European Banks Crash For 4th Straight Week

[jaysabi]

After the stock market crash of 1987, The Federal Reserve embarked on a path that led to the biggest debt bubble in the history of the world. The day after the 1987 crash (Oct. 20, 1987) Alan Greenspan, Chairman of the Fed, announced to the world that The Fed stood ready to provide whatever liquidity was needed by the banking system to prevent the crash from turning into a systemic financial crisis. That was the day the Fed “put” was born.... read more

http://www.zerohedge.com/news/2016-03-31/2016-end-global-debt-super-cycle

Why is the y-axis in log? That distorts the chart and makes a meaningful comparison of the two lines meaningless, although perhaps it advances a particular narrative.

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[Curtains873]

The main point is the divergence since 1987. Before that there was a pretty good correlation.

[isildur1]

Ship is slowly sinking, and I don't wish to make some theories but they are making it, and they will fix it. I enjoy watching this games they play, to me they are funny. One day people will see that all that is just one big lie.
They just wish more money, that is the only game they know. Cause of that I would like bitcoin to grow, and to open shops around the world and in that case I can cancel all my banking cards and credits, to just forget about them.

they are fucked and one day they will fuck all of us over due to their constant printing and devaluation of currency

[jaysabi]

The main point is the divergence since 1987. Before that there was a pretty good correlation.

Yeah but my point is it only looks like a correlation and a divergence because the y-axis is in log. The chart is manipulated to make it look so instead of actually being so. The chart only tracks the prior 15 years before the "divergence" and uses this as the basis for saying these two lines should track? 15 years isn't a correlation, it's a coincidence, especially when the chart is in log and cropped with axes that don't go to zero. If you back this chart out to a bigger timeframe, you'll find that these two lines don't track each other at all, whether the y-axis is in log or not.

[stan.distortion]

The main point is the divergence since 1987. Before that there was a pretty good correlation.

Yeah but my point is it only looks like a correlation and a divergence because the y-axis is in log. The chart is manipulated to make it look so instead of actually being so.

True, if it wasn't then there probably wouldn't be much co-relation, it'd be a hell of a lot more scary though :/

[Curtains873]

The main point is the divergence since 1987. Before that there was a pretty good correlation.

Yeah but my point is it only looks like a correlation and a divergence because the y-axis is in log. The chart is manipulated to make it look so instead of actually being so.

One axis moves by 3000% the other by what 10%. I think it catches the divergence.

[jaysabi]

The main point is the divergence since 1987. Before that there was a pretty good correlation.

Yeah but my point is it only looks like a correlation and a divergence because the y-axis is in log. The chart is manipulated to make it look so instead of actually being so.

True, if it wasn't then there probably wouldn't be much co-relation, it'd be a hell of a lot more scary though :/

Yes, that's my point. There is no correlation. The author manufactured one that doesn't exist to make his point.

[Curtains873]

MACRO ANALYTICS - 04 01 16 - Our "Lawnmower Economy" w/Charles Hugh Smith

Abstract http://www.gordontlong.com/Macro_Analytics.htm#04-08-16

https://www.youtube.com/watch?v=M7rM2uElXKM

[ronaldinho_07]

Well banks need to readjust their loans and their portfolio,and well big account need to take care as from any moment they can close the doors,but these happens on the countries facing financial problems first,Greece were an example for the people to learn how the system works against them.

[Pab]

Well banks need to readjust their loans and their portfolio,and well big account need to take care as from any moment they can close the doors,but these happens on the countries facing financial problems first,Greece were an example for the people to learn how the system works against them.

exactly like you have wrote Greece were an example for the people to learn how the system works against them.

I think that what thay did was similar to that what was done in 1932 ,destroy american silver dollar and in fact launching fiat,Any crisis something new added to that sytem

1932 that year Hitler become Germany chancellor

[expert4knowledge]

So does this crash show that we have to expect another fall down of euro in the world and specially in front of dollar.

[stan.distortion]

So does this show that we have to expect another fall down of euro in the world and specially in front of dollar.

All western economies, they've all printed themselves into a corner. The real worry for me here is the IMF if/when that happens because they're likely to step in as the "great saviour" and get their hands on everything our banks has laid claim to in the process. That would basically leave us with a 2 party politics style global economy, BRICS and the IMF.

[jaysabi]

Well banks need to readjust their loans and their portfolio,and well big account need to take care as from any moment they can close the doors,but these happens on the countries facing financial problems first,Greece were an example for the people to learn how the system works against them.

exactly like you have wrote Greece were an example for the people to learn how the system works against them.

I think that what thay did was similar to that what was done in 1932 ,destroy american silver dollar and in fact launching fiat,Any crisis something new added to that sytem

1932 that year Hitler become Germany chancellor

I don't follow. What is your link between the banking system and Hitler coming to power?

[The Sceptical Chymist]

I'm sorry, looking at the chart, it shows "eu bank stocks" goin from 115 to just above 95.  I don't see that as world-shattering.  And zerohedge is a doomsday website still much favored by the folks who are still waiting for silver to go to the moon.

[jaysabi]

I'm sorry, looking at the chart, it shows "eu bank stocks" goin from 115 to just above 95.  I don't see that as world-shattering.  And zerohedge is a doomsday website still much favored by the folks who are still waiting for silver to go to the moon.

Haha, I have noticed a high correlation between conspiracy theorists and zerohedge readers. And they're undaunted by the fact that the doomsday prognostications never come true. No one remembers all the failed predictions when there's a brand new doomsday crisis to push every week.

[pitham1]

Well banks need to readjust their loans and their portfolio,and well big account need to take care as from any moment they can close the doors,but these happens on the countries facing financial problems first,Greece were an example for the people to learn how the system works against them.

Adjusting or changing the entire portfolio mix is not a quick process, and is definitely a painful process.
Spain is an example where this adjustment is taking place.

[Swisk]

The main point is the divergence since 1987. Before that there was a pretty good correlation.

Yeah but my point is it only looks like a correlation and a divergence because the y-axis is in log. The chart is manipulated to make it look so instead of actually being so.

True, if it wasn't then there probably wouldn't be much co-relation, it'd be a hell of a lot more scary though :/

Yes, that's my point. There is no correlation. The author manufactured one that doesn't exist to make his point.

Hah, nice catch. I think more people need to pay attention to this. Opened my eyes to how easily data can be manipulated to force relationships.

You could argue for scale, but then at the very least you'd need to put the employment percentage in exponential as well.

[jaysabi]

The main point is the divergence since 1987. Before that there was a pretty good correlation.

Yeah but my point is it only looks like a correlation and a divergence because the y-axis is in log. The chart is manipulated to make it look so instead of actually being so.

True, if it wasn't then there probably wouldn't be much co-relation, it'd be a hell of a lot more scary though :/

Yes, that's my point. There is no correlation. The author manufactured one that doesn't exist to make his point.

Hah, nice catch. I think more people need to pay attention to this. Opened my eyes to how easily data can be manipulated to force relationships.

You could argue for scale, but then at the very least you'd need to put the employment percentage in exponential as well.

Yes, and I didn't bring it up initially because the main issue was how badly the chart itself was manipulated to fit the narrative the author wanted to tell, but with the rapidly aging baby boomer generation over the last 20 years and continuing forward, you would expect total employment percentage to start to drop because baby boomers are retiring out of the work force a lot faster than new workers are coming in. But like I said, this is a small issue compared to how badly the chart was manipulated, but another small way the conclusion the author is trying to draw is unfounded.

[Pab]

US Industrial data are showing that USA is entering in recession,no doubt about,data are the same ike in the
begiing of any previous recession
So no more rates increase and what,lowering rates,negatives rates,new QE
Dead end

[stan.distortion]

US Industrial data are showing that USA is entering in recession,no doubt about,data are the same ike in the
begiing of any previous recession
So no more rates increase and what,lowering rates,negatives rates,new QE
Dead end

No no, everything's fine, nothing to see here at all. In fact, I'd suggest giving our bankers a bonus for keeping everything so stable and secure. That was pretty much the message in 2007 but I doubt taxpayers will be so easily fooled into footing the bill this time around.