Comments on: What is Liquidity? (IV) http://alephblog.com/2010/02/06/what-is-liquidity-iv/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Sun, 27 May 2012 06:47:45 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bob_in_MAhttp://alephblog.com/2010/02/06/what-is-liquidity-iv/comment-page-1/#comment-24371 Bob_in_MA Sun, 07 Feb 2010 14:31:09 +0000 http://alephblog.com/?p=2332#comment-24371 Interesting post. During 2007, the bull argument usually included the phrase, "but there's so much liquidity!" I heard someone say in response, "yes, there's always a lot of liquidity, until there isn't." Interesting post.

During 2007, the bull argument usually included the phrase, “but there’s so much liquidity!” I heard someone say in response, “yes, there’s always a lot of liquidity, until there isn’t.”

]]> By: Kid Dynamitehttp://alephblog.com/2010/02/06/what-is-liquidity-iv/comment-page-1/#comment-24368 Kid Dynamite Sun, 07 Feb 2010 13:40:49 +0000 http://alephblog.com/?p=2332#comment-24368 interesting, David - i'd love to hear more rationale for your three bullet points at the end, because i think that the Fed and Treasury, by virtue of being new players (with new capital!) in an asset class, do indeed increase liquidity. If there are no buyers of something, and now the Fed is a buyer by virtue of a policy change, doesn't that, by definition, increase liquidity? Securitization, too, it seems, should definitely increase liquidity - at least in terms of ability to get exposure to an asset class. interesting, David – i’d love to hear more rationale for your three bullet points at the end, because i think that the Fed and Treasury, by virtue of being new players (with new capital!) in an asset class, do indeed increase liquidity. If there are no buyers of something, and now the Fed is a buyer by virtue of a policy change, doesn’t that, by definition, increase liquidity?

Securitization, too, it seems, should definitely increase liquidity – at least in terms of ability to get exposure to an asset class.

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