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That didn't prevent multiple runs against Washington Mutual in 2008, and it won't prevent runs now. People are worried that they won't be able to get to their m
by twblalock 4y ago
That didn't prevent multiple runs against Washington Mutual in 2008, and it won't prevent runs now. People are worried that they won't be able to get to their money even if it is insured.
Plus, even if the "typical" consumers don't freak out, businesses might. There are a lot of businesses with accounts over the FDIC limit. Only about 60% of bank deposits in the US are insured.
- chrisdfrey 4y agoRight, and the clientele of SVB was largely businesses. Only 7% of SVB deposits were FDIC insured, making them extra vulnerable to bank runs.
- flangola7 4y ago>People are worried that they won't be able to get to their money even if it is insured. If the US government is unable to cover those claims then you have much bigger problems to worry about.
- notch898a 4y agoIf I thought the US government was going to fail I'd simply try to be the first to convert my dollars to a dense and valuable commodity, like gold, and then find another government to live under. It's not like people pulling out dollars have to keep their wealth in dollars.
- antihipocrat 4y agoIf it ever got that bad a can of beans would be worth more than almost anything.
- ThalesX 4y agoNot the first failing empire in the history of the world...
- heisenbit 4y agoThe ability to mint money is unlimited. The ones being eventually bailed in will be foreign debt holders via inflation.