I'm not sure that experiments have ever been done on humans to test this though, there are certainly some that have been tested on other mammals such as mice and they can breathe in liquids for a time but will usually die of pulmonary or respiratory problems relatively shortly afterwards (assuming they survive the initial dunking). So at the moment it looks unlikely you could utilise liquid breathing, at least for diving, but who knows what future advances may bring.
It's to do with the lungs ability to flush enough liquid through the system and at the same time transport the required gases across the lung surface.
Liquid is too viscous to breathe without effort. With effort you produce too much C02 for the liquid to exchange