Quotes About Liquidity

Over time, low rates can put pressure on the business models of financial institutions.

That's why any money you'll need within the next five years should be removed from stocks and put into cash or cash equivalents like government bonds.

As economists bandy about terms like 'recapitalization,' 'credit lines,' and 'liquidity,' families are facing brutal cuts to their social services and welfare payments, losing their homes, wondering how their kids will make their way in the world.

To be sure, the provision of liquidity alone can by no means solve the problems of credit risk and credit losses; but it can reduce liquidity premiums, help restore the confidence of investors, and thus promote stability.

But if you want to keep your money safe, liquid, and earning interest, one option is a US Treasury money market fund with checking privileges. True, these funds aren't insured by the FDIC, but because they are tied only to US government debt and not to any corporations or banks that might default, the only way you can lose your money is if the government fails to pay its short-term obligations. If that happens, there is no US government, and all bets are off anyway!

I've lived through periods of illiquidity before. Asset prices come down. The economy slows or even goes into recession. Then the cycle re-starts. We buy at lower prices with less leverage.

I worked for twenty-some years with no capital, so I never had any liquidity. Managing my loans alone wouldn't do it, and working hard twenty-four hours a day seven days a week alone wouldn't do it. You have to be properly capitalized.

The Algo Wars were leaving a path of destruction in their wake. "HFT algos reduce the value of resting orders and increase the value of how fast orders can be placed and cancelled," wrote Nanex researcher Eric Hunsader. "This results in the illusion of liquidity. We can't understand why this is allowed to continue, because at the core, it is pure manipulation.

Provision of liquidity by the Fed is, conceptually, no different from the government's willingness to enforce contract rights.

The fact that large, solvent, heavily regulated banks would not lend to each other—or would lend to each other only at historically unprecedented interest rate premiums—and not lend to each other even overnight, was persuasive evidence, universally accepted by policymakers, that the crisis was essentially one of illiquidity.

Once it is recognized that the role of the state in a market economy is not only to enforce property and contract rights, but to ensure liquidity, then the bailout, properly understood, is no different from the enforcement of property rights. A host of legal consequences follow from this observation. This book gives an accounting of them.

By contrast, in a liquidity crisis only one creditor can save the debtor: the government. There is no competitive market that offers emergency loans during a liquidity crisis. This means that the government can dictate terms. It can also neglect the interests of other stakeholders or discriminate among them for political reasons. The risk of abuse is far higher than it is in a normal bankruptcy.

The bad employment report and our new liquidity measures competed for markets' attention on Friday.

him Bear was in danger of not having the cash to meet its obligations

Our emergency liquidity lending took many novel forms.

For better or worse, cash is the oxygen of your business, and you can't last long in any environment without it.

Liquidity is a good proxy for relative net worth. You can't lie about cash, stocks, and bond values.

Contrary to what most people think, bank money is much more important than state money. In Greece, for example, bank money makes up 84.26% of the total money supply.

There has to be a large number of people and routes that are lined up together. One part is liquidity and the other part is product - there's a lot that can go wrong.

The IMF is set up to deal with liquidity crises.

There are two things that you need to save for. First, you need an emergency cushion of no fewer than six months of living expenses. This needs to be cash in a liquid account where you can get at it in - yes - an emergency if you need it. In other words, money markets, not CDs. You also need to save for your future: that means retirement.

Achieving such deep and liquid markets requires large-scale financial sector reforms, with a complete replacement of the existing regulatory framework.

Derivatives trading should be standardized and as much as possible moved to clearinghouses.

Earnings don't move the overall market; it's the Federal Reserve Board... focus on the central banks, and focus on the movement of liquidity... most people in the market are looking for earnings and conventional measures. It's liquidity that moves markets.