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To: Mike Buckley who wrote (19064)	2/29/2000 9:18:00 PM
From: Dinesh	Respond to of 54805

Freeus, Re: Investing in stock is not "saving"!!! By any stretch I am not an expert in this. But when I buy stocks and write a check, the check eventually must go into someone's account. As a result, the net impact on M[123] is zero; the asset is still unchanged only the ownership has changed. Why is a stock purchased not counted in savings ? Savings I believe are defined as something that one can draw upon now. Stocks are investments in an ongoing business and not readily available unless the business is liquidated. Recall that selling a stock to raise cash does not impact the money supply. For M1/M2...: valueline.com Money Supply?Federal Reserve measures of money outstanding. M1 includes currency, checking account balances and other checkable deposits. M2 includes M1 plus savings account balances, time deposits, and other ``near money' assets. M3 includes M2 plus time deposits exceeding $100,000 and long-term repurchase agreements. The broadest measure of money supply, L (which stands for liquidity), includes M3 plus easily marketable financial assets, such as Treasury bills. If money supply grows significantly faster than overall economic growth for an extended period of time, higher rates of inflation often follow. If money supply grows too slowly, economic growth is inhibited. Regards -Dinesh