"LIQUIDITY BULLS" vs. "LIQUIDITY BEARS": THE NEW DEBATE ON WALL STREET
.CNBC

On Wall Street, it would seem, strategists are increasingly taking positions with regard to the liquidity controversy. Yesterday on CNBC, Joe Battipaglia, strategist at Ryan Beck & Co., cast himself as a liquidity bear. The Federal Reserve, says Big Joe, is on the verge of creating a credit crunch. Liquidity bears take their clues from Fed policy ― especially from the shape of the yield curve.

The other side was taken by Vince Farrell, market strategist at Scotsman Capital Management. Farrell argued that liquidity is still ample, given the impact of financial innovation, petro-dollars, and foreign central banks. (That said, he added, a "test of the recent lows" was in order). Liquidity bulls vs. liquidity bears: the new debate on Wall Street.