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Old 07-19-2008, 05:54 AM   #12 (permalink)
schola
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Join Date: Nov 2007
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Quote:
Originally Posted by ThoughtAddict View Post
Solvency occurs when there are more assets than liabilities. Lack of confidence for banks leads to less assets and greater liabilities, as well as significantly decreased income and inability to obtain private financing. It is absolutely tied in with confidence.
The commercial and investment banks are just one piece of the entire wall that is currently crumbling.
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