M2, Money Supply, 2008 to the Present Chart

M2 Money Stock (M2)

10,557.6 Billions of Dollars

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 less than $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.

Original content Bob DeMarco, All American Investor

California Faces a New Quandary, Too Much Money

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The amount is a matter of debate, but by any measure significant: between $1.2 billion, projected by Gov. Jerry Brown, and $4.4 billion, the estimate of the Legislature’s independent financial analyst. 

The surplus comes barely three years after the state was facing a deficit of close to $60 billion.

M2 Money Stock (Chart 9-2)

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 less than $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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M2 Money Stock (Graph)

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Follow the Money (Video)

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St Louis Adjusted Monetary Base (Graph)

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M2, Money Supply Showing Signs of a Peak (Graph)

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M2

Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 700 articles with more than 18,000 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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Money Supply Climbs to New High (M2, Graph)

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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 700 articles with more than 18,000 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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Money Supply Steady Climb Continues (M2, Graph)

Sooner or later the FEDs resolve on keeping inflation low is going to be tested. If the market place senses that the FED has lost its resolve as "inflation cops" interest rates are likely to soar.

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 less than $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.

Subscribe to All American Investor via Email

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.

More from All American Investor

• Bond Vigilantes Take over in the Long End (Graph)
• Ten Year Treasury Yield in Orbit (Graph)
• Ten Year Interest Rates Rising (Chart)
  
• Option ARM--The Toxic Mortgage
• Systemic Risk Defined--Too Big to Fail
• Ray Dalio on the current state of affairs in the market
• Roubini Predicts U.S. Losses May Reach $3.6 Trillion
• 60 Minutes -- Cold Fusion

Kindle: Amazon's 6" Wireless Reading Device

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Monetary Base Continues to Soar (Graph)

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This chart helps explain why investors are increasingly worried about future inflation. The adjusted monetary base has nearly doubled since April, 2008. In comparison, the moneatry base doubled once from January, 1994 to October, 2005.

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.

More from All American Investor

• Bond Vigilantes Take over in the Long End (Graph)
• Ten Year Treasury Yield in Orbit (Graph)
• Ten Year Interest Rates Rising (Chart)
  
• Option ARM--The Toxic Mortgage
• Systemic Risk Defined--Too Big to Fail
• Ray Dalio on the current state of affairs in the market
• Roubini Predicts U.S. Losses May Reach $3.6 Trillion
• 60 Minutes -- Cold Fusion

Kindle: Amazon's 6" Wireless Reading Device

Follow All American Investor on Twitter

M2 Continues to Soar (Graph)

M2 soared to a new all time high $8,358.2 billions.

Gold rising, commodities rising, long term interest rates rising, no surprise.

H.6 -- 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 less than $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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Dollar versus Euro Exchange Rate (Chart)

The chart has an interesting long term double bottom. The chart is evidencing a fear of inflation in the U. S. Along with the Chart on Money Supply, M2, these series should be watched closely.

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Money Supply continues to Soar (Chart)

M2, Money Stock continues to soar and accelerate. Chart current through March 20.

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Bold Endeavors: How Our Government Built America, and Why It Must Rebuild Now

AIG Whose your Daddy?

It is now clear that AIG had to be bailed out. The alternative was a meltdown of the world financial system. I still remember Hank Greenberg, with hat in hand on CNBC, telling America that AIG has plenty of assets and just needed some help from the U.S. government---taxpayers (that was the first $85 Billion) . I also remember writing that there was zero chance that AIG would make it. I still believe that to be true.

The government is going to need to keep AIG going for about 20 years before they can dig themselves out of the hole they put themselves in by creating a mountain--a trillion dollars or more--of phony baloney paper. We are learning every day how toxic so called credit derivatives swaps are, and how worthless they are. Nobody can put a price on this paper. On the other hand, it did help enrich management of AIG by creating lots of fee income that turned into bonuses. The underlying assets--little did they care.

So here comes AIG hat in hand for more of the taxpayer's hard earned dollars. This is really the Donald Trump strategy--get your partners in so deep they have no choice but to give you more money. So far they are into our pockets for $150 billion.


It is time for a realistic view of this problem. We--the taxpayers--need to hire some sharp investment bankers to get in there and make the best deal possible for the American public. This plan should include a longer term plan to dismantle AIG and erase it from the face of the earth.

Throwing good money after bad is not going to work and the next thing you know we--the taxpayers--will be broke. It is time to ask--Whose your daddy?

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This is a very good explanation of the situation as it now exists. Follow the link for more.

AIG Seeks to Ease Its Bailout Terms

American International Group Inc. is seeking an overhaul of its $150 billion government bailout package that would substantially reduce the insurer's financial burden, while further exposing U.S. taxpayers to its fortunes, people familiar with the matter say.

Under the plan, the government loan of up to $60 billion at the heart of the bailout would be repaid with a combination of debt, equity, cash and operating businesses, such as stakes in AIG's lucrative Asian life-insurance arms. AIG and the government have been discussing the changes since December and plan to announce them by Monday when the insurer is expected to ...

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Stocks Ready to Head down as Range Expands

If you would like to see more information like this consider signing up for the email list or for the RSS feed. If I find that people are interested in this kind of information I will spend more time putting it up.

clipped from charts.barchart.com

The chart above is a bar chart of the the S and P 500 index (cash). The green line is the twenty day moving average. The blue and red lines represent two standard deviations below and above the mean. When the market exceeds the red or blue line the market is overextended--oversold or overbought.

Right now, the market is oversold intraday--price below 777.00. As it a result, baring a disaster scenario, the market is likely to support at prices below this line today.

You should notice that the blue and green line are getting farther apart. Most times this indicates two things:

• the market is likely to get more volatile
• and, the range that the market is going to trade is expanding.
  

When the market range expands it becomes likely that the market is going to move up and down rapidly and the intraday trading is going to become more frenzied. This explain why markets often have violent rallies or dips that go against the trend of the market.

Right now, the blue line is sloping down at about ten points a day and is increasing--bad news. This means the market could be getting ready to make a new major move to the downside. In a scenario like this you should avoid two things.

• First, when the market is below the blue line resist the temptation to go short. More often than not you will get killed.
• Two, unless you are an excellent trader resist the temptation to buy the market for a position trade.
  

From a technical point of view the market appears to be turning down. Some people tend to think when the market gets oversold it is a sign that the market is going up. This is often true for a very short period of time. But, when a market is oversold more often than not it means the market is going to keep going in that directions until it finds a level of homeostasis.

My point. From a technical point of view the market is rolling over and weakening. When a market turns down the likelihood that it can go a lot lower increases dramatically. If the market is in a downtrend it will usually rally hard on good news and then drop right back down like a lead stone. Of course, if the market were to drop hard right this minute, it would likely bounce up nicely because it would be more than 2 standard deviations below the line---a statistical level that indicates the market has moved too far in that direction--short term.

You might also notice that the S and P has held the 800 level for months. The only exception to this was in November when it spiked down and then spiked right back above 800. This time around it has breached the 800 level and no longer is showing technical resiliency.

The market appears to be ready to go a lot lower. So it is a good time to be very cautious with your investments.

This is not an offer to buy or sell. I could be buying or selling the market at any time. The above examples are purely informational. I am not recommending anything. Buy, sell, or invest in the market at your own risk.

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Ray Dalio on the current state of affairs in the market

Homebuyer Credit Won’t Stabilize Market, Analysts Say

Roubini Predicts U.S. Losses May Reach $3.6 Trillion

Six Errors on the Path to the Financial Crisis

Who Caused the Financial Crisis?

Option ARM--The Toxic Mortgage

Debt Binge--The Perfect Financial Storm