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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (1043)	11/9/2001 9:18:17 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

<<10% increase in the money supply?>> By the Fed's own numbers, the broadest measure of money supply, MZM, is up 19.7% in the last year: stls.frb.org I think Friedman was responding to criticisms that BubbleBoy has not done enough to expand money supply!!! It's all hogwash and irrelevant at this point, the economy will contract until the excess debt is off the books. Period. Extending more credit, boosting refi's, cancelling the 30 year bond, expanding the money supply merely prolong the agony and delay the inevitable. Prices will fall faster and farther than interest rates, and profits will fall faster than prices. I agree that Greenspan didn't do enough...to restrain growth of money supply from 1995 forward, even after he recognized that "irrational exuberance" was creating a self-reinforcing credit and asset bubble. THAT will be the error that history will judge to be his fatal flaw.