{"id":176469,"date":"2020-06-08T20:19:00","date_gmt":"2020-06-09T01:19:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2020\/06\/08\/one-word-makes-a-big-difference\/"},"modified":"2020-06-08T20:19:00","modified_gmt":"2020-06-09T01:19:00","slug":"one-word-makes-a-big-difference","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2020\/06\/08\/one-word-makes-a-big-difference\/","title":{"rendered":"One Word Makes a Big Difference"},"content":{"rendered":"<p>The head of Fidelity International, Anne Richards, is <a href=\"https:\/\/www.ft.com\/content\/d6fd7d11-c06e-4e88-82a7-87465c84a120\">predicting a global insolvency crisis<\/a>.<\/p>\n<p>The important thing here is that she says that there will be a <b>SOLVENCY<\/b> crisis, and not a <b>LIQUIDITY<\/b> crisis.<\/p>\n<p>This is important.<\/p>\n<p>If you are illiquid, you lack the necessary cash to make payments right now, but if you are insolvent, you owe more than your assets.  <\/p>\n<p>If you are insolvent, you are broke, bankrupt, or busted.<\/p>\n<p>Absent a bailout or buyout (usually at a discount) an insolvent operation is done.<\/p>\n<p>It is much worse than a liquidity crisis, and it&#8217;s what happens when corporations burn through their assets buying up their own stock instead of investing in the business.<\/p>\n<p>If she is right, and I&#8217;m inclined to believe that she is, his is going to get ugly, with zombie companies holding back the econom for years.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The head of Fidelity International, Anne Richards, is predicting a global insolvency crisis. The important thing here is that she says that there will be a SOLVENCY crisis, and not a LIQUIDITY crisis. This is important. If you are illiquid, you lack the necessary cash to make payments right now, but if you are insolvent, &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[392,456,458],"class_list":["post-176469","post","type-post","status-publish","format-standard","hentry","tag-economy","tag-finance","tag-recession"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/176469"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=176469"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/176469\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=176469"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=176469"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=176469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}