The end of liquidity?

[Jack o'Clubs]

The following link is well worth reading. If you’re short of time, just read the first two paragraphs where the speaker introduces himself and his credentials, and the last two paragraphs where he cuts to the chase (although the stuff in the middle is interesting too). I’ve been thinking about this for a while (although more in connection with capital controls), but ‘the end of liquidity’ is an interesting concept for anyone trading short term in the markets….

http://www.bankofengland.co.uk/publications/Documents/speeches/2012/speech589.pdf

 

[NVP]

dont underestimate the markets ability to adapt.......