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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Jack Kunkle who wrote (3750)	12/11/1997 10:59:00 PM
From: Defrocked	Respond to of 10921

Jack, I can't disagree with your numbers or respect for Uncle Miltie. The apparent puzzle over 10% M1 growth and the lack of corresponding nominal or real growth is related to the peculiar velocity in Japan. Most analysts use the so called "Broad Liquidity" measure, M3+CDs for Japan because of the "disintermediation" occurring there. This measure captures the postal savings accounts which have been receiving funds because of the concern about the financial system. Plus CD's in Japan usually have a three month minimum which are often avoided to prevent locking in low rates for even such a short period. A lot of cash is also going overseas into higher yielding accounts. There is an interesting report on this on Bloomberg(20:39EST) tonight if you have access. The BOJ is definitely adding trillions of yen to the banking system now. M1 grew at 8 % Y-t-Y, M2+CDs at 3% and Broad Money at 3.5%. Good trading all.