On October 11th 2007, the 'old' Dow Jones Industrial Average reached its previous all-time high of 14,198.10 (with the all-time closing high of 14,164.5 on October 9th) as plans for the MLEC were rumored to save the world from the intensification of stress in the interbank funding markets. A week later, the Dow had dropped 5.5%; a month later it had dropped 8.5%; three months later it had slumped 18%. But, this time the 'wealth effect' will be different-er.

and what brought us here... from the Oct 2007 highs... remember this is not the same Dow as it was back then...

Finally, when priced in non-dilutable hard money, i.e., gold, this is what the DJIA looks like:

Chart: Bloomberg

