Saturday, February 13, 2010

February Monetary Trends…

The latest from the St. Louis Fed in monetary trends. I don’t have time to break these charts out for you, but please note the following as you go through this pamphlet:
- Money aggregates
- Small Denomination time deposits
- Money Market Mutual Fund Shares
- Non Financial Commercial Paper, -50%, wow!
- Consumer Credit – still negative.
- CPI rising sharply – I think temporary for now.
- Velocity still in the ditch.
- GDP is still negative on a year over year basis.
- Total bank credit, loans and leases are still very negative.
- Trailing P/E, the only P/E that is not fantasy, is pushing 150 still.

Oh, and to answer their question on the front page, “Are Low Interest Rates Good for Consumers?” The answer is HELL NO! In fact, we have spent nearly $1.5 Trillion dollars in the past year buying down those interest rates to keep them that low, yet the same U.S. citizens whose money is being used to buy down those rates are strong-armed for 30% usurious fees on unsecured debt.

Feb Monetary Trends