π♥er, that’s actually fairly easy. Imagine Baldo on payday, he’s generous with his money; he buys the snacks for all his friends, and makes no-interest loans to anybody who might ask for one. He isn’t thinking about what other expenses he might incur before his next check. He ends up scrambling for bus fare, not because he’s “broke” in a technical sense (the amounts he’s owed are assets of a sort), but because he has no liquidity. I’ve done that myself.
π♥er, that’s actually fairly easy. Imagine Baldo on payday, he’s generous with his money; he buys the snacks for all his friends, and makes no-interest loans to anybody who might ask for one. He isn’t thinking about what other expenses he might incur before his next check. He ends up scrambling for bus fare, not because he’s “broke” in a technical sense (the amounts he’s owed are assets of a sort), but because he has no liquidity. I’ve done that myself.