USA: M3 breaks
The money supply in the U.S. fell, according to calculations by Lombard Street Research, the M3 fell in July by $ 50 billion, is the is the largest one-month decline since 1956.
"The data show that the money supply is almost collapsed," said Gabriel Stein, foreign exchange analyst at Lombard Street Research.
From May to July was the growth rate of money supply from 19 to 2.1 percent annualized. This is lower than the inflation rate, which means that the money supply adjusted for inflation actually falls.
Weak U.S. producer prices were already a weak opening of U.S. markets . Suspect According to the U.S. Department of Labor in the U.S. producer price index in July from the previous month has increased by 1.2 percent, twice that of the economists predicted. The rate is significantly higher than expected returns on the account of higher prices for energy and foodstuffs. Energy prices rose by 3.1 percent, food became more expensive by 0.3 percent. Excluding the volatile food and energy prices stood in the core rate up a growth of 0.7 percent, which is also well above economists' expectations of a rise of 0.2 percent.
have a continued very weak condition of the property market in the U.S., the same known given data on housing starts and permits out. Housing starts in July fell by 11 percent to 965 000 units, which corresponds to the lowest level in 26 years and below economists' expectations of a decline of 960 000 units. Building permits broke up 17.7 percent to a seasonally adjusted adjusted 937 000 pieces, the forecasts were a decrease from to 970,000 units.
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fit into the gloomy picture of the testimony of former chief economist of the International Monetary Fund (IMF), Kenneth Rogoff . He sees the danger that stumble in the coming months as the global financial crisis, a major U.S. bank is. As the expert in a financial conference in Singapore further explained that the U.S. is still not above the mountain and probably the worst yet to come. The wave of bankruptcies in the U.S. financial sector will not be limited to small or medium-sized banks. It is anticipated the collapse of a major money home. This could be one of investment banks or big banks may be affected.
Source: FTor News
I remain bearish and remain positioned short. But the extreme reduction of M3 indicates non-hear problems through the financial system. The additional liquidity injection by the Fed in recent days with a magnification of the ranges in the interest rates banks charge each other shows tremendous potential setback. So far, far too many to go from a simple correction of the market. The problems are not nearly fully priced.
latest with the collapse of a major bank will be the panic, but tolls. the problems begin first. I hope not though.
