«The Indian government has just abolished the 500 and 1,000 rupee notes and they are now facing
the problem of liquidity shortage of paper money,» Liang told Bitcoin Magazine.
Not exact matches
Some in the market have attributed the sharp market swings seen during the downturns in October and December as indicating structural
problems with
liquidity in the market — and some fingers have been pointed at the proliferation
of bond funds.
Then during an interview with Bloomberg Television early last month, he downplayed a series
of market headwinds, saying that «the only real
problem now is low
liquidity and market volatility.»
In addition to that, the euro area has (a) worsening
problems of political instability (Italy without government, unfolding corruption scandals in recession - hit Spain and France), (b) dysfunctional banking systems (weak banks and their impaired lending activities despite ample
liquidity supplied by the ECB) and (c) lingering uncertainties about the financial system's credibility (
problems with depositor and investor protection).
(One
of those loans came from the WOF, which itself had encountered
liquidity problems and shut down redemptions from time to time.)
In other words, second - layer networks solve the
problems bitcoin faces — scalability and lack
of liquidity.
That bolded header screamed off the pages
of the Globe and Mail business section the morning after embattled U.S. president Barack Obama informed the world that he was ready to uncork America's seemingly bottomless bottle
of liquidity and pour another US$ 447 billion on the unemployment
problem haunting the stalled U.S. economy.
The
problem obviously is that the lack
of any material
liquidity in the market combined with the recent correction creates a risk that they may not see the actual cash returns for the paper gains they already booked.
Strategists at Bank
of America Merrill Lynch put a fine point on the paradox
of how central banks created both a
liquidity solution and
problem with their historically aggressive measures while they and congressional legislators created a tighter regulatory environment.
They do this first by depicting finance and rent - seeking privilege as part
of the economy's real wealth - creating process rather than as an extractive sector, and second, by, pretending that the financial
problem is only a temporary
liquidity problem, not a structural
problem debt
of debts that can't be paid — unless the government makes up the gap at the non-financial sector's expense.
Christina Padgett, head
of leveraged finance at Moody's Investors Service, said
liquidity concerns are not a major
problem for the high - yield portion
of the market now, but there are challenges for the future.
That there was no attempt to solve the debt
problem which was the core
of the thing, that it misrepresented the debt
problem as a
liquidity problem and that it simply was to bail out Mr. Paulson's friends who are
of course the same people who contribute to the Democratic campaigns.
We had something similar called REITs (Real Estate Investment Trusts) and they all had very bad
liquidity problems during the peak
of the financial crisis.
If you restate his argument in an uncharitable way, he is saying that the solution for the
problem of excluding non-accredited investors in value appreciation is not to let them participate in private markets, but instead to suffer them to populate an earlier public market for private investors seeking
liquidity.
Kind
of like when financial companies say they have a temporary
liquidity problem, not a solvency
problem, and all the bad news stories and nasty rumors are to blame.
B) Generate no revenue and have no model for doing so besides â $ œadvertisingâ $ C) Due to (B) the only viable
liquidity event is a sale to a major internet player (Yahoo, Google, eBay, MSN) which is very, very unlikely D) Target the same 20 — 30 year old male, tech savvy demographic and will likely never be able to even capture 1 / 100th
of the TechCrunch readership after everyone realizes how it just wastes time and solves on real
problem
At what point will investors figure out that the
liquidity problems are nothing but the precursors
of insolvency
problems?
The only
problem that has gone away is a shortage
of liquidity.
Greek Finance Minister Yanis Varufakis confirmed on Friday that negotiations are being conducted with Greece's European partners to discuss ways
of addressing these
liquidity problems, while expressing confidence that the parties will eventually reach a solution, arguing that the whole issue was about a «small amount»
of money.
Considering all
of these factors and the company's apparent ability to generate excess cash that can be used to pay down debt, AXL does not obviously have an imminent
liquidity problem.
If there is a
problem in the bond market, and it has to suspend trading for any amount
of time, stocks will probably be sold to create
liquidity.
Margin lending to buy shares may well decline as humbled investors deleverage, but there is the danger that fresh
liquidity will go into different speculative bets — money might again flow into real estate ventures, for example — thus holding out the possibility
of fresh
problems sometime ahead.
Some
of the junior mining stocks offer good potential, but they are so thinly traded
liquidity can be a real
problem.
I think I can follow Buffett's logic to invest to a certain extent: He seems to be relatively bullish on Canada and he judged the
problems of Home Capital Group as a
liquidity and reputation
problem which he could heal with short - term money and his name.
The leveraged lending market is enjoying a period
of particular strength and high
liquidity after the two regulators suggested at industry conferences that they have no
problem with banks taking risks.
Think
of this massive
liquidity as having the effect
of acting like a «pain killer» on systemic
problems percolating like a cancer beneath the surface.
At issue is whether Lehman's crisis was merely a temporary «
liquidity problem,» that time would have cleaned up much like BP's oil spill in the Gulf; or, did the firm suffer a more deep - seated «balance sheet
problem» (negative equity), as Federal Reserve Chairman Ben Bernanke claims — a junk balance sheet, composed
of assets that not only had no buyers at the time, but had no visible likelihood
of recovering their market price even after the $ 13 trillion the Treasury and Federal Reserve have spent to bail out Wall Street.
You could think
of this as a
liquidity problem: Maybe people just don't have enough ready cash in their checking or savings accounts to meet an unexpected expense.
The main
problem of Bitcoin alternatives is that they lack
liquidity and therefore have little or no usage by the mainstream consumer.
Note: they have lower
liquidity than standard index ETFs, which means bigger bid / ask spreads, and this can be a real
problem during times
of low volatility.
Adding to the concerns are other economic
problems including a high unemployment rate
of over 25 %, the recent demise
of the country's VBS Mutual Bank amid a «severe
liquidity crisis,» as well as the highest rate
of economic crime (77 %) in the world, according to PwC's biennial Global Economic Crime Survey.
He said the government's efforts at addressing the
liquidity problems in the power sector would go a long way to release funds for GRIDCo to execute its critical projects that would make the national transmission system robust and improve reliability
of power supply.
On 14 September 2007, the Northern Rock Bank sought and received a
liquidity support facility from the Bank
of England, [83] following
problems in the credit markets during the financial crisis
of 2007 — 2010.
Covers the following topics: Money, as distinct from «income» and «wealth» Functions
of money Characteristics
of money Credit cards, Debit cards, Electronic money and the concept
of liquidity (whether assets are liquid or illiquid) Commodity money The barter system and the
problem of double coincidence
of wants Contains easily digestible points / explanations with appropriate amount
of on - screen text that makes note taking easy for students
of all abilities, whether native or non-native users
of English.
Included in the PowerPoint: a) Scarcity, Choice and Opportunity Cost - The Fundamental Economic
Problem - The Meaning
of Scarcity and the inevitability
of choices at all levels (individual, firms, govt)- The basic questions
of what will be produced ow and for whom - The Meaning
of the term «Ceteris Paribus» - The Margin and Decision Making at the Margin - Sort run, long run, very long run b) Positive and Normative Statements - the distinction between fact and value judgements c) Factors
of Production - the rewards to the factors
of production: land, labour, capital and enterprise - Specialization and division
of labour d) Resource Allocation in Different Economic Systems and Issues
of Transition - decision making in market, planned and mixed economies - the role
of the factor enterprise in a modern economy e) Production Possibility Curves - shape and shifts
of the curve - constant and increasing opportunity costs f) Money - functions and characteristics in a modern economy - barter, cash and bank deposits, cheques, near money,
liquidity g) Classification
of Goods and Services - free goods, private goods (economic goods) and public goods - merit goods and demerit goods as the outcome
of imperfect information by consumers PowerPoint Also Includes: - Key Terms for each Chapter - Activities - Multiple Choice and Essay questions from past exam papers.
They argue that «there must be serious fundamental
problems with any asset class that commands a Normalized P / E
of only 13x at the peak (in May 2015)
of one
of the greatest
liquidity - driven bull markets in history.
Aside from owning part
of a mortgage on a building near the World Trade Center (One Liberty Plaza) which was rumored to be leaning (not true), the
problems were pretty light;
liquidity was adequate.
In all
of these cases, you had some institutions that were leaders in the nuttiness that went belly - up, or had significant
problems in advance
of the crisis, but they were dismissed as one - time events, or mere
liquidity and not solvency
problems — not something that was indicative
of the system as a whole.
That is not a big
problem in the boom phase
of the financial cycle, because those same measures help to avoid a loss
of liquidity and credit availability in the bust phase
of the cycle.
Even the FOMC blinked, with a neophyte Greenspan, with no serious crisis imminent, thus beginning his career
of throwing
liquidity at small
problems, and leaving the consequences for later.
This is because, given Bear's
liquidity problems, its use
of the discount window directly (just as its use
of the JPM conduit) would have created an open - ended credit risk exposure for the Fed.
Bernanke cut rates 8/2007 -9 / 2008 in the midst
of a solvency
problem as opposed to a
liquidity problem.
Market watchers speculate it might have been due to a
liquidity problem or opportunistic buyers taking advantage
of the chaos in the markets.
Generally, a
problem bank is defined as one considered to be in financial difficulty based on an analysis
of various factors, including
liquidity, capital levels, and asset quality.
Retire Young & Rich will show you how to completely side step
liquidity problems and large bid ask spreads to put together a portfolio
of high potential stocks.
A mental accounting bias and the inability
of a portfolio to grow over time often results in severe
liquidity problems down the line.
Given the
liquidity of government bonds, tracking errors will be less
of a
problem with ETFs that represent government bond indices.
The suppliers
of bond ETFs get around the
liquidity problem by using representative sampling, which simply means tracking only a sufficient number
of bonds to represent an index.
As one more example
of how monetary policy affects the asset markets, consider how the Fed temporarily flooded the banks with
liquidity to avert
problems regarding Y2K, and the stock markets reacted to the excess
liquidity with a two month lag.
He felt that most
problems from
liquidity could be solved through business judgment, but that it would often cut across the short term goals
of many financial firms.