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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 229.60+1.5%3:59 PM EST

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To: GST who wrote (113101)12/20/2000 10:01:03 PM
From: Sarmad Y. Hermiz  Read Replies (1) of 164684
 
GST,

I have a question that might be down your alley. Approx 6 $trillion evaporated from NASDAQ market cap in the past few months. What does that do to money supply ? Obviously not all that market cap was in the money supply. But I imagine a good chunk (20% ??) was available to be sold and spent like cash. Or used as collateral for mansions, business loans, etc....

So is the money supply (M3 ?) smaller now ? Can you tell ? Does it mean that the Fed MUST add a lot of liquidity into the economy right now to keep from a severe contraction ?

What is an economic view point of this market crash ?
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