Why
The Dow Jones Industrial Average Should Be Split (Like A Stock)
The nominal vs
the relative
The nominal
gets exaggerated (to extreme hyperbole & catastrophizing by the Financial
Pornography Media) versus the relative.
Ok the Dow
Jones is down say 500 points.
Whew that's
terrible - head to the hills!
But 500 points
is but 1.96% on a Dow Jones of 25,500.
Put another way if the Dow was say 1000
and it went down 19.6 points would your panties (pants for the PC police) be in
an uproar?
This is the
confusion of the nominal with the relative.
So, here is a
suggestion - split the down - I'm sure some mathematician can make this
feasible & work - like a stock.
And while they
are at it - create another dow jones industrial average - the same one - but
adjusted for inflation - to reveal real purchasing power but that's another
story
Of course CNBC
and the likes lose their blaring headlines (for clicks) etc.
But in context
- 1.96% is 1.96% regardless 19.6 points or 500 points as it is a question of
the denominator.
And maybe with
the lower denominator - people won't need to buy as many Depends.
ps The
nominal exaggeration is 'a panting waste'
