"cavelamb himself" wrote in message
...
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

Sorry, Richard. I forget that other people might be so bored that they're
reading this. g

This is the best one. It includes an explanation of M1, M2, etc., plus the
graph showing how it's been increasing. Search on M1 and it will get you to
the right spot:

http://en.wikipedia.org/wiki/Money_supply

--
Ed Huntress