Is this the underlying bailout, or help for the banking industry, the
spread?
Or have I totally missed the point?
In a message dated 3/1/2008 7:47:31 P.M. Eastern Standard Time,
mr.ira@xxxxxxxxxxnet writes:
The Fed is lowering interest rates and the
lending institutions are raising rates.
----- Original Message -----
Sent: Saturday, March 01, 2008 3:40
PM
Subject: RE: [RT] m2 monet supply
I'm not expert on money supply but my understanding is that M2 is
being
driven by relentless flow of funds into money market. A strong
argument can
be made that we are undergoing the greatest credit and
lending contraction
since the great depression. Banks are in constant
fear of violating reserve
requirements as their assets become impaired so
they minimize lending.
Investment banks are in similar situation.
Consumers are now reducing debt,
not adding. Fed is pushing on a string
lowering rates trying to get everyone
to borrow again but it is not
working because of asset quality issues. This
is not going to change
anytime soon.
Inflation is being driven by food, energy, declining
dollar, and inflation
in China, not by expansion of the money
supply.
Earl
-----Original Message-----
From: realtraders@yahoogroups.com
[mailto:realtraders@yahoogroups.com]
On
Behalf Of Ben
Sent: Saturday, March 01, 2008 3:41 PM
To: realtraders@yahoogroups.com
Cc:
TimeandCycles@yahoogroups.com;
vincenn
Subject: [RT] m2 monet supply
I gues fed is REALLY afraid
here
look at last 8 weeks or m2
Money Supply
The chart below
has bee provided by Gordon Harms.
M2 has moved above its already
elevated growth rate of the past year
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