Originally Posted by Peterw
Liquidity in the markets will affect you if you have a managed investement fund of any kind for retirement. Also If you have a business or work for a company that does any kind of overseas trade then currency rates and import/export prices will be affected by liquidity in the markets. Also banks need to be liquid in order to lend out money and offer mortgages, business loans etc.
All you have listed above, though, Pete, affect only those in the financial world. I still don't see how it affects John Q. Citizen.
I'm not best placed to explain all this though.
Fair enough. Good shot, though.
Originally Posted by aelle
Hang on. You do know that in the real economy as a whole (I mean companies that provide a concrete product or service), transactions between businesses are much more important in volume than transactions with the general public, right?
No, actually, I don't know this, which is why I'm asking the question.
It's not because an activity does not directly involve a member of the general public that it doesn't eventually serve the public. A business-to-business (B2B) company can help a business-to-customer (B2C) company serve you better (1 step removed) or help another B2B company that serves a B2C company (2 steps removed) etc. It must all benefit the customer eventually, or the activity would stop being profitable and die. |
Things that go against the public's interest seem to go against the laws of the market, as far as I can tell (some lobbies, some government protected companies).
But how does it "serve" the public? By "not dying?" How does profitability "serve" the general public?