Money creation

[Michael Perelman]

They are twin bubbles.  I cannot find my note at this time, but a recent study
discussed in the WSJ showed an almost 1-1 relationship between the percentage
increase in real estate prices in Sil. Valley and the Russell 2000.

Tom Lehman wrote:


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

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu