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by JumpCrisscross
820 days ago
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> there doesn't need to be a bank run for that to happen, and if at that time nobody wants to lend, they are dead Yes. This is what we have been discussing. This is solved. What you describe happened a year ago. If the bank isn’t insolvent—if it’s just a liquidity issue—that is a solved problem with deposit insurance in America. We fold it, put it into receivership, everyone keeps banking, next day is stressful for accountants. Even without the central bank’s involvement. |
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