Wall Street on track for worst December since The Great depression of 1931

Wall Street on track for worst December since The Great depression of 1931.

Not as bad as it sounds, because we are not in depression or even recession territory. Recall that the US stock market lost just under 90 percent from its peak in 1929 to its nadir in 1932 (from 381 to 44, been a lot of inflation since then!).

By the way, this guy might know something:

Alan Greenspan says the party’s over on Wall Street.

The former Federal Reserve chairman who famously warned more than two decades ago about “irrational exuberance” in the stock market doesn’t see equity prices going any higher than they are now.

“It would be very surprising to see it sort of stabilize here, and then take off,” Greenspan said in an interview with CNN anchor Julia Chatterley.

He added that markets could still go up further — but warned investors that the correction would be painful: “At the end of that run, run for cover.” …

Greenspan, who was first appointed to the Fed by President Ronald Reagan and became the longest-serving chairman, remaining in his role into the George W. Bush administration, said a key driving factor in the market’s volatility has been the “pronounced rise in real long-term interest rates.”

hat-tip Charles