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Or in other words, M3 growth could be an indication of asset bubble.

How often the M3 statistics were published? Once per quarter? Wouldn't it be interesting to see the M3 numbers just before and after the August crisis? Do we have enough information to tell M3 dynamics after March 2006?

I see the ado not so great (no greater than cool down responses). It is still suspicious that routine information is not provided. Is it the "voodoo trick" of Bush administration to allow any crazy things happening as long as the M2/M3 aggregates grow "historically"?

As the financial market got decoupled from banking, it seems important to follow the money aggregates. As so much electronic money is generated by leverage loans and exotic finance, without any collaterization in GDP growth, why wouldn't it be informative how much money is chasing "limited" assets?

Won't we come across a phase change even with "normal" growths of M3? Can we get comparable statistics from the 1930's?

by das monde on Mon Oct 8th, 2007 at 12:41:10 AM EST
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