Monday, Nov 26, 2007

Is US money supply peaking?

Safe Haven: The Event Horizon For Credit

St Louis Fed Monetary base has been almost flat for months and is now showing declines.


Consumer and revolving credit roar on though.

Posted by sold 2 rent 1 @ 01:20 PM (414 views) Add Comment

4 Comments

1. happyrenterz said...

I wonder if the FED is actually going to be able to keep cutting rates. Politics clearly plays a role in their decisions. The aging population in the USA can see their savings going down the drain as the dollar sinks. This view is politically important too.

Monday, November 26, 2007 05:19PM Report Comment
 

2. happyrenterz said...

Just to follow up my comments above about the dollar. This Bloomberg article says that the dollar is now replacing the yen in the carry trade!
http://www.bloomberg.com/apps/news?pid=20601087&sid=aWMXWN6PFHa4&refer=home

Monday, November 26, 2007 05:27PM Report Comment
 

3. drewster said...

@happyrenterz: Well done on finding that article! If the Fed cuts rates any further, they'll find themselves becoming the carry-trade currency of choice. This will mean severe and rapid devaluation. Could the US ever go the way of Japan? Would that necessarily be a bad thing?

Monday, November 26, 2007 05:53PM Report Comment
 

4. Yoss said...

Both FED and ECB ofering to print thier ways out of the crisis.

Fed Plans to Ease Funding Pressures by Adding Cash !
http://www.bloomberg.com/apps/news?pid=20601087&sid=a7FTeoU0y6eI&refer=home

Monday, November 26, 2007 07:59PM Report Comment
 

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