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


To: 16yearcycle who wrote (4808)1/12/2001 9:21:49 PM
From: patron_anejo_por_favor  Read Replies (1) | Respond to of 57684
 
Think bigger Gene. How many people walk into their broker with a wad of $100's. This is the money supply we use now:

stls.frb.org
stls.frb.org

The monetary base expanded late in '99 so there'd be more cash in the vault in case there was a run on the banks. All that was done early in '2000 was reel that back in, since it wasn't needed anymore, but money market accounts (included in M2) expanded even faster and more than made up the difference. MZM (which is M2 plus institutional money funds) expanded even faster. I'm not making this up, or trying to be a wise-ass. Read the text in the links closely.

Regards,

Patron



To: 16yearcycle who wrote (4808)1/12/2001 9:22:24 PM
From: fedhead  Respond to of 57684
 
So you are saying is that the year over year % change in
adjusted monetary base (first chart) is what is important rather than the absolute levels. (2nd chart).

Thanks
Anindo