Oh, you sweet summer child. You don't see runs on banks because people believe their money is safe. Full stop. As soon as that belief is broken, a run is guara

Oh, you sweet summer child. You don't see runs on banks because people believe their money is safe. Full stop. As soon as that belief is broken, a run is guaranteed. This is why we have deposit insurance, and why the fed just effectively made it unlimited. If they hadn't, every small bank in the country would now be experiencing a run, including those in "the traditional banking sector". What changed late last week is not any fundamental of the economy or banking sector, but people's belief in the safety of banks.