How the West Was Lost and Where it Got Us

From the WSJ tonight, a Birinyi graph comparing bank performance from 1929 onwards to banks today since the 2008 crisis/event/crashes/etc. The 1930s banks are as proxied by the S&P money center bank index for the period, while the current banks is as modeled by the KBW bank index.

OB PC762 banks K 20110810164314


  1. Nice chart, although obviously there is the small matter of WW2 for a significant proportion of the tail in the chart…what is the overall market comparison for the same period?

  2. Nostradamus says:

    Everybody should give up blogging and just post links to Scott Sumner instead.

  3. @loafer – I think the bigger concern is that WW2 happened post that chart trend… That should be our number one concern. In a post depression world – economic strife and uncertainty often leads to war as states are chafing to manage populaces that are looking for a culprit.