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Non-Tech : Money Supply & The Federal Reserve -- Ignore unavailable to you. Want to Upgrade?

To: Mike Chupp who wrote (64)8/10/2002 9:09:26 PM
From: flint  Respond to of 1379
 
If somebody buys a house for $500,000 from a developer. Despite the fact that $470,000 was borrowed money. Would the $500,000 that shows up in the developer's bank account be part of the M2 money supply? I do not see how the expansion of debt is subtracted from the expansion of cash.

It looks to me the explosion in the money supply is mirroring the explosion in the new housing market.

Flint


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