Are we in crisis?

The chart above shows the stock market (S&P 500) from about 1945 to today. Note that it is mostly flat until 1983. This is about the time Regan drastically reduced taxes. Then it steadily increases until 1995. At that time it takes an unusual upward spike until the last year of the Clinton administration. At that time it takes an unusually fast drop (helped along by 9-11). Then another spike and another even faster drop. The time of erratic peaks and valleys is a time of excessive growth of the money supply and external pressures on the market.

All being said, is additional market manipulation by the Fed and the government even necessary. It does not look like that is the case.




Money supply from the Fed (hot off the presses).