When the survival constraint bites
Financial Times article being discussed: US Panel’s Report Reflects Partisan Rift (Jan 30, 2011)
If you can’t roll your funding as it comes due, you are dead. That is what Hyman Minsky called “the survival constraint."
From this point of view, the crisis looks like a series of ratchet steps down into the abyss, as the survival constraint shifted from one player to another—fail or bail? —until essentially the entire financial system was on life support provided by the only entity that does not face a survival constraint, the Fed.