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by tomato_123
1194 days ago
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If the securities can be easily liquidated then there's really no economic loss for these guys going under. The real economic cost of a bank run is the early liquidation of good firms. If all these small and medium banks just have to sell their liquid treasuries or MBS portfolios then no big deal. Whatever working capital they're providing is pretty straightforward for some other financial institution to provide. The rest is just transfers from one party to another, no need to intervene. |
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