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Over what time scale delineates the two? If they were say, 1000 year bonds, would you feel the same? I don't know the answer, but I see both sides. As of tod
by silisili 4y ago
Over what time scale delineates the two? If they were say, 1000 year bonds, would you feel the same?
I don't know the answer, but I see both sides. As of today, their liabilities exceed their assets worth, so it does feel like solvency fits.
- weixiyen 4y agoyep, it's a solvency issue. The minute they tried to offload the bonds at a price lower than they paid for them (which seemed like the right thing to do to fix the liquidity issue), they were effectively in a hole and even if they waited 10 years later, would not have been able to cover the deposits. They NEEDED to raise capital. Their liabilities > assets. They were 100% insolvent.