The National Financial Conditions Index (NFCI) measures risk, liquidity and leverage in money markets and debt and equity markets as well as in the traditional and “shadow” banking systems. Positive values of the NFCI indicate financial conditions that are tighter than average, while negative values indicate financial conditions that are looser than average.
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The bottom is in? So what? It's a parabola. What's the worst that could happen?
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Oh, yeah. There's that I guess.
In all seriousness, the long-term optimists really better hope for a parabolic trend failure soon, for this is not the kind of parabolic growth that anyone will enjoy.
Source Data:
St. Louis Fed: Chicago Fed National Financial Conditions Index
In all seriousness, the long-term optimists really better hope for a parabolic trend failure soon, for this is not the kind of parabolic growth that anyone will enjoy.
ReplyDeleteI probably should have been more clear. The parabolic trend will fail someday. That's a given.
There are two ways it can fail though. The optimists (and everyone else, really) should hope it fails in only one of the two ways. Failing to the upside would not be an improvement! Sigh.