The Fourteenth Banker Blog

April 29, 2010

Interesting Data Correlation

Filed under: Uncategorized — thefourteenthbanker @ 11:13 PM

I was browsing a couple things today and pulled the graph below off the pending House SAFE Banking Bill.    Then I noticed this chart the Philadelphia Fed prepares to measure current business conditions against averages.     The graph does not provide absolute levels of economic activity but indicates whether conditions are getting better or getting worse.   You can get a description of the data on their site, but please notice how the growth of the largest banks coincides with the generally poor relative performance of the economy for the last decade, not just the most recent crisis period.

Exhibit in SAFE Banking Act about to be filed in the House of Representatives

But I’m not telling you anything you don’t know.



  1. … and the correlation between the growing disparity between rich and poor, ie. negative real growth rates of per capita income.

    Comment by lucyhoneychurch — April 30, 2010 @ 10:51 AM | Reply

  2. This from Richard Wolff:

    The gap between what the top 10 per cent of Americans earns per year and what the rest of us gets has been widening sharply for the last 30 years. The nation’s economic development has thus been increasingly divisive. The work of Professor Emmanuel Saez of the University of California at Berkeley, a leading expert, shows the facts all too clearly. His summary figure below comes from his website: There you can see how the top 10 per cent of income earners in the US took home an ever more outsized share of the total national income starting at the end of the 1970s. The top 10 percent took 30-35 per cent of total national income from the early 1940s to the earl 1980s. Then their share rose to its current 45-50 per cent level.

    By Saez’s measurements, income inequality in the US is now greater than it has ever been over the last century. It is much, much greater than it was in the thirty years after World War 2 ended. From 1980 to 2007, the US became a far more unequal society.

    Lucy here. Looks like we’re back to the pre-Teddy Roosevelt trust-busting days from an income inequality perspective. Just synchronicity or causal?

    Comment by lucyhoneychurch — April 30, 2010 @ 11:25 AM | Reply

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