Dallas Fed Fisher Says Economy Has Too Much Liquidity

Posted by    |    May 31st, 2011 at 5:15 am

Sometimes it’s not so hard predicting the future.

If, for example, you have reports like this –

“Fed’s Fisher Says US Economy Has Too Much Liquidity” (CNBC)

The U.S. economy has moved from having too little liquidity to having more than enough, a top Federal Reserve policymaker said on Thursday.

“We’ve gone from too little liquidity to too much,” said Richard Fisher, president of the Federal Reserve Bank of Dallas.

A steep retreat in oil prices suggests this liquidity and the speculative activity it generates — not just strong demand from emerging markets — are driving the market, Fisher said.

Read the remainder of the story at Daily Markets