The US Economy 2016 Index Charts, Fed Funds Rate, Oil Real Estate US Stock Markets Historic Charts • • Past tech revolutions led to stock market bubbles To maintain current share values would require 4% growth AND a rising share of profits contributing to GDP in the future (unlikely) Shiller, Robert J. (2000) Irrational Exuberance (Hardcover) Princeton University Press (March 15, 2000) ISBN-13: 978-0691050621 Jeffry A. Timmons (1994) New Venture Creation: Entrepreneurship for the 21st Century. Irwin. ISBN 0256115486 S&P 500 September 2008 to July 2009 – the crash! DJIA 1900 to Current DJIA Log Chart 1900 to Current. Prophet Charts: Copyright ©2007 Investools Inc. http://online.investools.com/ DJIA 1900 to Current – Not on Log Scale DJIA Flat Chart 1900 to Current. Prophet Charts: Copyright ©2007 Investools Inc. http://online.investools.com/ DJIA 1906 to 1950 Company Symbol Industry 3M Alcoa American Express AT&T Bank of America Boeing Caterpillar Chevron Corporation Cisco Systems (formerly GM) Coca-Cola DuPont ExxonMobil General Electric Hewlett-Packard IBM Intel Johnson & Johnson JPMorgan Chase Kraft Foods McDonald's Merck Microsoft Pfizer Procter & Gamble The Home Depot Travelers (formerly CitiBank) United Technologies Corporation Verizon Communications Wal-Mart Walt Disney MMM AA AXP T BAC BA CAT CVX CSCO KO DD XOM GE HPQ IBM INTC JNJ JPM KFT MCD MRK MSFT PFE PG HD TRV UTX VZ WMT DIS Diversified industrials Aluminum Consumer finance Telecommunication Institutional and retail banking Aerospace & defense Construction and mining equipment Oil and gas Computer networking Beverages Commodity chemicals Integrated oil & gas Conglomerate Diversified computer systems Computer services Semiconductors Pharmaceuticals Banking Food processing Restaurants & bars Pharmaceuticals Software Pharmaceuticals Non-durable household products Home improvement retailers Insurance Aerospace, heating/cooling, elevators Telecommunication Broadline retailers Broadcasting & entertainment S&P 500 – 1986 to today BigCharts MarketWatch Quickcharts. Copyright © 2007 MarketWatch, Inc Retrieved from http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=SP500&sid=0&o_symb=SP500&freq=2&time=13 NASDAQ 1978 to Present The Dot Com Bubble BigCharts MarketWatch Quickcharts. Copyright © 2007 MarketWatch, Inc Retrieved from http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=nasdaq&sid=0&o_symb=nasdaq&freq=2&time=20 FOMC – Fed Funds Rate 0.25% to 0.50% or 50 basis points http://online.wsj.com/news/interactive/INVESTOR0104?ref=SB10001424052702303640604579296464068676966 Fed funds: Leader of the interest rate pack By Bankrate.com Here's how the Federal Reserve Board's changes to the federal funds rate have been reflected in other key interest rates over the past 10 years. Key interest rates Aug. 28, 1996 through Jan.31, 2007 Bankrate.com ®, Copyright © 2007 Bankrate, Inc. http://www.bankrate.com/brm/news/fed/fedchart.asp Federal Funds Rate FOMC Greenspan Put The “Greenspan Put” “Free Money” 0 to .25% Federal Funds Rate, Source: Board of Governors of the Federal Reserve System. NBER 2007 Federal Reserve Bank of St. Louis: research.stlouisfed.org. http://research.stlouisfed.org/fred2/series/FEDFUNDS/118/Custom?cs=Medium&crb=on&cosd=2000&coed=2006-05-01&cg=Go Greenspan Put Federal Funds Rate, Source: Board of Governors of the Federal Reserve System. NBER 2007 Federal Reserve Bank of St. Louis: research.stlouisfed.org. http://research.stlouisfed.org/fred2/series/FEDFUNDS/chart?cid=118&fgid=&fgcid=&ct=&pt=&cs=Medium&crb=on&cf=lin&range= Custom&cosd=1995-01-01&coed=2007-06-13&asids=+%3CEnter+Series+ID%3E&same_scale=1&cg2=Refresh+Graph WSJ 10/9/2013 http://online.wsj.com/article/SB10001424052702304520704579125341760473438.ht ml?KEYWORDS=taking+the+hot+seat WSJ.com July 31, 3012 from http://professional.wsj.com/article/SB10000872396390444130304577559320750777782.html?mod=WSJ_hp_LEFTWhatsNewsCollection WSJ 8/30/2013 In Turmoil, Emerging Markets Raise Rates Move by Indonesia Follows Brazil, Turkey; Trend Threatens to Deepen Slowdown. http://online.wsj.com/article/SB10001424127887324324404579043362869382586.html?KEYWORDS=in+turmoil+emerging+markets Fed Funds Rate 1954 to Present Federal Funds Rate, Source: Board of Governors of the Federal Reserve System. NBER 2007 Federal Reserve Bank of St. Louis: research.stlouisfed.org. http://research.stlouisfed.org/fred2/series/FEDFUNDS/118 Core CPI vs. Fed Easing Cycles: 1960 – 2006. Seeking Alpha. Stock Market Opinion & Analysis. http://seekingalpha.com/wp-content/seekingalpha/images/core_cpi_y_y.jpg Interesting Tid Bits 4/27/2013 WSJ, July 27, 2012 at http://professional.wsj.com/article/SB10000872396390443477104577553431459135876.html WSJ August 24-25, 2013 http://online.wsj.com/article/SB10001424127887324619504579031300409638802.html?KEYWORDS=CEO+exit+sets+microsoft+on+new+path WSJ 9/4/2013 http://online.wsj.com/article/SB10001424127887324886704579052380986072894.html?KEYWORDS=smartphone+sale#project%3DNOKFADE0904%26articleTabs%3Dinteractive Labor Cost Comparison Auto Worker • • • • US autoworker with benefits South Korean worker Mexican worker Some Chinese workers Source: Washington Post 5/11/09 $54/hr $22/hr $10/hr $3/hr WSJ, 8/3/2012 at http://professional.wsj.com/article/SB10000872396390444320704577566790169187310.html?mod= WSJPRO_hpp_LEFTTopStories#project%3DJOBSHISTORY09%26articleTabs%3Dinteractive iPhone Produces $306 for Apple Inside Your iPhone. New York Times July 5, 2010 http://www.nytimes.com/imagepages/2010/07/05/technology 20100706-iphone-graphic.html?ref=technology http://www.treas.gov/tic/mfh.txt http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt World GDP in USD http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal) http://www.occ.treas.gov/ftp/release/2008-115a.pdf Real Estate Case Shiller Home Price Index Various Pictures The Mess That Greenspan Made. Blogspot. October 30, 2005.http://themessthatgreenspanmade.blogspot.com/2005/10/housing-costs-core-cpi-recap.html OFHEO = Office of Federal Housing Enterprise Oversight Case Shiller Home Price Index US national index levels, not seasonally adjusted. Historic prices are inflation adjusted May 2012 dollars. http://www.multpl.com/case-shiller-home-price-index-inflation-adjusted/ http://ycharts.com/indicators/case_shiller_home_price_index_composite_20#series=type:indicator,id:case_shiller_home_price_i ndex_composite_20,calc:&zoom=10&startDate=&endDate=&format=real&recessions=false A History of Home Values. New York Times. Available http://graphics8.nytimes.com/images/2006/08/26/weekinreview/27leon_graph2.large.gif Professor Piggington’s Econo-Almanac for the Landed Poor. Available http://piggington.com/a_history_of_home_values_graph_by_robert_j_schiller http://www.housedata.info/rank/yr5/ • “One definition of recession is two consecutive quarters with a declining gross domestic product.” MSNBC News: Opinion Slate. Economic blame game. Why does Bush keep lying about when the recession started? By Daniel Gross January 1, 2002. http://stacks.msnbc.com/news/853442.asp?cp1=1#BODY • In economics, a recession is a general slowdown in economic activity in a country over a sustained period of time, or a business cycle contraction.[1][2] During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes and business profits all fall during recessions. (Wikipedia) [1] "Recession". Merriam-Webster Online Dictionary. http://www.merriamwebster.com/dictionary/recession. Retrieved on 19 November 2008. [2] "Recession definition". Encarta® World English Dictionary [North American Edition]. Microsoft Corporation. 2007. http://encarta.msn.com/encnet/features/dictionary/DictionaryResults.aspx?refid=1861699686. Retrieved on 19 November 2008. http://www.nber.org/releases/ Petroleum – Various Pictures WTI “Light Sweet Crude” Brent North Sea Light Sweet Crude 83 to present NYMEX Crude Oil Futures. Front Month. WTRG Economics. Copyright 1999-2006 by James L. Williams. http://www.wtrg.com/daily/crudeoilprice.html Brent North Sea Oil Price 1987 to 2011 http://en.wikipedia.org/wiki/File:Brent_Spot_monthly.svg http://www.indexmundi.com/commodities/?commodity=crude-oil-west-texas-intermediate&months=360 http://www.bloomberg.com/quote/USCRWTIC:IND/chart http://en.wikipedia.org/wiki/File:Oil_Prices_1861_2007.svg WTI Crude Oil Spot Price Chart http://ycharts.com/indicators/crude_oil_spot_price/chart#series=type:indicator,id:crude_oil_spot_price,calc:&zoom=10&startDate=&endDate=&format=real&recessions=false US Dollar vs. Euro Google Finance: US Dollar vs. Euro http://finance.google.com/finance?q=USDEUR US Dollar vs. Oil Crude Oil Prices 2004 Dollars. WTRG Economics. Copyright 1996-2005 James L. Williams. http://www.wtrg.com/prices.htm http://www.gravmag.com/oil.html http://www.pbs.org/frontlineworld/stories/colombia/images/map.swf