September 11, 2012
Recent big bank analysis conjures up Edgar Allen Poe’s story, “A Descent into the Maelström,” in which a man recounts how he, but not his two brothers, survived a shipwreck and a whirlpool. Poe’s narrator is the more rational and less emotional of the siblings. While clinging to debris and slowly spiraling into the massive vortex, he coolly observes the surrounding flotsam and notices, “the larger the bodies, the more rapid their descent.”
Sound familiar? New analysis by the Swiss Federal Institute of Technology suggests that during the 2008 financial crisis, the world’s biggest banks similarly circled the drain. Check out these two graphics (1), (2). New Scientist hopes the analysis can warn regulators, but now that society is beginning to see the true impotence of central banks—thanks to the 2007-2009 negative mood trend that the Fed was helpless to prevent (check out “The Music Men” at wsj.com)—why waste time warning a regulator? They can’t improve anything anyway! For such a system to do much good, it would have to warn individuals, who at least have a chance of acting independently of the herd. (Click here to understand what really governs the Federal Reserve.)
If you look closely, you can see patterns in social mood that help you predict social trends. Learn more with the Socionomics Premier Membership.