Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (44010)	1/6/2006 3:34:37 PM
From: Knighty Tin	Read Replies (3) \| Respond to of 116555

Tyco was an Abramoff client. msnbc.msn.com It isn't illegal to be a client. When Al Capone and Lucky Luciano get together, they may only be talking about their legitimate business interests. <G>

To: mishedlo who wrote (44010)	1/6/2006 4:32:16 PM
From: Tommaso	Read Replies (4) \| Respond to of 116555

Definitions from "U. S. Financial Data", Federal Reserve: M1: The sum of currency held outside the vaults of depository institutions, Federal Reserve Banks, and the U.S. Treasury; travelers checks; and demand and other checkable deposits issued by financial institutions (except demand deposits due to the Treasury and depository institutions), minus cash items in process of collection and Federal Reserve float. M2: M1 plus savings deposits (including money market deposit accounts) and small-denomination (less than $100,000) time deposits issued by financial institutions; and shares in retail money market mutual funds (funds with initial investments of less than $50,000), net of retirement accounts. M3: M2 plus large-denomination ($100,000 or more) time deposits; repurchase agreements issued by depository institutions; Eurodollar deposits, specifically, dollar-denominated deposits due to nonbank U.S. addresses held at foreign offices of U.S. banks worldwide and all banking offices in Canada and the United Kingdom; and institutional money market mutual funds (funds with initial investments of $50,000 or more). You say: "When you realize M3 measures credit and lots of things that are double counted, and not just money, then why can't credit implode in a big recession, perhaps shockingly so" I guess the money market mutual funds are based on short term loans and could be called "credit." It is also true that much of the money supply results from the expansion through fractional reserve banking and can contract. Are there any measures of the money supply that you think are genuine measures? It seems to me that at one time or another you have rejected them all: MZM, M1, M2, and M3.