This week saw more developments in the Mt. Gox bankruptcy, while major banks and regulators continue to struggle to understand the digital currency.
Everything runs on liquidity. Unless you know something I don’t, that dollar bill in your pocket is just as likely to buy a can of Pabst Blue Ribbon today as it was yesterday, and will be tomorrow.
Or you could sell 1,000 lbs. of gold – if you have that lying around – without fear of completely scuttling the global gold market. Your bank has to have cash, liquidity, lying around somewhere in the back if it wants to stay in business.
And in many cases, it’s easy to see or verify this liquidity. It helps everyone feel better about doing anything.
Douglas H. Schulman, prior to his now scandalous reign as the former Commissioner of the IRS Commission, served as the Vice Chairman of the agency that regulated “Bernie” Madoff, who is now serving 150 year prison sentence for embezzling $18 billion from clients in America’s greatest Ponzi scheme. Shulman testified to the House Oversight and Government […]
This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big moves…