David44

Through the Looking Glass: Alice in Liquidity Land

I enjoyed the article, but would like to suggest another meaning for "awash with liquidity". I think it might refer to the huge amount of dollars looking to be invested from Asia (trade surpluses) and the OPEC countries (oil revenues). Whether this constitutes the potential for a bubble, I am not sure. I consider it more of a growth in the US$ as the preferred currency for savings storage. If that changes, we might look back on it as a bubble. However, it is by no means clear to me that it needs to change anytime soon (i.e. in the next few years).