> if you could have valued their government bonds at face value rather than market value, they had plenty of money
that is not technical definition of insolvency. if you can cover your debts but need time to do so, thats the definition of being illiquid, not insolvent.
my understanding of their books is that they could not cover their debts. the change in market conditions drove down their bond portfolio to the point of insolvency.
that is not technical definition of insolvency. if you can cover your debts but need time to do so, thats the definition of being illiquid, not insolvent.
my understanding of their books is that they could not cover their debts. the change in market conditions drove down their bond portfolio to the point of insolvency.