Thursday, May 19, 2005


Money Supply Downturn

This chart shows that M1 took a sharp turn south recently.

I recieve a newsletter that show the 3yr growth rate of MZM money supply is decelerating which historically usually leads to recession or weak economy.

Also note how the yield curve is flat ... and w/bonds holding still and Fed raising interest rates a little further, we could be in an inverted yield curve situation ... which historically leads to the same thing.

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