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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (11814)	12/13/2001 1:25:59 AM
From: Ilaine	Read Replies (1) \| Respond to of 74559

>>when the expanded credit that boosts the money supply subsequently contracts<< This reminds me of umpteen conversations with my kids about how various household goods managed to turn up broken. They don't break themselves, something breaks them. Similarly, credit doesn't expand itself, nor does it contract itself. Somebody expands it, somebody contracts it.

To: Don Lloyd who wrote (11814)	12/13/2001 8:06:50 AM
From: smolejv@gmx.net	Read Replies (1) \| Respond to of 74559

Oops... I'll play the dummy part: my understanding, very much since the first time my mum and me took my piggy bank to the S&L around the corner, was always that M3 is something needed/necessary/inherent to the financial system and that there's no M3 without less-than-100% reserves. An example of another all-encompassing and pervading system: water supply has reserves in the order of percents (per-thaus?) of the possible maximum flow. The only problem are occasions like super-bowl intermissions, when US decides to flush unisono. On deflation/depression and accompanying monetary issues I am starting to get a feeling we are mixing causes and effects. Discussing how the dog's tail barks. How high/low may the temperature be - "if it's 37 oC, than the patient can not be sick". Etc. dj