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Chart of the Week: Money Supply

Posted By Barry Ritholtz On February 2, 2004 @ 5:07 pm In Finance,Media | Comments Disabled

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 MZM.bmp
Source: Hays Advisory [1]

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.

Random Items:
Why the Bull May Be Tiring [2]
Times Are Good When 4 Percent Growth Disappoints [3]
Europe’s tug of war over software patents [4]
The easy money is all gone [5]
Investment Banks Outsourcing to India [6]
Growth Forecasts, Without the Wait [7]

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 [8]
(to John Jay, 1785. ME 5:95, Papers 8:427)

Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2004/02/chart-of-the-week-money-supply/

URLs in this post:

[1] Hays Advisory: http://www.haysmarketfocus.com/html/MonetaryConditions_1408_image001.gif

[2] Why the Bull May Be Tiring: http://www.businessweek.com/bwdaily/dnflash/jan2004/nf20040129_4363_db014.htm

[3] Times Are Good When 4 Percent Growth Disappoints: http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_baum&sid=airPY9NBuKxA

[4] Europe’s tug of war over software patents: http://www.iht.com/articles/127600.htm

[5] The easy money is all gone: http://www.globeandmail.com/servlet/story/RTGAM.20040131.wxstcarrick31/BNStory/SpecialEvents2/

[6] Investment Banks Outsourcing to India: http://www.cfo.com/article/1,5309,11979%7C%7CT%7C22,00.html?f=home_todayinfinance

[7] Growth Forecasts, Without the Wait : http://nytimes.com/2004/02/01/business/yourmoney/01view.html

[8] Thomas Jefferson: http://etext.lib.virginia.edu/jefferson/quotations/jeffcont.htm

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