Wednesday, December 23, 2009

Institutional Liquidity Crisis

  • Liquidity crisis appears due to multiple reasons such as personal weaknesses, ineffective leadership, social injustice, economic exploitation, and political turmoil.
  • Liquidity crunch at institutional level is primarily outcome of weak or rigid leadership. Liquidity crisis demands courageous and non-egoist approach. Courage means pragmatic approach towards threats and weakness, while the non-egoist stand means realistic approach towards opportunities and strengths.
  • A liquidity crunch at institutional level may lead towards urgent sale of marketable item for ready cash. An urgent sale is generally a wrong sale.

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