THE FT DISCOVERS THE "PARADOX OVER LIQUIDITY" ... A BIT LATE
. Krishna Guha. "World economy confronted by paradox of liquidity", Financial Times

On June 29 I posted a review of the weekly Fed balance sheet under the title: "A Tale of two Liquidities". A week later, I followed up with a post on "The Liquidity Conundrum". The idea was (and still is) that funding liquidity was surging just as market liquidity was showing signs of ... collapsing. It took the Financial Times' Krishna Guha almost two months to discover this "paradox over liquidity":

In large parts of the financial system market liquidity is in scarce supply. The supply of credit is tightening and the price of credit is going up. But at the macroeconomic level, liquidity remains abundant. The world is still awash with savings as it has been for several years. One striking example: the giant current account surpluses of the oil exporters, China and other emerging markets, which represent surplus national savings.

Mr. Guha then quotes two distinguished academics, Mr. Ken Rogoff and Mr. Rajan, who both broadly agree with the "paradox". The MSM, it goes without saying, rarely cites the work of a mere blogger — even at the cost of being painfully late.