liquidity

When you were younger, "liquidity" probably meant that you had just peed the bed. But now that you are older, this word has probably taken on a whole new meaning. How liquid are your assets? What is their liquidity? How much liquidity is in your business?


Liquidity is a strange concept. For example, the gold bars in your basement are VERY liquid. So are your silver dollar coins. You can take them to a precious metals shop and sell them at any time. However, how liquid is that Ken Griffey, Jr. rookie baseball card worth? Well, that depends entirely on what someone is willing to pay you for it. That card is only worth what someone will put in your hand. $1? $100? And that old Yahtzee game might have even less liquidity still.


Liquidity is what you can get for your assets post haste. If you need cash RIGHT NOW, what could you get for your assets? And if you own a business, what could you get for selling your company supplies, factoring your assets, or just selling off your raw materials and equipment? THAT is liquidity.

So if you'll start wrapping it up, I'll start bringing in the pennies...

Bloggers speaking about liquidity can be found at sites like liquidityblog and blog-re.

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Original Technorati articles tagged “liquidity”

• in Finance
  Portugal, Spain Worry Contagion from Ireland
  Ireland authorities deny that they need EU aid, but Portugal and Spain urge it to act fast to prevent contagion.
  by vijji / on Nov 16, 2010

Latest blogosphere posts tagged “liquidity”

 

• Who tapped the LTRO, cont’d

  
  FT Alphaville — Authority: 689
  Just one name today, but hopefully it rams home why banks are using the ECB’s three-year liquidity. From BBVA’s latest results: Making use of the new lending facility...
  5 hours ago

• PDQ Launches Parallel Posting Capability for Smart Order Router

  
  High-Frequency Traders — Authority: 111
  PDQ Enterprises, the developer of PDQ ATS, today announced the launch of its new Parallel Posting capability for its Smart Order Router. Equity traders are now able to co-locate passive orders at multiple venues and automatically rebalance the remaining bids and offers. read more
  6 hours ago

• Next-generation system-wide liquidity stress testing

  
  The Forex Trading System — Authority: 150
  Heiko Hesse , Benjamin Neudorfer , Claus Puhr , Christian Schmieder , Stefan W Schmitz , 1 February 2012 The global financial crisis has shown that neglecting liquidity risk comes at a substantial price. This column presents a new framework to run system-wide, balance sheet data–based liquidity stress tests. ...
  1 day ago

• Time to go for a tighter fiscal policy, to ease monetary policy : Kotak

  
  Techno-Guru - Latest Technology News India, Latest Breaking Bollywood News of India, Online Shopping — Authority: 133
  Urging India to move ahead with economic reforms to benefit from the changing global dynamics, top banker Uday Kotak has said it is time for the country to go for a tighter fiscal policy and ease its monetary policy stance. “In the world, what we are seeing is an easing monetary policy and a move toward tighter ...
  3 days ago

• Concept of International Liquidity

  
  Socyberty — Authority: 577
  Concept of International Liquidity International liquidity means the resources or the reserves at the disposal of the various countries of the world, for settling trade and other imbalances in the international sphere. It is common knowledge that a country’s international transactions on current account are rarely ...
  5 days ago

• The liquidity trap – a boon or curse for equities?

  
  The Share Centre Blog — Authority: 121
  What happens when interest rates hit zero, and people still don’t want to borrow? That’s the story that unfolded in Japan twenty years ago, but, as far as the West is concerned, a liquidity trap is academically interesting, practically irrelevant – at least that is what we were being told until quite recently. ...
  6 days ago

• 1 List, 50 Stocks, Endless Opportunity

  
  Welcome to My Wealth Mastery || Welcome to My Wealth Mastery || — Authority: 94
  What does a successful trader do that an unsuccessful trader can’t seem to master? They quickly find and get in and out of the winning trades with expert precision. What does this better than anyone else? Smart money of course! Big banks and financial institutions have the capital and agility to persuade large and ...
  1 week ago

• Markets rise on CRR cut, Sensex closes tad below 17,000 (Third Lead)

  
  Thaindian News — Authority: 533
  Mumbai, Jan 24 (IANS) Indian equities markets rose Tuesday with investors cheering an unexpected cut in the cash reserve ratio (CRR) by the Reserve Bank of India. A benchmark index, however, slipped from the day’s high to close just below the 17,000-mark.After nearly two years of tight check on money supply to [...]
  1 week ago

• CRR reduction will help ease liquidity problems: India Inc.

  
  Thaindian News — Authority: 533
  New Delhi, Jan 24 (IANS) The Reserve Bank of India’s decision to cut the cash reserve ratio (CRR) by half a percentage point will help ease the liquidity situation and spur investment, India Inc. said Tuesday while welcoming the move.“This will help ease the liquidity situation in the banking system which has ...
  1 week ago

• India’s central bank infuses more money into system (Lead)

  
  Thaindian News — Authority: 533
  Mumbai, Jan 24 (IANS) After keeping money supply under a tight leash for nearly two years to tame galloping inflation, India’s central bank Tuesday took steps to infuse more liquidity into the system by reducing a key rate that would help the industry get out of the current downturn.The cash reserve ratio [...]
  1 week ago

• Rate cuts unlikely as RBI reviews policy this week

  
  Thaindian News — Authority: 533
  Mumbai Jan 22 (IANS) India Inc’s hopes of a rate cut may not happen, atleast this time, even though inflation, the main worry of the Reserve Bank of India (RBI), has shown a significant decline.The RBI will conduct the third quarter review of the monetary policy on Tuesday.As per latest data, India’s annual [...]
  1 week ago

• Kodak files for bankruptcy

  
  top99news - breaking news from the world top newspapers — Authority: 164
  http://www.guardian.co.uk Kodak files for bankruptcy Once-dominant Eastman Kodak Co and its US subsidiaries hit by decline of photographic film business in digital eraKodak has filed for bankruptcy in a bid to survive a liquidity crisis after years of falling sales related to the decline of its namesake ...
  2 weeks ago

• Q4 2011 Liquidity Monitor – Jan 19

  
  The Forex Trading System — Authority: 150
  Quarterly Update on Product Liquidity at CME Group Each quarter CME Group Research looks at the liquidity of its flagship futures and options products. The Liquidity Monitor focuses on the same products each time:  two key interest rate contracts, two FX contracts, a benchmark equity index and benchmark energy ...
  2 weeks ago

• Crisis imminent? China injects $29 billion short-term liquidity:rpt

  
  InvestmentWatch: Emerging markets, Real Estate, Personal finance, Business management, Politics, Economics — Authority: 149
  By V. Phani Kumar HONG KONG (MarketWatch) — The People’s Bank of China reportedly offered 183 billion yuan ($29 billion) of 14-day reverse repurchase agreements on Thursday, easing liquidity conditions ahead of the Lunar New Year holidays and sharply lowering borrowing costs in the short-term money markets. ...
  2 weeks ago

• Managing Stocks in an Economic Crisis

  
  Rich Credit Debt Loan — Authority: 490
  2008 is showing all of the hallmarks of being a difficult year financially, and for this reason, having control over your cash flow is absolutely vital. Managing stocks in an economic crisis is one of the best possible defenses that you can take during the credit crunch. By monitoring the liquidity of your cash ...
  2 weeks ago

• Some Thoughts On IMF Resources

  
  Credit Writedowns — Authority: 648
  By Win Thin Here are some thoughts on reports of an expansion of IMF lending capacity. The most important thing to note is that this is not a done deal by any stretch, and should be seen simply as a statement of intent by the agency. The IMF reportedly wants to strike a deal at the February 25-26 meeting of G20 ...
  2 weeks ago

• IMF Proposes Trillion Dollar Lending Expansion

  
  GreenLightAdvisor Views — Authority: 127
  Here’s a dead on arrival proposal: IMF Proposes Trillion Dollar Lending Expansion Most European stocks rose, erasing earlier losses, as the International Monetary Fund was said to propose a $1 trillion expansion of its lending resources. Asian shares and U.S. index futures advanced. The IMF is proposing an ...
  2 weeks ago

• Monti, The Full Version

  
  Credit Writedowns — Authority: 648
  By Edward Hugh This post first appeared on my Roubini Global EconoMonitor Blog “ Don’t Shoot The Messenger “. The version in question is an interview with the Financial Times. A summary was available here , but now they have gone live with the whole interview . If you can raise it on Google or ...
  2 weeks ago

• Bank Data Supports Austrian Theory For Rapid Recovery

  
  The Daily Capitalist — Authority: 491
  It is an axiom of Austrian economic theory that the quickest road to recovery is to liquidate malinvestments as soon as possible. That is, sell off or bankrupt those failed projects invested in on the way up the boom phase of the business cycle. Those projects which seemed profitable at the time turned out to be a ...
  2 weeks ago

• The ECB is Engaging in Massive QE

  
  Credit Writedowns — Authority: 648
  By Marshall Auerback So the ratings agencies have finally followed through on the big threat and downgraded a number of the eurozone’s credit ratings, including France and Austria, both of which have now lost their coveted Triple AAA status. Italy, Portugal and Spain were downgraded a further two notches. What ...
  2 weeks ago

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