3 ms·
It’s hardly the image of stability but saying people only have $4500 and it’s the Fed’s fault is wrong in two ways.
by arcticbull 4y ago
It’s hardly the image of stability but saying people only have $4500 and it’s the Fed’s fault is wrong in two ways.
- klyrs 4y agoProblem being that total assets does not measure liquidity. That people only have $4500 of cash is a significant problem if they have a relatively minor emergency. Especially in the US, where a $4500 hospital bill is pretty cheap.
- deleted 4y ago[deleted]
- arcticbull 4y agoSure, but you can't mark 100% of non-cash net worth as completely illiquid. You can borrow against the value of your home, borrow against the value of your 401(k), sell your stock. If you need a few days to move money around, there's credit cards. Personal loans. It really depends on what you're trying to measure.