KBW index is an economic index consisting of the stocks of 24 banking companies. This index serves as a benchmark of the banking sector. This index trades on the Philadelphia Stock Exchange, where it was created. The KBW Index is named after Keefe, Bruyette and Woods, a recognized authority in the banking industry.
The 2007 crash has made an impact on the worlds economy. The banking system also recovered in a corrective fashion like stock and commodities since 2008-2009. All bailouts, quantitative easing and low interest rates have been only a temporal measure. Banks can only offer credit, not “inject” people with it, so when the credit game stops, deflation will loom, because social mood is the engine behind the market.
We suggest that a next crisis in the banking sector is inevitable and maybe a new major low will be reached in the future.