23
Jan
09

Financial Crisis – Putting it in perspective.

This graphic below shows the market values of a group of banks before the credit crunch and after. Phew!
 
bmc1

The original graphic was from an email circulating and perports to come from JP Morgan. I moved the bubbles around to fit my blog better but the sizes and data remain the same. I published this yesterday and had immediate feedback from a enineer friend pointing out that the JPM graphic misrepresents the data. In the graphic below the same numbers are represented as circles. However it is the circle’s height, not it’s areas, which corresponds to the figures.

A pedant might argue that this is true of my bar chart above and that I have compounded the problem by making mine 3 dimensional. However, I think my representation is readily understood whereas the bubble version is misleading.

Perhaps the fact that a leading bank, such as JP Morgan, cannot even create simple graphics without misrepresenting the data goes some way to explain why the banks are in such a mess.

Bank Market Capitilisation

Bank Market Capitilisation



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