If the DOW scaled with FDIC-insured deposits from 1990 to the present, it would now be at 6,000. Since the present crisis is (at least, more than anything else) driven by the absence of credit, the question of asset value and the availability of cash is of heightened importance.
As CDOs, CDSs and other financial instruments get stripped from the market, the 'distance' between the asset, the credit that it backs, and the borrower becomes shortened.
Permalink: http://dowwtf.blogspot.com/2008/10/dow-vs-fdic-insured-deposits.html
