The Fed Credit Cycle and the quasi-return of M3 money supply

This episode was actually posted back in December 2006 but through some oversite it didn't make it to our YouTube Channel. With all the recent credit market woes back in the headlines again [the great credit crisis], it seemed especially apropos. Especially with all the subprime mess Apparently it's possible to extrapolate the current rate of the M3 money supply figures pretty accurately after all, even after the Fed decided to "de-emphasize" its role. Let's see what the current rates would have been expected to be, and what they suggest for the economy and the stock market... I also discuss the credit cycle and the effects of easy credit and leverage on the transfer of wealth.Notes/Extra Links/Transcript: com/vlog/moMONEY...For those interesting in learning more, you should also check out Aaron Russo's film (see com) - you can watch the movie here: video.google/videoplay?doc...Great MUST-READ article: "The Dow is Crashing" - com/fsu/edi...It's quite shocking how many young kids commented about why they should care about this. Here's my response:Why should a 14 year old be interested in the Federal Reserve??Because the Fed (NOT the government) controls the money supply - the value of the dollars in you and your family's pocket, which basically controls everything else... A 14 year old commented on my Fed Credit Cycle video about why he should care about this stuff and here is my response.This is exactly the type of video you SHOULD be watching if you want to understand how the world around you really works. You think you're going to learn this stuff in school? I understand you may be young, and while we have many videos that are entertaining for kids your age, we can only hope that some of these other videos will catch your attention as well and much better prepare you for the future. If you don't fully understand, ask your parents to watch, learn, and discuss it with you as well. Or, of course, you could end up having a different discussion in a few years when your family explains to you why they are not only broke, but in debt to the hilt and losing their house, and that car you were promised (and possibly even a nice roof over your head) is simply out of the question...And for those of you who just don't believe it's possible, or that it couldn't happen to you, just google "housing bubble" or "housing collapse".And to our UK friends who think this doesn't affect them yet... how's this for SCARY - it's the next step in the US as well: en.wikipedia.org/wiki/British_...Honors for This Video:#66 - Most Viewed (Today) - News & Politics#16 - Top Rated (Today) - News & Politics#98 - Most Discussed (Today)#12 - Most Discussed (Today) - News & Politics#13 - Top Favorites (Today) - News & Politics