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To: AllansAlias who wrote (36531)4/19/2002 10:47:44 AM
From: GraceZ  Read Replies (1) | Respond to of 209892
 
They are still printing, but is debt destruction outpacing credit creation?

M2 dropped by 30 bln (give or take) which can be accounted for by a 30 bln money market monthly outflow, at the same time stock mutual fund inflows were 29 bln (give or take) which explains the massive money flow into the market in the last four months. What happened to the other billion is anybody's guess.

OTOH commersh looks like its bottoming but it looked that way back in Nov and C&I is still declining. The banksters are tightening standards on commersh, have been tightening so corporations are finding creative ways to borrow money. But then if commersh isn't expanding it could mean that companies aren't experiencing enough of an up tick in business to warrant a rise in commersh and are able to finance from cash flow. They sure aren't interested in taking on risk and finance new production equipment as is evident in the C&I.