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Registered
Join Date: Aug 2000
Location: Palm Beach, Florida, USA
Posts: 7,713
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Folks won't recognize it now, but this thread is one of, if not the most significant thread on the board since the crash. The reason is that Herr Tabdullah is the first to note the economic sign we have been waiting to see: money supply growth. It's hard to overstate how important this is. The scope of the problem has been so vast that it is breathtaking Despite trillions of Dollars pumped into the economy, the economy has continued to shink; but more alarmingly, the money supply has been shrinking. That is just astounding. Pouring money into the economy and watching the money supply contract is like watching water flow up hill.
Anyway, the first sign of economic recovery is expansion in the money supply. I have not been paying attention so I didn't see it before Tabs' told us about it. I'll look into it a little more, specifically what's going on with M1, but if the money supply really is expanding, the recession really is over and the stock market is the place to be. I will be carefully but quickly putting my money back into the market. I've already noticed financial stocks strengthening uexpectedly. The market isn't likely to take off, but what the money supply is telling us is that the stock market will generally and broadly increase with good returns.
Inflation is still not in sight. Comodities are expensive and getting more expensive, but demand will ot supprt significant price increases. Inflation and interest rates will remain low for at least the next two years.
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MRM 1994 Carrera
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