Friday, August 16, 2013

Bill Gross: All Asset Markets Peaking

Pimco's Bill Gross has it right:

When the Fed's manipulated money supply growth slows dramatically, the old capital structure can't survive---and prices crash. Just like they did in 1929, 1987 and 2008.


  1. M2 grew at an annualized rate of 16.8% this past month. Money supply is growing quite rapidly.

    M2 Money Stock (M2), Billions of Dollars, Weekly, Seasonally Adjusted
    2013-07-08 10645.1
    2013-08-05 10784.0

    (10784.0/10645.1)^12 = 1.1683194415

    1. You need to sign up for my EPJ Daily Alert, where I explain the best way to calculate money supply growth relative to its impact on the economy and stock market. BTW, I used the same method to calculate 1987 collapse in money supply growth and the collapse in 2008.

      And what the hell is seasonally adjusted money supply? Do you decide what clothes to wear based on seasonally adjusted weather, which would always be around 60 degrees?