I'm going to try to periodically post M2, MZM et al charts for all to discuss. M1 is great bear porn but impractical since .usa is a plastic-crazy, credit-driven society.

Ben giving us the bird there at the end.

Why the huge spike in the 2001 area on the last chart M1?

Obviously - 9/11 related. I suppose some sort of emergency funding. Okay - found it:

Quote:

The Fed Provides Liquidity
The Federal Reserve's response to
the immediate effects of the attacks
was to provide liquidity—the ability
to make payments—to firms and
individuals. Particularly important
was providing liquidity to financial
firms, which constantly buy and sell
assets, because they must make payments
with either funds from recently
sold assets or money borrowed from
banks. During times of crisis, however,
banks avoid making such loans
because falling asset prices threaten
the value of the collateral. An interruption
in bank lending to financial
firms could potentially set off a domino
chain of bankruptcies that would
bring the financial system to a halt.
Such an event would quickly disrupt
the whole economy through its effect
on investment, including new homes,
and on durable consumer goods. To
avoid such a disaster, the Federal
Reserve provided emergency liquidity
in five ways:

http://research.stlouisfed.org/publicati....

Love how the included chart differs from the St. Louis Fed one.

Fed fudging the numbers? Never...

research shows that after 8 quarters of 0 rates..velocity will start increasing.. and it has.... be warned...

These charts help explain why Ben thinks he can get away with QE2

The interesting thing going forward will be this - where does the excessive credit manifest itself this time?

Ben has taken $3 Trillion of the burden temporarily out of the economy to date (somewhat akin to an injection of pain killer). So - we trudge along and let deleveraging continue or do we foolishly try to put Humpty Dumpty back together again?

If the latter - then expect the housing bubble collapse to repeat itself somewhere - student loans, consumer spending - somewhere.

According to the tickerguy student loans is about the only area of consumer credit that is expanding.

MZM money:



MZM velocity



M2 Money...stable as she goes:



M2 Velocity:

Interesting chart:

Updates:



This chart seems to closely correlate with what the recession "feels" like on the street:

Another good one:

Updates along with some others I found interesting:

I have to pose this question to the class:

If velocity is still tanking as are multipliers and employment is essentially flat, WHY are we not seeing asset prices fall faster? Something doesn't jive here.

I'm not even talking about equities or bonds...but cars, food, gasoline etc. How can we be near $95/share on the S&P with these sorts of data points?

I'm a bit confused. I'd expect inflationary pressure to have already eased towards 1% or lower by now.

ADD: ie something should have given - margins, prices etc.

shadowstats says m3 money supply bottomed in 2010 and has turned up.

Interesting Las. With so many falling out of the labor force and velocity still in the cellar, this means fewer and fewer people are benefitting from the credit expansion. Rich get even richer and poor get even poorer.

m3 approaching 05 levels