The stock market rose sharply on the final day of February and the first Monday in March. Here’s why: http://www.stls.frb.org/docs/publications/usfd/page2.pdf (Note: charts from the St. Louis Fed are constantly being revised, but their Web addresses remain constant. All charts for this essay are dated before March 5, 2002.) The Federal Reserve System is now pumping in new money at over 20% per annum. The St. Louis FED tracks the adjusted monetary base (AMB), which is the one monetary component that the FED’s Open Market Committee can control. This is the statistic of the actual holdings of monetary reserve assets by … Continue reading The Residential Real Estate Bubble