Those who invested billions in bad business ventures and are nearly bankrupt need to borrow more money to pay their creditors. In dismay they find their credit is no longer good and no one will lend them money. They go to the president and complain about a liquidity crisis. If you do not help us they continue, ...the economy will go down.

WAMU" failed. The Feds take it and they will reopen within a few days for depositors to get to their Federally insured accounts (FDIC). If it is like what happened in 1989 with the RTC the corporation will manage the assets until the collateral behind foreclosed loans can be auctioned off. I recall most of the property was disposed of within a couple of years. There was not a bailout for evey investment bank, or corporation that was not FDIC insured. It would be better to give everyone 2300 dollars than to give it to CEO's and management that committed such a dihonorable business practice as to lose 100's of billions of good money on real estate speculation.

Those with immaculate credit ratings and friends find no liquidity crisis.

Those who have not maxed out their credit cards find they have liquidity if they can afford high interest rates.

Those not on margin might get money at 10% from their brokers if they have stocks as collateral.