Nov 20th, 2008 · As central banks continue to slash interest rates almost to zero, prices can plummet. It creates a liquidity trap, as it did in the 1930s and in Japan during the 1990s. Harvard economist Kenneth Rogoff outlines what deflation could mean for modern America.
Oct 10th, 2008 · One crucial element in understanding and fixing the financial crisis is liquidity. The waterfall of cash that buoyed the global economy in recent years has gone dry. Getting capital flowing again is proving to be an enormous, and so far unsuccessful, challenge.
Oct 8th, 2008 · Despite the $700 billion bailout and central banks pumping new liquidity into the system, markets continue to drop. Dr. Richard Peterson, managing partner of MarketPsych, discsuses the psychology behind market gyration.
Sep 16th, 2008 · Federal Reserve officials meet Tuesday to decide whether to lower a key interest rate in an effort to assuage the financial system. Meanwhile, the Fed has pumped $120 billion into the financial markets during the past two days and said said it is ready to provide more liquidity if needed.
Mar 14th, 2008 · The big Wall Street investment firm Bear Stearns needed emergency funds Friday to fend off a liquidity crisis that threatened the firm's viability. Bear's CEO, Alan Schwartz, had reassured investors that his firm was in fine shape, but the development shows how quickly things can change in the current environment.
Dec 12th, 2007 · The Federal Reserve Bank moved Wednesday morning to ease a global credit crisis. The Fed's move was coordinated with four other major central banks and is designed to increase liquidity around the globe. Many banks are feeling the housing and mortgage industry problems in the U.S. and have curtailed their lending. The Fed hopes a big and coordinated infusion of cash will keep the global economy humming.
Aug 28th, 2007 · On Oct. 17, 1907, panic began to spread on Wall Street after two men tried to corner the copper market. In the months preceding the panic, the stock market was shaky at best; banks and securities firms were contending with major liquidity problems. By mid-October, Wall Street was paralyzed; for days, there were runs on several large banks.
Aug 20th, 2007 · Federal Reserve Chairman Ben Bernanke spent his career studying the Great Depression to understand what a Fed should do during liquidity crises. His view is that the Fed did exactly the wrong things back then, and he's committed not to repeat that mistake.