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

To: Wyätt Gwyön who wrote (15880)	1/12/2004 11:14:55 AM
From: GraceZ	Read Replies (1) \| Respond to of 306849

Guys get it straight, is an expanding money supply a problem or a shrinking one? How is the Fed doing both at once?

To: Wyätt Gwyön who wrote (15880)	1/12/2004 8:03:11 PM
From: Elroy Jetson	Respond to of 306849

Time will tell what the Fed is up to. After eleven years of monetary expansion, well above normal target levels, they've been shrinking for a few months. The effects of this will not show up for a while. economagic.com Based on the Clown Patrol's past behavior, one possible explanation is that they made an unintended mistake. The Fed has claimed this is typical of an end to home mortgage refinancing. But several economists have pointed out that the numbers on this do not add up. Others have made the macabre suggestion that this reflects a sudden move out of bank accounts into the stock market, or people moving their money out of the U.S. Dollar. However since there is always a seller for each buyer, neither of these suggestions affect the measure of money supply without the active intervention of the Fed doing something else. Until there is an apparent weakness in asset prices, few are willing to believe the recent decline in money supply is what it appears to be.