Every time we see another week of declines, our eyes are drawn back to this great chart (below) from Doug Short on the shape of monster bear markets.
Not only are both Japan and 1929 interesting shape-wise, there are real historical analogies between them, what with the establishment of stimulus, and then the cessation of it “prematurely” some would say.
For anyone who has any doubts about the role of stimulus in a post-crisis, balance sheet recession, check out this fabulous Nikkei chart. For decades, Japan has bounced and topped around the stopping and starting of various schemes.
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