….but you cannot make him drink.  Just like many aspects of our financial situation. It’s another way of saying the traditional “pushing on a string” concept but since my version is a bit more common to most people, that’s what I am using today.

• The Fed can inject gazillions of liquidity, but they cannot make the banks use it.
• The administration and Congress can send consumers $168 billion, but they cannot make them spend it.
• The Treasury and other politicos can offer to renegotiate troubled mortgages, but they cannot make the troubled “homeborrowers” ask for the help.
• Dealers can hold Auction Rate Security auctions, but they cannot make bidders bid and they cannot even make themselves bid.

There are many examples of “you can lead a horse to water” behavior.  It’s a major dislocation of the supply/demand equation.