by Brent Smith for World Net Daily:
Without letting the stock market naturally correct, we’re setting ourselves up for another crash.
Very quickly, let’s define the difference in a mere stock market dip, a correction and a full-on crash.
Dips happen quite frequently. It’s like taking three steps forward and one step back, which still leaves you ahead and also provides good buying opportunities. Maybe the market advances 5, 6, 7 percent and then takes a two or three-point dip. No big deal.
A stock market correction is defined as a drop of at least 10 percent from a recent high. Drops of that magnitude can be scary, but a stock market correction isn’t necessarily a bad thing, depending on the context you view the correction from. These occurrences are quite healthy for the market when it becomes what’s considered overbought and overvalued.
After the correction comes a slow progression back up to well beyond its previous highs.
The stock market is going to do what the market has done since its inception – ebb and flow – advance and correct. This is the natural order of things.
But the governmental wizards of smart, who think they can control everything, can’t seem to grasp that there is no controlling the market. Because of the arrogance and lack of historical context, they invariably set us up for another stock market cra
In 1929, the market shed 48 percent in less than two months. Thanks to the efforts of the governmental wizards of smart, this kicked off America’s Great Depression. In the crash of 1987, the market tallied its biggest point loss ever to date, declining 23 percent in a single day.
Then came the predicable crash of 2008. In October 2007, the Dow hit its pre-recession high, closing at 14,164.43. Thanks to decades of governmental meddling, by March 2009, it had dropped more than 50 percent to 6,594.44.