Gilt Trip: Did UK government bonds almost blow up the financial system?
Many Happy Returns
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The Liquidity Crisis Can Turn Into Insolvency Crisis
A liquidity crisis can turn into an insolvency crisis, right? Because something which you thought was okay, which was essentially safe, suddenly falls to a value of 50. And that's going to send repercussions through all of the different asset market prices. If the Bank of England hadn't stepped in, I think for the shock, the kind of tsunami would have been that much higher and that much deeper.
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