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There isn’t a liquidity crisis. The government debt that triggered all this is highly liquid. The banks have a solvency crisis. Hence the cash giveaway disguise
by bradleyjg 4y ago
There isn’t a liquidity crisis. The government debt that triggered all this is highly liquid. The banks have a solvency crisis. Hence the cash giveaway disguised as a lending program.
- lazide 4y agoKinda right? A bank which is insolvent/bankrupt but has plenty of cash on hand doesn’t need this, only banks which are both insolvent AND need to recognize that fact because they don’t have cash on hand to meet current withdrawals? Otherwise they can keep Wil-E-Coyote’ng off the cliff for quite awhile longer as long as they don’t mark to market.