It is possible that the government insurance agencies may have to receive some taxpayer funding to meet all their obligations, but the existence of the insurance should provide adequate public assurance to discourage bank runs.
Some banks are solvent; some aren't. A situation where 10% of banks are found to be insolvent and the others solvent would be better than a situation where only 5% of the banks are believed to be insolvent, but nobody knows which 5%.
“Some banks are solvent; some aren’t. A situation where 10% of banks are found to be insolvent and the others solvent would be better than a situation where only 5% of the banks are believed to be insolvent, but nobody knows which 5%.”
That’s what I’ve wondering - how does it break down?
And are the banks so interconnected that any bank can escape a panic?
Or is there such a thing as a rock solid bank that is insulated from all this?
But now I’m babbling from lack of sleep.
Ahh hell ...all I can do is stock up on food and medicine and watch the news anyway.
Good night to you!