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.
When somebody asserts that a stock has an earning power of so much, I am sure that the person who hears him doesn't know what he means, and there is a good chance that the man who uses it doesn't know what it means.
Banks are run by executives, and executives protect themselves, and that does not always mean that banks are going to behave rationally.
While enthusiasm may be necessary for great accomplishments elsewhere, on Wall Street it almost invariably leads to disaster
There is always something to worry about. Avoid weekend thinking and ignoring the latest dire predictions of the newscasters. Sell a stock because the company's fundamentals deteriorate, not because the sky is falling.
While some might mistakenly consider value investing a mechanical tool for identifying bargains, it is actually a comprehensive investment philosophy that emphasizes the need to perform in-depth fundamental analysis, pursue long-term investment results, limit risk, and resist crowd psychology.
The research indicates that when we women invest, we women do tend to be more patient, take a longer-term perspective and as a result of it, tend to be better investors than men. But the messages we get are that investing is sort of 'the guys' world.'
Subscribe for the occasional hand-picked quote. No noise.