I didn't say (write actually) that assets are cash.
I asked who would force the banks into bankruptcy and suggested that not doing so (immediately) might have been better than a total financial system collapse, which was supposedly the only other alternative to the massive cash infusions.
When I run out of cash or my liabilities exceed my assets (short term or long term), no one shuts me down immediately. I keep collecting cash and spend it as it comes in. The folks who I owe money to aren't happy when I skip payments, and eventually that affects my ability to do biz on anything other than a cash-basis, but there's no immediate shutdown.
In fact, most US bankruptcies are initiated the debtors, not the creditors, so the debtors can get out of unprofitable deals. (This isn't true in the UK.)
But we treat banks differently. As soon as they reach certain financial "targets", we shut them down. This is a choice that has consequences.
I asked who would force the banks into bankruptcy and suggested that not doing so (immediately) might have been better than a total financial system collapse, which was supposedly the only other alternative to the massive cash infusions.
When I run out of cash or my liabilities exceed my assets (short term or long term), no one shuts me down immediately. I keep collecting cash and spend it as it comes in. The folks who I owe money to aren't happy when I skip payments, and eventually that affects my ability to do biz on anything other than a cash-basis, but there's no immediate shutdown.
In fact, most US bankruptcies are initiated the debtors, not the creditors, so the debtors can get out of unprofitable deals. (This isn't true in the UK.)
But we treat banks differently. As soon as they reach certain financial "targets", we shut them down. This is a choice that has consequences.