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The quote of the day comes from the Bank of Canada governor, Marc Carney, speaking to the Canada-U.K. Chamber of Commerce.
"The Usual Suspect for any event or dynamic too complicated to explain, global liquidity is the Keyser Söze of international finance. It has no agreed definition and, as a consequence, there has been no coherent policy approach to tame its more violent tendencies."
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"In conclusion, recent history has amply demonstrated that global liquidity has an important impact on financial stability and economic growth. Global liquidity has fluctuated wildly over the past five years, and we are on the cusp of another retrenchment. There are steps that can be taken to mitigate, but not eliminate, the negative effects of the current wave. How European banks choose to delever will determine which ones authorities around the world need to take."
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