SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Les H who wrote (44004)1/6/2006 3:30:45 PM
From: mishedlo  Read Replies (2) of 116555
 
I have two theories about M3 neither of which is remotely close to what everyone thinks

1) The FED really does find it useless and that is why they stopped publishing it. I spoke to Kasriel about this and he agrees. However we both agree that the timing of the cancellation is suspicious. That leads us to .....
2) The FED stopped publishing M3 because it is likely to implode in 2006 not explode. When you realize M3 measures credit and lots of things that are double counted, and not just money, then why can't credit implode in a big recession, perhaps shockingly so

I think one or both of those is correct, perhaps #2 not by conspiracy but simply because the FED does not see what is coming. Least likley to me is what everyone believes: the FED purposely wants to hide some mammoth upcoming explosion in credit. I say we already had it.

Mish
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News