Aren’t rich people good for anything?
Felix Salmon asked:
More generally, you need liquidity to profit from a liquidity event. If illiquid paper plunges in price, you can buy it up (with cash), hold it to maturity, and make a tidy sum. But where’s that cash going to come from? That’s the question.
I am glad to see this in the new Portfolio magazine finance blog. Felix is always interesting, here is his post on whether we are facing a liquidity or insolvency crisis.