"Furthermore, when interpreting the yield curve evidence, one should keep in mind the adage “correlation is not causation.”
"Then in May 1942, just before the United States’ military fortunes in the Pacific improved, in the midst of the gloom and the bargains and at the point of maximum bearishness, the U.S. stock market made a bottom for the ages."
With equity markets currently very quiet, and most investors having lost interest in stocks, it's the perfect time to vizualise some of the most spectacular bubbles and crashes of the past twenty years.
The Nasdaq of the late 1990s and the Nikkei ex- and post-1980s
Banks, financials and the commercial paper market around the crisis of 2008.
China, Saudi Arabia and Petrochina around their tipping points
Nominal and real return on assets classes for Japan and Switzerland over the past 100 years.
To my knowledge, there has NEVER before been a case (except in war or natural disaster) when a legitimate business has been destroyed so quickly — as what Knight Capital Group (KCG) experienced.
In light of the current Euro crisis, we introduce two academic studies on the topic of currency unions and dissolutions in recent history. Althoug the countries mentioned are not comparable to Spain or Greece today, the authors do make some interesting observations.
The longer the country remained on the Gold Standard the longer it took for the economy to restore their pre-1929 levels of activity.