Line 16 (Gross value added of financial corporate business) relative to
Line 1 (Gross value added of corporate business)
Below 4% in 1944 ...above 14% in 2010. And come to think of it, above 7% in 1929.
Not sure how "gross value added" relates to GDP, but it must be pretty well-defined. Ah yes, it is.
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But once again there is a great similarity of our time to the onset of the Great Depression. Our recent V-shaped drop-and-recovery of finance looks a lot like the 1929-1932 drop-and-recovery. But the recovery of finance is not the same as recovery of the economy. It took until the end of the second world war for finance to reach a bottom, and a couple years more before our "golden age" began.
Our peak was twice as high this time, and our 'V' near twice as deep. And if last time it took more than 15 years from crisis to recovery, this time it could take more than thirty.
If this thing started in 2007, we're already four years in.
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Oh, see that flat spot in the '60s on the graph? That's where finance needs to be.
1 comment:
I got so frustrated trying to do things with the graphs in the open office spread sheet, that I installed MS Office 97 on my laptop.
Yep - Excel from 14 yrs ago. But it does what I want it to, when I want to do it.
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