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Europe: The Problem Is Solvency, Not Liquidity
Europe is today the most talked about political and economic issue. Yet nearly 90% of the conversation is about fixing Europe´s "liquidity problems". People are talking about the wrong problem of "liquidity". It is the "solvency" issue which will soon explode in Europe, and affect the rest of the world. First, why is this a solvency and not a liquidity problem? Solvency is about going bankrupt because of losses that cannot be covered by capital. Liquidity is a problem where a firm (or country) has a short-term lack of necessary cash to meet obligations. Most of the Southern European countries are going broke for ... (full story)