Sound familiar? Dexia (DXBGY.PK) "has a problem of liquidity, not of solvency," a French...

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7footMoose Comments (2242)
 
This is always the first problem for banks. It occurs when depositors demand their funds (deposits) and the assets (loans) cannot be either sold or collected quickly enough to meet those demands. This in turn leads to a loss of confidence which accelerates the problem. Adios!
4 Oct 2011, 06:46 AM Reply Like

Michael Stuart Comments (149)
 
But remember "this is not 2008" :).
4 Oct 2011, 06:51 AM Reply Like

SA Editor Stephen Alpher Comments (496)
 
Translation: Dexia has a problem of solvency not liquidity.
4 Oct 2011, 07:07 AM Reply Like