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Friday, April 29, 2011

RE THE LAISSEZ FAIRY AND QUANTITATIVE EASING FOR THE LIQUIDITY TRAP RESULTS IN BUBBLES

He will sprinkle some Fairy Liquid, in order to dispel quantitative tightness, and liquefy the liquidity trap. 


Cf Krugman's comments re the liquidity trap........... 


'Fairy Liquid' was a UK dish washing soap, may be still on the market.


This is not the same as fairy dust, which was thought of old to be gold dust; Fairy Liquid is a far cry from that. 


Unfortunately, Laissez Fairy Liquid always results in bubbles, perhaps because it treats the symptoms of income inequality economic and commercial sludge and grease. 


A liquidity trap is rather like a grease trap in a restaurant.........
all the wealth goes into the trap.

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