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The EU calmly turned off the liquidity tap at the European Central Bank, and refused to give a penny of additional financial support until Greece complied.
The majority of these gains were "paper" profits on long-term contracts, rather than cash that could have helped Enron stave off the liquidity crisis that led to its collapse last fall.
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Some bridging arrangement, whether arranged as a loan from creditors or via the issue of a bond securitising anticipated revenues, will stave off the immediate liquidity crunch and postpone bankruptcy.
The rush to the doors threatened a classic asset price spiral, so instead the property funds have cut off the investor's liquidity.
G.E., according to analysts and institutional investors, will not face the huge write-downs of financial asset values that sets off a liquidity crisis — the downward spiral seen at the failed investment banks.
Thus far, there's little indication that those central banks, including the Federal Reserve in the United States, will turn off the spigot of cheap liquidity.
This artificially low interest rate set off the mother of all liquidity cycles.
Aside from the economic fundamentals, many analysts worry that Europe's credit issues could set off another liquidity crisis in the global financial markets, similar to what transpired in the wake of Lehman Brothers' collapse in 2008.
Both companies are suffering from problems related to tighter credit as Wall Street banks and brokerages increase margin demands and pull their lines of credit from these and other similar mortgage companies, effectively turning off the spigot of capital and liquidity.
Investors trade off their liquidity needs against the high returns on illiquid investments.
Corporations are not going to do it: they are cutting investment and hoarding cash in the hope of staving off a liquidity crisis or even bankruptcy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com