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Yeah it seems obviously risky. A small bank gets a little insolvent and so it gets absorbed by a larger bank. This system works fine when there’s a larger bank
by aqme28 3y ago
Yeah it seems obviously risky. A small bank gets a little insolvent and so it gets absorbed by a larger bank. This system works fine when there’s a larger bank to absorb them, but it’s obviously untenable. What happens when the largest bank needs saving?
- worldsayshi 3y agoIt gets absorbed by the government?
- ImHereToVote 3y agoRobin Williams had a fairly accurate depiction of what happens. https://www.youtube.com/watch?v=etQeFJ2lbbo https://www.youtube.com/watch?v=etQeFJ2lbbo
- aqme28 3y agoFeels more like this Futurama bit: https://youtu.be/0SYpUSjSgFg?t=66 https://youtu.be/0SYpUSjSgFg?t=66
- bullfightonmars 3y ago> Just like daddy puts in his drink every morning ... and then he gets mad.
- __MatrixMan__ 3y agoPeople stop accepting dollars. It's about time for something new anyway.
- ant6n 3y agoBut if theres only one bank left and theres a bank run, where would people panic-transfer their money? It cannot go anywhere else! …see, the one big bank cannot fail.