Ahw, what the hell; twice already, today, so why not make it thrice?
I have this all figured out. A "liquidity crisis" like this is what happens when motherfuckers don’t pay their bills. Other motherfuckers run out of money that they would have had, otherwise.
Good. Now the parental filters can work overtime.
…Anyway, it certainly sounds distilled and to the essence, but I think it’s actually worse (i.e., more alarming) than that. Any sound business should have no problem at all with some measure of defaulted obligations (under 5% ought to be a cake walk).
In the old days, a "liquidity crisis" meant that as a business, you have too many assets in a form not easy or quick to get to ("liquidate") like capital plant & equipment, versus more liquid assets like cash (king), short-term receivables, securities, and perhaps even an operating line of credit.
Today, "liquidity crisis" means that virtually everything including the kitchen sink is mortgaged, and even still, it isn’t enough.