Stocks dropped sharply into the close today with the DJIA falling 223 points:
Dow Jones Industrial Average: Worst Single-Day Declines
(Dow Jones Industrial Average, percentage change)
Percentage Date Decline __________________________________________ October 19, 1987 -22.61% October 28, 1929 -12.82% October 29, 1929 -11.73% November 6, 1929 -9.92% December 18, 1899 -8.72% August 12, 1932 -8.40% March 14, 1907 -8.29% October 26, 1987 -8.04% October 15, 2008 -7.87% July 21, 1933 -7.84% October 18, 1937 -7.75% December 1, 2008 -7.70% October 9, 2008 -7.33% February 1, 1917 -7.24% October 27, 1997 -7.16% October 5, 1932 -7.15% September 17, 2001 -7.13% September 24, 1931 -7.07% July 20, 1933 -7.07% September 29, 2008 -6.98%
[Note that I've included in the list above the October 1962 Cuban Missile Crisis and October 1973 Arab/Israeli Yom Kippur War since, while not reflected in major stock market crashes, these historical crises were still effectively mass panics. This was signified on both occasions by the fact that the highest DEFCON nuclear alerts ever were reached during these crises, actually peaking right into the same time frame of the 7th lunar month as when the stock market crashes in 1929 and 1987 climaxed.]Could the historical pattern be repeating this October of 2014?
Of course, all of this must be poppycock because the geniuses in economics and finance departments at colleges around the world are still teaching that markets are efficient, there are no predictable patterns (like the Elliott Wave Principle is based upon) and the stock market follows a "Random Walk". Thus, it's perfectly OK for people to think and behave as selfish, hedonistic animals like "homo economicus" because, in the long-run, competitive market societies like America will gravitate toward "general equilibrium" (READ: "social harmony") and Pareto optimality (READ: maximum happiness for all). So go ahead and place your faith in Mammon (the "god" of "in god we trust" on American currency should be small-cap) and worship the bronze Charging Bull on Wall Street (our version of the Golden Calf), because great minds have put together an incredibly sophisticated. mathematically consistent theoretical system called the neoclassical synTHESIS that just about proves greed is good and laissez-faire capitalism is the way to manage this world!
Well....I have an opposing THESIS.
For a decade I was schooled in this utter tripe and now it's my turn to school the Ayn Rand-loving herd that pontificates this FALSE RELIGION to the masses to reinforce the current manic peak of collective bipolar insanity we're in the midst of (yes Professor Langlois, I ended that sentence with a preposition!).
We are all part of a social organism and unless we heed the Golden Rule of LOVE that God commands, in the long-run, a world driven by selfishness and greed will gravitate toward general disequilibrium of unprecedented historical scale, what one might call an Elliott Wave Grand Supercycle peak, soon after which the system-as-whole will collapse upon itself or, more specifically, CRASH....most probably in October when the mood of our insane species typically breaks down.
Well....I do, because I bothered to actually take a look at it.