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 (97033)	4/25/2009 6:33:38 PM
From: ajtj99	Read Replies (1) \| Respond to of 116555

Mish, scary stuff in this Mauldin piece. There's a chart in there that shows the velocity of money. Look at it. There's a H&S top on it that projects to about 1.3 or 1.4, depending on how you measure it. Those are levels last reached during the Great Depression and almost half of the 1997 peak of 2.27. The current velocity is about 1.85 and the mean since 1900 is 1.678. If the H&S top becomes a complex one, which I suspect it will, the drop to 1.30 or 1.40 may not occur until about 30-years from now. However, it seems reasonable to expect velocity to drop to 1.678 just to revert to the mean, which would negate any increase in the money supply under 10%. investorsinsight.com