IrnBru

4 ms·

1. 1.▲
   by IrnBru 4y ago

   Because that isn't a physical law.. it's a metric.
2. 2.▲
   by IrnBru 4y ago

   Of course I am being simplistic and a run can occur precisely because there is more than one bank... But on the international transfer thing... you selling USD and buying EUR doesn't result in the creation or destruction of any USD or
3. 3.▲
   by IrnBru 4y ago

   That is irrational behaviour. Depositors should spread their cash across multiple banks. This is very basic risk management.
4. 4.▲
   by IrnBru 4y ago

   Not true. Imagine there was only ONE bank.
5. 5.▲
   by IrnBru 4y ago

   Borrowing short term and lending long is what all banks do. The problem here is a lack of diversification.