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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (5637)	1/21/2004 10:03:55 AM
From: tonka552000	Respond to of 110194

Re: Another opinion on shrinking M2 and MZM North notes it is possible people are pulling money out of savings and placing in checking (Joe Cobb): "....People may be switching from time deposits (0% reserve) to checking accounts (10% reserve), thereby shrinking both M-2 and MZM, but not M-1. Seasonally adjusted, M-1 is falling, but not seasonally adjusted, it is up slightly. This would suggest the public's loss of faith in saving at today's rates, but not a run into currency...." If the following applies....I can say first hand many of my colleagues (myself included) have been doing this for some time now...we are dipping into our bubble windfalls (unfortunately placed into savings instruments with low but "safe" rates) to maintain status quo...hoping somehow to replace or more importantly, hoping not to deplete same...