Ignore M3 at your Own Peril

There are many measures of the money supply; M1, M2, M3, L.

And the question is, of course, what constitutes money?

Should 2 year CD's be considered money? They technically aren't legal tender, but can be used for collateral and technically are easier to barter with than say a house. Should stocks and other marketable securities be considered money which in times could be pledged as collateral or used for a down payment on a house?

I have not studied it much beyond occasionally thinking about it whilst running, but I do know that money, regardless of its form, has a tendency to sneak into prices if you let it get too loose.

Thus I found the following chart very interesting;

Suggesting that this;

is somewhat to blame for the high property prices and perhaps even securities prices.

It seems Derek Jensen was onto something.