Saturday, December 6, 2014

Parabolic Trend Failure of the Day: The Shadow Banking Parabola Which Lived in Shadows

December 1, 2014
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.

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