Is the Great Recession still just a half-empty glass?

By Incorrect Author 12 October 2009

One year ago, in just eight days, the Dow Jones Industrial Average fell 22%. A year later, it is up 51% from its 12-year low of 6,547 points – the point when investors became convinced the financial sky really was falling. But, the actual fall of the Dow began a year earlier, from its record then of 14,164. From October 2007 through the collapse of Bear Stearns in mid-March 2008, the Dow fell 2,000 points as investors first thought they were looking at one of those old-fashioned cyclical recessions. Between mid-March 2008 until the US holiday, Labour Day, the DJIA seesawed, until Fannie Mae, Freddie Mac, Lehman Brothers and AIG all failed in a week and a half, credit markets froze, and amid the panic the Dow fell 5,000 points through 9 March 2009. The subsequent rally has not yet wiped away these losses, although it is back to about 10,000. However, unemployment in the US is close to 10%, a major watershed for Americans. Analysts and investors sense that, while the worst is over, it may now be years before the economy booms again.


While we have your attention...

An increasingly rare commodity, quality independent journalism costs money, though not nearly as much as its absence can cost global community. No country can live and prosper without truth - that's why it matters.

Every Daily Maverick article and every Scorpio exposé are our contribution to this unshakeable mission. It is by far the most effective investment into South Africa's future.

Join our mission to become a Maverick Insider. Together we can Defend Defend Truth.

The Interview

Patricia de Lille: ‘I’d give myself 8/10 as Mayor of Cape Town’

By Rebecca Davis

JK Rowling is no longer a billionaire due to the amount of money she has donated to charity.