Tuesday, May 15, 2007

[Latest Global Dollar Liquidity Measure: +13.95% annual growth rate]

LIQUIDITY TALK. THE "TRILLION DOLLAR QUESTION"
. Rich Karlgaard. "The Economy's Trillion Dollar Question", Forbes - Digital Rules

The Trillion Dollar Question, according to Forbes' Rich Karlgaard, involves the current liquidity boom: is it sustainable? Does it reflect dangerously lax global monetary policies? The Financial Times' Lex column ponders similar questions:

Everywhere, financiers are holding their collective breath, waiting for the dreaded turn in the cycle. Even bank bosses are becoming more and more candid about the dangers. Bank of America’s Ken Lewis, talking about private equity, last week called for “a little more sanity in a period in which everyone feels invincible”.

Global liquidity conditions, the turn of the credit cycle: these are precisely the "trillion dollar questions" that we ask ourselves daily at the Global Liquidity Blog.

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