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And we have others essentially arguing that no regulatory framework could have withstood the pressure created by the massive global liquidity flows which resulted from these global imbalances.
"I'm not saying there is a black box, or anything of that nature, but the complexity of our economy is such, and the way liquidity flows through the system is such, that you essentially get very complex differences in the way monetary policy plays out," Mr. Greenspan said.
TrimTabs tracks the liquidity flows in markets and sectors.
"As a bank, we pay a lot of attention to liquidity flows.
But the cause was problems in the U.S., which affected all markets and liquidity flows.
"This is a result of the recovery in the global trade cycle, and surging liquidity flows," the research report said.
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Industry groups say speculators are needed to keep liquidity flowing.
Even the job title stockbroker derives from the French word brocheur, the tavern worker who tapped the kegs of beer to get the liquidity flowing.
One reason why conventional macroeconomic policies have been less effective is that a part of each country's effort is dissipated by the newly injected liquidity flowing beyond borders.If a critically large group of countries could announce co-ordinated injections of liquidity, each act would be more effective.
The European Central Bank (ECB) is pumping unprecedented amounts of money into one end of the pipe, but how much of that will find its way to the parched real economy is another question entirely.Start with the liquidity flowing into the euro-area banking system.
Now it lets some at least of the resultant liquidity flow into the economy.Critics might fret that the recent slowdown in the growth in Japan's monetary base (banks' reserves at the central bank plus notes and coins in circulation) suggests that the Bank of Japan has tightened policy.
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