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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 692.73+0.5%Jan 26 4:00 PM EST

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To: XBrit who wrote (58150)8/11/2000 9:37:14 PM
From: Oblomov  Read Replies (1) of 99985
 
M3 is still expanding while M2 is flat or contracting. Within M3, the greatest growth is in institutional money funds. So, it appears that the institutions are cashing out of risky assets. The retail money funds are contracting, so either these retail funds are being spent on consumer goods, or the institutions are simply distributing shares of stock to the retail investors. In addition, it appears that the liquidity added by the Fed is being used to build the credit base (which resides in the institutional MMFs), as necessitated by strong consumer credit demand.

What is actually happening will be much clearer when the Flow of Funds report comes out September 8...
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