4 ms·
No bank can survive 20% of depositors wanting their money over 3 months. Those long-term assets (aka loans) aren't guaranteed, realisable to pay creditors nor
by ShorsHammer 8y ago
No bank can survive 20% of depositors wanting their money over 3 months.
Those long-term assets (aka loans) aren't guaranteed, realisable to pay creditors nor of fixed value.
- JumpCrisscross 8y ago> Those long-term assets (aka loans) aren't guaranteed They can be sold to the Federal Reserve at its discount window. That's a founding reason for the Fed's existence. Ensuring liquidity crises don't prompt solvency ones.
- ShorsHammer 7y agoSocialised losses for private gain is acceptable I guess?