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.

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

To: Joseph G. who wrote (37710)	11/29/1998 1:37:00 PM
From: Tommaso	Read Replies (2) \| Respond to of 132070

M1 is meaningless because banks sweep money electronically into savings accounts. I am not much used to MZM, the replacement for M1. M3 includes such an assortment of things that one is getting rather far from what the Fed controls directly. M2 seems a useful compromise to figure out how much spending power is being allowed to come into existence. I think that I explained and qualified what I said sufficiently already. I was considering money supply with relation to possible future inflation rates as measured by CPI or PPI, but also noted some correlation during the year with the fluctuations in the stock market. I think you must be joking about equity values causing fluctuations in the money supply. That's like imagining that the wind blows because the trees are waving.