4 ms·
You are part of the panic stocking problem
by teddyuk 7y ago
You are part of the panic stocking problem
- lucasmullens 7y agoHow is buying food before the shortage contributing to the panic stocking problem?
- brokensegue 7y agoThe same way withdrawing from a bank you expect to have a bank run soon does? This is what causes bank runs.
- anfilt 7y agoHowever, the problem is if you don't try to get stuff before or during the panic you get screwed yourself. Its why its a dangerous feedback loop. If you don't join in you lose/ get negatively effected by it. Its kinda of a prisoners dilemma but at a larger scale.
- paulgb 7y agoThe difference is, a bank only has a certain amount of money, while a grocery store can turn over inventory on a daily or weekly basis. So if I stock up now before everyone else does, I can actually make less of an impact if and when there is an eventual need for everyone to prepare to stay home for a week.
- brokensegue 7y agoFunctionally the grocer has a limited supply also because there is only so much production/shipment capacity. I agree if you do it early enough your impact is minimal. But if you withdraw early enough from a bank then the bank can in theory safely exit from its positions and become more liquid