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n. Illinois | there is something there, only because we've not seen it since the 1930's Its the reaction of the Fed from the massive growth in the M2 money supply during 2020 19% growth and 2021 16% growth. Neither one of those growth rates had ever happen either. From a practical point view point I think that the restriction in credit from the banking industry is going to be a real issue going forward. Many banks are actually shrinking their balance sheet (IE making fewer loans) because they can not fund the growth with out selling off a bunch of underwater bonds and being forced to book the loss. To attract deposits is taking over 5% and they can not make enough magin on that to make sense so they are actually going to be slowing their growth or actually shrink. Is it possible that we might be looking at a black swan? | |
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M2 money supply
