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Goldman "liquidity is the new leverage"

Goldman conclude that, when it comes to market risk factors, "liquidity is the new leverage" in a world in which HFTs are the marginal price setters

Fast forward to today when Goldman strategist Charles Himmelberg is back with a new report, which picks up where his last piece left off, defining "Liquidity as the New Leverage", and asking - rhetorically - "Will Machines Amplify the Next Downturn?"

The answer, of course, is "yes" as we have warned non-stop for almost 10 years now, but it is always gratifying to hear some non-tinfoil hat-wearing Goldmanite, i.e. FDIC-insured recipient of taxpayer bailouts, confirm it

Fotnot: High-frequency traders (HFTs)

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