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A BIRDS EYE VIEW OF OUR FUTURE
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A SUMMARY OF RECENT AMERICAN HISTORY (DOLLAR
CONVERSION 80 IN 1940 1,000 IN 2007)
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1930s Great Depression Crop prices fell
40-60 Unemployment rates are over 25 Prices
and incomes fell 20-50 140 billion of deposits
disappear as 9,000 banks fail
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1940s World War II 1939-1945 300,000 American
soldiers died over 50 million died total US
spent 341 billion on war (90 billion annually)
2007 dollars 4.2 trillion First nuclear
bombs used
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1950s Communism spreads and deepens Cold War
intensified Korean War (1950-1953) 33,627 US
soldiers killed cost 20 billion Bomb shelters,
school drills
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1960s Inflation went from 4 in 62 to 5.7
in 69 Bay of Pigs in 1961 (nearest ever to
nuclear attack) 1963 Kennedy
assassinated 1964-1972 Vietnam, 58,148 US
soldiers killed 1968 National Guard kills 4
Kent State students
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1970s 73 Oil Shortage Oil prices climbed
330 to 12 barrel 10 gallon limit imposed on
consumers Dow goes from its 1/11/73 high of 1051
to 577 by 12/6/74 (whopping 45 decline over
nearly two years Gas .36 gallon in 72 - .86
gallon in 79 to 1.19 in 1980 Inflation 6.5
in 70 to 14 in 75 1973 Watergate
scandal President Nixon resigns
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1980s High Inflation 13 1981-1982
interest rates April 82 Prime rate 21
mortgage rates 18 ½ 1983 and 1984,
unemployment rates almost 10 1986 Tax
Reforms 1987 Black Monday (Oct.19) Dow dropped
22.68, the 2nd largest one day percentage drop
in Stock Market history S L Crisis 400
billion in assets sold off (at bargain basement
prices) with the total cost of the crisis being
150 billion over 1,000 Savings Loan
institutions failed
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1990s 1990/1991 Recession (but by 1999
personal incomes had doubled from that
time) 1990 August February 1991 Gulf War
Cost was 61 Billion 1992 L.A. Riots 53 dead,
millions in damages 1996 Greenspans
irrational exuberance in reference to the
dot.com boom, which burst in 2000/2001 1999-Y2K
fear! 300 Billion in preparation costs.
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2000s March 10, 2000 NASDAQ goes down 9 and
dot.com bubble bursts! Over 50 of dot.com
companies go broke 9/11 Terroist attack.2974
died Sept. 17, 2001 Largest point drop in Dow
ever 684.81 points War in Afghanistan.Iraq
War 2005 Hurricane Katrina kills over 1800
people costs in excess of 80 Billion 2006
the U.S. economy had its lowest saving rate since
1933 Energy supply shortage fears (Gas record
highs - 3.00 plus) Global Warming concern
Cheap Money leads to a huge economic storm,
credit crunch and real estate slump
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For the last five years we have been in a new
industrial era in this country. We are making
progress industrially and economically not even
by leaps and bounds, but on a perfectly heroic
scale. -FORBES Magazine June 1929. 4 months
before American Stock Market Crash
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• As the result of all that has been happening in
  the economyduring the last decade, we are in a
  different-if not a new-era and traditional
  thinking, the standard approach to the market, is
  no longer in synchronization with the real
  world.
• FORBES Magazine
• October 1969 just before onset of a 6 year
  slump-knocked share prices down 60 in real terms.

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PROSPERITY TENDS TO BREED SLOPPINESS
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