Watch the Money Market Balances, Take II
You NEED to check this out: http://www.ici.org/pdf/mm_data_2009.pdf Money Market balances this week are now at their lowest levels since October 1, 2008. Hmm, what happened around that time? Oh, yeah, I remember . . . Lehmann Brothers, CountryWide, Monetary Collapse, etc.
So Money Market Balances started going to crazy high levels as people were pulling their nest eggs out of stocks and into "Cash". And we know what that did to the Stock Market. For further confirmation, note that the "High" balance in 2009 was hit on 3/11. Do YOU remember what the Stock market looked like on March 11? Shivers down my spine just thinking about it.
So Money Market Balances are dropping, and they STILL have another $300 billion to drop just to get back to where they were in early 2008.
Obviously, Cause-and-effect are at play here. As people pull their $$ out of the Stock Market, Money Market Balances increase and the stock market crashes. But the $400 B decrease since March 11 has caused the Stock Market to go up nearly 60% from March Lows. What if this trend continues until MM balances go back to early 2008 levels?