Monday, October 6, 2008

Help is on the way!!! Monetary base is surging.

Finally, after more than a year of liquidity injections that the Fed "sterilized" (put in the liquidity but removed it via open market operations), which lead to practically no growth in the monetary base and money aggregates, we see the monetary base explosing higher. Data shows this money measure growing at the fastest pace in 7 years. This is what we needed to see.

No comments: