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To: 200ma who wrote (108865)	6/15/2001 1:22:00 PM
From: pater tenebrarum	Respond to of 436258

that theory of it being bearish stems from the 70's inflationary bear market...the rule doesn't apply in a deflationary supercycle bear. in the late 70's, early 80's, everybody waited for the weekly money supply numbers with bated breath - back then the theory went, if the money supply increases too fast, the Fed will raise rates. that is not the case anymore, as the Fed has given up on targeting the money supply, which is mushrooming since '95 and had (basis m3) an almost PERFECT positive correlation with the stock market bubble between '90 and '00 (correlation coefficient of 0.99).