ABSTRACT
G. A. Akerlof's "markets for lemons" is not the only a simple example of the tricky world of economics. There are many other misleading practices. For the vast majority of the world, liquidity engineering through interest rate reduction was an amazing decision that would lead to a high rate of credit expansion. By producing feasibility, liquidity creates economic growth. An average interest rate over a number of years may be used as an estimation for a discount factor. One of the most famous mathematicians in history is Bayes, father of the Bayesian probability rules. The theories of Bayes laid the groundwork for modern risk assessment. The cycle of risk and profitable opportunities is almost the opposite of liquidity or liquidity-based mood cycles. Shipping investors who can maintain liquidity through the depression may benefit from cheaper shipping assets and asset play. Every shipowner tells the same story: buy cheap, sell high, and win in asset play.
