Market Liquidity

Should come as no surprise, liquidity (L2) as reflected in the Daily Tax Return, is up over last year only 2.3% for the month and 3.6% YTD. The Debt, however, is up 6.5% year over. Wednesday, on the other hand, showed a surge to 85% year over.

There is room for ambivalence in the market. With Dollar devaluation, $1.52 to the Euro, inflation looms. Strong growth companies and commodities might be better than cash.

It's time to read Greenspan's book. I found myself underlining whole passages with a soft lead pencil. I think he does miss one point, however.

In order to maintain strong tax revenue, the government is forced to prop up post mature monopolistic institutions because of their enormous tax contribution. Whereas, these White Elephants should fade away in what Greenspan calls "destructive obsolescence"-- to make way for newer, more innovative and more productive enterprise.