Do you remember the scene from It’s A Wonderful Life—only the best holiday movie ever—when George and Mary Bailey are cruising out of Bedford Falls on their well-earned honeymoon, only to notice a literal run on the banks (including the Bailey Savings and Loan, which George reluctantly operates)?
Well, as Mark Twain is attributed as having said, “History doesn’t repeat itself, but it does rhyme.” We saw, for example, a run on virtual cash in 2008 when the very first money market fund “broke the buck.” And while you might not have noticed it yet, because it just reached front-page status yesterday, there appears to be a liquidity crisis of smaller proportions playing out right now in the high-yield “junk” bond market.
Read the rest of the article on Forbes.