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

To: russwinter who wrote (41647)	9/15/2005 4:43:30 PM
From: dpl	Respond to of 110194

But these passes are all above the target rate(3 1/2 %). Isn't that what they are supposed to do? Am I missing something? Just trying to get a handle on what they will do tuesday.

To: russwinter who wrote (41647)	9/15/2005 9:32:33 PM
From: basho	Read Replies (1) \| Respond to of 110194

Russ, WRT the FCB vs non-M2 M3 growth rates we briefly touched on a few days ago, it's also interesting that non-M2 M3 is carrying pretty much the entire burden of monetary growth. Its 3 month annualised rate is over 22% while even the YOY rate is about 13.5%. All the other monetary subcomponents are stuck way back around 5% or less, in many cases much less. Also, almost all of the non-M2 M3 growth is in large denomination time deposits and money funds. Still unsure of what this all means but don't feel FCB deposits can be ruled out as at least part of the source, particularly given the recent powerful inverse correlation between FCB holdings and non-M2 M3.