Signs of a liquidity trap

G

gastropod

For the last month M1 has been growing quicker than M2. You can see this here:
Beginning here -> http://www.federalreserve.gov/releases/h6/
and then on to specific releases...
http://www.federalreserve.gov/releases/h6/Current/
http://www.federalreserve.gov/releases/h6/20080807/
http://www.federalreserve.gov/releases/h6/20080731/
http://www.federalreserve.gov/releases/h6/20080724/
http://www.federalreserve.gov/releases/h6/20080717/
http://www.federalreserve.gov/releases/h6/20080710/

One of the few things the Fed. can do to stimulate the economy in such a situation...outright buy stocks and bonds...and you thought the markets wouldn't be propped up ;-)

-gastropod
 
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