Flow of Funds

January 15, 2004 3:28pm by Barry Ritholtz

Your home work for tonight: Federal Reserve Flow of Funds report.

Review the Federal Reserve Flow of Funds. Identify the money market account balances for U.S. citizens. Observe the trend.

Answer the query: “How much cash is really on the sidelines?”

Discuss.

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chibi commented on Jan 16

Thanks for the assignment. This is my first time actually reading through these numbers. It looks like to me about $300 billion has left household money market accounts from 4Q 2002 to 3Q 2003 with $989.9 billion still there. Is there anything else to be considered “money on the sidelines”? And am I reading the numbers correctly?
KMAN commented on Jan 19

It seems to me from this table that savings are increasing this year . Not being placed in the market , but in institutions at a low rate of return . Lack of majority confidence in recent market gains . watch out eh?

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