Banks market cap

4156.jpg


http://ftalphaville.ft.com/blog/2009/01/21/51474/bank-chart-du-jour/
 
I'm not really sure if there's much relevance to the financial sector's weight in the S&P500, as all it tells us is that yes it was a lot higher a few years back. Which is something we all know.

Will it continue to drop? Should it be higher? I don't think the relative size of the finance sector will matter either way.
 
Quote from nonlinear5:

The relative size of the circles does not reflect the numbers inside the circles, which makes this diagram blow things way out of proportion.
Yes. An accurate comparison requires a simple bar chart. Apparently, the genius behind the graph didn't pass 8th grade math. You don't add diameters to calculate the volume of a circle.

Using Citi as an example, 225 of the small green circles are needed to fill the big blue circle. Last time I checked 255bil isn't 225 times larger than 19bil.
 
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