The Fed Credit Cycle and the quasi-return of M3 money supply

This episode was actually posted back in December 2006 but through some oversite it didn’t make it to our YouTube Channel. With all the recent credit market woes back in the headlines again [the great credit crisis], it seemed especially apropos. Especially with all the subprime mess Apparently it's possible to extrapolate the current rate of the M3 money supply figures pretty accurately after all, even after the Fed decided to "de-emphasize" its role. Let's see what the current rates would have been expected to be, and what they suggest for the economy and the stock market... I also discuss the credit cycle and the effects of easy credit and leverage on the transfer of wealth. It's quite shocking how many young kids commented about why they should care about this. Here's my response: Why should a 14 year old be interested in the Federal Reserve?? Because the Fed (NOT the government) controls the money supply - the value of the dollars in you and your family's pocket, which basically controls everything else... A 14 year old commented on my Fed Credit Cycle video about why he should care about this stuff and here is my response. This is exactly the type of video you SHOULD be watching if you want to understand how the world around you really works. You think you're going to learn this stuff in school? I understand you may be young, and while we have many videos that are entertaining for kids your age, we can only hope that some of these other videos will catch your ...

Channel: YouTube Video Length: 3m 16s Date Found: Sun, Aug 15 2010 5:45 AM Category: News Date Produced: Sun, Aug 15 2010 4:17 AM View Count: 0