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Look at what happened in 2008 with banks collapsing - by having runs upon them. This is being done via postal withdrawals here. This isn't obscure.
by pasc1878 2y ago
Look at what happened in 2008 with banks collapsing - by having runs upon them. This is being done via postal withdrawals here.
This isn't obscure.
- vitus 2y agoOr more recently, the run on SVB last year where everyone started panicking that the bank was no longer able to hold its deposits, just because it announced that it had taken action to generate something like $40 billion in liquidity. And then the next day alone, customers withdrew $42 billion. All of this was much worse during the Great Depression, before we had FDIC insurance guaranteeing deposits up to a certain threshold. If you've ever seen It's a Wonderful Life, it depicts a bank run during that era as George Bailey is about to go off on his honeymoon. (I remember my 6th grade history teacher describing this as we watched that movie around the holiday season.) https://en.wikipedia.org/wiki/Collapse_of_Silicon_Valley_Bank https://en.wikipedia.org/wiki/Collapse_of_Silicon_Valley_Ban...
- everforward 2y agoThis is incredibly obscure for normal people. FDIC covers up to $250k, I believe per bank but don’t hold me to that. You have to have a metric shit ton of cash laying around before you can’t be fully covered by FDIC stripes across a few banks. Bank runs haven’t been a “normal person problem” in nearly 100 years (FDIC started in 1933 after the Great Depression bank runs).
- pasc1878 2y agoNot really the media were covering it a lot in 2008 - Front page headlines in newspapers and first story on TV news. Ok people did not lose money directly. But they were withdrawing from some banks (e.g. Northern Rock) and it made massive economic and political issues.