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

To: Real Man who wrote (91459)	2/9/2008 2:39:46 PM
From: bart13	Read Replies (1) \| Respond to of 110194

Another very complex set of issues. M3 not only includes repos but also things like Eurodollars and Institutional Money Market Funds. No surprise that money markets would be showing huge growth as they are due to "flight to safety" but my estimated Eurodollars are also up hugely due to (among many other things) the huge jump in oil prices. Same with the huge recent MZM growth rates - lots of folk are headed for the "safety" of cash and equivalents. There even is a tiny bit of truth about M3 not being terribly useful, as this chart shows - M2 has a very similar pattern. Amen about us not knowing what they're doing behind the scenes too... but the public stuff that I do track does indeed show that they are slowing down on the rate of money creation (although it may just be them trying to counteract the $168 billion upcoming helo drop). The thin red line is the key line... and it's still not exactly low in the +10% range:

To: Real Man who wrote (91459)	2/10/2008 11:18:59 PM
From: 10K a day	Read Replies (1) \| Respond to of 110194

>> Why else would M3 be gone? << M3 is gone because it is too hard to track. Second mortgages created money. First mortgages created money and were sliced and diced and sold. second mortgages blew up. first mortgages blew up. Off balance sheet crap made it more confusing. (Marking to market just doesn't happen). M3 is just a big giant confustion. The fed prints a buck so a bank can lend 10. Can the fed actually tally up all banking deposits (on any given moment) and say. By golly. That's M3 today....