http://pragcap.com/it-is-liquidity-driving-the-market Fri, 25 May 2012 19:36:46 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://pragcap.com/it-is-liquidity-driving-the-market/comment-page-1#comment-6005 jt26 Tue, 15 Sep 2009 15:36:13 +0000 http://pragcap.com/?p=8928#comment-6005 Rosie is looking for liquidity in the wrong places (not M1-3) .. it is all in commodities, EM, commod currencies. I don't think the Fed can expand MB by 2T and not have it go somewhere (I think only 1 T went to reserves.) As well, at a min., the long-term repos are at 300B as other blogs have noted (how do you think GS is making 10B?) Rosie is looking for liquidity in the wrong places (not M1-3) .. it is all in commodities, EM, commod currencies. I don’t think the Fed can expand MB by 2T and not have it go somewhere (I think only 1 T went to reserves.) As well, at a min., the long-term repos are at 300B as other blogs have noted (how do you think GS is making 10B?)

]]> http://pragcap.com/it-is-liquidity-driving-the-market/comment-page-1#comment-6001 James Tue, 15 Sep 2009 15:06:22 +0000 http://pragcap.com/?p=8928#comment-6001 I think a lot of people are expecting asset prices to correct in October...logically you would think that to be true. But I am sure the government is making sure they are still propping things up one way or another in order to 'demonstrate' that the economy and markets have finally 'healed' without government support. At least I wouldn't put it past them...All their efforts would be for nought if they were just going to allow things to majorly correct and scare people from the markets again once they withdrew support. I think a lot of people are expecting asset prices to correct in October…logically you would think that to be true. But I am sure the government is making sure they are still propping things up one way or another in order to ‘demonstrate’ that the economy and markets have finally ‘healed’ without government support. At least I wouldn’t put it past them…All their efforts would be for nought if they were just going to allow things to majorly correct and scare people from the markets again once they withdrew support.

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