You can't get cash. You have 14,000 acres of cattle ranch (and other ranchy stuff, like dressing). But that ranch just breaks even on a cash flow basis. And you really need cash for the water slide you wanted to put in your house. The slide company doesn't take cattle as payment. The uptight slogs want cash. Have cash = have liquidity.
But...you don't have either. If you try to sell half-fatted cows, instead of getting 5 grand apiece, you only get 2 grand. They're really not worth selling to get you out of this liquidity crisis. So you don't. And you live without the slide.
And this crisis happens on a macro level with nations as well. Think: post-WW2 Europe. The credit system exists for a reason. Credit card headroom = liquidity. You can do the rest of the math.
Related or Semi-related Video
Finance: What is a Liquid Market?17 Views
Finance allah shmoop What is liquid market Well it's one
that trades Ah lot High volume Lots of buyers Lots
of sellers Liquid lots of cash sloshing this way In
that way Go this way and that Did you ever
see a liquid market go this way and that That
little song Did you ever see a lassie Never mind
All right Weir Liquid markets Good Well because they implied
there's Lots of cash ready willing and able to be
put to work And that's usually a sign of a
healthy risk seeking active market versus risk averse one which
is you know hiding Ah liquid market means that investors
want to put their cash toe work that they have
actually saved cash along the way and or that they
have relatively easy access to credit And you can think
about it from the perspective of your kindly loving realtor
who wants a world where lots of people are buying
homes But in orderto have that happen you have to
have lots of people who are also selling homes at
the same time Otherwise prices just go higher and higher
with no supply to meet demand And at the end
of the day in real estate and it's in the
stock market while the most important thing yes that the
brokers get pays So that's a liquid market one that
trades a lot like it's Wet trading back and for
sloshing around not ice Where everything's you know all jammed 00:01:22.109 --> [endTime] up No needs heat or an animal or something
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