Monday, May 28, 2012

That's Settled Then

There's something missing here.
Charles Plosser, president of the Federal Reserve Bank of Philadelphia, said the United States should comfortably weather the debt crisis because its financial institutions have already cut their European exposure. Moreover, he said on the Journal's Monday online edition that "a flood of liquidity" into the United States, as investors seek safer assets, is more likely "than the drying up of liquidity."

Oh yes, it's that the health of financial institutions isn't, you know, the only issue.

Except it is.