Sublime

It's not like investing in a new company or like investing in a building or a machine. You put out so much money and what do you have in your hands? Nothing you can resell, nothing you can offer as collateral.

In many, if not most, seed- and early-stage funding scenarios, the investments are structured in LIFO order: last in, first out. The technical term for this is the liquidation waterfall, because in a liquidation—whether good, as in a large buyout, or bad, as in a distress sale—investors and others are paid out in a specified order.

In the Treasury market, following several consecutive days of deteriorating conditions, market participants reported an acute decline in market liquidity. A number of primary dealers found it especially difficult to make markets in off-the-run Treasury securities and reported that this segment of the market had ceased to function effectively. This

The main characteristic of any asset is its liquidity, or the ease and speed at which one can buy or sell this asset for its market price. The most liquid asset is obviously cash—you can purchase it immediately or spend it on purchasing other assets.

casa própria não lhe proporciona boa liquidez.2

The worst feature about real estate in a depression is that it is illiquid and cannot be sold at any price. If it is free of mortgage the owner may hold on until normal times—but in most cases it is subject to mortgage—he cannot collect his rent from the tenants—and cannot pay on his mortgage or taxes and eventually loses his equity by the

(Rockefeller borrowed aggressively from banks, but those were mostly cash flow loans that were quickly repaid, not long-term investment capital.)