Are the fundamentals of our economy strong?

In a word, no. Liquidity, employment, cost of goods, housing, banking… all in the toilet.

Just curious what you mean by “liquidity” PnP.

I would comment that saying “in a word, no” is a bit simplistic. Are we in a challenging time? Yes. Does that mean the fundamentals of our economy are not strong? No. Not necessarily.

Liquidity = the ability of debtors to pay their debts. And by “debtors,” I mean individuals, companies, corporations, and the Federal government.

I have always looked at liquidity as the ability to turn assets into cash.

I was always taught what Sueanne_Tremendous said. My computer is more liquid than my house.

So is my wine collection. Funny, in times of trouble one never has problems liquidating feel-good items…..

Liquidity means the ability to exchange the asset for dollars. Your home is not liquid (it could take months to sell) stock is liquid since you can sell it any time.

I think pupntaco meant to use the term Solvency.

American Heritage New Dictionary of Cultural Literacy, Third Edition

liquidity

The condition of having enough money on hand to meet financial obligations without having to sell fixed assets, such as machinery or equipment.

Liquidity
1. The degree to which an asset or security can be bought or sold in the market without affecting the asset’s price. Liquidity is characterized by a high level of trading activity.

2. The ability to convert an asset to cash quickly.

Notes:
1. It is safer to invest in liquid assets than illiquid ones because it is easier for you to get your money out of the investment.

2. Examples of assets that are easily converted into cash include blue chip and money market securities. Also known as “marketability”.

http://financial-dictionary.thefreedictionary.com/liquidity

I rest.