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Profiting off the Liquidity Preference
One aspect of this market that I find fascinating is the dramatic yield spreads between short-term Treasury yields ( ^IRX ) and just about everything else. Short-term Treasuries have one major benefit over all other securities and that is their safety. No matter what happens, an investor can be ...
Should We Penalize Liquidity Preference?
econlog.econlib.org — (November 30, 2008 02:38 PM, by Arnold Kling) Greg Mankiw says that it is time to re-read Keynes, and Tyler Cowen is ready to take him up on it. One important Keynesian idea is liquidity preference. In textbooks, an increase in liquidity preference ... (more) Should We Penalize Liquidity Preference?
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Monday links: liquidity preferences
Abnormal Returns — ... Investors are demanding liquidity at all costs. (Crossing Wall Street also ...

One Dozen Observations on the Current Market Stress
The Aleph Blog — ... the quality of their balance sheet buy up securities where liquidity is temporarily in short supply.  Personally, I don’t think it will work.  It is much easier to get into a market than to get out, particularly if you are a large player with no profit motive.  Three last semi-related articles that I found interesting: Quantitative easing: printing money like mad to ward off deflation Should We Penalize Liquidity Preference? Profiting off the Liquidity Preference T-bills are in high ...

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