- Sum of currency in circulation,
- Reserve balances with Federal Reserve Banks,
- and service-related adjustments to compensate for float.
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Showing posts with label st louis. Show all posts
Showing posts with label st louis. Show all posts
Saturday, October 17, 2009
St. Louis Federal Reserve Source Base (Chart)
Wonder why gold is trading up? Here is one good reason.
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Monetary Base Soars to New Record High (Graph)
Monetary Base, Chart
The monetary base soared up the last two weeks and is now at an all time high.
We have been discussing the potential for this series to create angst in the market for several months. It is now happening.
Increases in the base, Fed balance sheet, and the coming explosion in Treasury offerings has the market worried about inflation, higher interest rates, and the potential for the downgrade of U. S. debt rating. Uncertainty and angst is now creeping into the stock market and this is a negative development.
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The monetary base soared up the last two weeks and is now at an all time high.
We have been discussing the potential for this series to create angst in the market for several months. It is now happening.
Increases in the base, Fed balance sheet, and the coming explosion in Treasury offerings has the market worried about inflation, higher interest rates, and the potential for the downgrade of U. S. debt rating. Uncertainty and angst is now creeping into the stock market and this is a negative development.
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Sunday, April 12, 2009
St Louis Monetary Base Continues to Soar (Graph)
The St Louis Monetary Base continues to soar. Once again it is starting to hook up. This should start pulling us out of the deflationary spiral soon. But is it going to cause stagflation much like was seen in the late 70s?
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 Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments. |
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- Roubini Predicts U.S. Losses May Reach $3.6 Trillion
- Option ARM--The Toxic Mortgage
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Saturday, April 04, 2009
M2, Money Supply Continues to Soar
M2, Money Stock
Money Supply as measured by M2 continues to soar. Does anybody really care?
Back in the early 1980s if M2 started rising, the bond vigilantes would have been out in force pushing interest rates higher. Now, not a "peep".
One can only wonder how long it is going to take for this surge in money to take effect. Commodities are at rock bottom as I am writing this.
One thing for sure, if the Fed has acted as it did in the 1930s we would all be eating rocks by now. Potato anyone?
Stay tuned, the fun is going to start very soon.
M2 includes a broader set of financial assets held principally by households. M2 consists of M1 plus:
(1) savings deposits (which include money market deposit accounts, or MMDAs);
(2) small-denomination time deposits (time deposits in amounts of lessthan $100,000);
and (3) balances in retail money market mutual funds(MMMFs).
Seasonally adjusted M2 is computed by summing savings deposits, small-denomination time deposits, and retail MMMFs, each seasonally adjusted separately, and adding this result to seasonally
adjusted M1.
Money Supply as measured by M2 continues to soar. Does anybody really care?
Back in the early 1980s if M2 started rising, the bond vigilantes would have been out in force pushing interest rates higher. Now, not a "peep".
One can only wonder how long it is going to take for this surge in money to take effect. Commodities are at rock bottom as I am writing this.
One thing for sure, if the Fed has acted as it did in the 1930s we would all be eating rocks by now. Potato anyone?
Stay tuned, the fun is going to start very soon.
M2 includes a broader set of financial assets held principally by households. M2 consists of M1 plus:
(1) savings deposits (which include money market deposit accounts, or MMDAs);
(2) small-denomination time deposits (time deposits in amounts of lessthan $100,000);
and (3) balances in retail money market mutual funds(MMMFs).
Seasonally adjusted M2 is computed by summing savings deposits, small-denomination time deposits, and retail MMMFs, each seasonally adjusted separately, and adding this result to seasonally
adjusted M1.
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Sunday, March 22, 2009
Condition of Banks Continues to Deteriorate (Chart)
The Report of Condition and Income for All Insured U.S. Commercial Banks continues to deteriorate and is worrisome.
This really calls into question if the new bank bailout plan is going to work. The newest proposal is similar, if not the same, as the plan that was put into effect in September. However, if conditions continue to deteriorate it is likely that banks will need to be seized by the Federal government much like what happened during the Savings and Loan crisis.
Right now the hope remains that banks can earn their way out of the problem. This explains, in part, why the Federal Reserve is keeping interest rates artificially low and is buying Treasury securities. This strategy worked for the banks in the 1992-1993 period. It is not well known but many banks were "technically" insolvent at the time.
It appears that bank failures, a bank panic, and bank nationalizations are all still real possibilities.
We will continue to watch this situation at All American Investor.
Sidenote: Federal regulators Friday seized control of the two largest wholesale credit unions — U.S. Central Federal Credit Union and Western Corporate Federal Credit Union — which together had $57 billion in assets. This went virtually unnoticed.
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| Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments. |
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Saturday, March 21, 2009
Money Supply continues to Soar (Chart)
M2, Money Stock continues to soar and accelerate. Chart current through March 20.
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Tuesday, March 17, 2009
The Real Picture on Housing Starts--Chart
They a the picture is worth a thousand words. You can decide for yourself.
HOUSING STARTS
Source: ST. Louis Federal Reserve, Census Bureau
HOUSING STARTS
Privately-owned housing starts in February were at a seasonally adjusted annual rate of 583,000. This is 22.2 percent (±13.8%) above the revised January estimate of 477,000, but is 47.3 percent (±5.3%) below the revised February 2008 rate of 1,107,000.
Single-family housing starts in February were at a rate of 357,000; this is 1.1 percent (±11.0%)* above the January figure of 353,000.
The February rate for units in buildings with five units or more was 212,000.
Source: ST. Louis Federal Reserve, Census Bureau
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