[quote]Varqanir wrote:
What’s a bank?[/quote]
The shore of a river?
[quote]Neuromancer wrote:
Varqanir wrote:
What’s a bank?
The shore of a river?[/quote]
Then bailing wouldn’t do much good. The flow would continue unabated.
[quote]Varqanir wrote:
Neuromancer wrote:
Varqanir wrote:
What’s a bank?
The shore of a river?
Then bailing wouldn’t do much good. The flow would continue unabated.[/quote]
Hey Varq!
Missed your input here. Got the CIA action going in Minn huh? Cuil…
What’s your take on the banking/mortgage crisis? I think they’re out of options — 1945 to 1971 stimulate with taxed money, 1981 to 2008 stimulate with debt.
Taxed out and overburdened with debt, only rampant inflation of M3 can be used to stimulate, which is why the Fed quit publishing the M3 data.
Thoughts?
The Federal Reserve statement on M3:
[b]On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.
Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).
M3 does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary policy process for many years. Consequently, the Board judged that the costs of collecting the underlying data and publishing M3 outweigh the benefits.[/b]
[quote]The Mage wrote:
The Federal Reserve statement on M3:
[b]On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.
Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).
M3 does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary policy process for many years. Consequently, the Board judged that the costs of collecting the underlying data and publishing M3 outweigh the benefits.[/b]
http://www.federalreserve.gov/releases/h6/discm3.htm[/quote]
No man, it is all a conspiracy.
[quote]Zap Branigan wrote:
The Mage wrote:
The Federal Reserve statement on M3:
[b]On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.
Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).
M3 does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary policy process for many years. Consequently, the Board judged that the costs of collecting the underlying data and publishing M3 outweigh the benefits.[/b]
http://www.federalreserve.gov/releases/h6/discm3.htm
No man, it is all a conspiracy.[/quote]
Your willingness to believe what you’re told is amazing. Enlighten us, oh great Zap — if M3 was redundant of M2, then why was M3 created in the first place? All us conspiracy theorists wanna know!
[quote]Headhunter wrote:
Zap Branigan wrote:
The Mage wrote:
The Federal Reserve statement on M3:
[b]On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.
Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).
M3 does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary policy process for many years. Consequently, the Board judged that the costs of collecting the underlying data and publishing M3 outweigh the benefits.[/b]
http://www.federalreserve.gov/releases/h6/discm3.htm
No man, it is all a conspiracy.
Your willingness to believe what you’re told is amazing. Enlighten us, oh great Zap — if M3 was redundant of M2, then why was M3 created in the first place? All us conspiracy theorists wanna know!
[/quote]
I second that.
Further insights on why it was given up in a time of a rising inflation is also welcome.
Or why food and gas are not part any more of the core CPI.
[quote]Headhunter wrote:
Zap Branigan wrote:
The Mage wrote:
The Federal Reserve statement on M3:
[b]On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.
Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks).
M3 does not appear to convey any additional information about economic activity that is not already embodied in M2 and has not played a role in the monetary policy process for many years. Consequently, the Board judged that the costs of collecting the underlying data and publishing M3 outweigh the benefits.[/b]
http://www.federalreserve.gov/releases/h6/discm3.htm
No man, it is all a conspiracy.
Your willingness to believe what you’re told is amazing. Enlighten us, oh great Zap — if M3 was redundant of M2, then why was M3 created in the first place? All us conspiracy theorists wanna know!
[/quote]
Perhaps it provides more information?
What I want to know is how economists get all the info when it is being hidden?
We have an odd system prone to bubbles — our money supply growth is a function of debt. Seems bizarre but is true.
Banks are allowed to make 10 times as much loans as they have as reserves. If I put a million in my bank, they can loan out 10 million. Poof…10 million dollars are created.
Trouble is that bad loans count against assets. If 1 million of those loans goes south, the bank is bankrupt. That’s what happened to Freddie and Fannie, only their loan exposure is over 5 trillion. That’s why the Fed had to bail them out with … …a whole helluva lot of paper which constitutes M3. Foreigners holding dollars don’t like to see paper assets (and hence money supply) growing in massive double digits, like in M3. They get ‘nervous’ and buy Swiss Francs (a good idea btw) instead. Or gold, silver, and so on.
We’re toast btw. The massive moneyfest was the last option, our last ‘Ace’, so to speak. Sell dollars at once.
“Fed Massive Injections of Liquidity to Fuel Surging Inflation”
I don’t really have a problem with banks being able to loan 10 times their assets. But they still need to be responsible as to how they loan that money.
They were not.
When a business does stupid shit, the government should not bail them out. Then again not sure they should even if they don’t do stupid shit. They sure as hell ain’t bailing out the small businessman when they do stupid shit.
What is really funny is how they are making all these bailouts sound like it’s for the people who’s loans have failed.