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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: paul ross who wrote (13605)	1/30/1998 3:28:00 AM
From: tekgk	Read Replies (1) \| Respond to of 18056

The annualized rate for M3 for the past three months is 10%. M3 is the only thing that counts these days. Everything is liquid because someone, somewhere, has created a market for everything. Who keeps more than the minimum for free checking in a bank?

To: paul ross who wrote (13605)	1/30/1998 10:21:00 AM
From: Tommaso	Respond to of 18056

The Fed is in the process of revising--maybe dropping--M1 and replacing it with a more accurate measure. I don't quite understand, but it has something to do with banks' ability now to sweep funds out of checking accounts and into other accounts with great efficiency so that the older measure is meaningless. By the same token, what used to be illiquid is now easily convertible into spendable funds, so M3 is more significant than it used to be. Or so I understand the situation.