Dow Jones 14,000 — Sort Of

With all the huh-bub surrounding the Dow breaking its old record set immediately before the last collapse, I haven;t heard one fact pointed out: that in inflation-adjusted terms, it has to get to over 15,500 to beat the 12% cumulative inflation we’ve seen since October 2007. In inflation-adjusted (“2007 real”) dollars, the Dow is currently somewhere around 13,000.
When you take into account the pumping effect of Bernanke stuffing funny money into certain investors’ hands, the apparent value of the Dow is even less.

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