Erm... not quite. in the Insolvency vs Illiquidity stakes, 2008 was all about Insolvency. That's why the government stepped in and bought the mortgages from th

Erm... not quite. in the Insolvency vs Illiquidity stakes, 2008 was all about Insolvency. That's why the government stepped in and bought the mortgages from the banks - if the banks had had to account for the losses on those loans it would have brought down the entire system.