Illiquid assets

I

Liquidity in financial markets has a great deal to do with adaptive equifinality under just-in-time performance, where finance professionals are able to assemble funds or other resources at the last moment, albeit not the same way or with the same options all the time even under so-called similar conditions.

Illiquidity then can be seen as the drying up of adaptive equifinality, where the flexibility to assemble options under the pressure of time dissipates. Illiquidity in recent financial crises, for example, has been about the inability of credit markets to meet their basic reliability requirement of providing credit at any time, including just-for-now.

Here illiquidity becomes the inability of finance professionals to maneuver across different performance modes as conditions change. They are stalled in their maneuvering.

II

So what? The climate emergency offers the prospect of today’s critical infrastructures being tomorrow’s stranded assets. Power plants for coal generation will stand empty of any use, the ultimate illiquid asset.

But “asset”? The status of asset implies uses that have been stalled, not stopped for all time. Who then sees “stop” that far ahead?

“It is obviously a highly complex phenomenon that needs global cooperation as a response as well as a holistic approach because the potential collapses are interrelated”? Each word is written as if it were illiquid, resolute, placed there to resist being pushed around or over, when in fact, to shift to a liquid metaphor: Each word is a cowpat to be stepped into so as to distract us from another fact, namely, different paths, as muddy as they are, actually have stiles for climbing over.

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