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Right but that's why loans make sense. We know the assets are good quality but it will take time to liquidate them. Companies that can't wait for that to happen
by twblalock 4y ago
Right but that's why loans make sense. We know the assets are good quality but it will take time to liquidate them. Companies that can't wait for that to happen will benefit from taking a loan to buy themselves time.
- readthenotes1 4y agoYes it's a good quality but have they been marked to market recently? Mortgages at 3% aren't worth near as much as they used to be. Ditto treasuries at 1%. If they bought them near the peak value what they can actually sell the income streams for is going to be a lot less than what they paid.
- twblalock 4y agoYeah but they will get some money for them. Plus there might be some other options. The FDIC is going to try whatever they can, and it's only been a day. In the meantime, impacted account holders can get their IOUs and borrow money to make payroll.