Felix Salmon

Chart of the day: Do IPOs create jobs?

In the wake of its fabulous report about how investors in VC funds are stupid, the Kauffman foundation has released another report, this time about IPOs. This one comes with a very bad press release, which says in breathless fashion that “nearly 1.9 million new jobs forfeited in the past decade as fewer entrepreneurial firms join ranks of public companies”. In fact, the report itself is much less alarmist, and a single chart does a very good job of debunking the idea that if we had more IPOs, we’d automagically have much more employment.

Did falling correlations cause JP Morgan’s trading losses?

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Many thanks to Scotty Barber for putting this chart together for me. It shows the extraordinarily high correlations that we saw within the S&P 100 at the height of the Lehman crisis; at the height of the Greece crisis; and then, again, for pretty much the entire second half of 2011. At that point, high correlations really did look as though they were the new normal.

Chart of the day, college-dropout edition

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In March 2010, the unemployment rate for high-school graduates 25 years or older peaked at 11.9%. Since then, it has dropped 4.2 percentage points — a pretty impressive showing, in just two years — and now stands at 7.7%.

Chart of the day: JP Morgan’s excess deposits

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Many thanks to Ben Walsh for putting this chart together for me. What you’re seeing is JP Morgan’s excess deposits — the size of the bank’s deposit base, minus the amount of its loans — both in absolute terms and as a ratio. Either way, it’s going up and to the right.

Chart of the day: The CDX NA IG 9 basis

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Here’s the chart you’ve all been waiting for, courtesy of Reuters’s very own Scotty Barber: the spread on the CDX NA IG 9 index — the synthetic index on which JP Morgan’s Bruno Iskil was selling enormous amounts of protection — minus the spread on the index’s constituent bonds.

Chart of the day, equity and GDP edition

The Epicurean Dealmaker has been watching global equity markets metastasize:

Over the past few decades, the public equity markets have evolved from a relatively staid and selective backwater, a playground for pension funds, insurance companies, and the idiot sons of wealthy men, into a gigantic global pool of capital, driven and supported by huge amounts of money from literally everybody… I will leave it to an enterprising PhD student to research the data, but I suspect the aggregate amount of equity market capitalization as a percentage of GDP has swelled tremendously over the past three decades. Equities have gone mainstream, and as they did, the size of equity markets ballooned.

Chart of the day, FOMC laughter edition

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I was hoping someone would do this — and now The Daily Stag Hunt has come to the rescue. All I can say is, thank you. It turns out that if you’re on the FOMC, then being in a credit bubble is really funny!

Charts of the day, corporate income-tax edition

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This is a chart of corporate income tax as a percentage of total corporate profits, and it’s the main thing you should bear in mind when people start saying that the US corporate income tax is too high. And while you’re at it, you should remember this chart, too, showing corporate income tax as a percentage of GDP.

How poverty has tracked global population

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184x558_popchart_left_align.gif The world officially hit 7 billion people today, and so to celebrate I decided to take a look at what’s happened to poverty in the world as its population has increased — many, many thanks to Nick Rizzo and to Laurence Chandy and Homi Kharas at Brookings, two Englishmen who provided him with unpublished data and were extremely generous with their time.