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To: Bill Harmond who wrote (87063)	12/10/1999 9:08:00 PM
From: Tom D	Read Replies (1) \| Respond to of 164684

<< That is not the kind of "bubble" that causes run-away expansion >> Could you kindly explain why the reporters of at least two articles think the expansion of M3 is fueling a bubble in the stock market? Also, if it is "far less than the money supply expansion the Fed engineered last year" why do they use adjectives like "unprecedented"? Thanks in advance, Tom D

To: Bill Harmond who wrote (87063)	12/10/1999 9:13:00 PM
From: Bill Harmond	Read Replies (2) \| Respond to of 164684

I don't know. I do know that the currence in circulation is having an unprecedented expansion in case there is a run of sorts on the banks. If we were having an unprecidented expansion in the money supply while the economy is booming, commodities would roaring and bonds would be sinking. Just the opposite is happening right now. All the charts I've seen of y/y money supply growth show that the Fed has tightened the screws this year to compensate for opening the faucet wide open in 1998 during the market meltdowns and hedge-fund crisis. Another thing to remember is that the bear market in bonds has soaked up a huge amount of liquidity. There's no liquidity bubble.

To: Bill Harmond who wrote (87063)	12/10/1999 9:22:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

The money supply expansion they talk about is the technical work they're doing (especially for temporary currency withdrawls) prior to the Millennium turnover. This money is intended specifically for temporary currency withdrawls. The cost of the use of the money is identical. This is just printed currency. Glenn

To: Bill Harmond who wrote (87063)	12/11/1999 11:49:00 AM
From: Eric Wells	Read Replies (2) \| Respond to of 164684

The money supply expansion they talk about is the technical work they're doing William - I'm not an economist, but I've taken a few graduate courses in economics, so I have a basic understanding of economic principles. But even with my limited knowledge of economics, I'm still having difficulty fully grasping what you are trying to say. Two articles have been posted on the thread that state that the Fed has been facilitating an unprecedented expansion in the money supply over the past two months. Yet you indicate that the money supply is not actually expanding - that the Fed's work is "technical". I really want to understand this. Would it be possible for you to lay it out and explain it in detail? Thanks, -Eric