Cheap money turns into liquidity trap
Abundance of cash has made it harder for investors to sell their financial assets without triggering wild price swings
London
INVESTORS used to thinking that vast quantities of cheap central bank money make financial assets a one-way bet have had a rude awakening in recent weeks, as that same conventional wisdom created frailties in the functioning of markets.
The latest correction may look little more than a blip in an eight-year rally. But it has exposed a painful truth about an essential issue - liquidity.
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