Another down week for the Dow Jones, dropping -4% last week as Rise of the Planet of the Apes and The Help dominated the box office, with The Help taking the prize this weekend with $20 million (without the inflated prices of 3D). All the new movies tanked on the weekend, with Fright Night and Conan the Barbarian barely touching $10 million. Spy Kids 4 was the best of the bunch, attracting families even though the reviews were universally bad (23% on Rotten Tomatoes).
For anyone who thinks this drop in the markets is anything but a crisis of confidence in our leaders and the inequality in our society, you need to consider the class warfare themes of the top movies (The Help and Apes) set against the struggle of politicians around the world to keep banks afloat, their own election chances alive and continue the great erosion of capitalism from a free market to a “too big to fail” cushion for the fat cats.
Watch the great analysis of class warfare from Jon Stewart (yes, we need a comic to point out the absurdities in our political world these days) and you’ll see just how crazy the political compass has spun out of moral alignment.
We are in correction territory now and close to officially calling a bear market. We are also close to officially declaring a new recession on the horizon. Is the second Great Depression also gathering steam? Ask yourself how many people you know are cutting back on their spending? How many people are spending less and refusing to buy the shiny, new toys? If no one is buying, what direction will prices go? There is no doubt the themes of today’s box office top picks reinforce the conflicts of class warfare. The last Great Depression was the result of the excesses of the Roaring Twenties and the last time the gap between rich and poor was as large as it is today. The social mood in this country and around the world is changing, and the movie mood reflects this change as well. We no longer want to be entertained by the rich and famous leading fabulous lives on screen and off. For more on our changing tastes in entertainment, read my book “Movies We Love in Times of Depression”.
Here is the latest MarketBOB Long Wave chart for the weekly Dow Jones and the box office hits since 2009. The truth rally is over. We may be in a new bear market lead by the Rise of the Planet of the Apes against the corrupt political and corporate leadership driven by ever-increasing perks and bonuses at the expense of the working class.