http://www.prudentbear.com/2014/03/aprilmayjune-dynamic.html#.Uy-dpPYlkkQ
And all of this really begs the question: to what degree can the Federal
Reserve's balance sheet be counted on as the markets' future liquidity
backstop? Actually, whether the Fed builds its holdings ("prints money")
or not is of seemingly little concern to the markets - that is so long
as the markets remain buoyant (as they've been). Yet an eruption of
de-risking/de-leveraging would have this backstop issue quickly elevated
to the top of market worries. Moreover, this liquidity issue would be
significantly compounded if the change in China's currency policy
incites a reversal of "hot money" flows and, perhaps, a resulting
turnabout in China's international reserve holdings. ''
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