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The issue is that liquidity — the ability to meet short term obligations — and solvency — the ability of a corporation to meet long term obligations are not the
by happytiger 6y ago
The issue is that liquidity — the ability to meet short term obligations — and solvency — the ability of a corporation to meet long term obligations are not the same thing.
The fed has provided lots of liquidity. The crisis is in the “zombie corporation” question: the solvency.