Signs liquidity is about to disappear from your market
July 18th, 2006
Liquidity makes markets. Without a fair share of buyers and sellers to keep the spreads reasonable, nothing works. If you were to suck a big player out of the market, say one that provides a lot of “insured liquidity,” the same thing would happen, inefficiency, if not wholesale disruption.
What are some of the signs that a big player desperately needs an exit door?
Start with some fraud. Toss in backing out of early stage deals. Throw in a mass exodus of its managers.
I think that is plenty in the way of signs.
Posted in Thoughtmarket on Tuesday, July 18th, 2006 at 4:45 pm
| Tags: Fannie Mae, mortgage
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July 31st, 2006 at 2:02 pm
It’s interesting how Freddie and Fannie have been accumulating dings over the years. Too bad I was on vacation when you wrote this article or I’d probably have more to say.
July 31st, 2006 at 7:22 pm
Interesting, possibly. Daunting, certainly.