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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Webster Groves who wrote (67386)	8/10/2007 12:30:15 PM
From: mishedlo	Read Replies (1) \| Respond to 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