Liquidity means you can easily find a buyer or seller. In what circumstance would this not be a good thing? You get minimal markups (bid/ask spread), you can ge

Liquidity means you can easily find a buyer or seller. In what circumstance would this not be a good thing? You get minimal markups (bid/ask spread), you can get in and out of trades quickly, and you can easily determine the market value of your securities. Housing is totally illiquid: there's a big broker fee, it takes a while to sell your house, and you can only guess at its true value by comparing to recent sales of similar houses. There's some weird cases in global markets where liquidity allegedly causes problems.