The long bear rally in 1930s depression.
By Daniel at 27 March, 2009, 11:29 am
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we only have to look at the 1930’s to see the rally and then 2 years down. Then another long rally and another few years down but not to previous low.
http://www.dogsofthedow.com/dow1925cpilog.htm
But, as you can see in the chart, in value we didn’t get back to the peak until about 1966 (adjusted for inflation).
As you correctly point out “The whole conception of a stock market based upon price appreciation is misplaced,” but not just for the reason you mention.
People are given the illusion of growth when they actually lost buying power and paid tax on the price gain, while losing value.
Everything the government has done for decades has been to manipulate markets and drive people from long term dividend holding into frequent trades that generate commissions and taxes when a gain in price is involved. Who gains? The banksters. They gain more than even the government does because their system also drives up debt and dependence on government and rising CPI and other things that hurt the citizens.
P.S
http://www.pagetutor.com/trillion/index.html
Scroll down on that page to see what a person standing next to a trillion would look like.
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