The money supply includes a lot of lent out monies

The money supply is crashing.

I’d be surprised if the equity markets held up in January.

Glad I’m not depending on demand for office furniture for my livelihood anymore.

I wonder how much more insult the Proles at HermanKnoll are enduring after the CEO denigrated them for being concerned they were not getting a bonus, after the CEO pocketed her multi-million dollar payday. I’m glad I don’t have any real estate investment in west Michigan. HermanKnoll is in Zeeland, Steelcase is in Grand Rapids, and Haworth is in Holland.

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The money supply (M2) has been decreasing for a year and a half. Why would that cause the equity markets to fall next month?

DB2

@DrBob2

I do not know the degree relative speaking of the crash. That matters.

But loans are now getting very problematic as in red ink on the books. The degree of failed loans is ratcheting way up.

@steve203

It is a huge sea change in how much power employees have. I love it.

The stock market discounted the value of bad office loans years ago after many companies realized that professional employees could work productively from home, and were much happier doing so. Office real estate has been in a downward spiral since.

intercst

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To illustrate it another way. If what you are saying has some truth. It was priced in but the money was still lying around and in 2021 the markets rose.

The better way to see this moment in time is to think in terms of money on the sidelines.

The amount of money on the sidelines depends on how much money is available in the money supply.

Yep if I buy a share from you the same amount of money is on the sidelines. That pressure to keep share prices up has been draining away for more than a year now.

This COULD be a much steeper decline in the money supply.