The failure of some banks to make payments also disrupted the payments coordination by which banks use incoming payments to fund their own transfers to other banks. Once a number of banks began to be short of incoming payments, some became more reluctant to send out payments themselves. In effect, banks were collectively growing short of liquidity.
2 Some even argue that forward earnings guidance can be harmful, focusing both financial market and company management attention on a short-term “numbers game” at the expense of long-term business fundamentals.