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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (36805)11/18/1998 9:43:00 PM
From: Ilaine  Read Replies (1) | Respond to of 132070
 
Tip, let me preface my post by saying that I have no facts with which to respond to your question, but an idea, which I don't know how to test. You point out two facts, and suggest a conclusion, that

If 1) "M3 was growing into the runup of the markets prior to the Sept and Oct troughs" and

If 2) M3 "has ceased growing at the same rate"

Then "something else has changed -- foreign repatriation of funds -- into [do you mean 'out of'?] the stocks and/or treasuries and back to foreign destinations?"

Which would suggest that the current run-up in US stock market is caused by inflow of domestic funds, perhaps, as MB suggests, from money market. How could we test this?

And, if so, where did the foreign investments go? Eurobonds? Asian stocks? Retooling of foreign factories?

Interesting question.

CobaltBlue



To: yard_man who wrote (36805)11/19/1998 11:18:00 AM
From: Knighty Tin  Read Replies (2) | Respond to of 132070
 
Tip, the only thing I think you are missing is that the stock market is not included in M3 numbers. In fact, to the extent it attracts money from money funds and checking accounts, it decreases those numbers.

MB


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