Shrinking Shadow Banking Sector Hurting US Economy
Yet, the deterioration is unprecedented...
Figure 1 shows a chart of shadow banking.
A linear trend has been placed on it. No, no, no, no, no. There's nothing linear about that data in the slightest. At the very least, it's exponential growth, but I assure you that's not it either.
When I look at the data, I see a classic parabola that goes from 1967 to 2008. That parabola has failed spectacularly. There is no hope that the trend will ever fully recover.
Stick a fork in this shadow banking parabola (hiding under the guise of a linear trend)! It's done.