Illiquid, Overvalued

As "dip buyers" get eviscerated, more dominos fall, and at a tipping point, the herd realizes the tide has reversed and it's time to sell--but alas, it's too late.

Illiquid, Overvalued describes a great many assets that are on the books as "rock-solid investments." Illiquidity means there are few if any buyers for the asset being offered for sale, and this can arise from various conditions.

1. Credit is tight and expensive, limiting the pool of potential buyers to those with cash.

2. Nobody wants the assets because …