He pointed out how banking functions thereby exercised - without access to central bank liquidity or public sector credit guarantees but free of regulatory costs - had been at the core of a powerful liquidity-generating, maturity-transforming machine at play in the US economy in the 2000s.
The Fed has set up other powerful new liquidity facilities.
Liquidity is such a powerful force; it's the reason most marketplaces and, more generally, network effect businesses like Craigslist, aren't easily disrupted.
"The diversity of our businesses and earnings power, the strength of our balance sheet, the access to financing and liquidity, all I think make the combination very powerful," he said.
That liquidity backstop comes with a new, more powerful regulator for the GSEs.
The ability for the WIR Bank to provide additional liquidity is what maintains the WIR Franc as a powerful complementary currency.
This added to the powerful speculation-spawning forces that were already in place: oceans of liquidity, zeal for yield and deceivingly low volatility in many markets.
Second, no matter what laws are written, good central banking is the most powerful and most influential financial regulator, if only through the broad management of liquidity and safety.
The New York Stock Exchange's most powerful asset for surviving the digital future is its sheer size and unrivaled liquidity.
The Indian public markets, he said, lack liquidity, and many Indian companies are thinly traded in markets controlled by powerful local brokerages.
This theoretical framework explains how e-marketplaces, in order to achieve success, must create a powerful setup (thus creating a strong strategic position) and meet the challenge of building liquidity and capturing value.
