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To: Defrocked who wrote (42316)5/23/1999 6:21:00 PM
From: Lymond  Respond to of 86076
 
I agree -- money supply trends are definitely worth following. If you plot M3 growth since 1980, you see a secular decline in growth reaching a trough in 1993 (2-3 years after the worst of the bank crisis, and acceleration since. I personally think we saw a peak last year (abetted by the Fed's desire to flood the market with liquidity last autumn), and that we'll see flat to down numbers (in terms of growth) over the next 6-12 months, ceteris paribus.