The sad state of Credit Suisse

 I came across this video on youtube.com describing a simple Math Problem that no one can solve. It is an interesting video and I can't help but to think how similar it looks. The Mathematical problem behaves exactly like a stock market chart. 

The Simplest Math Problem No One Can Solve - Collatz Conjecture

Why do I start my chapter with this video?

While last week's focus was on China Yuan, this week is on the possibility of Credit Suisse going bankrupt. 

Yes, there are news on Credit Suisse claiming that it may be going the way of Lehman while the investment bank seeks to re-assure investors that it can reverse the situation. So I took a look at its chart.

Fig 1. Credit Suisse Monthly Chart

Credit Suisse reached its top in 2007.Ittumbled in 2008, the year that Lehman collapsed. It was on a down trend since and did not manage to turn around. Its present value is a mere 5% of its peak.

The chart looks very similar to that simple mathematical problem that eventually coming to a stop. 

If this is so there is really little chance that Credit Suisse can turn itself around.

Why am I pessimistic about this? I have seen this pattern before, many times.

There are a lot of counters on SGX that reached their peak, then started to fall and eventually reached a flat line. Similar to the end of that simple math problem, that eventually loops 4-2-1.

On its technical set up, I am seeing new low with strong resistance from all the moving averages.

Credit Suisse, established since 1856, may really come to an end.