Thursday, February 26, 2009

"Liquidity Injection" defined:

Image by Armin Kübelbeck under GNU Free Documentation License

A "liquidity injection" is when the Federal Government gives money to a private entity such as a bank or automobile manufacturer in order to support them in difficult times and hopefully keep them in business. It is not called a tax payer funded gift, or a purchase of preferred shares, but a liquidity injection.

(Can you imagine how happy Shakespeare would be were he alive today? All these great words spurred into being by the economic crisis. Certainly every cloud has a silver lining. )

I wish I had known about the term liquidity injection when I was a teenager or a young adult in college. Instead of saying, "Dad, I need some cash again," I could have said "Dad, I need a liquidity injection please." Sounds so much better, doesn't it?