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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: 16yearcycle who wrote (307)	5/18/2000 6:14:00 PM
From: Tom Kearney	Read Replies (1) \| Respond to of 57684

Gene - You posted a link to this money supply chart last week, and it has now been updated. The money supply is growing again, albeit at a slow rate. stls.frb.org One thing that interests me about this chart is that these numbers are dwarfed in comparison to the $2 trillion capitalization lost suffered by the NAS since Mar. (This is the number I see bandied about.) While market cap is not included in any M1-M3 calculations, when AG talks about the wealth effect, that is of course what he is talking about, essentially the monetization of capital gains by investors who feel suddenly rich. So, this market drop will hopefully have the silver lining of ending rate hikes. Anecdote: I live in LA on the border of Beverly Hills. Next door, in BH, a $1M dollar house has been going up, slowly, since Nov. It was a teardown bought for investment purposes. The For Sale sign went down in March, and building picked up. Last week, building stopped again (it's 90% done) and today the For Sale sign went back up. Interest rate victim? I wonder if there's a lot of that going around? Tom