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Liquidity

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People like Mohamed El-Erian keep talking about (as he did on TV again today) “liquidity” driving the stock market. What is “liquidity? Is it real or a psychological thing like what you call Cullen, the “expectation channel.” Does it come from the idea that QE is flooding the world with money as apposed to an asset swap?

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Posted by (Questions: 10, Responses: 17)
Posted on 07/18/2017 6:28 PM
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I think it means rich people and high corporate profits are pushing this up by leveraging what they got using borrowing. We have an abundance of both and there is no place else to put the moolah these days but the stock market. Households are not doing this.

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Posted by (Questions: 27, Responses: 285)
Answered on 07/18/2017 8:51 PM
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Yup, its the pension crisis. Next will be Mom ‘n Pop.

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Posted by (Questions: 37, Responses: 646)
Answered on 08/02/2017 6:09 PM