Though I must say, the power of
central bank liquidity still surprises me.
Not exact matches
Central banks are
still adding to
liquidity, perhaps to bail out
banks who have made bad loans to parties on the wrong side of securities trades.
As it is,
Central banks are
still showing themselves willing (minus the
Bank of England) to engage in a series of short term injections of
liquidity.
Fast forward to today, and we have trillions of
central bank liquidity sloshing» round
still seeking a home, but the
banking system
still remains pretty hesitant about balance sheet expansion.
And Europe now has a handy US template for reference, it's probably 2 years behind the US in its economic cycle, and (most importantly) its
central bank still has immense
liquidity & fire - power at its disposal (vs. the Fed, which is now flirting — probably fairly pointlessly — with the prospect of rising rates).