Arachis on Nostr: Bank runs are an inevitable consequence of fractional reserve meeting unpredictable ...
Bank runs are an inevitable consequence of fractional reserve meeting unpredictable and uncontrollable world crises, magnified by human panic and self-preservation instincts when confronted with such crises.
When a crisis hits, people will want to get their money back under their control, and banks are incapable to give the cash back due to fractional reserves.
For any bank, a bank run on it is not a matter of "if", just "when".
Published at
2023-03-12 18:10:02Event JSON
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"content": "Bank runs are an inevitable consequence of fractional reserve meeting unpredictable and uncontrollable world crises, magnified by human panic and self-preservation instincts when confronted with such crises.\nWhen a crisis hits, people will want to get their money back under their control, and banks are incapable to give the cash back due to fractional reserves.\nFor any bank, a bank run on it is not a matter of \"if\", just \"when\".\n",
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