Sunday, August 5, 2007

Global Liquidity Defined

You’ve heard the term ‘global liquidity’ bandied about in the financial news a lot lately. Some of us have an idea what it means but not really. Here is a primer on just what those financial pundits are talking about when they use those two words together in a sentence.

It’s an excellent piece that’s easy to follow and bottom lines what we are now facing in the rapidly deteriorating global economy and housing crisis.

by Michael NystromAugust 3, 2007
Editor's Note: The following is in answer to a reader's
question "What do they mean when they talk about global liquidity drying up?"

In remembrance of my high school biology teacher, who always reminded us that the only stupid question is an
unasked question, I offer the following explanation. ---

Financial analysts and news reporters often refer to the concept of "liquidity," as though it were a magic wand. One touch and all ills are cured. Until recently, it was often heard that "the world is awash in liquidity," which was considered a good thing. More recently, the en vogue observation is that "global liquidity is drying up," which is spoken in ominous
The rest of the article at: bull not


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