If anyone is wondering what people mean when they talk about a credit/banking bubble, this wonderful graphic produced by JP Morgan last week sums it up quite nicely. The blue bubbles show the major bank’s market valuation in Spring of 2007 when everything was still fairly hunky dory. The considerably smaller green bubbles (one might even call them dots in the case of Citi-group and a couple of others) show their market value now.
One wonders if there is a hint of irony in JP Morgan’s footnote: ‘while JP Morgan considers this data to be reliable, we cannot gaurantee its accurancy or completeness’.
Thanks for that JP.