On the liability side of the balance sheet, to balance that, we create reserves in the banking system.
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Imagine the potential for trouble monetizing this giant liability side of the balance sheet while selling the asset side to mop up the cash again.
Analysts focus on a balance-sheet liability called deferred revenue.
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Roughly half of this shortfall finds its way onto the balance sheet as a liability. gm is allowed to amortize actuarial losses that make up the other half of the unfunded portion.
Raymond Greaves, an analyst with Merrill Lynch, has calculated that, in March, there were around euro4 billion of net prepayments on the liability side of Alstom's balance sheet for which he cannot clearly identify liquid assets.
The difference is that the 1979 move targeted money and, by implication, bank reserves, on the liability side of the Fed's balance sheet.
But central bank balance sheets are ultimately the liability of taxpayers: only elected governments have the legitimacy to decide what fiscal risks should be borne by citizens.
That is, the problem is deemed to be giving banks too much discretion on the asset side of the balance sheet, when the liability side is insured.
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An augmented personal balance sheet depicts pledges as a liability with the same force on the grantor as any other debt.
An accounting change last year raised the liability of unused frequent-flier miles on company balance sheets and gave airlines more incentive to get miles off their books.
Here, too, you can see how setting it up on a balance sheet allows you to better examine the nature of the liability.
Indeed, when foreign capital stampedes, its impact on the balance sheets of banks and private enterprises, when they have large unhedged foreign liability, can be devastating, as seen in East Asia.
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