Quotes About Liquidity

In a financial crisis, only the Fed, as the lender of last resort, might stand between our economy and financial catastrophe. We must leave the Fed with the flexibility to provide liquidity in order to stop a financial panic.

A short squeeze could happen with the U.S. dollar if lenders suddenly forced debtors to pay in cash.

The failure of Lehman Brothers demonstrated that liquidity provision by the Federal Reserve would not be sufficient to stop the crisis; substantial fiscal resources were necessary.

Helping Wall Street regain confidence and stability was the last thing an angry public wanted in 2009 after the markets crashed. But without such support, markets can buckle and liquidity can disappear - often for decades, as has been the case in Japan.

It's extremely important for our banks to have more capital, higher quality capital.

Among other objectives, liquidity guidelines must take into account the risks that inadequate liquidity planning by major financial firms pose for the broader financial system, and they must ensure that these firms do not become excessively reliant on liquidity support from the central bank.

JP Morgan always has higher capital liquidity, that is partially to make up for mistakes and problems and obviously it's a tough economy. We support an oversight committee, we supported some of the compensation, new compensation rules, though we already follow most of them. We support a lot of it.

I do sense that the financial system is under the gun. In order to keep our system and economies moving globally, there's the need to extend new money.

As you know, in the latter part of 2008 and early 2009, the Federal Reserve took extraordinary steps to provide liquidity and support credit market functioning, including the establishment of a number of emergency lending facilities and the creation or extension of currency swap agreements with 14 central banks around the world.

Liquidity is oxygen for a financial system.

Any country with a large public debt, and with no access to monetary financing, could be subject to a run on its debt, even if it was solvent in the long run. In other words, a liquidity crisis triggered by lack of confidence could push into insolvency not only banks, but also sovereigns with high public debts and no access to the printing press.

Business creates liquidity; real estate creates wealth.

Risk of Financial Leverage This risk of loss increases exponentially when we add any form of financial leverage, i.e. borrowing money to invest.

Turning a market into a commodity market helps make it really thick, because any buyer can buy from any seller, and any seller can sell to any buyer.

Typically in a panic, corporate bonds sell off as investors fear weaker growth, tighter financial conditions, or need liquidity.

My wealth came from growing businesses. I had wealth, but not liquidity. Basically I transferred illiquid shares of AIC for liquid shares of Manulife. Now I'm the biggest individual shareholder of Manulife.

capital, having considerably more liquidity than water, slid

It may seem premature, but you need to be thinking of your exit from the moment you accept capital, because at that moment, you've made an explicit agreement with an investor that he or she will eventually be able to gain liquidity.

most people will not invest in real estate because of the acquisition, liquidity, and management challenges.

Auctions create greater price discovery and liquidity, resulting in a very meaningful final auction price. If you were building a securities exchange today, an auction would be a core feature.

Central banks need to be able to buy bonds if there are short-term malfunctions of the markets. But buying bonds without differentiation and without limits would be very problematic.

And once you get instantaneous communication with everybody, you have economic activity that's far more advanced, far more liquid, far more distributed than ever before.

Naturally, liquidity is a big factor in any market that seems to be a lot of money in the world, and there's a lot of discretionary money.

If you have a lot of short-term debt, it means that all of that money can be demanded in a very short period of time. Technically, short-term debt means money that's coming due within a year. Typically, it means money that's coming due within 30 to 90 days.