Venkatesh Rao@vgr·Jan 21, 2021Is this model right?Quote TweetParas Chopra@paraschopra·Jan 21, 2021With stock markets all-time high, are we in a bubble? The following chart suggests we might NOT be. (a short thread explaining why)Show this thread12111
ykgoon.com@ykgoon·Jan 21, 2021Replying to @vgrMakes sense only if M2 money flows into market as bank loans. I'm not so sure about that.1
Venkatesh Rao@vgrReplying to @ykgoonI thought that’s exactly how it enters... on the balance sheets of top banks?3:52 PM · Jan 21, 2021
Paras Chopra@paraschopra·Jan 22, 2021Replying to @vgr and @ykgoonBut it flows in the economy. M2 is broadly representative of monetary base of the US economy and that is why Fed stopped publishing M3 dataen.m.wikinews.orgUS Federal Reserve ceases to publish M3 index - Wikinews, the free news source1
ykgoon.com@ykgoon·Jan 21, 2021Replying to @vgrMy understanding is when QE money enters the banks, it's not counted as M2 money until they are lent out. I could be wrong there but this whole business is damn confusing.1