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> The best way to prevent a bank run is not to run No, the only way to prevent a bank run is to get everyone else not to run. And since that's impossible, the
by quesera 4y ago
> The best way to prevent a bank run is not to run
No, the only way to prevent a bank run is to get everyone else not to run.
And since that's impossible, there's only one rational choice to make, which is to be first out the door.
This is bad! But it's true.
- deleted 4y ago[deleted]
- NineStarPoint 4y agoMetaphorically you should aim to be the second out the door really. It’s the first person out the door who starts the run, and starting the run is rarely rational. Once the run has begun, yeah you should aim to be out the door fast. Unfortunately it’s very rare to have the knowledge and/or connections necessary to guarantee that you can not instigate a run, but still withdraw before the collapse.