Finmag (Finmag)
Finance  |  December 09, 2010 11:42:55

Bankrupt the European way (II): The magic of reformed sinners


The economic history knows almost countless cases of insolvency law. Country Newfoundland gained full independence in 1907. In 1933 it became clear that the accumulated debt in the size of about 330 percent of GDP. After a brief examination of the only possible solution left: to cancel. Others were more successful bankrupt. Spanish King Philip II. (Reigned from 1556 to 1598) declared insolvent four times. Yet always find bankers who lent him again. Why? More in the second episode.

The first episode of bankruptcy are European (I): Stories of War can be found here .

In the case of Newfoundland was a solvency crisis: the government was unable to finance the debt under any circumstances. Revenues were less than expenditures and could not be increased. Philip II. by contrast, was essentially solvent - his kingdom was rich, but he sometimes ran out of money. In such cases we are talking about a liquidity crisis. It might also know: do not suffer from poverty, you have a decent income, but by far and payment wallet is empty. Liquidity is missing. Conversely, you may be insolvent with a full wallet. Just make twenty thousand to spend twenty thousand. You can still be liquid but insolvent long. Your personal finances need reform. Debt Busters.

Solvency and liquidity

Continuation of article here http://www.finmag.cz/clanek/24037/

Tyto zprávy pro vás vytváří Finmag.cz.
Was this article: 10 | 8 | 6 | 4 | 2 | 0


Last news from the section Finance:

28.02.2012  How America traded 28th Second 2012 Grant Capital (Grant Capital)
27.02.2012  How America traded 27th Second 2012 Grant Capital (Grant Capital)
27.02.2012  Evropské burzy oslabují, pražská burza udržela úroveň z konce minulého týdne Investiční bankovnictví (Komerční banka)
27.02.2012  ECB už 2 týdny nekoupila žádné vládní dluhopisy Vladimír Urbánek (Kurzy.cz)

Read also:

March 13, 2017Trhy začínají obracet, Trumpovo kouzlo se vytrácí Patria (Patria Online)
December 14, 2016Také zimní grilování má své kouzlo Jana Brožková (Bydlet.cz)
April 04, 2014Zahradní kouzlo najdete po setmění Jana Brožková (Bydlet.cz)

Bankrot po evropsku (II): Kouzlo napravených hříšníků

Diskuze a názory

Na dané téma nejsou žádné názory.


Zobrazit sloupec 
Moner | ISIN database | Weather forecast
Česká verze
Kurzy.cz - Akcie cz, kurzy měn, forex, zlato.
Favorite: Prague Stock Exchange Czech crown Czech economy Commodities Gold Trademarks Prague Weather

Copyright © 2000 - 2017

Kurzy.cz, spol. s r.o., AliaWeb, spol. s r.o.,

ISSN 1801-8688