walkitout (walkitout) wrote,

innumeracy rears its foolish head on CNBC

Apparently there is a banking index on S&P for about 16 listings. And apparently it is up a lot -- 122%, IIRC -- this week. The guy on the screen commenting on this said, here it is at 75ish, it was just at 35ish. But a year or so ago, it peaked at over 400. So while it is up a lot this week, we'd have to have 10 of these rallies to get back to where we were.


Okay, sort of? But one of two things is true. Either each of those successive rallies is less and less impressive proportionally (eventually disappearing in the noise of the spread, presumably) or we don't need 10 of them. If you go by percentage, you'd only need slightly more than 2. The joys of exponential growth, dude.

Got no links for this one; I saw it on the TV machine.
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