4 ms·
The way to prevent bank runs is to prevent banks from becoming insolvent in the first place. Making it illegal to take funds out of an insolvent bank is not the
by initplus 4y ago
The way to prevent bank runs is to prevent banks from becoming insolvent in the first place. Making it illegal to take funds out of an insolvent bank is not the answer.
- hermannj314 4y agoI think you can do both. However, when/if a bank becomes insolvent, it seems archaic that one depositor should get 100 cents on the dollar and another 80 on the dollar instead of each 90 (assuming equal accounts, etc.) Your place in line shouldn't really matter, these aren't Taylor Swift tickets.