When I hear complaints about less liquidity, remember there is such a thing as too much liquidity.
Interpretation
Excess liquidity can lead to economic problems, just as too little can.
Paul Volcker's quote highlights the importance of balance in the financial system, warning that while liquidity is necessary for economic activity, having too much of it can create risks such as inflation or asset bubbles. This statement serves as a reminder to policymakers and investors that moderation is key to maintaining economic stability.
In practice
In a financial conference discussing economic policies, one might use this quote to emphasize the need for careful regulation.
It is a sobering fact that the prominence of central banks in this century has coincided with a general tendency towards more inflation, not less. [I]f the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with 'free banking.' The truly unique power of a central bank, after all, is the power to create money, and ultimately the power to create is the power to destroy.
The only thing useful banks have invented in 20 years is the ATM.
What's the subject of life - to get rich? All of those fellows out there getting rich could be dancing around the real subject of life.
The propensity to swindle grows parallel with the propensity to speculate during a boom the implosion of an asset price bubble always leads to the discovery of frauds and swindles
Credit worthiness is like virginity, it can be preserved but not restored very easily, so it is crazy to play around with it.
The financial industry is a service industry. It should serve others before it serves itself.
Money management has been a profession involving a lot of fakery - people saying they can beat the market, and they really can't.
There will always be bull markets followed by bear markets followed by bull markets
Any bull market covers a multitude of sins, so there may be all sorts of problems with the current system that we won't see until the bear market comes.
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