[runawaybottle]

Banks collapsing in this crisis exacerbates confidence issues. The market operates on perceived confidence. There are already morons, sorry, my misanthropy is just peaking lately, the general public are already withdrawing cash from banks, stocking up on toilet paper. A real intellectual bunch we’re talking about here.

Whether things are solvent or not, right now everything has to look like it’s totally under control. Perception is very critical here.

[waterhouse]

So, if a couple of banks collapse and many people lose confidence, then exactly who gets hurt and how? If a bunch of "morons" go pull their money out of a bank, that might ruin the bank, but FDIC insurance is supposed to protect against the worst of that. What's the path that leads to the "entire US economy dying"?

[runawaybottle]

https://en.m.wikipedia.org/wiki/Great_Depression

[notriddle]

Yes, I think most folks here know what a back run is. The FDIC was instituted after the Depression specifically to limit the damage caused by bank runs.

[manigandham]

Better to avoid the damage in the first place.