However, as we recovered from the 2001 slowdown and from 11 September, the U.S. economy was hit by a fourth shock - loss of confidence in the integrity of financial reporting and analysis as a result of Enron, WorldCom, and other accounting and corporate governance scandals.
The point is rather than in the current “new world” in which market and funding liquidity can be highly interdependent, liquidity interventions aiming to ease the impaired functioning of the money market can also alleviate funding liquidity concerns and contribute to prevent that, in extreme cases, protracted illiquidity develops into lack of solvency.