Amber Alert In The Casino: Liquidity Gone Missing!

With stocks resuming their plunge, an old market bogeyman has emerged – the same one which Bill Blain said earlier scares him the most, namely the lack of liquidity. And unfortunately, in a perverse feedback loop, the more equities drop, the worse the overall S&P liquidity, as the following chart from Barclays show, depicting the collapsing bid/ask size in the Emini, which is now do to the lowest on record.