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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: $Mogul who wrote (83592)7/13/2007 7:13:13 PM
From: shades  Read Replies (1) of 110194
 
That has Liquidity? Like treasuries used to have liquidity?

In the spirit of Mish - inflation - what the heck is it?

I am going to ask you - liquidity - what the heck is it?

en.wikipedia.org

Market liquidity is a business, economics or investment term that refers to an asset's ability to be easily converted through an act of buying or selling without causing a significant movement in the price and with minimum loss of value.

Just because you may think yen are liquid, does not make it so, not too long ago certain tranches of CDO's were thought to be liquid and bear stearns found out the hard way that was not the case. I see dealers on the corner selling crack rock and hookers selling sex - that is LIQUID - I dont see anyone on the corner selling treasuries or jap yen - if civilization collapses and gold goes to 10K an ounce - what am I gonna have better odds LIQUIDAITNG - the crack, cocaine, moonshine, exstacy, hookers sex, or jap yen and gold bars??

My grandpa lived through the depression, he could have worked in the gold mines - he chose to make moonshine. What is LIQUID right now while the bankers are in power and the world financial system is in tact can change RADICALLY if civilization breaks down LIKE THE GOLDBUGS DREAM OF - just ask the people in NEW ORLEANS. MAD MAX BEYOND THUNDERDOME - didn't matter if you had gold or yen or dollars - what mattered if you got your pistol out before the other guy - just like in new orleans during katrina.
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