We’ll post the video when we can find it… but the CEO of Knight Capital, Thomas Joyce just wrapped up a rather interesting interview with Bob Pisani on CNBC.
It ended with Pisani asking a “green shoots” type of question, namely, how did a broken market get to be healthy in such a short time?
Joyce’s answer: “We’ve seen an incredible increase in the market thanks to the Fed, and that liquidity finds its way into the financial markets if the economy isn’t using it, and once you build up a little momentum, it feeds on itself.“
In other words: There’s lots of cash out there, and nothing to do with it in the real economy, so it’s finding its way into financial markets.
Far from the “everthing is hunky dory” answer we think Pisani was looking for.