Illiquid sounds like a mile word.

It sounds like maybe the markets are thirsty.

It’s actually MUCH worse than that.

It means that a buyer cannot be found for your asset, so for the time being at least, it is worthless.

It’s like being marooned on a desert island with a pirate chest full of gold doubloons. Technically, you are rich, but you still have no shelter, food or water, and you die all the same.

The Collateralized Debt Obligation (CDO)market is very nearly illiquid, according to Ross Heller of JPMorgan Securities, who is saying, “We’re definitely in a period of very low liquidity at the moment, which has actually been dropping precipitously in the last few weeks.”

Desert Island time.

I’m beginning to wonder if a Honda full of silver is over optimistic, and that instead we should fill it with canned goods and ammunition.