Where is the liquidity world is talking about?

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Where is the liquidity world is talking about?

Total sub prime market in US is about 4 trillion, total liquidity infused is of about 1000 billion dollar. Yes Fed is guaranteeing AAA rated securities to the tune of about 1 trillion by way of TALF, but they are guarantees only and may or may not have a significant impact on the liquidity at least in the immediate future.

also the economy will take some time to go back to its optimum level and hence the the chances of inflation coming back in a big way globally look subdued.

if that is true then USD may not see a correction yet this will put downward pressure on commodity prices and that will again ensure we have a low inflation till some time to come.

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