Cummings believes in creating vast pools of liquidity in the stock market, just as the nyse and Nasdaq do.
This program could make it easier for more people to sell stock, providing more liquidity in the market.
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There are other facts, but suffice it to say that the run on the banks and eroding confidence led to a reduction in market liquidity, and the stock market was en route to a decent of nearly 50%.
Look at how positively Japan's stock market responded when the government moved to pump liquidity into Japanese banks.
By becoming a REIT, listed on the New York Stock Exchange, investors can also benefit from full market liquidity where Manhattan property valuations are at record levels.
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There's no shortage of liquidity to fuel the economy--and the stock market.
The stock market rally from January, which I considered a fraud, was caused by excessive liquidity provided by the Fed, and last, but certainly not least, the myth that there was, in fact, a quick painless solution to the European debt crisis.
In an echo of the May 2010 "flash crash, " when the Dow lost 600 points in a matter of minutes, market participants say liquidity a measure of traders' ability to sell stock positions quickly dried up while the market was falling.
Now, the other investment that I really like right now, because so many of the world markets have gone up because of the incredible tsunami of liquidity that we and the rest of the world have provided is the Vanguard Total Stock Market portfolio.
When positions and exposures cannot be determined rapidly--as was the case, for example, when program trades overwhelmed the system during the 1987 stock market crash--potential outcomes include highly risk-averse behavior by market participants, sharp declines in market liquidity, and high volatility in asset prices.
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