Thursday, July 9, 2009

Have you seen M3 lately? (Crash Equities; Flight to Treasuries?)

The bit in parentheses is mine. I said almost the same thing in the June 29 headline and story "Crash Equities, Spur Flight to Quality, Offload $2 Trillion in Treasuries":

For months the question has been "Who is going to buy enough U.S. paper to fund the nearly $2 Tril. 2009 deficit?" Well, Ma and Pa Investor are cranking up the savings rate...
From Economic Policy Journal:

Does Ben Bernanke Have a Diabolical Plan to Help Treasury Finance $2 Trillion?

...Now, I'm wondering if the too clever by half Bernanke may have a diabolical plot to finance the record $2 trillion debt the Treasury is starting to raise. While China and pretty much everyone else are watching to see how much money the Fed is going to print to absorb the record debt, maybe Bernanke is going to fake out everyone and go in the opposite direction....

Today, a nice simple picture via The Mess that Greenspan Made:
Haven't looked at this chart from NowAndFutures in some time now - either someone's asleep at the switch over at the Federal Reserve or M3 really isn't all that important an indicator.
IMAGE Then again, maybe this is what the central bank didn't want people to see....MORE