Putting The 2008 Crash Into Perspective

Before you read this, click on the image thumbnail so you can see the detail.

Each block on this chart represents a year (1825-2008), and each column represents a range of return on the Standard & Poor (S&P) index (in 10 percent increments). On the right side of the horizontal vertical line, the index is positive, that is the S&P grew that year. On the left, the index is negative, which means it declined. The two far left boxes: 1931 and 2008.

There's no other year in the S&Ps history comparable to 1931 ... except 2008. And although the year is not over yet, it seems unlikely that the S&P Index will recover in a three-week holiday period.

As anyone who has read about the Great Depression knows, the stock market crash of 1929 was not the bottom of the pit. That point was reached in 1931.

Here are the year-to-year percentage changes in the S&P index from 1928 - 1946. Note that the economy did not fully recover until World War II.

• 1928 : 40% - 50%
• 1929 : 0 - -10%
• 1930 : -20% - -30%
• 1931 : -40% - -50%
• 1932 : 0 - -10%
• 1933 : 50% - 60%
• 1934 : 0 - -10%
• 1935 : 40% - 50%
• 1936 : 30% - 40%
• 1937 : -30% - -40%
• 1938 : 30% - 40%
• 1939 : 0 - -10%
• 1940 : 0 - -10%
• 1941 : -10% - -20%
• 1942 : 20% - 30%
• 1943 : 20% - 30%
• 1944 : 10% - 20%
• 1945 : 30% - 40%
• 1946 : 0 - -10%

And here are the past few years in the current economic crisis. Note the see-saw we've been on:

• 2001 : -10% - -20%
• 2002 : -20% - -30%
• 2003 : 20% - 30%
• 2004 : 10% - 20%
• 2005 : 0 - 10%
• 2006 : 10% - 20%
• 2007 : 0 - 10%
• 2008 : -40% - -50%

From The Daily Kos via BoingBoing and Quantum Good's Twitter Feed.