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A man smokes a cigarette outside The London Stock Exchange November 11, 2013.
A man smokes a cigarette outside The London Stock Exchange November 11, 2013.
(Eddie Keogh/Reuters)

Markets becoming illiquid – and that’s not so bad

Liquidity is one of the good things that financial institutions offer. Life is easier, and savings are higher, when people can cash in and trade their assets with relative ease. In the financial world, more liquidity is always considered better than less, while illiquidity is a term of opprobrium. This taboo is currently being tested.