To: SliderOnTheBlack who wrote (6424 ) 9/17/2007 5:11:10 PM From: pogohere Respond to of 50501 Liquidity… as in money supply. Money supply that is growing at double digit rates at 18 of the 20 largest central banks. Liquidity as in Yen-Carry Trade. Intervention… Both the Fed and the ECB have injected monetary steroids into the markets and the U.S. Fed now stands ready to cut rates. Cooperation among global central banks has never been greater. The BOJ and the ECB are now in pause mode. And even though Japan is under great pressure from its trading partners to raise rates, it is intervening in markets to keep the Yen weak, in order to refuel the Yen-carry trade and reflate global stock markets. Up til now, the central banks have been expanding their money supplies. So let's look at M3, for instance. If it turns out that M3 includes credit and not does not truly measure liquidity, it would explain why the Fed doesn't produce the figure any more. You may not like the messenger, but ignoring the message could prove to be very painful:globaleconomicanalysis.blogspot.com Another way to say it would be that that what is deemed a well of liquidity may be a wall of leverage: articles.moneycentral.msn.com Looks like the ideas presented here are coming to pass even as we speak: wallstreetexaminer.com So there may be intervention, but if there is, it is no doubt intended to have a short term effect, because ultimately, the liquidity that would be required to cover all bets is missing. The fact that so few names are associated with having doped out and profited from the depression of the 1930s suggests that even the big guys can misread the state of things. A very astute trader who knows the real flow of funds could navigate this storm safely, but the unfounded ideas presented about liquidity--as opposed to credit--being expanded, suggest that few really comprehend what is going on.