Ed Huntress wrote:

And the reason for this happening, is that with the new financial
structures, derivatives etc, there are many players that act like
quasi-banks, borrowing money and lending it, without being subject to
reserve restrictions. So during the growth years, all of that stuff
ballooned, leveraged up and expanded.


If you look at M3 versus M2 in that graph to which I posted a link earlier
in this thread, you can see it happening. It's no wonder the government no
longer reports M3. It makes it look like the money supply is out of control.
'Can't have that, being monetarists and all...




Ed, as a favor, would you mind including the link rather than refering
to it as "earlier" or "in another thread".

It would sure be easier to follow when coming in late...

Richard