The Business Times
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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

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Published Sun, May 17, 2015 · 09:50 PM

    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.

    Central banks

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