[Dog Gone]

I hadn't thought of it in those terms, but that's exactly what happens if the Fed is doing its job. The M1, M2 and M3 measures of the supply of money have all increased by about 33% since 1999 which certainly provided the liquidity needed. Greenspan feared deflation, but now he has to worry about inflation.

[Carry_Okie]

I hadn't thought of it in those terms, but that's exactly what happens if the Fed is doing its job. The M1, M2 and M3 measures of the supply of money have all increased by about 33% since 1999 which certainly provided the liquidity needed. Greenspan feared deflation, but now he has to worry about inflation.

Exactly. They can talk it up while they drop their holdings, and bring it down after the chumps buy in. The cash comes from the hands of the bag-holders and new cash ends up in the hands of the bankers to lend. Pretty nifty.