A liquidity trap is a situation in which, “after the rate of interest has fallen to a certain level, liquidity preference may become virtually absolute in the sense that almost everyone prefers holding cash rather than holding a debt which yields so low a rate of interest.”
Well, Buckaroos, we are in a liquidity trap with the 3 month Treasury yield at -0.025%.
A closer look at the T-bill market today.
So here we sit in a classic liquidity trap!
Fed Chair Jerome Powell in a liquidity trap!
Mega thanks to Jesse at Jesse’s Cafe Americain for the jail jpg.
Frankly, I like The Byrds version of Buckaroobetter with the great Clarence White on the Fender Telecaster B-Bender guitar.