What are the signs of a liquidity crisis?

With the likelihood that the Federal Reserve will increase interest rates sometime before the end of the year, and the imposing financial crises in Greece and Puerto Rico, Bill Gross (formerly of PIMCO with $1.6 Trillion in Assets) makes some very interesting comments about liquidity problems facing fixed income investors.  The Dodd Frank regulatory changes affecting “to big to fail” banks have transferred that risk to large institutions that are less regulated, like PIMCO, Met Life, Black Rock and Prudential.  As interest rates rise and bond prices decline a situation where to many fixed income investors are leaving the market at the same time could create a liquidity crisis.  Here is the link to an interesting article from CNBC.