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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Webster Groves who wrote (67386)8/10/2007 12:30:15 PM
From: mishedlo  Read Replies (1) of 116555
 
Globally Contained Liquidity Crunch
globaleconomicanalysis.blogspot.com
A sudden demand for cash is now global. The FED, ECB, Japan, Australia, and even Canada are providing liquidity. But the Fed can provide liquidity, not capital. By providing liquidity all the Fed is really doing is defending an interest rate target. But interest rate targeting (all the way down to 1%) was the problem. Thus it cannot be the solution.

Lot's more including a reader question as to how this injection of cash by the central banks can possibly be deflationary.

Mish
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