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Joined: Feb 2004
Posts: 19,293 Likes: 7
Campfire Ranger
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OP
Campfire Ranger
Joined: Feb 2004
Posts: 19,293 Likes: 7 |
How many of you remember this from the early 1980's ?? I remember getting daily briefings on the money supply from CNBC or some such cable news show. The talk was always about the M2. In other words, how much was available to the banks to loan out. It may be a bull market in the stock exchanges today but the long term outlook is not as bright. It seems the M2 is the money that is readily available and the money that was in bank accounts at banks and credit unions across the county. I see that America is losing it's M2 supply of available money. This from the Motley Crew https://www.msn.com/en-us/money/mar...e0ec6307b44f04a5a08e6391e3c0ca&ei=32U.S. Money Supply Hasn't Done This Since the Great Depression, and It Usually Signals a Big Move to Come in Stocks Story by Sean Williams • 14h U.S. money supply hasn't done this since 1933 While there are a handful of money supply measures, M1 and M2 are the two that economists tend to focus on the most. M1 money supply encompasses cash and coins in circulation, as well as demand deposits in a checking account. Think of M1 as easily accessible money that can be spent at a moment's notice. M2 accounts for everything in M1 and adds in savings accounts, money market accounts, and certificates of deposit (CDs) below $100,000. It's money people can still get to with relative ease, but it requires a bit more work to be spent. It's this latter category that's raising eyebrows and ringing alarm bells. Historically speaking, M2 has risen at a relatively steady pace for more than 150 years. As the U.S. economy grows, more capital is required to facilitate transactions. But in those rare instances where M2 notably declines, trouble has followed. (click the link to see the chart) As you can see from the chart above, M2 money supply has dipped from a peak of $21.7 trillion in July 2022 to $20.77 trillion in November 2023. M2 is down a little over 2% on a year-over-year basis and 4.31% from its all-time high set in mid-2022. It's the first notable drop in M2 money supply since the Great Depression.
For liberals and anarchists, power and control is opium, selling envy is the fastest and easiest way to get it. TRR. American conservative. Never trust a white liberal. Malcom X Current NRA member.
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Joined: Sep 2006
Posts: 23,678 Likes: 4
Campfire Ranger
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Campfire Ranger
Joined: Sep 2006
Posts: 23,678 Likes: 4 |
People are having to dip into savings to make ends meet on a monthly basis due to high prices & inflation.
MM
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Joined: Sep 2014
Posts: 22,005 Likes: 14
Campfire Ranger
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Campfire Ranger
Joined: Sep 2014
Posts: 22,005 Likes: 14 |
If M2 is personal savings in banks? 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
That has to be at an all time low, or else it's an indicator of modern wealth distribution.
Half my grandparents had more than $10,000 in savings in the 80s. When that would buy a new pickup. (The other half were always broke, despite earning than the ones with money)
Today, only 20% of retired Americans have $10k.
One factor is 401k/IRA investment, a bigger one is the modern attempts to buy happiness and maintain debt instead of cash.
Parents who say they have good kids..Usually don't!
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Joined: Jan 2002
Posts: 12,913 Likes: 6
Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2002
Posts: 12,913 Likes: 6 |
A kabillion dollars of money got piled up during the Covidiocy from government stimmy checks to PPP loans, to all the subsidies and “programs”. Add to that all the businesses that sat on money because, well, they couldn’t buy stuff to build, and if they could buy stuff to build, there wasn’t anybody to hire to build it.
Now that money’s getting spent.
The end.
Sic Semper Tyrannis
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Joined: Feb 2008
Posts: 8,699 Likes: 2
Campfire Outfitter
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Campfire Outfitter
Joined: Feb 2008
Posts: 8,699 Likes: 2 |
New Money is created when Loans are Originated By the Banks ..
So if that ain’t Happening..
You take it from there .
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Joined: Feb 2001
Posts: 6,048 Likes: 6
Campfire Tracker
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Campfire Tracker
Joined: Feb 2001
Posts: 6,048 Likes: 6 |
If M2 is personal savings in banks? 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
That has to be at an all time low, or else it's an indicator of modern wealth distribution.
Half my grandparents had more than $10,000 in savings in the 80s. When that would buy a new pickup. (The other half were always broke, despite earning than the ones with money)
Today, only 20% of retired Americans have $10k.
One factor is 401k/IRA investment, a bigger one is the modern attempts to buy happiness and maintain debt instead of cash. 401Ks and other such plans certainly represent a lot more of savings today than a traditional savings account. While I do keep a certain amount of cash in savings, I put the vast majority of my savings in retirement funds since I can easily borrow that money back if needed. The idea is I'll make more in the long run with the money parked in a 401K than the interest I earn in a savings account. Doesn't always turn out that way though.
Don't just be a survivor, be a competitor.
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Joined: Oct 2010
Posts: 7,903 Likes: 21
Campfire Outfitter
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Campfire Outfitter
Joined: Oct 2010
Posts: 7,903 Likes: 21 |
If M2 is personal savings in banks? It is not.
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Joined: Nov 2003
Posts: 67,836 Likes: 13
Campfire Kahuna
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Campfire Kahuna
Joined: Nov 2003
Posts: 67,836 Likes: 13 |
bank saving accounts used to pay meaningful interest. They don't today. The national average savings account rate is currently 0.57 percent. Not much incentive to save at your local bank.
Sam......
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Joined: Feb 2008
Posts: 8,699 Likes: 2
Campfire Outfitter
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Campfire Outfitter
Joined: Feb 2008
Posts: 8,699 Likes: 2 |
I’m the 80’s the Fed could Crash the Economy to Break Inflation without Crashing the Federal Government but that ain’t the Case Now ..
If that needs explaining then Your Definitely Haven’t Been Paying Attention..
Have You Noticed that All the Short Term Budget Deals are in the Trillions Now ..
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Joined: Aug 2005
Posts: 10,805 Likes: 2
Campfire Outfitter
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Campfire Outfitter
Joined: Aug 2005
Posts: 10,805 Likes: 2 |
Same now as it was then - live within your means. bank saving accounts used to pay meaningful interest. They don't today. The national average savings account rate is currently 0.57 percent. Not much incentive to save at your local bank. If you are currently getting .57% on your money in the bank you need to look around. I just renewed a CD @ 5% and get the same 5% on the balance in my checking account.
Last edited by centershot; 01/08/24.
A true sportsman counts his achievements in proportion to the effort involved and fairness of the sport. - S. Pope
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Joined: Feb 2004
Posts: 19,293 Likes: 7
Campfire Ranger
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OP
Campfire Ranger
Joined: Feb 2004
Posts: 19,293 Likes: 7 |
New Money is created when Loans are Originated By the Banks ..
So if that ain’t Happening..
You take it from there . That is the problem. If no one is borrowing then fewer people need services like a new car or to have a garage or house built. The money is getting used for "right now" expenses and not long term expenses. kwg
For liberals and anarchists, power and control is opium, selling envy is the fastest and easiest way to get it. TRR. American conservative. Never trust a white liberal. Malcom X Current NRA member.
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Joined: Feb 2004
Posts: 19,293 Likes: 7
Campfire Ranger
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OP
Campfire Ranger
Joined: Feb 2004
Posts: 19,293 Likes: 7 |
If M2 is personal savings in banks? It is not. Then what is it. I can only tell you what I just read. Help us out. kwg
For liberals and anarchists, power and control is opium, selling envy is the fastest and easiest way to get it. TRR. American conservative. Never trust a white liberal. Malcom X Current NRA member.
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Joined: Jan 2005
Posts: 57,494
Campfire Kahuna
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Campfire Kahuna
Joined: Jan 2005
Posts: 57,494 |
Same now as it was then - live within your means. bank saving accounts used to pay meaningful interest. They don't today. The national average savings account rate is currently 0.57 percent. Not much incentive to save at your local bank. If you are currently getting .57% on your money in the bank you need to look around. I just renewed a CD @ 5% and get the same 5% on the balance in my checking account. Yup.. Heard 5.5 the other day when I was in the bank but we had nothing ready to move quite yet.
We can keep Larry Root and all his idiotic blabber and user names on here, but we can't get Ralph back..... Whiskey Tango Foxtrot, over....
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Joined: Jan 2019
Posts: 3,481
Campfire Tracker
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Campfire Tracker
Joined: Jan 2019
Posts: 3,481 |
Same now as it was then - live within your means. bank saving accounts used to pay meaningful interest. They don't today. The national average savings account rate is currently 0.57 percent. Not much incentive to save at your local bank. If you are currently getting .57% on your money in the bank you need to look around. I just renewed a CD @ 5% and get the same 5% on the balance in my checking account. Yup.. Heard 5.5 the other day when I was in the bank but we had nothing ready to move quite yet. Notice the shorter term CD's are paying more than long? At least they were end of last year, we rolled some bucks into a 1 year CD at 5.6, IIRC the 2 year was at 4.3. They must think rates are going to fall pretty soon. Higher interest is kryptonite to our giant national debt and cost to service it.
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Joined: Dec 2014
Posts: 9,186 Likes: 12
Campfire Outfitter
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Campfire Outfitter
Joined: Dec 2014
Posts: 9,186 Likes: 12 |
M1, M2, M14? I don't get it at all. But to simplify it for me...how do you maintain a middle (consumer) class when the price of a new vehicle spirals out of reach for half the working middle class? How do you become a middle class homeowner when median home price in most states is well north of 600,000? I just don't get it, we were told back when, that the middle class workers drove the economy, when the middle class fared well, then the whole economy fared well. Didn't the Reagan tax cuts cause the govt to end up with a surplus from all the consumerism of a booming middle class?...But now? It seems the goal posts have shifted dramatically.
Some of you tell me...the money is there, it just isn't being held in highway robbery savings accounts...ok. But I suspect there is no extra money to put anywhere, 401's , brokerage accounts etc. I'd say after taxes, fees, inflation, energy costs, payroll stagnation, healthcare (we are paying for more than 30 million new residents who don't contribute much to the system, but are still getting benefits)...there is no disposable income. But, I live in Appalachia West, so maybe I don't have a good vantage point. People here are hurting.
Well this is a fine pickle we're in, should'a listened to Joe McCarthy and George Orwell I guess.
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Joined: Feb 2003
Posts: 10,440 Likes: 7
Campfire Outfitter
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Campfire Outfitter
Joined: Feb 2003
Posts: 10,440 Likes: 7 |
M1 is the purple and got spiked. M2 is the blue and stayed low. M1 and M2 money are the two mostly commonly used definitions of money. M1 = coins and currency in circulation + checkable (demand) deposit + traveler's checks. M2 = M1 + savings deposits + money market funds + certificates of deposit + other time deposits.
There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self. -Ernest Hemingway The man who makes no mistakes does not usually make anything.-- Edward John Phelps
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