99.5; Now 69.6
  • S&P Rating of the US: Then AAA; Now AA+
  • Gold: Then $748; Now $1583

Years ago when I was on a speaking tour for the Opinion Speakers Bureau, I showed a cartoon of a man climbing a ladder. On his back were the words “stock market.” The first panel showed him climbing. The second showed him climbing higher. The third panel showed him reaching the top of the ladder. The fourth panel showed him continuing to climb, without the ladder. It always brought a laugh. Everyone understood that the market had become totally detached from reality. So it appears to be today.

Here’s where the Dow has to be in inflation-adjusted terms in order really to break a new high. Using an inflation calculator (which assumes that the CPI is a fair measure of price inflation – a dubious assumption), in order for the Dow Jones Industrial Average to equal its high of 14,164 touched in October, 2007, it would have to be at 15,630. At the moment, following the bad news out of Cyprus, the Dow is at 14,473. It would have to gain 1,157 points, or another 8 percent, just to get back to where it was, in real terms, in October, 2007, five and a half years ago.

The might just continue moving higher, just like the man in the cartoon. But at some point is bound to kick in.

Opt In Image
Soak Up More Light from the Right
with a free copy of Bob's most popular eBook!

Sign up to to receive Bob's explosive articles in your inbox every week, and as a thank you we'll send a copy of his most popular eBook - completely free of charge!

How can you help stop the Democrat's latest gun grab? How is the Federal Reserve deceiving America today? What is the latest administration coverup? Sign up for the Light from the Right email newsletter and help stop the progressives' takeover of America!