As a consequence, even among riskless assets, illiquidity premiums rise dramatically as investors seek the heavily traded “on-the-run” issues. History tells us that sharp reversals in confidence happen abruptly, most often with little advance notice. They are self-reinforcing processes that can compress into a very short time period.
I would like to thank Brian Doyle, David Lebow, and Ellen Meade for their assistance in preparing these remarks. 2 Wage gains for workers with different wage levels can be calculated using data from the Current Population  Survey from the Bureau of Labor Statistics. The Economic Policy Institute provides convenient tabulations of these data.