Money creation

Tom Lehman uswa12 at
Mon Apr 10 10:59:32 PDT 2000

While everyone is watching the equities bubble--the real estate bubble is out there too.


Doug Henwood wrote:

> Enrique Diaz-Alvarez wrote:
> >Monitoring is not the issue. They already monitor M3, which includes MM
> >balances. The issue is control - if MMs create money, then the main Fed tool
> >for monetary control is on the process of disappearing. They may monitor the
> >debt orgy, but they are (or soon will be) powerless to stop it.
> You really think that, say, another point or two rise in the fed
> funds rate would be powerless to stop the debt orgy? You think the
> rate rise of the last year has nothing to do with the rout in tech
> stocks?
> Doug

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