Money Supply has been one of the components of the massive stimulus this market has enjoyed. We see that since peaking in the 3rd Q 2003, it has slid precipitously. The year over year changes have ranged from a high of +18% (Summer 2003) to the recent low (January 2004) near -7%.
Money Supply (to 1/19/04) Source: Hays Advisory
Source: Hays Advisory
Money supply is one fuel for the market, and regulating it – to control the markets – is especially tricky. If the Fed is actually trying to either deflate a market bubble or avoid consumer price inflation, than they have quite a challenging task ahead of them.
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Quoteof the Day
“”I think it to our interest to punish the first insult; because an insult unpunished is the parent of many others.” -Thomas Jefferson
(to John Jay, 1785. ME 5:95, Papers 8:427)
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.