Monday, May 7, 2012

How Many Greenbacks Will Bernanke Print from Here?

There has been a bit of a slowdown in M2 money supply growth in recent weeks. What will roller coaster Ben do from here, take us for another nose dive, or crank it up again?

Only Ben really knows how many notes he will pump out from here:


  1. Why did the market rose that much from March 2009 then? Your chart shows money supply growth fell until the middle of 2010 from Dec 2008.


    1. The market rose from march 2009 because that is when it bottomed out after the financial crisis and everyone was anticipating QE2, so the markets began to rise after they had plummeted after the housing bubble burst. QE2 accounts for the rise in M2, it took a while to enter the economy which is why you see it begin to rise in 2010 rather than in 2009 when the stimulus package was passed. At least that is my take.

  2. Did the spike in the gas price scare the crap out of him ?

  3. I really don't think Bernanke knows what he is going to do. He looks like the kind of guy who would go to a fortune teller and get them to read his cat's latest fur ball in order to figure out what to do.

  4. B-B-Benny and the (Ink) Jets!