Bloomberg: Liquidity vs. Solvency – Prioritizing Liquidity Over Solvency will Determine Anti-Crisis Policies and Define the End-Game

09 Alexander Mirtchev Nina De Roy BloombergMirtchev, A. (2008, October 4). Liquidity vs. Solvency – Prioritizing Liquidity Over Solvency will Determine Anti-Crisis Policies and Define the End-GameBloomberg.

Dr. Alexander Mirtchev analyzes the varied responses to the current financial crisis on Bloomberg Television. Mirtchev considers the crisis to be more of a solvency and asset quality crisis rather than a liquidity crisis, and that government intervention in the markets by several countries ignores this issue at the peril of a number of unanticipated results in the ultimate end game post-crisis. On the other hand, continuing market reforms in some emerging markets could help alleviate the effect of the financial crisis and provide new leverage towards achieving global economic security equilibrium, as these markets are well positioned to effect remedies, if their leadership stays the course of economic reforms and modernization.