There was a long period (30 months) of quiescence. Before that there was the effect of the dot-com crash. After that there is the effect of the subprime crisis.
The subprime crisis is a large cascading failure, which the earlier crisis wasn't. So you can see it accelerate - the more banks have failed, the more are at risk of failing. Note that early 2008 is the first time more than one bank was closed over the same weekend. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
After all:
Growth in an industry is good. Therefore: growth in bank failures is good.
(I'm bucking for a spot on Fox.)
:-)
The long period of quiescence (coinciding with the credit expansion phase of the subprime bubble) set the conditions for cascading failure.
Somehow, the dot-com bubble was of a different character.
It would be interesting to align these charts with the money supply... En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
