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by toomuchtodo 1198 days ago
While it’s unlikely we’re going to see a meme stock moment, a bank run by a collection of risk adverse founders already facing a challenging macro pulling their deposits is entirely possible. And those cash balances are likely much more than 10k assuming runway liquidity.

https://news.ycombinator.com/item?id=35086853

https://news.ycombinator.com/item?id=35086888

1 comments

Yes but people rationally pulling money from a failing bank is very different than a subreddit banding together to kill the bank on purpose.
It really shouldn't matter. An elevator full of people shouldn't fail just because they all jump in unison, so long as the number of people / weight is below the maximum capacity.

We view banking differently because ultimately banking is political and powerful people benefit from being able to leverage without a pre-defined plan to handle some aspects of the downside risk, even though creating such a plan is straightforward. Creating such a plan would surface the cost of the plan in advance and it's easier to pretend it was an "impossible" and unanticipated phenomenon rather than just greed.