Quotes About Liquidity

As Keynes observed, there cannot be "liquidity" for the community as a whole.6

The real culprit in 1994 was leverage. If you aren't in debt, you can't go broke and can't be made to sell, in which case "liquidity" is irrelevant. But a leveraged firm may be forced to sell, lest fast-accumulating losses put it out of business. Leverage always gives rise to this same brutal dynamic, and its dangers cannot be stressed

If you aren't in debt, you can't go broke and can't be made to sell, in which case "liquidity" is irrelevant. But a leveraged firm may be forced to sell, lest fast-accumulating losses put it out of business. Leverage always gives rise to this same brutal dynamic, and its dangers cannot be stressed too often.

As Keynes observed, there cannot be "liquidity" for the community as a whole.6 The mistake is in thinking that markets have a duty to stay liquid or that buyers will always be present to accommodate sellers.

If you aren't in debt, you can't go broke and can't be made to sell, in which case "liquidity" is irrelevant.

On September 20, the New York Stock Exchange halted trading for ten days. Grant received emergency pleas for purchases of Treasury bonds to add liquidity to national banks, while Thomas Murphy, the former New York customs collector, wired: "Relief must come immediately or hundreds if not thousands of our best men will be ruined." Not since 1837 had such a spasm of fear flashed through Wall Street.

I support the Volcker rule, but there needs to be proper definitions around the Volcker rule so that banks can understand exactly what they can do and what they can't do, and that they can provide the necessary function of liquidity in customer markets.

To be a more efficient, faster, and cheaper way to send money around the world, you have to be able to get in and out of Bitcoin. You need to have a liquid exchange on either end of the corridor.

The role of liquidity in systemic events provides yet another reason why, in the future, a more system wide or macroprudential approach to regulation is needed.

The academic economist never really knows what makes a businessman tick, why he wants sometimes to gamble on an investment project and why he sometimes prefers liquidity and cash. Maynard understood because he was a gambler himself and felt the gambling or liquidity instincts of the business man. He once said to me, 'Remember, Nicholas, that business life is always a bet.

The efficiency, credibility, and liquidity of the financial markets have been foundational to the largest economy in the world.

Without a doubt, we do support a robust framework for aggregate capital and liquidity and stress-testing.

The Central Bank should have a permanent window for discounting high quality securities where banks could go and discount these. It gives peace of mind to the banks. In the absence of this facility, what banks tend to do is to keep a liquidity cushion for emergency requirements. This is a very expensive way of managing liquidity.

The Fed has gone about as if the problem is a shortage of liquidity. That is not the basic problem. The basic problem for the markets is that uncertainty that the balance sheets of financial firms are credible. -Anna J. Schwartz interviewed in the Wall Street Journal, October 18-19, 2008.

there were, as had been feared, a large number of mutual-fund shareholders who demanded millions of dollars of their money in cash when the market crashed, but apparently the mutual funds had so much cash on hand that in most cases they could pay off their shareholders without selling substantial amounts of stock.

But whenever a crisis hits, many of the biggest players—banks, investment banks, hedge funds—rush to reduce their exposures, causing liquidity to dry up. Where previously there was heterogeneity and diversity of opinion, now there is unanimity: everybody wants to get out.

I think it's fundamentally a good sign that more and more professional traders and market makers are providing liquidity to the whole ecosystem. It allows people to move much larger quantities of digital currency more quickly than they would if that were not the case.

There's such a preoccupation with liquidity and such an unwillingness to invest beyond the horizon of the next quarter and making sure that the CEOs hit their quarterly earnings.

Hedge funds are not especially liquid. Many are 'gated' - meaning there are only small windows when you can withdraw your money. They typically have a high minimum investment and often require investors keep their money in the fund for at least one year.

There isn't a bank in the world that could withstand a run. They all borrow short and lend long, regardless of what they say.

The monetary policy of the United States has a major impact on global liquidity and capital flows and therefore, the liquidity of the U.S. dollar should be kept at a reasonable and stable level.

Of the maxims of orthodox finance, none, surely, is more antisocial than the fetish of liquidity…. It forgets that there is no such thing as liquidity of investment for the community as a whole.

They flooded liquidity in the marketplace but the mortgage rate is based much more on expectations of inflation. So if the average investor believes that there is inflation coming, they'll move that rate up.

Lending rate is a function of both liquidity as well as credit demand.