A lot of rain on a parking lot does little good.
Sir Wolfgang Münchau in “Following the Fed cannot save the world”, December 22, rightly presents some grave concerns with respect to “swamping the market with cash” before “restructure and shrink the financial system”.
In the same vein and as a citizen of an oil country accustomed to see liquidity pouring on asphalted parking lots without producing any results I am very concerned that the Obama mega stimulus will not help much unless the ground is better prepared to absorb the humidity. No stimulus in the world will suffice if the market does not believe in a future, and any effort to convince it of the contrary by pouring liquidity on it could only hinder its future take off.
The stimulus package needs to follow a credible story line not compensate for the lack of it.
In the same vein and as a citizen of an oil country accustomed to see liquidity pouring on asphalted parking lots without producing any results I am very concerned that the Obama mega stimulus will not help much unless the ground is better prepared to absorb the humidity. No stimulus in the world will suffice if the market does not believe in a future, and any effort to convince it of the contrary by pouring liquidity on it could only hinder its future take off.
The stimulus package needs to follow a credible story line not compensate for the lack of it.
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