Tuesday, July 17, 2007

Money supply's narrow measure, M-1, has declined for the past three weeks despite large additons of cash by the Fed. Is all that money going into the market?

3 comments:

Anonymous said...

Doesn't most money these days go directly to M2?

Anonymous said...

Hi Deborah,

I am reading your book and find it very interesting. I have two questions:

1) do you agree that we are on the top of the "credit cycle" now? and

2) Is there a place on the web where we can easily (graphically?) look at the bond Quality Spread ?

Deborah said...

Dear Anonymous,
Yes, much of the money appears to be gooing into M2 - especiallytoday, July 18, during the stock market decline.

Dear Ole,
I agree that we are at the top of the credit cycle. There is no place on the web to see a graph of high yield bond spreads over 10-yr. notes.

Both great comments,
Deborah