3 ms·

The GP did not use the term liquid, they used the term solvent.

• ceejayoz 4y ago
  I quoted you, not them.
  • FollowingTheDao 4y ago
    I did not use the term liquidity. But if you are not liquid you are insolvent. I mean, why is it banks get to use these terms to hide debt and the average person does not? If I have huge credit card debt that I cannot payoff in time the bank does not excuse me for my "liquidity", they say I am a risk and charge me higher interest rates.
    • ceejayoz 4y ago
      > I did not use the term liquidity. You showed a misunderstanding of the difference between solvency and liquidity. > But if you are not liquid you are insolvent. No, you're not. I am not liquid enough to pay off my mortgage. I remain solvent. > If I have huge credit card debt that I cannot payoff in time the bank does not excuse me for my "liquidity", they say I am a risk and charge me higher interest rates. Now you're confusing both solvency and liquidity for a third thing. If you can't make your minimum credit card payment, you now have a liquidity crisis (which will result in a late payment fee and penalty APR), and potentially a solvency one (which may result in bankruptcy).
      • lamontcg 4y ago
        There's both cash insolvency and balance sheet insolvency.