4 Reasons The Geithner Plan Won't Work

[lo_jack]

Originally Posted by X5rolls

Not sure I follow the durr comment. I'm a bit slow sometimes.

I don't think that people selling has to be the sole reason for the price drop - in fact you can have a big drop on small volume.

Yes, people are sitting on the sidelines with loads of cash.

What they are referring to here is that it's a solvency issue. Are there sufficient assets to cover the liabilities of these banks holding bad loans?

Good point about volume. I see the difference between solvency and liquidity, but even in my convoluted way it seemed like liquidity was not much of a problem.