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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (18525)	7/12/2011 10:09:13 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

Aside : I'm not sure why I'm bothering to belabor this hackneyed topic. Maybe I want to convince the some of you that it's nonsensical. Let's compare money velocity of M1 vs M2. In theory, they should be similar. In the modern era M1 velocity bottomed in '94, advanced straight line until the end of '00, corrected until '05, advanced at a slope similar to the move after '94 until mid '08, and has declined ever since, taking back half the advance so that its level is about where it was in '99. M2 velocity bottomed in '91, advanced to a peak reached in Oct '97(hmmm) and has had a five count downside with bottoms in '99. mid '03, and mid '09. Maybe it's double bottoming now. In any event it's very hard to find a correlation between these two. Hard to believe since the lion's share of M2 is provided by M1. economagic.com