Terms related to Sub-prime crisis

Before getting into this to topic I would like to discuss on some of the terms which is very closely related our subject

Liquidity: This term can be mainly related to assets, which can be easily disposed. The assets are often termed as liquid assets especially due to their free disposable nature. Cash in hand, deposits, investments, stocks and shares, tangible & intangible assets are some of the liquid assets . Thus it is very clear that cash can be the best liquid asset & assets like building can be considered as rigid ones, which cannot be disposed at ease

Liquidation: this term is mostly related to banking and other lending institution where it is practically practiced. It refers to giving up of the liquid assets for the dues accumulated in return with a small loss.