The disappearance of knowledge from human consciousness is a rare phenomenon, but there are recorded instances of knowledge which has evaporated. As a curious example, Pancirollus, writing in the 16th Century mentions that, among many other cases of lost technology, in the time of the Roman Empire a man who had invented flexible glass was presented to Emperor Tiberius. Tiberius condemned the poor man to death and ordered the destruction of all his products, considering that such an invention was detrimental to society.
A striking case of general human amnesia is that of Aristarchus of Samos (born 310 B.C.) who was the first man to declare that the Sun is the center of the solar system, and that the Earth and all the other planets revolve around the Sun; he also arranged the Earth and planets in the correct order of their distance from the Sun. This knowledge was fairly soon forgotten and only rediscovered by Copernicus – 1800 years later!
Daily trading has been rather volatile over the past weeks, and liquidity pathetic. You don’t need much capital in these markets to dictate the price.
Although people still judge the economy by where the SPX trades, we would like to repost the chart that sums it up pretty well.
Presented first time in 2010, the “fundamental” story is intact. After Spain comes Europe core, then US, Japan and finally the full blown currency crisis. Until then, algos will continue ruling the markets.
Chart courtesy Gordon T Long.