What liquidity???? There is none. The small manufactures and companies in NA are already complaining of the lack of available funds/loans. The banks won't lend to each other!!!!!!! If they do it is at much higher rates and they are ALL gun shy about potential risk.
The money that was 'floating' around was built on risk and whan that risk finally materiallized the money disappeared - hence the current crisis/problems
Not wishing to be confrontational, just merely curious (or maybe simplistic); assuming all the money and wealth (generated over millenia) has not been spirited away by aliens, my question still stands; who has got it now? China? India? The Mafia? Al Quaeda? Money does change hands after all.
Seems to me there may be some global hidden agendas at work here. Lot of media chat in some quarters about the imminent downfall of the western system (aka the US inspired democratic/capitalist way of doing things). May need looking into. If the model is about to fail, then we had better all pay attention. Or perhaps it's a case of the Roman gladiator chant - " Eat drink and be merry, for tomorrow we die...". In the case of the USA, it certainly seems like a willingness to pass the problems on to later generations to solve.