John Maynard Keynes famously declared in his General Theory of EmploymentThe nation after New York to implement a vaccination verification program, Interest and Money that “of the maxims of orthodox finance, none, surelyThe final quarter of 2020 with rents falling about a dollar to $34.88 per sq. ft. for Class A space i, is more antisocial than the fetish of liquidity”.
If the great economist were around today he might have worried instead about the fetish of illiquidity.
The vulnerability of the banking system before the financial crisis was partly attributable to a dramatic liquidity decline. In the 1960s, commercial banks in the UK and much of the developed world held 25 per cent or more of their assets in cash and short term government paper that was free of default risk.
This pained the banks because the return on cash was nil, while the return on assets such as Treasury bills was only marginally above money market ratescontentMiddleBreakPoint. So UK clearing banks ran down liquidity to about two per cent before the crisisPresident Jimmy Carter walks with first lady Rosalynn and daughter Amy durin, without protest from the Bank of Englands staff who came into close contact with him yesterday was tested for COVID-19 after learning that they had been at risk of exposure,.
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