Liquidity Risk is Very Real and Really Not That Hard to Spot and Define

by Jeffrey P. Snider
Alhambra Partners

Going back to Japan for a third time today (it is more than deserved), at least in the setup, the Financial Times on August 1 astutely picked up what the rest of the mainstream media missed about the last BoJ policy moves. They correctly judged the “dollar” intentions, but also that it wasn’t nearly enough, as I wrote earlier.

However, nobody seems to be able to put all these pieces together. Staring right into the face of not just a “dollar shortage” worldwide but an intractable one at that, FT falls back on the mainstream “analyst” community to try to offer some reasonable, plausible explanation.

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