Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
October 23, 2014

Should We Be Panicking About Another Market Crash?

Matthew O’Brien says, no. “Humans are easily confused, especially by double y-axes.”

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“Here’s what the chart would look like if you weren’t trying to scare the bejeesus out of people. First, you index the Dow to 100 starting in February 1928, and see how much it changed in percentage terms between then and December 1929. Then, you index the Dow to 100 starting in July 2012, and see how much it changed in percentage terms between then and now. And finally, you compare those two percentage changes on a single y-axis.”

Not19292.jpg Should We Be Panicking About Another Market Crash?

  • http://obligatorydiscord.blogspot.com Roehl

    “Past results do not guarantee future performance.” First line in every piece of fine print that has to do with markets.

  • Forrest

    Wouldn’t surprise me.

    We have done almost nothing to curb “too big to fail.” Dodd-Frank has mostly been symbolic. We are asking for a repeat of 2008.

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