Skip to main content

Mainstream report of M3 discontinuance

Color me surprised to find an MSN Money article on the Fed's decision to stop publishing the M3 money supply figures for public release. Jim Jubak's latest installment, entitled, "Fed kills a key inflation gauge", deals with this very topic.

Although it comes after the fact of M3's discontinuance (publication of M3 data ceased on March 23), I am still a bit astonished to read the contents of this article. Jubak has addressed in print some of the important issues associated with the loss of this data, but I have yet to see many other mainstream news sources do the same. Whiile he doesn't exactly go in for the kill (Jubak relates some of the Fed's possible motives for shelving M3 as being drawn from the realm of "conspiracy theories", a device which provides him with some cover), the article does a pretty admirable job of relating why the eradication of this data is important.

In the following passage, Jubak relates his bewilderment over the removal of a broad money supply figure at a time when "markets can add hundreds of billions of global liquidity in a matter of hours". Here are Jubak's words:

"Rather than killing off M3, you'd think the Federal Reserve would be spending money to develop and publish data for an M4 and maybe an M5 to track the ebbs and flows of an even-more-expansive definition of money that includes some of the new forms of money that have been manufactured on Wall Street and in other global banking sectors."

All in all, a pretty interesting and surprising read. Have a look at the full article in the link above.

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

William O'Neil Interview: How to Buy Winning Stocks

Investor's Business Daily founder and veteran stock trader, William O'Neil shared his trading methods and insights on buying winning stocks in an in-depth IBD radio interview.

Here are some highlights from William O'Neil's interview withIBD:

William O'Neil's interest in the stock market began when he started working as a young adult. 

"I say many times that I didn't get that much out of college. I didn't have much interest in the stock market until I graduated from college. When I got married, I had to look out into the future and get more serious. The investment world had some appeal and that's when I started studying it. I became a stock broker after I got out of the Air Force."
He moved to Los Angeles and started work in a stock broker's office with twenty other guys. When their phone leads from ads didn't pan out, O'Neil would take the leads and drive down to visit the prospective customers in person.

"I'd get in the c…