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The problem is that everyone now thinks of the haircut and flees any bank that its a fortress to make sure they don't face a haircut. I.e. you have a bank run
by throwawaysleep 4y ago
The problem is that everyone now thinks of the haircut and flees any bank that its a fortress to make sure they don't face a haircut.
I.e. you have a bank run on every bank under the largest 10.
- actuator 4y agoIf we are so fearful of this, and banks are so core to the economy, why not just have government owned banks then, since it seems like government has to subsidize mismanagement.