|
|
|
|
|
|
by zarzavat
1198 days ago
|
|
|
Let’s say I owe $100. If I have assets worth $110 today but they are locked up, and I have to pay back what I owe today, then I’m facing a liquidity crisis. If I have assets worth $90 today, but $110 in a few years, and I have to pay back the money I owe in a few years, then I’m solvent and everything is good. If I have assets worth $90 today, but $110 in a few years, and I have to pay back what I owe today then I’m insolvent. |
|
|