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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: pater tenebrarum who wrote (29664)10/18/2000 10:21:47 PM
From: patron_anejo_por_favor  Read Replies (1) of 436258
 
Nice riffs from Moto-San on Monday, it kinda got lost in the shuffle with all the action at the craps table this week:

piraz.com

The Cleveland Reserve Bank reported last week, that ...

Although the growth rates of the broad monetary aggregates typically move in
harmony, there are episodes when M2 and M3 move in opposite directions.
Often, this can be directly attributed to changes in large time deposits which, in
turn, are affected by the demand for C&I loans. Investment has played a large
part in the current expansion. As long as the recent increase in C&I loans
represents productive investment, robust M3 growth is not a cause for concern;
it reflects the underlying strength of the economy and not overly rapid money
growth.


Had I the time, I would take great issue with the latter portion of this analysis. But, then, maybe I
already have.


The recent increase in C&I loans represent the purest example of malinvestment ever to grace American finance! I can't believe ANYONE, much less a Federal Reserve Banker, could spew forth something like that. OTOH, with this FRB, statements like that have gone from being astonishing to mundane.....
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